EXHIBIT 4.2
EQUITY REGISTRATION RIGHTS AGREEMENT
DATED AS OF
JANUARY 2, 2002
BY AND AMONG
ALDERWOODS GROUP, INC.
AND
THE PERSONS LISTED ON THE
SIGNATURE PAGES ATTACHED HERETO
TABLE OF CONTENTS
PAGE
ARTICLE I. DEFINITIONS AND CERTAIN INTERPRETATIVE MATTERS.................................................1
1.1 Definitions....................................................................................1
1.2 Certain Interpretative Matters.................................................................4
ARTICLE II. SHELF REGISTRATION.............................................................................4
2.1 Filing of Shelf Registration Statement.........................................................4
2.2 Underwriting Procedures........................................................................4
ARTICLE III. DEMAND REGISTRATION............................................................................6
3.1 Right to Demand Registration...................................................................6
3.2 Blackout Period................................................................................6
3.3 Effective Demand Registrations.................................................................7
3.4 Revocation of Demand Registration..............................................................7
3.5 Continuous Effectiveness of Registration Statement.............................................8
3.6 Underwritten Demand Registration...............................................................8
ARTICLE IV. PIGGYBACK REGISTRATION.........................................................................8
4.1 Right to Piggyback.............................................................................8
4.2 Priority on Piggyback Registrations............................................................8
ARTICLE V. RESTRICTIONS ON SALE...........................................................................9
ARTICLE VI. PROCEDURES AND EXPENSES........................................................................9
6.1 Registration Procedures........................................................................9
6.2 Information from Stockholder..................................................................13
6.3 Suspension of Disposition.....................................................................14
6.4 Registration Expenses.........................................................................14
ARTICLE VII. INDEMNIFICATION...............................................................................15
7.1 Indemnification by the Company................................................................15
7.2 Indemnification by Holders....................................................................16
7.3 Conduct of Indemnification Proceedings........................................................16
7.4 Contribution, etc.............................................................................17
ARTICLE VIII. RULE 144......................................................................................18
ARTICLE IX. MISCELLANEOUS.................................................................................18
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TABLE OF CONTENTS
(continued)
PAGE
9.1 Notices.......................................................................................18
9.2 Assignment....................................................................................18
9.3 No Third-Party Beneficiaries..................................................................19
9.4 Entire Agreement..............................................................................19
9.5 Amendment and Waiver..........................................................................19
9.6 Headings......................................................................................19
9.7 Severability..................................................................................19
9.8 Governing Law.................................................................................19
9.9 Specific Performance..........................................................................19
9.10 Further Assurances............................................................................19
9.11 Counterparts..................................................................................19
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EQUITY REGISTRATION RIGHTS AGREEMENT
This EQUITY REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as
of January __, 2002 (the "EFFECTIVE DATE"), is made by and among Alderwoods
Group, Inc., a Delaware corporation (the "COMPANY"), and Xxxxxx Xxxxxx & Co.,
Franklin Mutual Advisers, LLC, GSCP Recovery Inc., GSC Recovery II, L.P. and
Oaktree Capital Management, LLC, as agent and on behalf of certain funds and
accounts, (each a "STOCKHOLDER" and collectively, the "STOCKHOLDERS").
RECITALS
A. The Company, its parent corporation, The Xxxxxx Group Inc.,
and certain of their debtor subsidiaries have filed with the United States
Bankruptcy Court in the District of Delaware the Fourth Amended Joint Plan of
Reorganization of Xxxxxx Group International, Inc., Its Parent Corporation and
Certain of Their Debtor Subsidiaries, dated as of September 10, 2001 (the
"PLAN").
B. Pursuant to the Plan and the transactions contemplated
thereby, each of the Stockholders has become the Beneficial Owner (as defined
below) of shares of common stock, par value $0.01 per share, of the Company
("NEW COMMON STOCK").
C. In accordance with the terms of the Plan, the Company desires
to provide for the registration of the sale by the Stockholders and certain of
their transferees of the Registrable Securities (as defined below) from time to
time, on the terms and subject to conditions set forth below.
AGREEMENTS
NOW, THEREFORE, in consideration of the foregoing and the covenants and
agreements herein contained, and intending to be legally bound hereby, the
parties hereto hereby agree as follows:
Article I. DEFINITIONS AND CERTAIN INTERPRETATIVE MATTERS
1.1 DEFINITIONS. For purposes of this Agreement, the following terms have
the following meanings:
(a) "ADVICE": As defined in SECTION 6.3.
(b) "AFFILIATE": As defined in Rule 12b-2 under the Exchange Act.
(c) "AGREEMENT": As defined in the introductory paragraph hereof.
(d) "BENEFICIAL OWNER" or "BENEFICIAL OWNERSHIP": As defined in Rule
13d-3 under the Exchange Act.
(e) "BUSINESS DAY": Any day, other than a Saturday or Sunday, on which
national banking institutions in New York, New York, are required to be open.
(f) "COMPANY": As defined in the introductory paragraph hereof.
(g) "EFFECTIVE DATE": As defined in the introductory paragraph hereof.
(h) "EXCHANGE ACT": The Securities Exchange Act of 1934, as amended.
(i) "HOLDERS": The Stockholders holding Registrable Securities and the
Permitted Transferees holding Registrable Securities.
(j) "INDEMNIFIED PARTY": As defined in SECTION 7.3.
(k) "INDEMNIFYING PARTY": As defined in SECTION 7.3.
(l) "LOSSES": As defined in SECTION 7.1.
(m) "NASDAQ": The Nasdaq Stock Market, Inc.
(n) "NEW COMMON STOCK": As defined in RECITAL B.
(o) "OTHER HOLDERS": As defined in SECTION 4.2.
(p) "PERMITTED TRANSFEREE": As determined with respect to each transfer
of Registrable Securities, any Person who (i) acquires from a Holder, in a
single transfer made in compliance with all applicable securities laws, either
(A) all of such Holder's Registrable Securities or (B) not less than 25% of such
Holder's Registrable Securities and, as a result of such transfer, has
Beneficial Ownership of 5% or more of the shares of New Common Stock then
outstanding and (ii) agrees to be bound by the terms of this Agreement;
PROVIDED, HOWEVER, that, as determined with respect to each transfer of
Registrable Securities, a Person shall also be a "Permitted Transferee" if such
Person (x) acquires from a Stockholder, in a single transfer made in compliance
with all applicable securities laws, not less than 25% of the Registrable
Securities issued to such Stockholder on the Effective Date pursuant to the
Plan, as adjusted for any securities paid, issued or distributed on such
Stockholder's Shares as contemplated by SECTION 1.1(v)(ii), and (y) agrees to be
bound by the terms of this Agreement.
(q) "PERSON": Any individual, corporation, general or limited
partnership, limited liability company, joint venture, trust or other entity or
association, including without limitation any governmental authority.
(r) "PIGGYBACK NOTICE": As defined in SECTION 4.1.
(s) "PIGGYBACK REGISTRATION": As defined in SECTION 4.1.
