EXHIBIT 4.8
REGISTRATION RIGHTS AGREEMENT
REGISTRATION RIGHTS AGREEMENT, dated as of August 17, 1998 (this
"Agreement"), between Insilco Holding Co., a Delaware corporation (the
"Company"), and the undersigned holder of shares of Insilco Corporation
("Insilco") common stock, par value $.001 per share (the "Stockholder" and,
together with the Company, the "Parties"), who will, as of the effective time
of the Reorganization Merger (as defined below) be the holder of shares of
common stock, par value $0.001 per share, of the Company (the "Common Shares").
PRELIMINARY STATEMENTS
WHEREAS, the Company is currently a wholly owned subsidiary of
Insilco;
WHEREAS, pursuant to an Agreement and Plan of Merger dated as of
March 24, 1998 by and among the Company, Silkworm Acquisition Corporation, a
Delaware corporation ("MergerSub"), and Insilco (as the same has been amended
through the date hereof, the "Merger Agreement"), a wholly owned subsidiary of
the Company ("Reorg Sub") will be merged with and into Insilco pursuant to
Section 251(a) of the Delaware General Corporation Law (the "Reorganization
Merger"), with Insilco continuing as the surviving corporation and as a wholly
owned subsidiary of the Company;
WHEREAS, immediately following the Reorganization Merger, MergerSub
will be merged with and into the Company (the "Merger", and together with the
Reorganization Merger, the "Mergers"), with the Company continuing as the
surviving corporation;
WHEREAS, the Stockholder will retain Common Shares in accordance with
the terms of the Merger Agreement; and
WHEREAS, upon consummation of the Mergers, the Stockholder may be
subject to certain resale restrictions in respect of the Common Shares imposed
by the federal securities laws and the rules and regulations promulgated
thereunder.
NOW, THEREFORE, in consideration of the mutual agreements, provisions
and covenants contained in this Agreement, the Parties hereby agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1. DEFINITIONS. Terms used but not defined herein are used
herein as defined in the Merger Agreement. The following terms, as used herein,
have the following meanings:
(a) "Affiliate" means, with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under common control with
such Person. For the purpose of this definition, the term "control" (including
with correlative meanings, the terms "controlling," "controlled by" and "under
common control with"), when used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise;
(b) The "Commission" means the Securities and Exchange Commission;
(c) "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder from time to time by the
Commission;
(d) "Holder(s)" means the Stockholder, any of its Affiliates and any
successors and Affiliates thereof;
(e) "Person" means any individual, corporation, general or limited
partnership, limited liability company, joint venture, association, trust,
unincorporated organization, government or department thereof, other entity or
group (as defined in the Exchange Act);
(f) "Registrable Securities" means, except as may be limited by Section
2.1, (i) the Common Shares to be received pursuant to the Merger Agreement and
owned (beneficially or of record) by the Holders or any current or former
partners or employees (the "GS Employees") of Xxxxxxx, Xxxxx & Co. ("Xxxxxxx
Sachs") (which GS Employees shall be deemed "Holders" for purposes of this
Agreement) immediately after the effective time of the Merger (the "Effective
Time"), (ii) any Common Shares described in clause (i) acquired by Xxxxxxx
Xxxxx or its Affiliates from GS Employees after the Effective Time and (iii)
any securities issued or issuable in respect of such Common Shares by way of
conversion, exchange, stock dividend, split or combination, recapitalization,
merger, consolidation, other reorganization or otherwise; and
(g) "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder from time to time by the
Commission.