(t) "PLAN": As defined in RECITAL A.
(u) "PROSPECTUS": With respect to any Registration Statement: if Rule
434 under the Securities Act is relied on, the term sheet that is first filed
pursuant to Rule 424(b)(7) under the Securities Act, together with the
preliminary prospectus identified therein that such term sheet supplements; if
Rule 434 under the Securities Act is not relied on, the prospectus first
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filed with the SEC pursuant to Section 424(b) under the Securities Act; and if
Rule 434 under the Securities Act is not relied on and no prospectus is required
to be filed pursuant to Rule 424(b) under the Securities Act, the prospectus
included in such Registration Statement at the time when it is or was declared
effective; in each case, as amended or supplemented by any prospectus
supplement, all other amendments and supplements to such prospectus (including
post-effective amendments), and all exhibits and all material incorporated by
reference or deemed to be incorporated by reference in such prospectus.
(v) "REGISTRABLE SECURITIES": (i) The Shares and (ii) any securities
paid, issued or distributed in respect of any of the Shares by way of stock
dividend, stock split or distribution, or in connection with a combination of
shares, recapitalization, reorganization, merger or consolidation, or otherwise;
PROVIDED, HOWEVER, that as to any Registrable Securities, such securities will
irrevocably cease to constitute "Registrable Securities" if: (A) such securities
are disposed of pursuant to an effective registration statement under the
Securities Act; (B) such securities are distributed to the public pursuant to
Rule 144; (C) such securities have been transferred to any Person other than a
Permitted Transferee; or (D) such securities cease to be outstanding.
(w) "REGISTRATION EXPENSES": As defined in SECTION 6.4.
(x) "REGISTRATION STATEMENT": Any registration statement of the Company
under the Securities Act that covers any of the Registrable Securities pursuant
to the provisions of this Agreement, including the related Prospectus, all
amendments and supplements to such registration statement (including
post-effective amendments), and all exhibits and all materials incorporated by
reference or deemed to be incorporated by reference in such registration
statement.
(y) "RULE 144": Rule 144 promulgated under the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC.
(z) "SEC": The Securities and Exchange Commission.
(aa) "SECURITIES ACT": The Securities Act of 1933, as amended.
(bb) "SHARES": The shares of New Common Stock issued to the
Stockholders pursuant to the Plan.
(cc) "SHELF REGISTRATION STATEMENT": As defined in SECTION 2.1.
(dd) "STOCKHOLDER": As defined in the introductory paragraph hereof.
(ee) "UNDERWRITTEN REGISTRATION" or "UNDERWRITTEN OFFERING": A
registration in which securities of the Company are sold to an underwriter for
reoffering to the public.
(ff) "UNDERWRITTEN OFFERING NOTICE": As defined in SECTION 2.2(a).
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1.2 CERTAIN INTERPRETATIVE MATTERS. Unless the context otherwise
requires, (a) all references to Articles or Sections are to Articles or Sections
of this Agreement, (b) each term defined in this Agreement has the meaning
assigned to it, (c) all uses of "herein," "hereto," "hereof" and words similar
thereto in this Agreement refer to this Agreement in its entirety, and not
solely to the Article, Section or provision in which it appears, (d) "or" is
disjunctive but not necessarily exclusive, and (e) words in the singular include
the plural and vice versa.
Article II. SHELF REGISTRATION
2.1 FILING OF SHELF REGISTRATION STATEMENT. On or before the later to occur
of (x) the date that is 60 calendar days after the Effective Date and (y) April
1, 2002, the Company will file with the SEC a Registration Statement covering
the resale of the Registrable Securities by the Stockholders on a continuous
basis pursuant to Rule 415 under the Securities Act (the "SHELF REGISTRATION
STATEMENT") on Form S-1. The Company will use its reasonable best efforts to
cause the Shelf Registration Statement (a) to be declared effective under the
Securities Act within 90 calendar days after the date such Shelf Registration
Statement is initially filed with the SEC and (b) once effective, to remain
continuously effective for a period ending on the earlier of: (i) the first date
on which there ceases to be any Registrable Securities; and (ii) the second
anniversary of the date on which the SEC declares such Shelf Registration
Statement effective (subject to extension pursuant to ARTICLE V or SECTION 6.3).
The Company will not register any securities other than Registrable Securities
pursuant to the Shelf Registration Statement; PROVIDED, HOWEVER, that, as
contemplated by the Debt Registration Rights Agreement, dated even date
herewith, among the Company and the Stockholders, the Company will be permitted
to register pursuant to the Shelf Registration Statement debt securities of the
Company issued to the Stockholders pursuant to the Plan. The plan of
distribution contained in the Shelf Registration Statement shall permit
Underwritten Offerings. The Company will be permitted to file on Form S-3 a
post-effective amendment to the Shelf Registration Statement, or take such other
action as may be necessary to convert the Shelf Registration Statement from Form
S-1 to Form S-3, at such time the Company becomes eligible, in its sole
discretion, to use Form S-3.
2.2 UNDERWRITING PROCEDURES.
(a) If Holders of at least 10% of the Registrable Securities so request
in writing, the Company will effect pursuant to the Shelf Registration Statement
an Underwritten Offering; PROVIDED, HOWEVER, that the Company will not be
required to take any action in response to any such request:
(i) if prior to the date of such request the Company has effected
three Underwritten Offerings pursuant to this SECTION 2.2(a);
(ii) if the Company has effected an Underwritten Offering
pursuant to this SECTION 2.2(a) within the 120-day period
next preceding such request; or
(iii) if the Registrable Securities requested to be included in
the Underwritten Offering have a then-current market value
of less than $10.0 million.
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The Company will give written notice (an "UNDERWRITTEN OFFERING NOTICE") of the
proposed Underwritten Offering to all Holders within 15 calendar days after
receipt of a valid written request for an Underwritten Offering pursuant to this
SECTION 2.2(a). Such notice will offer the Holders the opportunity to include in
such Underwritten Offering such amount of Registrable Securities as each Holder
may request. The Company will include in such Underwritten Offering all
Registrable Securities for which the Company has received written requests for
inclusion within 15 calendar days after delivery of the Underwritten Offering
Notice, subject to SECTION 2.2(b).
(b) The Company will cause the managing underwriter or underwriters of
a proposed Underwritten Offering to permit the Holders that have requested
Registrable Securities to be included in the Underwritten Offering to include
all such Registrable Securities on the same terms and conditions as all other
Registrable Securities to be included. Notwithstanding the foregoing, if the
managing underwriter or underwriters of such Underwritten Offering advises the
Company and the selling Holders that the total amount of Registrable Securities
that such Holders propose to include in such Underwritten Offering is such as to
materially and adversely affect the success of such Underwritten Offering, then
the Company will include in such Underwritten Offering up to the full amount of
Registrable Securities requested to be included in such Underwritten Offering by
the Holders (allocated PRO RATA among the Holders on the basis of the amount of
Registrable Securities requested to be included therein by each such Holder) so
that the total amount of Registrable Securities to be included in such
Underwritten Offering is the full amount that, in the written opinion of such
managing underwriter or underwriters, can be sold without materially and
adversely affecting the success of such Underwritten Offering.