ARTICLE II
REGISTRATION RIGHTS
SECTION 2.1. REGISTRABLE SECURITIES. The registration rights provided
herein apply to Registrable Securities, but with respect to any particular
Registrable Security, only so long as such security continues to be a
Registrable Security. Any Registrable Security will cease to be a Registrable
Security when (i) a registration statement (including the Shelf Registration
Statement (as defined in Section 2.2)) covering such Registrable Security has
been declared effective by the Commission and such Registrable Security has
been sold, transferred or otherwise disposed of pursuant to such effective
registration statement, (ii) it is sold pursuant to Rule 144 promulgated under
the Securities Act, (iii) it has been otherwise transferred in compliance with
Section 5.07 of the Merger Agreement and it may be freely resold without
subsequent registration under the Securities Act or any blue sky law then in
force, or (iv) it is sold, transferred or otherwise disposed of, whether
directly or indirectly, to any Person other than a Holder or an Affiliate
thereof.
SECTION 2.2. SHELF REGISTRATION STATEMENT. (a) The Company shall prepare
and file with the Commission a shelf registration statement (as amended and
supplemented from time to time, the "SHELF REGISTRATION STATEMENT") relating to
the resale of the Registrable Securities (and which may also include certain
warrants to purchase the Company's Common Shares in accordance with Rule 415
under the Securities Act) and will use its best efforts (i) to cause such Shelf
Registration Statement to be declared effective as promptly as practicable, but
in any event within 90 days of the date hereof and (ii) to keep such Shelf
Registration Statement continuously effective and in compliance with the
Securities Act and usable for resale of the Registrable Securities (including,
without limitation, the filing of any amendments or supplements to such Shelf
Registration Statement or the prospectus or any prospectus supplements forming
a part thereof), from the date on which the Commission declares effective the
Shelf Registration Statement until the first anniversary of the date hereof.
The prospectus forming a part of the Shelf Registration Statement shall
include, in addition to the other items required therein, a "Plan of
Distribution" section providing for, among other things, one or more sales of
Registrable Securities by the Holders, from time to time, (x) in market
transactions or in privately negotiated transactions or (y) as contemplated by
Section 2.1(b) below, pursuant to an underwritten offering to be described in a
prospectus supplement to such prospectus. The Stockholder will use reasonable
efforts to notify the Company of the sale of the last of the Registrable
Securities; PROVIDED, that the failure of the Stockholder to so notify the
Company in accordance with this sentence will not constitute a breach of any of
the terms of this Agreement.
(b) If the Stockholder so elects, the offering of Registrable Securities
pursuant to the Shelf Registration Statement may be in the form of an
underwritten offering. In such case, the Stockholder shall select the
book-running and other managing underwriters in connection with such
underwritten offering and any additional investment bankers and managers, if
any, to be used in connection with the offering, in each case which are
reasonably satisfactory to the Company; PROVIDED, that Xxxxxxx Sachs, if chosen
by the Stockholder, shall be reasonably satisfactory to the Company.
ARTICLE III
REGISTRATION PROCEDURES
SECTION 3.1. FILINGS; INFORMATION. In connection with the Shelf
Registration Statement pursuant to Section 2.2 hereof, the Parties agree as
follows:
(a) The Stockholder will notify the Company at least 5 business days prior
to any Holder making any offer or sale of any Registrable Securities pursuant
to the Shelf Registration Statement other than as contemplated by clause (x) of
the last sentence of Section 2.2 (which will not require such notice), to the
extent such offer or sale will require the preparation and distribution of an
amendment or supplement to the prospectus forming a part of the Shelf
Registration Statement. Such notice shall contain such information regarding
the selling Holders, the proposed plan of underwriting of the Registrable
Securities (if applicable) and such other information as may be legally
required in connection with such registration (which notice may be required to
be updated with such required information as the Company may from time to time
reasonably request). The Company will promptly incorporate such information in
the Shelf Registration Statement, pursuant to a post-effective amendment or
supplement, if necessary, including a prospectus supplement. The Company shall
be entitled, by written notice to the Stockholder, to postpone or suspend for a
reasonable period of time (not to exceed a total of 60 days during the period
of effectiveness of the Shelf Registration Statement) (the "Blackout Period")
the proposed offering of Registrable Securities if the Company shall determine
in good faith that such offering is reasonably likely to interfere with a
pending or contemplated merger, sale or acquisition of assets, recapitalization
or other corporate action or policies of the Company (other than sales of
equity securities of the Company or securities convertible into or exchangeable
for equity securities of the Company, unless the Company agrees to include the
Registrable Securities sought to be sold by the Holders in the offering by the
Company). If the Company elects to so postpone or suspend the proposed offering
of Registrable Securities, the Company shall, to the extent necessary, amend or
supplement the Shelf Registration Statement to permit the offering of
Registrable Securities as soon as is reasonably practicable, but in any event,
within the number of days remaining in the Blackout Period.