(c) Any Registrable Securities may be withdrawn from a proposed
Underwritten Offering at any time before the execution and delivery by such
Holder of the underwriting agreement relating to such Underwritten Offering. In
the event that all Holders withdraw all of their Registrable Securities from a
proposed Underwritten Offering before the execution and delivery of an
underwriting agreement relating to such Underwritten Offering, either (i) the
Holders withdrawing their Registrable Securities shall reimburse the Company for
all of its out-of-pocket expenses incurred in connection with the proposed
Underwritten Offering in excess of the amount of expenses relating solely to the
maintenance of the Shelf Registration Statement or (ii) the requested
Underwritten Offering will be deemed to have been effected for purposes of
SECTION 2.2(a); PROVIDED, HOWEVER, that if such withdrawal was based on the
Company's failure to comply in any material respect with its obligations
hereunder, such reimbursement will not be required and the requested
Underwritten Offering will not be deemed to have been effected for purposes of
SECTION 2.2(a).
(d) The managing underwriter or underwriters of the Underwritten
Offering relating thereto will be selected by the Holders of at least a majority
of the Registrable Securities proposed to be included in such Underwritten
Offering, subject to the approval of the Company (which approval shall not be
unreasonably withheld or unreasonably delayed).
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Article III. DEMAND REGISTRATION
3.1 RIGHT TO DEMAND REGISTRATION. From and after the date that is 120
calendar days subsequent to the last day that the Shelf Registration Statement
is effective, if any Holder requests in writing that the Company effect the
registration of all or part of such Holder's or Holders' Registrable Securities
with the SEC under and in accordance with the provisions of the Securities Act
(which written request will specify the aggregate number of shares of
Registrable Securities requested to be registered and the means of
distribution), the Company will file a Registration Statement covering such
Holder's or Holders' Registrable Securities requested to be registered as
promptly as practicable (and, in any event within 60 calendar days) after
receipt of such request; PROVIDED, HOWEVER, that the Company will not be
required to take any action pursuant to this ARTICLE III:
(a) if the Holder or Holders making such respect are not Affiliates of
the Company at the time such request is made;
(b) if prior to the date of such request the Company has effected three
registrations pursuant to this ARTICLE III;
(c) if the Company has effected a registration contemplated by this
ARTICLE III within the 120-day period next preceding such request;
(d) if a shelf registration is effective at the time such request is
made pursuant to which the Holder or Holders that requested registration could
effect the disposition of such Holder's or Holders' Registrable Securities in
the manner requested and the Company offered, in accordance with the procedures
set forth herein, to include or did include such Holder's or Holders'
Registrable Securities in such shelf registration;
(e) if the Registrable Securities requested to be registered shall have
a then-current market value of less than $10.0 million; or
(f) during the pendency of any Blackout Period.
3.2 BLACKOUT PERIOD.
(a) If (i) at any time during which Holders may request a registration
pursuant to SECTION 3.1, the Company files or proposes to file a registration
statement with respect to an offering of equity securities of the Company for
its own account and (ii) with reasonable prior notice (A) the Company (in the
case of an offering that is not an Underwritten Offering) advises the Holders in
writing that the Board of Directors of the Company has determined, in the good
faith exercise of its reasonable business judgment, that a sale or distribution
of Registrable Securities would adversely affect such offering or (B) the
managing underwriter or underwriters, if any, advise the Company in writing (in
which case the Company will notify the Holders) that a sale or distribution of
Registrable Securities would adversely affect such offering, then the Company
will not be obligated to effect the initial filing of a Registration Statement
pursuant to SECTION 3.1 during the 30 calendar days prior to the date the
Company in good faith estimates (as certified in writing by an officer of the
Company to the Holders following a request for
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registration pursuant to SECTION 3.1) will be the date of the filing of, and
ending on the date which is 90 calendar days following the effective date of,
such registration statement.
(b) If the Board of Directors of the Company determines, in the good
faith exercise of its reasonable business judgment, that the registration and
distribution of Registrable Securities (i) would materially impede, delay or
interfere with any financing, acquisition, corporate reorganization or other
significant transaction involving the Company or (ii) would require disclosure
of non-public material information, the disclosure of which would materially and
adversely affect the Company, the Company will promptly give the Holders written
notice of such determination and will be entitled to postpone the filing or
effectiveness of a Registration Statement for a reasonable period of time not to
exceed 90 calendar days; PROVIDED, HOWEVER, that the Company will deliver to the
Holder or Holders that have requested registration a general statement, signed
by an officer of the Company, of the reasons for such postponement or
restriction on use and an estimate of the anticipated delay. The Company will
promptly notify such Holders of the expiration or earlier termination of such a
period.
(c) Notwithstanding anything in this SECTION 3.2 to the contrary, there
will be no more than one delay period as contemplated by this SECTION 3.2 during
any consecutive 12-month period during the time in which Holders may request a
registration pursuant to SECTION 3.1.
3.3 EFFECTIVE DEMAND REGISTRATIONS.
(a) The Company may satisfy its obligations under SECTION 3.1 by
amending (to the extent permitted by applicable law) any registration statement
previously filed by the Company under the Securities Act so that such amended
registration statement will permit the disposition (in accordance with the
intended methods of disposition specified as aforesaid) of all of the
Registrable Securities for which a demand for registration has been properly
made under SECTION 3.1. If the Company so amends a previously filed registration
statement, it will be deemed to have effected a registration for purposes of
SECTION 3.1.
(b) Except as provided in SECTION 3.4, a registration requested
pursuant to SECTION 3.1 will not be deemed to be effected for purposes of
SECTION 3.1 if it has not been declared effective by the SEC or become effective
in accordance with the Securities Act and the rules and regulations thereunder
and kept effective as contemplated by SECTION 3.5.
3.4 REVOCATION OF DEMAND REGISTRATION. A Holder of Registrable Securities
to be included in a Registration Statement pursuant to SECTION 3.1 may, at any
time prior to the effective date of the Registration Statement relating to such
registration, revoke its request to have Registrable Securities included therein
by providing a written notice to the Company. In the event all such Holders of
Registrable Securities revoke their request, either (i) the Holders of
Registrable Securities who revoke such request shall reimburse the Company for
all its out-of-pocket expenses incurred in the preparation, filing and
processing of the Registration Statement or (ii) the requested registration that
has been revoked will be deemed to have been effected for purposes of SECTION
3.1; PROVIDED, HOWEVER, that, if such revocation was based on the Company's
failure to comply in any material respect with its obligations hereunder, such
reimbursement will
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not be required and the requested registration that has been revoked will not be
deemed to have been effected for purposes of SECTION 3.1.