(b) The Company will, if requested, prior to filing the Shelf Registration
Statement or any amendment or supplement thereto, furnish to the Stockholder
and each managing underwriter, if any, copies thereof (which documents will be
subject to their review), and thereafter furnish to the Stockholder and each
such underwriter, if any, such number of copies of the Shelf Registration
Statement, and any amendments and supplements thereto (in each case including
all exhibits thereto and documents incorporated by reference therein) and the
prospectus and any prospectus supplements included in the Shelf Registration
Statement (including each preliminary prospectus) as the Stockholder or such
underwriter may reasonably request in order to facilitate the sale of the
Registrable Securities;
(c) (i) the Company will notify the Stockholder (and, if requested,
confirm such notice in writing), promptly after the Company shall receive
notice thereof (x) of the time when the Shelf Registration Statement has become
effective or when any amendment or supplement to the Shelf Registration
Statement or any prospectus or prospectus supplement forming a part thereof has
been filed, and (y) of any request by the Commission for the amendment or
supplement of the Shelf Registration Statement, the prospectus or any
prospectus supplement or for additional information; and (ii) after the filing
of the Shelf Registration Statement, the Company will promptly notify the
Stockholder of any stop order issued or, to the knowledge of the Company,
threatened to be issued by the Commission and take all necessary actions
required to prevent the entry of such stop order or to remove it if such stop
order is entered;
(d) the Company will use all reasonable efforts to qualify the Registrable
Securities for offer and sale under such other securities or blue sky laws of
such jurisdictions in the United States as the Stockholder or the managing
underwriter, if any, reasonably (in light of the Holders' intended plan of
distribution) requests; PROVIDED, HOWEVER, that the Company will not be
required to (i) qualify generally to do business in any jurisdiction where it
would not otherwise be required to qualify but for this paragraph (d), (ii)
subject itself to taxation in any such jurisdiction or (iii) consent to general
service of process in any such jurisdiction;
(e) the Company shall, as promptly as practicable, notify the Stockholder
(and, if requested, confirm such notice in writing), at any time when a
prospectus relating to the sale of the Registrable Securities is required by
law to be delivered, of the occurrence of an event requiring the preparation of
a supplement or amendment to such prospectus or prospectus supplement so that,
as thereafter delivered to the purchasers of such Registrable Securities, such
prospectus or prospectus supplement 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 the light of the circumstances
under which they were made, not misleading, and as promptly as practicable make
available to the Holders and to the underwriters, if any, any such supplement
or amendment. The Holders agree that, upon receipt of any notice from the
Company of the happening of any event of the kind described in the preceding
sentence, the Holders will forthwith discontinue the offer and sale of
Registrable Securities pursuant to the Shelf Registration Statement until
receipt of the copies of such supplemented or amended prospectus or prospectus
supplement and, if so directed by the Company, the Holders will deliver to the
Company all copies, other than permanent file copies then in the Holders'
possession, of the most recent prospectus or prospectus supplement, as the case
may be, covering such Registrable Securities at the time of receipt of such
notice. In the event the Company shall give such notice, the Company shall
extend the period during which such Shelf Registration Statement shall be
maintained effective as provided in Section 2.2(a)(ii) hereof by the number of
days during the period from and including the date of the giving of such notice
to the date when the Company shall make available to the Holders such
supplemented or amended prospectus or prospectus supplement, as the case may
be;
(f) the Company will enter into customary agreements (including an
underwriting agreement in customary form that is reasonably acceptable to it)
and take such other actions as are reasonably required in order to expedite or
facilitate the sale of such Registrable Securities;
(g) in connection with underwritten offerings, at the request of the
Stockholder or any managing underwriter, the Company will furnish to the
Stockholders and to each underwriter, if any, a signed counterpart, addressed
to the Holders and each underwriter, of (i) an opinion or opinions of counsel
to the Company (including a "Rule 10b-5" opinion) and (ii) a comfort letter or
comfort letters from the Company's independent public accountants, each in
customary form and covering such matters of the type customarily covered by
opinions or comfort letters delivered to such parties;
(h) the Company will make available for inspection by the Holders
participating in such offering, any underwriter participating in any
disposition pursuant to the Shelf Registration Statement, any attorney,
accountant or other agent retained by any such Holder or such underwriter, all
financial and other records, pertinent corporate documents and properties of
the Company, and cause the Company's officers, directors and employees to
supply all information reasonably requested by any such Holder, underwriter,
attorney, accountant or agent in connection with the Shelf Registration
Statement, and cause such officers, directors and employees to be available for
discussion of such information and other customary due diligence matters;
(i) commencing within three months after the effective date of the Shelf
Registration Statement, the Company will make generally available to its
securityholders, as soon as reasonably practicable, a consolidated earnings
statement covering a period of 12 months, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act and the rules and
regulations of the Commission thereunder;
(j) the Company will use its best efforts to cause all Common Shares
(including, without limitation, all Registrable Securities) to be listed on
each securities exchange, if any, or the National Association of Securities
Dealers' (the "NASD") Nasdaq National Market or Nasdaq SmallCap Market
interdealer quotation systems on which similar securities issued by the Company
are then listed, but only if such securities are listed at such time;
(k) the Company will use reasonable best efforts to cause the Registrable
Securities covered by the Shelf Registration Statement to be registered with or
approved by such other governmental agencies or authorities as may be necessary
to enable the Holders participating in such offering or the underwriters, if
any, to consummate the disposition of such offering of Registrable Securities,
subject to the proviso contained in clause (d) above;
(l) the Company will cooperate and assist in any filings required to be
made with the NASD and in performance of any due diligence investigation by any
underwriter (including any "qualified independent underwriter") that is
required to be retained in accordance with the rules and regulations of the
NASD; and
(m) the Company will provide a transfer agent and registrar for all such
Registrable Securities not later than the effective date of the Shelf
Registration Statement.
SECTION 3.2. REGISTRATION EXPENSES. In connection with the offering of
Registrable Securities pursuant to the Shelf Registration Statement, the
Holders participating in such offering shall be responsible for any
underwriting discounts or commission that may be payable in connection with the
sale of their securities. The Company will pay all other expenses incurred in
connection with such registration, including, but not limited to, (i) all
filing fees with the Commission, (ii) fees and expenses of compliance with
securities or blue sky laws (including reasonable fees and disbursements of
counsel in connection with blue sky qualifications of the securities), (iii)
printing expenses, (iv) the fees and expenses incurred in connection with any
listing of the securities, (v) fees and expenses of counsel and independent
certified public accountants for the Company (including the expenses of any
comfort letters pursuant to Section 3.1(g) hereof) and (vi) the reasonable fees
and expenses of any additional experts retained by the Company in connection
with such registration. The Company shall also pay internal Company expenses
(including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties) relating to the offering of
Registrable Securities pursuant to the Shelf Registration Statement.