3.5 CONTINUOUS EFFECTIVENESS OF REGISTRATION STATEMENT. The Company will
use its reasonable best efforts to keep a Registration Statement that has become
effective as contemplated by this ARTICLE III continuously effective for a
period of 60 calendar days (subject to extension pursuant to SECTION 6.3) or
such shorter period that will terminate when all Registrable Securities covered
by such Registration Statement have been sold pursuant to such Registration
Statement; PROVIDED, HOWEVER, that in no event will such period expire prior to
the expiration of the applicable period referred to in Section 4(3) of the
Securities Act and Rule 174 promulgated thereunder.
3.6 UNDERWRITTEN DEMAND REGISTRATION. In the event that a registration
requested pursuant to SECTION 3.1 is to be an Underwritten Registration, the
managing underwriter or underwriters of the Underwritten Offering relating
thereto will be selected by the Holders of at least a majority of the
Registrable Securities proposed to be included in such Underwritten
Registration, subject to the approval of the Company (which approval shall not
be unreasonably withheld or unreasonably delayed).
Article IV. PIGGYBACK REGISTRATION.
4.1 RIGHT TO PIGGYBACK. If at any time the Company proposes to file a
registration statement under the Securities Act with respect to an offering of
any class of equity securities (other than a registration statement on Form X-0,
Xxxx X-0 or any successor forms thereto and the Shelf Registration Statement,
but including any Registration Statement to be filed pursuant to SECTION 3.1),
whether or not for its own account, then the Company will give written notice
(the "PIGGYBACK NOTICE") of such proposed filing to the Holders at least 45
calendar days before the anticipated filing date. Such notice will offer the
Holders the opportunity to register such amount of Registrable Securities as
each Holder may request (a "PIGGYBACK REGISTRATION"). The Company will include
in each Piggyback Registration all Registrable Securities for which the Company
has received written requests for inclusion within 15 calendar days after
delivery of the Piggyback Notice, subject to SECTION 4.2. The Holders may
withdraw all or part of the Registrable Securities from a Piggyback Registration
at any time before the third calendar day immediately preceding the effective
date of such Piggyback Registration.
4.2 PRIORITY ON PIGGYBACK REGISTRATIONS. The Company will cause the
managing underwriter or underwriters of a proposed Underwritten Offering to
permit the Holders that have requested Registrable Securities to be included in
the Piggyback Registration to include all such Registrable Securities on the
same terms and conditions as any similar securities, if any, of the Company.
Notwithstanding the foregoing, if the managing underwriter or underwriters of
such Underwritten Offering advises the Company and the selling Holder or Holders
that the total amount of securities that the Company, such Holders and any other
Persons having rights to participate in such Piggyback Registration ("OTHER
HOLDERS") propose to include in such offering is such as to materially and
adversely affect the success of such Underwritten Offering, then:
(a) if such Piggyback Registration is a primary registration by the
Company for its own account, the Company will include in such Piggyback
Registration: (i) first, all
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securities to be offered by the Company; and (ii) second, up to the full amount
of securities requested to be included in such Piggyback Registration by the
Holders and Other Holders having rights to participate in such Piggyback
Registration (allocated PRO RATA among such Holders and Other Holders on the
basis of the amount of securities requested to be included therein by each such
Holder or Other Holder) so that the total amount of securities to be included in
such Underwritten Offering is the full amount that, in the opinion of such
managing underwriter or underwriters, can be sold without materially and
adversely affecting the success of such Underwritten Offering; and
(b) if such Piggyback Registration is an underwritten secondary
registration for the account of holders of securities of the Company, the
Company will include in such registration: (i) first, all securities of the
Persons exercising "demand" registration rights requested to be included therein
(including without limitation the Person who demands registration and any
Persons who are entitled to participate in such Piggyback Registration pursuant
to the same agreement as the Person demanding such registration); and (ii)
second, up to the full amount of securities requested to be included in such
Piggyback Registration by the Holders and Other Holders having rights to
participate in such Piggyback Registration (allocated PRO RATA among such
Holders and Other Holders on the basis of the amount of securities requested to
be included therein by each such Holder or Other Holder) so that the total
amount of securities to be included in such Underwritten Offering is the full
amount that, in the written opinion of such managing underwriter or
underwriters, can be sold without materially and adversely affecting the success
of such Underwritten Offering.
Article V. RESTRICTIONS ON SALE
Each Holder whose Registrable Securities are covered by a Registration
Statement filed pursuant to ARTICLE II, III or IV hereof agrees, if such Holder
is so requested (pursuant to a timely written notice) by the managing
underwriter or underwriters in any Underwritten Offering by the Company for its
own account, not to effect any public or private sale or distribution of any
Registrable Securities (except as part of such Underwritten Offering), including
a sale pursuant to Rule 144, during the 10 calendar days prior to, and the 90
calendar days following, the closing date of such Underwritten Offering. In the
event of such a request, the Company may impose, during such period, appropriate
stop-transfer instructions with respect to the Registrable Securities subject to
such restrictions. If a request is made pursuant to this ARTICLE V, the time
period during which the Shelf Registration Statement is required to remain
continuously effective pursuant to ARTICLE II will be extended by 100 calendar
days or such shorter period that will terminate when all Registrable Securities
covered by the Shelf Registration Statement (and not included in the
Underwritten Offering) have been sold pursuant to the Shelf Registration
Statement.
Article VI. PROCEDURES AND EXPENSES
6.1 REGISTRATION PROCEDURES. In connection with the Company's registration
obligations pursuant to ARTICLES II, III and IV, the Company will effect such
registrations to permit the sale of Registrable Securities by a Holder in
accordance with the intended method or methods of disposition thereof, and
pursuant thereto the Company will as promptly as reasonably practicable:
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(a) Prepare and file with the SEC a Registration Statement or
Registration Statements on Form X-0, Xxxx X-0 or other appropriate form under
the Securities Act available for the sale of the Registrable Securities by the
selling Holder in accordance with the intended method or methods of distribution
thereof; PROVIDED, HOWEVER, that the Company (i) will, before filing, furnish to
the selling Holder, its counsel and the managing underwriter or underwriters, if
any, copies of the Registration Statement or Prospectus proposed to be filed,
which documents will be subject to the review of such Holder, its counsel and
such underwriters, (ii) will provide such Persons with a reasonable opportunity
to review and comment on such Registration Statement or Prospectus, and (iii)
will not file any such Registration Statement or Prospectus to which the selling
Holder, its counsel or such underwriter, if any, shall reasonably object on a
timely basis.
(b) Prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary; cause the related
Prospectus to be supplemented by any required Prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 (or any similar provision then in
force) under the Securities Act; and comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
Registration Statement during the applicable period in accordance with the
intended methods of disposition by the selling Holder set forth in such
Registration Statement as so amended, or in such Prospectus as so supplemented.
(c) Promptly notify selling Holder, its counsel and the managing
underwriter or underwriters, if any, orally (with subsequent written
confirmation) (i) when a Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to a Registration
Statement or any post-effective amendment, when the same has become effective,
(ii) of any request by the SEC or any other federal or state governmental
authority for amendments or supplements to a Registration Statement or related
Prospectus or for additional information, (iii) of the issuance by the SEC or
any other federal or state governmental authority of any stop order suspending
the effectiveness of a Registration Statement or the initiation of any
proceedings for that purpose, (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose, (v) of the occurrence of any event which makes any statement made in
such Registration Statement or Prospectus untrue in any material respect or
which requires the making of any changes in a Registration Statement or
Prospectus or other documents so that, (A) in the case of the Registration
Statement, it will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make
the statements therein not misleading and (B) in the case of the Prospectus, it
will not contain any untrue statement of a material fact or omit to state any
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, and (vi) of the Company's reasonable determination that a
post-effective amendment to a Registration Statement would be appropriate.
(d) Use its reasonable best efforts to obtain the withdrawal of any
order suspending the effectiveness of a Registration Statement, or the lifting
of any suspension of the qualification or exemption from qualification of any of
the Registrable Securities for sale in any jurisdiction, at the earliest
practicable date.
-10-
(e) If requested by the managing underwriter or underwriters, if any,
or the selling Holder, (i) promptly incorporate in a Prospectus supplement or
post-effective amendment such information as the managing underwriter or
underwriters, if any, and such selling Holder agree should be included therein
under applicable law 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; PROVIDED, HOWEVER, that the
Company will not be required to take any actions under this SECTION 6.1(e) that
are not, in the opinion of counsel for the Company, in compliance with
applicable law.
(f) Furnish to the selling Holder, its counsel and each managing
underwriter, if any, at least one conformed copy of the Registration Statement
and any post-effective amendment thereto, including financial statements (but
excluding all schedules, all documents incorporated or deemed incorporated
therein by reference and all exhibits).
(g) Deliver to the selling Holder, its counsel and the managing
underwriter or underwriters, if any, as many copies of the Prospectus relating
to such Registrable Securities (including each preliminary Prospectus) and any
amendment or supplement thereto as such Persons may reasonably request and, by
such delivery, the Company will be deemed to have consented to the use of such
Prospectus or such amendment or supplement thereto by the selling Holder and the
underwriter or underwriters, if any, in connection with the offering and sale of
the Registrable Securities covered by such Prospectus or any amendment or
supplement thereto.
(h) Prior to any public offering of Registrable Securities, register or
qualify, or cooperate with the selling Holder, the managing underwriter or
underwriters, if any, and their respective counsel in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or blue sky laws of such jurisdictions within the United States as
the selling Holder or underwriter or underwriters reasonably request in writing;
keep each such registration or qualification (or exemption therefrom) effective
during the period such Registration Statement is required to be kept effective;
and do any and all other acts or things reasonably necessary or advisable to
enable the disposition in such jurisdictions of the Registrable Securities
covered by the Registration Statement; PROVIDED, HOWEVER, that the Company will
not be required to (i) qualify generally to do business in any jurisdiction in
which it is not then so qualified or (ii) take any action that would subject it
to general service of process in any jurisdiction in which it is not then so
subject.
(i) Cause the Registrable Securities covered by the applicable
Registration Statement to be registered with or approved by such other
governmental agencies or authorities within the United States as necessary,
except where such registration or approval is required solely as a consequence
of the nature of the selling Holder's business, in which case the Company will
use its reasonable best efforts to enable the selling Holder to make or obtain
such registration or approval and to consummate the disposition of such
Registrable Securities.
(j) Cooperate with the selling Holder and the managing underwriter or
underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold, which certificates
will not bear any restrictive legends, and
-11-
cause such certificates to be in such denominations and registered in such names
as the managing underwriter or underwriters, if any, shall request at least two
Business Days prior to any sale of Registrable Securities to the managing
underwriter or underwriters.
(k) As promptly as practicable upon the occurrence of any event
contemplated by SECTION 6.1(c)(v) or 6.1(c)(vi) hereof, prepare a supplement or
post-effective amendment to each Registration Statement or a supplement to the
related Prospectus, or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Securities being sold thereunder,
such Prospectus will not contain an untrue statement of a material fact or omit
to state any 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.
(l) Use its reasonable best efforts to cause all Registrable Securities
covered by such Registration Statement to be (i) listed on each securities
exchange, if any, on which similar securities issued by the Company are then
listed or (ii) authorized to be quoted on Nasdaq; in each case, if requested by
the managing underwriter or underwriters, if any.
(m) Engage an appropriate transfer agent and provide such transfer
agent with printed certificates for the Registrable Securities in a form
eligible for deposit with The Depository Trust Company, and provide a CUSIP
number for the Registrable Securities.
(n) Enter into such agreements (including, in the event of an
Underwritten Offering, an underwriting agreement in form, scope and substance as
is customary in Underwritten Offerings) and take all such other actions in
connection therewith (including those reasonably requested by the selling Holder
or, in the event of an Underwritten Offering, those reasonably requested by the
managing underwriter or underwriters) reasonably necessary or desirable to
expedite or facilitate the disposition of such Registrable Securities, and in
such connection, whether or not an underwriting agreement is entered into and
whether or not the registration is an Underwritten Registration, (i) make such
representations and warranties to the selling Holder and the managing
underwriter or underwriters, if any, with respect to the business of the Company
and its subsidiaries, the Registration Statement or Prospectus, in each case, in
form, substance and scope as are customarily made by issuers to underwriters in
Underwritten Offerings and confirm the same if and when requested, (ii) use its
reasonable best efforts to obtain opinions of counsel to the Company and updates
thereof (which counsel and opinions (in form, scope and substance) shall be
reasonably satisfactory to the managing underwriter or underwriters, if any, and
the selling Holder) addressed to the selling Holder and the managing underwriter
or underwriters, if any, covering the matters customarily covered in opinions
requested in Underwritten Offerings and such other matters as may be reasonably
requested by the selling Holder and managing underwriter or underwriters, if
any, including without limitation the matters referred to in clause (i) above,
(iii) use its reasonable best efforts to obtain "comfort" letters and updates
thereof from the independent certified public accountants of the Company (and,
if necessary, any other certified public accountants of any subsidiary of the
Company or of any business acquired by the Company for which financial
statements and financial data is, or is required to be, included in the
Registration Statement), addressed to the selling Holder and each of the
managing underwriter or underwriters, if any, such letters to be in customary
form and covering matters of the type customarily covered in "comfort" letters
in connection with Underwritten Offerings, and (iv) deliver such documents and
certificates as may be reasonably
-12-
requested by the selling Holder, its counsel or the managing underwriter or
underwriters, if any, to evidence the continued validity of the representations
and warranties of the Company and its subsidiaries made pursuant to clause (i)
above and to evidence compliance with any customary conditions contained in the
underwriting agreement or similar agreement entered into by the Company. The
foregoing actions will be taken in connection with each closing under such
underwriting or similar agreement as and to the extent required thereunder.