ARTICLE IV
INDEMNIFICATION AND CONTRIBUTION
SECTION 4.1. (a) INDEMNIFICATION BY THE COMPANY. In the event of any
registration pursuant to Article II hereunder, the Company will, and hereby
does, indemnify and hold harmless, to the fullest extent permitted by law, each
Holder, its employees, officers, directors, fiduciaries, shareholders, general
and limited partners (and the employees, officers, directors, fiduciaries,
shareholders and general and limited partners thereof), each other Person who
participates as an underwriter or a qualified independent underwriter, if any,
in the offering or sale of such securities, each employee, officer, director,
fiduciary, shareholder and general and limited partner of such Person, and each
other Person (including any such Person's employees, officers, directors,
fiduciaries, shareholders and general and limited partners), if any, who
controls any of the foregoing within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act from and against any and all
losses, claims, damages, liabilities (joint or several), actions and
proceedings (whether commenced or threatened) in respect thereof ("Claims") and
expenses (including reasonable fees and expenses of counsel and any amounts
paid in any settlement effected with the Company's consent, which consent shall
not be unreasonably withheld or delayed) (such expenses and amounts paid in
settlement, collectively, "Damages") actually incurred by each such indemnified
party under the Securities Act, the Exchange Act or otherwise, insofar as such
Claims or Damages arise out of or are based upon any of the following actual or
alleged statements, omissions or violations (each, a "Violation"): (i) any
untrue statement or alleged untrue statement of a material fact contained in
any registration statement under which such securities were registered pursuant
to this Agreement under the Securities Act or the omission or alleged omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading; (ii) any untrue statement or
alleged untrue statement of a material fact contained in any preliminary, final
or summary prospectus or any amendment or supplement thereto, together with the
documents incorporated by reference therein, or the 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; or (iii) any violation by the Company of
any federal, state or common law rule or regulation applicable to the Company
and relating to action required of or inaction by the Company in connection
with any such registration, and the Company will reimburse any such indemnified
party for any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such Claim as such
expenses are incurred; PROVIDED, that the Company shall not be liable to any
such indemnified party in any such case to the extent such Claims or Damages
arise out of or is based upon (x) any sales by any such indemnified party after
the Company has informed the Stockholder under Section 3.1(e) and prior to the
delivery by the Company of any supplement or amendment to such prospectus
(where such supplement or amendment is intended to cure the defect giving rise
to such Claims or Damages), and (y) any Violation which occurs in reliance upon
and in conformity with written information furnished to the Company or its
representatives by or on behalf of such indemnified party expressly stating
that such information is for use therein. Such indemnity and reimbursement of
expenses shall remain in full force and effect regardless of any investigation
made by or on behalf of such indemnified party and shall survive the transfer
of such securities by such Holder.
(b) INDEMNIFICATION BY THE HOLDERS. Each Holder of Registrable Securities
as to which the Shelf Registration Statement is being effected shall, severally
and not jointly, indemnify and hold harmless (in the same manner and to the
same extent as set forth in paragraph (a) of this Section 4.1), to the extent
permitted by law, the Company, its employees, officers, directors, fiduciaries
and shareholders (and the employees, officers, directors, fiduciaries and
shareholders and general and limited partners thereof) and each other Person
(including any such Person's employees, officers, directors, fiduciaries,
shareholders and general and limited partners), if any, controlling the Company
within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act, and all other prospective sellers and their employees,
officers, directors, fiduciaries, shareholders and respective controlling
Persons (including any such Person's employees, officers, directors,
fiduciaries, shareholders and general and limited partners), against any and
all Claims and Damages actually incurred by each such indemnified party under
the Securities Act, the Exchange Act or otherwise, insofar as such Claims or
Damages arise out of or are based upon any Violation which occurs in reliance
upon and in conformity with written information furnished in writing to the
Company or its representatives by or on behalf of such Holder expressly stating
that such information is for use in connection with any registration statement,
preliminary, final or summary prospectus or amendment or supplement or document
incorporated by reference into any of the foregoing; PROVIDED, HOWEVER, that
the aggregate amount which any such Holder shall be required to pay pursuant to
this Article IV shall be limited to the amount of the net proceeds received by
such Holder from the sale of Registrable Securities pursuant to the
registration statement giving rise to such Claim. The Company and the
Stockholder hereby acknowledge and agree that, unless otherwise expressly
agreed to in writing by any Holder to the contrary, for all purposes of this
Agreement, the only information furnished or to be furnished to the Company for
use in any such registration statement, preliminary, final or summary
prospectus or amendment or supplement thereto are statements specifically
relating to (A) the beneficial ownership of Common Shares by such Holder, (B)
the name and address of such Holder and (C) any information included in any
notice provided pursuant to the first sentence of Section 3.1(a) (including,
without limitation, the proposed plan of underwriting described therein). Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such indemnified party and shall survive the transfer
of such securities by such Holder.