(o) Make available for inspection by a representative of the selling
Holder, any underwriter and any attorney or accountant retained by such selling
Holder or underwriter, all financial and other records, pertinent corporate
documents and properties of the Company and its subsidiaries, and cause the
officers, directors and employees of the Company and its subsidiaries to supply
all information reasonably requested by any such representative, underwriter,
attorney or accountant in connection with such Registration Statement; PROVIDED,
HOWEVER, that any records, information or documents that are designated by the
Company in writing as confidential at the time of delivery of such records,
information or documents will be kept confidential by such Persons unless (i)
such records, information or documents are in the public domain or otherwise
publicly available (other than by reason of breach of this confidentiality
provision), (ii) disclosure of such records, information or documents is
required by court or administrative order or is necessary to respond to inquires
of regulatory authorities, or (iii) disclosure of such records, information or
documents, in the opinion of counsel to such Person, is otherwise required by
law or regulation (including without limitation pursuant to the requirements of
the Securities Act or regulations promulgated thereunder); PROVIDED, HOWEVER,
that in the case of subsections (ii) and (iii) hereof, prior to making such
disclosure the Holder will, subject to applicable law, advise and consult with
the Company and its counsel as to such disclosure and the nature and wording of
such disclosure and will use its reasonable best efforts to obtain, at the
Company's expense, confidential treatment therefor.
(p) Comply with all applicable rules and regulations of the SEC and
make generally available to its security holders earning statements satisfying
the provisions of Section 11(a) of the Securities Act, PROVIDED that the Company
shall be deemed to have complied with this SECTION 6.1(p) if it has satisfied
the provisions of Rule 158 under the Securities Act (or any similar rule
promulgated under the Securities Act).
6.2 INFORMATION FROM STOCKHOLDER.
(a) The Company may require each Holder including its Registrable
Securities in any Registration Statement to furnish to the Company such
information regarding the Holder and its plan and method of distribution of such
Registrable Securities as the Company may, from time to time, reasonably request
in writing. The Company may refuse to proceed with the registration of such
Holder's Registrable Securities if such Holder unreasonably fails to furnish
such information within a reasonable time after receiving such request.
(b) Each selling Holder will as expeditiously as possible (i) notify
the Company of the occurrence of any event that makes any statement made in a
Registration Statement or Prospectus regarding such selling Holder untrue in any
material respect or that requires the making of any changes in a Registration
Statement or Prospectus so that, in such regard, (A) in the case of a
Registration Statement, it will not contain any untrue statement of a
-13-
material fact or omit any material fact required to be stated therein or
necessary to make the statements not misleading and (B) in the case of a
Prospectus, it will not contain any untrue statement of a material fact or omit
any material fact required to be stated or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading and (ii) provide the Company with such information as may be required
to enable the Company to prepare a supplement or post-effective amendment to any
such Registration Statement or a supplement to such Prospectus as contemplated
by SECTION 6.1(k).
(c) With respect to any Underwritten Offering, the inclusion of a
Holder's Registrable Securities therein will be conditioned upon the execution
and delivery by such Holder of an underwriting agreement in form, scope and
substance as is customary in Underwritten Offerings.
6.3 SUSPENSION OF DISPOSITION. Each selling Holder will be deemed to have
agreed that, upon receipt of any notice from the Company of the occurrence of
any event of the kind described in SECTION 6.1(c)(ii), 6.1(c)(iii), 6.1(c)(iv),
6.1(c)(v) or 6.1(c)(vi), such Holder will discontinue disposition of Registrable
Securities covered by a Registration Statement or Prospectus until such Holder's
receipt of the copies of the supplemented or amended Prospectus contemplated by
SECTION 6.1(k) or until it is advised in writing (the "ADVICE") by the Company
that the use of the applicable Prospectus may be resumed and has received copies
of any additional or supplemental filings that are incorporated or deemed to be
incorporated by reference in such Prospectus. In the event the Company shall
give any such notice, the period of time set forth in SECTION 2.1 or SECTION 3.5
will be extended by the number of days during the time period from and including
the date of the giving of such notice to and including the date when each seller
of Registrable Securities covered by such Registration Statement shall have
received (i) the copies of the supplemented or amended Prospectus contemplated
by SECTION 6.1(k) or (ii) the Advice.
6.4 REGISTRATION EXPENSES.
(a) Subject to SECTION 2.2(c) and 3.4, all fees and expenses incurred
by the Company in complying with ARTICLES II, III and IV and SECTION 6.1
("REGISTRATION EXPENSES") will be borne by the Company. Such fees and expenses
will include without limitation (i) all registration and filing fees (including
without limitation fees and expenses (x) with respect to filings required to be
made with the National Association of Securities Dealers, Inc. and (y) of
compliance with securities or blue sky laws (including without limitation
reasonable fees and disbursements of counsel for the underwriters and selling
Holder in connection with blue sky qualifications of the Registrable Securities
and determination of the eligibility of the Registrable Securities for
investment under the laws of such jurisdictions as the managing underwriter or
underwriters, if any, or the selling Holder may designate)), (ii) printing
expenses (including without limitation the expenses of printing certificates for
securities in a form eligible for deposit with The Depository Trust Company and
of printing Prospectuses if the printing of Prospectuses is requested by the
selling Holder), (iii) messenger, telephone and delivery expenses, (iv)
reasonable fees and disbursements of counsel for the Company, (v) reasonable
fees and disbursements of one counsel for all selling Holders and Other Holders
collectively (which counsel will be selected by Holders and Other Holders
holding a majority of the securities sought to be included in the Registration
Statement), (vi) reasonable fees and disbursements of all
-14-
independent certified public accountants referred to in SECTION 6.1(n)(iii)
(including the expenses of any special audit and "comfort" letters required by
or incident to such performance), (vii) reasonable fees and expenses of any
"qualified independent underwriter" or other independent appraiser participating
in an offering pursuant to Section 2720(c) of the Conduct Rules of the National
Association of Securities Dealers, Inc., and (viii) reasonable fees and expenses
of all other Persons retained by the Company. In addition, the Company will pay
its internal expenses (including without limitation all salaries and expenses of
its officers and employees performing legal or accounting duties), the expense
of any annual audit, and the fees and expenses incurred in connection with the
listing of the securities to be registered on each securities exchange, if any,
on which similar securities issued by the Company are then listed or the
quotation of such securities on Nasdaq if similar securities issued by the
Company are then quoted on Nasdaq.
(b) Notwithstanding anything to the contrary herein contained, all
underwriting fees, discounts, selling commissions and stock transfer taxes
applicable to the sale of Registrable Securities will be borne by the Holder
owning such Registrable Securities.
(c) Notwithstanding anything to the contrary herein contained, each
selling Holder may have its own separate counsel in connection with the
registration of any of its Registrable Securities, which counsel may participate
therein to the full extent provided herein; PROVIDED, HOWEVER, that all fees and
expenses of such separate counsel will be paid for by such selling Holder.
Article VII. INDEMNIFICATION
7.1 INDEMNIFICATION BY THE COMPANY. The Company will indemnify and hold
harmless, to the fullest extent permitted by law, each Holder owning Registrable
Securities registered pursuant to this Agreement, its officers, directors,
trustees, agents and employees, each Person who controls such Holder (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
and the officers, directors, trustees, agents and employees of any such
controlling Person, from and against all losses, claims, damages, liabilities,
costs (including without limitation the costs of investigation and attorneys'
fees) and expenses (collectively, "LOSSES"), as incurred, arising out of or
based upon any untrue or alleged untrue statement of a material fact contained
or incorporated by reference in any Registration Statement, Prospectus or
preliminary prospectus, or arising out of or based upon any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as the
same are based solely upon information furnished in writing to the Company by or
on behalf of such Holder expressly for use therein; PROVIDED, HOWEVER, that the
Company will not be liable to any Holder to the extent that any such Losses
arise out of or are based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in any preliminary prospectus if either (i)
(A) such Holder failed to send or deliver a copy of the Prospectus with or prior
to the delivery of written confirmation of the sale by such Holder of a
Registrable Security to the Person asserting the claim from which such Losses
arise and (B) the Prospectus would have completely corrected such untrue
statement or alleged untrue statement or such omission or alleged omission or
(ii) such untrue statement or alleged untrue statement or such omission or
alleged omission is completely corrected in an amendment or supplement to the
Prospectus previously furnished by or on behalf of the
-15-
Company, such Holder was furnished with copies of the Prospectus as so amended
or supplemented, and such Holder thereafter failed to deliver such Prospectus as
so amended or supplemented prior to or concurrently with the sale of a
Registrable Security to the Person asserting the claim from which such Losses
arise.
7.2 INDEMNIFICATION BY HOLDERS. Each Holder (severally and not jointly)
will indemnify and hold harmless, to the fullest extent permitted by law, the
Company, its officers, directors, agents and employees, each Person who controls
the Company (within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act), and the directors, officers, agents and employees of
any such controlling Person, from and against all Losses, as incurred, arising
out of or based upon any untrue statement of a material fact contained or
incorporated by reference in any Registration Statement, Prospectus or
preliminary prospectus, or arising out of or based upon any omission of a
material fact required to be stated therein or necessary to make the statements
therein not misleading, to the extent, but only to the extent, that such untrue
statement or omission was made in reliance upon and in conformity with
information so furnished in writing by or on behalf of such Holder to the
Company expressly for use in such Registration Statement, Prospectus or
preliminary prospectus. In no event will the liability of any Holder hereunder
be greater in amount than the dollar amount of the proceeds received by such
Holder upon the sale of the Registrable Securities giving rise to such
indemnification obligation.
7.3 CONDUCT OF INDEMNIFICATION PROCEEDINGS. If any Person becomes entitled
to indemnity hereunder (an "INDEMNIFIED PARTY"), such Indemnified Party will
give prompt notice to the party from which such indemnity is sought (the
"INDEMNIFYING PARTY") of any claim or of the commencement of any action or
proceeding with respect to which such Indemnified Party seeks indemnification or
contribution pursuant hereto; PROVIDED, HOWEVER, that the failure to so notify
the Indemnifying Party will not relieve the Indemnifying Party from any
obligation or liability except to the extent that the Indemnifying Party has
been prejudiced materially by such failure. If such an action or proceeding is
brought against the Indemnified Party, the Indemnifying Party will be entitled
to participate therein and, to the extent it may elect by written notice
delivered to the Indemnified Party promptly after receiving the notice referred
to in the immediately preceding sentence, to assume the defense thereof with
counsel reasonably satisfactory to the Indemnified Party. Notwithstanding the
foregoing, the Indemnified Party will have the right to employ its own counsel
in any such case, but the fees and expenses of such counsel will be at the
expense of the Indemnified Party unless (i) the employment of such counsel shall
have been authorized in writing by the Indemnifying Party, (ii) the Indemnifying
Party shall not have employed counsel (reasonably satisfactory to the
Indemnified Party) to take charge of such action or proceeding within a
reasonable time after notice of commencement thereof, or (iii) the Indemnified
Party reasonably shall have concluded that there may be defenses or actions
available to it which are different from or additional to those available to the
Indemnifying Party which, if the Indemnifying Party and the Indemnified Party
were to be represented by the same counsel, could result in a conflict of
interest for such counsel or materially prejudice the prosecution of defenses or
actions available to the Indemnified Party. If any of the events specified in
clause (i), (ii) or (iii) of the immediately preceding sentence are applicable,
then the fees and expenses of separate counsel for the Indemnified Party shall
be borne by the Indemnifying Party. If, in any case, the Indemnified Party
employs separate counsel, the Indemnifying Party will not have the right to
direct the defense of such action or
-16-
proceeding on behalf of the Indemnified Party. All fees and expenses required to
be paid to the Indemnified Party pursuant to this ARTICLE VII will be paid
periodically during the course of the investigation or defense, as and when
reasonably itemized bills therefor are delivered to the Indemnifying Party in
respect of any particular Loss that is incurred. Notwithstanding anything to the
contrary contained in this SECTION 7.3, an Indemnifying Party will not be liable
for the settlement of any action or proceeding effected without its prior
written consent. The Indemnifying Party will not consent to entry of any
judgment or enter into any settlement or otherwise seek to terminate any action
or proceeding in which any Indemnified Party is or could be a party and as to
which indemnification or contribution could be sought by such Indemnified Party
under this ARTICLE VII, unless such judgment, settlement or other termination
provides solely for the payment of money and includes as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party of a
release, in form and substance satisfactory to the Indemnified Party, from all
liability in respect of such claim or litigation for which such Indemnified
Party would be entitled to indemnification hereunder.
7.4 CONTRIBUTION, ETC.
(a) If the indemnification provided for in this ARTICLE VII is
unavailable to an Indemnified Party under SECTION 7.1 or 7.2 in respect of any
Losses or is insufficient to hold such Indemnified Party harmless, then each
applicable Indemnifying Party (severally and not jointly), in lieu of
indemnifying such Indemnified Party, will contribute to the amount paid or
payable by such Indemnified Party as a result of such Losses, in such proportion
as is appropriate to reflect the relative fault of the Indemnifying Party or
Indemnifying Parties, on the one hand, and such Indemnified Party, on the other
hand, in connection with the actions, statements or omissions that resulted in
such Losses as well as any other relevant equitable considerations. The relative
fault of such Indemnifying Party or Indemnifying Parties, on the one hand, and
such Indemnified Party, on the other hand, will be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of a
material fact, has been taken or made by, or related to information supplied by,
such Indemnifying Party or Indemnifying Parties or such Indemnified Party, and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such action, statement or omission. The amount paid or
payable by a party as a result of any Losses will be deemed to include any legal
or other fees or expenses incurred by such party in connection with any action
or proceeding.
(b) The parties hereto agree that it would not be just and equitable if
contribution pursuant to this SECTION 7.4 were determined by PRO RATA allocation
or by any other method of allocation that does not take into account the
equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding anything contained in this SECTION 7.4 to the contrary, an
Indemnifying Party that is a selling Holder will not be required to contribute
any amount in excess of the amount by which the total price at which the
Registrable Securities were sold by such selling Holder to the public exceeds
the amount of any damages which such selling Holder has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) will be entitled to contribution
from any Person who was not guilty of such fraudulent misrepresentation.