SECTION 4.2. BLUE SKY. Indemnification similar to that specified in the
preceding Section 4.1 (with appropriate modifications) shall be given by the
Company and each seller of Registrable Securities (and, if the Company requires
as a condition to including any Registrable Securities in any registration
statement filed in accordance with Article II, any underwriter and qualified
independent underwriter, if any) with respect to any required registration or
other qualification of securities under any state securities and "blue sky"
laws.
SECTION 4.3. CONDUCT OF INDEMNIFICATION PROCEEDINGS. Promptly after
receipt by an indemnified party under Section 4.1 (a) or (b) above of notice of
the commencement of any action, such indemnified party (the "Indemnified
Party") shall, if a Claim in respect thereof is to be made against an
indemnifying party under such subsection (the "Indemnifying Party"), notify the
Indemnifying Party in writing of the commencement thereof; but the omission so
to notify the Indemnifying Party shall not relieve it from any liability which
it may have to any Indemnified Party (i) except to the extent that the
Indemnifying Party is prejudiced by such failure to notify or (ii) otherwise
than under such subsection. In case any such action shall be brought against
any Indemnified Party and it shall notify the Indemnifying Party of the
commencement thereof, the Indemnifying Party shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such Indemnified Party (who shall not,
except with the consent of the Indemnified Party, be counsel to the
Indemnifying Party), and, after notice from the Indemnifying Party to such
Indemnified Party of its election so to assume the defense thereof, the
Indemnifying Party shall not be liable to such Indemnified Party under such
subsection for any legal expenses of other counsel or any other expenses, in
each case subsequently incurred by such Indemnified Party, in connection with
the defense thereof other than reasonable costs of investigation. The
Indemnifying Party shall not be liable for any Damages arising out of or
relating to any settlement or compromise of any proceeding effected without its
prior written consent (which consent shall not be unreasonably withheld), but
if settled or compromised with such consent, or if there be a final,
nonappealable judgment for the plaintiff, the Indemnifying Party shall
indemnify and hold harmless any Indemnified Party from and against any and all
Damages actually incurred by such Indemnified Person (to the extent provided in
this Article IV) by reason of such settlement or judgment. No Indemnifying
Party shall, without the written consent of the Indemnified Party, effect the
settlement or compromise of, or consent to the entry of any judgment with
respect to, any pending or threatened action or claim in respect of which
indemnification or contribution may be sought hereunder (whether or not the
Indemnified Party is an actual or potential party to such action or claim)
unless such settlement, compromise or judgment (i) includes an unconditional
release of the Indemnified Party from all liability arising out of such action
or claim and (ii) does not include a statement as to or an admission of fault,
culpability or failure to act, by or on behalf of, any Indemnified Party.
SECTION 4.4. CONTRIBUTION. (a) If the indemnification provided for in this
Article IV is unavailable to or insufficient to hold harmless an Indemnified
Party under Section 4.1 (a) or (b) above in respect of any Claims and Damages
(or actions in respect thereof) referred to therein, then each Indemnifying
Party shall contribute to the amount paid or payable by such Indemnified Party
as a result of such Claims and Damages (or actions in respect thereof) in such
proportion as is appropriate to reflect the relative fault of the Indemnifying
Party and the Indemnified Party in connection with the Violations (or actions
in respect thereof) which resulted in such Claims and Damages (or actions in
respect thereof). If, however, the allocation provided by the immediately
preceding sentence is not permitted by applicable law, then the Indemnifying
Party shall contribute to such amount paid or payable by such Indemnified Party
in such proportion as is appropriate to reflect the relative fault of the
Indemnifying Party and the Indemnified Party in connection with the Violations
which resulted in such Claims and Damages (or actions in respect thereof), as
well as any other relevant equitable considerations (including any material
prejudice as a result of any failure to give notice as required by Section 4.3
above). The relative fault 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 Indemnifying Party or the Indemnified Party and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The amount paid or payable by an
Indemnified Party as a result of the Claims and Damages (or actions in respect
thereof) referred to above in this Section 4.4 shall be deemed to include any
legal or other expenses reasonably incurred by such Indemnified Party in
connection with investigating or defending any such action or Claim.
(b) The Parties agree that it would not be just and equitable if
contribution pursuant to this Section 4.4 were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in the immediately preceding
paragraph. 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.
(c) Notwithstanding the provisions of this Section 4.4, no Holder shall be
required to contribute any amount in excess of the amount of the net proceeds
received by such Holder from the sale of Registrable Securities pursuant to the
Shelf Registration Statement giving rise to such contribution obligation.
ARTICLE V
MISCELLANEOUS
SECTION 5.1. RULE 144. The Company covenants that it will use its best
efforts to file any reports required to be filed by it under the Securities Act
and the Exchange Act and that it will take such further action as the Holders
may reasonably request, all to the extent required from time to time to enable
the Holders to sell Registrable Securities without registration under the
Securities Act within the limitation of the exemptions provided by Rule 144 and
Rule 145 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.
Upon the request of any Holder, the Company will promptly deliver to the Holders
a written statement as to whether it has complied with such requirements.
SECTION 5.2. HOLDBACK AGREEMENT. In connection with any offering in which
a Holder participates pursuant to this Agreement or otherwise, the Parties
agree that neither the Company nor any other holder of securities of the
Company shall be required to enter into any agreement, or make any commitment,
that prohibits, limits or restricts (or purports to prohibit, limit or
restrict) in any fashion their ability to effect any public sale or
distribution of any Common Shares, or any securities convertible into or
exchangeable or exercisable for Common Shares, whether pursuant to an
underwritten public offering or otherwise, except to the extent necessary to
comply with Section 3.1(a).
SECTION 5.3. ASSIGNMENT. The Stockholder and its Affiliates shall be
entitled to assign the rights granted herein, in whole or in part, to any
transferee of Registrable Securities that is an Affiliate of such Stockholder
or any of its Affiliates and such Registrable Securities do not cease being
Registrable Securities pursuant to Section 2.1 upon consummation of such
transfer. Upon such assignment, each reference in this Agreement to the
"Stockholder," the "Holders" or the "Parties" shall be deemed to include the
permitted assignee. Except as set forth in this Section 5.3, none of the rights
of any Holder under this Agreement shall be assignable by any such Holder to
any Person to which such Holder has, directly or indirectly, sold, transferred
or otherwise disposed of Registrable Securities.
SECTION 5.4. TERMINATION. This Agreement shall terminate upon the earlier
to occur of (i) the sale of all Registrable Securities by the Holders and any
permitted transferee pursuant to Section 5.3, (ii) the mutual consent of the
Parties and (iii) one year from the date hereof, except that such one-year
period shall be extended by the same number of days as required by the last
sentence of Section 3.1(e); PROVIDED, HOWEVER, that, in any event, Article IV
shall survive such termination.
SECTION 5.5. NOTICES. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given (and shall be
deemed to have been duly given upon receipt) by delivery in person, by telecopy
or telegram 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 5.5):
(a) if to the Company:
Insilco Holding Co.
000 Xxxxx Xxxxx Xxxxx
0xx Xxxxx
Xxxxxx, Xxxx 00000
Telecopier: (000) 000-0000
Attention: General Counsel
with a copy to:
Xxxxx Xxxx & Xxxxxxxx
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Telecopier No.: (000) 000-0000
Attention: Xxxx X. Xxxxxxxx, Esq.