-17-
(c) The provisions of this ARTICLE VII will survive indefinitely,
notwithstanding any transfer of the Registrable Securities by any Holder.
Article VIII. RULE 144
The Company will file all reports required to be filed by it under the
Securities Act and the Exchange Act, and will cooperate with any Holder
(including without limitation by making such representations as any such Holder
may reasonably request), all to the extent required from time to time to enable
such Holder to sell Registrable Securities without registration under the
Securities Act within the limitations of the exemptions provided by Rule 144.
Upon the request of any Holder, the Company will deliver to such Holder a
written statement as to whether it has complied with such filing requirements.
Notwithstanding the foregoing, nothing in this ARTICLE VIII will require the
Company to register any securities, or file any reports, under the Exchange Act
if such registration or filing is not required under the Exchange Act.
Article IX. MISCELLANEOUS
9.1 NOTICES. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given or made by
delivery in person, by courier service, by facsimile transmission or by
registered or certified mail (postage prepaid, return receipt requested) to the
respective parties at the following addresses (or at such other address for a
party as shall be specified in a notice given in accordance with this SECTION
9.1):
(a) If to the Company:
Alderwoods Group, Inc.
Attention: Xxxxxxx X. Xxxx, Esq.
Senior Vice President, Legal & Asset Management
0000 Xxxxxxxx Xxxxxx East
11th Floor, Atria III
Xxxxxxx, Xxxxxxx X0X 0X0
Facsimile Number: (000) 000-0000
Telephone Number: (000) 000-0000
(b) If to a Holder, to the then-current address thereof contained in
the stock records of the Company, which initially shall be, with respect to each
Stockholder, the address thereof set forth on the signature page hereto.
All such notices and communications will be deemed to have been delivered or
given: upon delivery, if personally delivered; one Business Day after being
dispatched, if dispatched by same-day or next-day courier guaranteeing timely
delivery; when receipt acknowledged, if sent by facsimile transmission; and five
Business Days after being deposited in the mail, if mailed.
9.2 ASSIGNMENT. Neither this Agreement nor the rights and obligations
hereunder may be assigned by operation of law or otherwise (except that this
Agreement and rights and obligations hereunder may be assigned by any Holder to
a Permitted Transferee thereof, which Permitted Transferee shall be deemed to be
a Holder and a party hereto for all purposes of this Agreement upon receipt by
the Company of such Permitted Transferee's written agreement to be
-18-
bound by the terms hereof). Notwithstanding the foregoing, nothing herein
contained shall restrict the right of any Holder to transfer securities of the
Company held by it.
9.3 NO THIRD-PARTY BENEFICIARIES. This Agreement will be binding upon and
inure solely to the benefit of the parties hereto and their respective
successors and permitted assigns and nothing herein, express or implied, is
intended to or shall confer upon any other Person any legal or equitable right,
benefit or remedy of any nature whatsoever under or by reason of this Agreement.
9.4 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of
the parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and undertakings, both written and oral, among the parties with
respect to the subject matter hereof.
9.5 AMENDMENT AND WAIVER. This Agreement may not be amended or modified or
any provision hereof waived except by an instrument in writing signed by the
Company and both (x) Holders of at least a majority of the then-outstanding
Registrable Securities and (y) each Holder of 10% or more of the
then-outstanding Registrable Securities. Notwithstanding anything contained
herein to the contrary, a waiver that does not adversely affect all of the
parties hereto may be executed by only the adversely affected party or parties.
9.6 HEADINGS. The descriptive headings contained in this Agreement are for
convenience of reference only and shall not affect in any way the meaning or
interpretation of this Agreement.
9.7 SEVERABILITY. If any term or other provision of this Agreement is
invalid, illegal or unenforceable under any law or public policy, all other
terms and provisions of this Agreement will nevertheless remain in full force
and effect. Upon such determination that any term or other provision is invalid,
illegal or unenforceable, the parties hereto will endeavor in good faith to
replace the invalid, illegal or unenforceable provisions with valid, legal and
enforceable provisions the economic effect of which comes as close as possible
to that of the invalid, illegal or unenforceable provisions.
9.8 GOVERNING LAW. This Agreement will be governed by, and construed in
accordance with, the laws of the State of Delaware, without giving effect to the
principles of conflict of laws thereof.
9.9 SPECIFIC PERFORMANCE. The parties hereto agree that irreparable damage
would occur in the event any provision of this Agreement was not performed in
accordance with the terms hereof and that the parties will be entitled to
specify performance of the terms hereof, in addition to any other remedy at law
or equity.
9.10 FURTHER ASSURANCES. The parties hereto will do such further acts and
things necessary to ensure that the terms of this Agreement are carried out and
observed.
9.11 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which so executed will be deemed to be an original; such
counterparts will together constitute but one agreement.
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IN WITNESS WHEREOF, each of the parties has executed this Agreement as of
the date first written above.
ALDERWOODS GROUP, INC.
By: /s/ XXXXXXX X. XXXX
-----------------------------------------
Name: Xxxxxxx X. Xxxx
Title: Senior Vice President, Legal & Asset
Management
XXXXXX XXXXXX & CO.
By: /s/ XXXXXXX X. XXXXXXX
-----------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Authorized Signatory
Address: 000 Xxxx Xxxxxx, 00xx Xxxxx
---------------------------------------
Xxx Xxxx, XX 00000
---------------------------------------
FRANKLIN MUTUAL ADVISERS, LLC
By: /s/ XXXXXXX XXXXXXXXX
-----------------------------------------
Name: Xxxxxxx Xxxxxxxxx
Title: Assistant Vice President
Address: 51 Xxxx X. Xxxxxxx Parkway
---------------------------------------
Xxxxx Xxxxx, XX 00000
---------------------------------------
GSCP RECOVERY, INC.
By: /s/ XXXXXX XXXXXX
-----------------------------------------
Name: Xxxxxx Xxxxxx
Title: Managing Director
Address: 000 Xxxxxx Xxxxx
---------------------------------------
Xxxxxxx Xxxx, XX 00000
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GSC RECOVERY II, L.P.
By: GSC Recovery II GP, L.P.,
its general partner
By: GSC RII, LLC,
its general partner
By: GSCP (NJ) Holdings, L.P.,
its sole member
By: GSCP (NJ), Inc.,
its general partner
By: /s/ XXXXXX XXXXXX
-----------------------------
Name: Xxxxxx Xxxxxx
Title: Managing Director
Address: 000 Xxxxxx Xxxxx
---------------------------
Xxxxxxx Xxxx, XX 00000
---------------------------
OAKTREE CAPITAL MANAGEMENT, LLC,
as agent on behalf of certain funds and accounts
By: /s/ XXXXXXX XXXXX
-----------------------------------------
Name: Xxxxxxx Xxxxx
Title: Managing Director
By: /s/ XXXXXX X. XXXX
-----------------------------------------
Name: Xxxxxx X. Xxxx
Title: Managing Director
Address: 000 Xxxxx Xxxxx Xxxxxx, 00xx Floor
---------------------------------------
Xxx Xxxxxxx, XX 00000
---------------------------------------