(b) if to Stockholder:
Water Street Corporate Recovery Fund I, L.P.
c/o Goldman, Xxxxx & Co.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Telecopier: (000) 000-0000
Attention: Xxxxx X. Xxxxxxxxx, Esq.
with a copy to:
Wachtell, Lipton, Xxxxx & Xxxx
00 Xxxx 00xx Xxxxxx
Xxx Xxxx, XX 00000
Telecopier No.: (000) 000-0000
Attention: Xxxxxxxx X. Xxxxxxx, Esq.
SECTION 5.6. AMENDMENTS; WAIVER. Subject to the terms of Section 5.3
hereof, this Agreement may not be amended or modified except by an instrument
in writing signed by, or on behalf of, the Parties; PROVIDED, HOWEVER, that the
Parties may (i) extend the time for the performance of any of the obligations
or other acts of the other Party or (ii) waive compliance with any of the
agreements or conditions of the other Party contained herein. Any such
extension or waiver shall be valid only if set forth in an instrument in
writing signed by the Party to be bound thereby. Any waiver of any term or
condition shall not be construed as a waiver of any subsequent breach or a
subsequent waiver of the same term or condition, or a waiver of any other term
or condition, of this Agreement. The failure of any Party to assert any of its
rights hereunder shall not constitute a waiver of any such rights.
SECTION 5.7. SEVERABILITY. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of law
or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions set forth in this Agreement is not affected in
any manner materially adverse to any Party. Upon such determination that any
term or other provision is invalid, illegal or incapable of being enforced, the
Parties shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the Parties as closely as possible in a mutually
acceptable manner in order that the transactions set forth in this Agreement be
consummated as originally contemplated to the fullest extent possible.
SECTION 5.8. BINDING EFFECT; BENEFIT. This Agreement shall be binding upon
and shall inure to the benefit of the Parties and their respective successors
and permitted assigns. Notwithstanding anything contained in this Agreement to
the contrary, except as expressly provided in Article IV, nothing in this
Agreement, is intended to confer on any person other than the Parties, the
Holders and their respective permitted successors and assigns any rights,
remedies, obligations or liabilities under or by reason of this Agreement.
SECTION 5.9. SPECIFIC PERFORMANCE. The Parties 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 shall be
entitled to specific performance of the terms hereof, in addition to any other
remedy at law or equity.
SECTION 5.10. GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the internal laws of the State of Delaware
applicable to contracts executed in and to be performed in that State. All
actions and proceedings arising out of or relating to this Agreement shall be
heard and determined in any Delaware state or federal court.
SECTION 5.11. HEADINGS. The descriptive headings contained in this
Agreement are included for convenience of reference only and shall not affect
in any way the meaning or interpretation of this Agreement.
SECTION 5.12. COUNTERPARTS. This Agreement may be executed and delivered
(including by facsimile transmission) in one or more counterparts, and by the
different Parties hereto in separate counterparts, each of which when executed
and delivered shall be deemed to be an original but all of which taken together
shall constitute one and the same agreement.
SECTION 5.13. WAIVER OF JURY TRIAL. EACH OF THE COMPANY AND THE
STOCKHOLDER HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE)
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF THE COMPANY OR
THE STOCKHOLDERS IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND
ENFORCEMENT HEREOF.
SECTION 5.14. ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement among the Parties with respect to the subject matter hereof and
supersedes all prior agreements and understandings among the Parties with
respect thereto. No addition to or modification of any provision of this
Agreement shall be binding upon any Party unless made in writing and signed by
all Parties.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed as of the date first written above by their respective officers
thereunto duly authorized.
INSILCO HOLDING CO.
By
---------------------------------
Name:
Title:
STOCKHOLDER:
WATER STREET CORPORATE RECOVERY
FUND I, L.P.
By: Xxxxxxx, Xxxxx & Co.,
its General Partner
By:
---------------------------------
Name:
Title:
