Exhibit 4.91
This
Registration Rights Agreement (this “Agreement”) originally made on
September 28, 2006 by and between TOWER SEMICONDUCTOR LTD. (the
“Company” or “Tower”), a company organized under the
laws of the State of Israel, and BANK HAPOALIM B.M., a banking corporation organized under
the laws of the State of Israel (the “Bank”), is hereby amended and
restated by the parties on September 25, 2008.
WHEREAS,
Tower is an independent manufacturer of wafers whose Ordinary Shares are traded on the
Nasdaq Stock Market (“NASDAQ”) under the symbol “TSEM” and
whose Ordinary Shares and certain other securities are traded on the Tel-Aviv Stock
Exchange (“TASE”) under the symbol “TSEM”; and
WHEREAS,
the Bank and Bank Leumi Le–Israel B.M. (collectively, the “Banks”)
and Tower are parties to a Facility Agreement dated January 18, 2001, as amended, as
amended and restated on August 24, 2006, as further amended by Amendment No. 1
thereto dated September 10, 2007, as amended (the “Facility
Agreement”); and
WHEREAS,
the Bank and the Company are parties to a Conversion Agreement dated September 28,
2006 (the “2006 Conversion Agreement”); and
WHEREAS,
at the request of Tower, the Banks and Tower have entered into an Amending Agreement to
the Facility Agreement dated September 25, 2008 (the “Amending
Agreement”), the conditions to the effectiveness of which include, inter
alia, the issuance to each of the Banks or its nominee, of an equity-equivalent
convertible capital note which will in turn be convertible, in whole or in part, by the
Bank at any time and from time to time into shares of Tower and the entering into by the
Bank and Tower of a conversion agreement (the “2008 Conversion
Agreement”) and the amendment and restatement of this Agreement, in each case, on
or prior to the date of the effectiveness of the Amending Agreement (the
“Amendment Closing Date”); and
WHEREAS,
clause 9.4 of the Facility Agreement, including as amended by the Amending Agreement,
obligates the Company, under certain circumstances, to make a payment to the Banks which,
subject to said clause 9.4 and the 2006 Conversion Agreement, can be paid in the form
of shares, capital notes or convertible debentures (the “Clause 9.4 Equity
Issuances”); and
WHEREAS
the parties intend that the registration rights set forth in this Agreement be applicable
with respect to all shares issuable upon conversion or exercise of any and all capital
notes issued or issuable pursuant to the 2006 and 2008 Conversion Agreements and warrants
held by the Bank or its affiliate, as well as with respect to the Clause 9.4 Equity
Issuances; and
WHEREAS,
the parties wish to amend and restate this Agreement in its entirety,
NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Bank hereby agree as follows:
| 1. |
DEFINITIONS
AND INTERPRETATION. |
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As
used in this Agreement, the following terms shall have the following meanings: |
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(a) |
“Capital
Note” means any capital note that is convertible into shares of
Tower. |
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(b) |
“Holder” means
the Bank, Tarshish, any nominee of the Bank to hold the Clause 9.4 Equity
Issuances (the “Nominee”), any transferee or assignee to
whom the Bank or the Nominee assigns its rights, in whole or in part, and
any transferee or assignee thereof to whom a transferee or assignee
assigns its rights, in accordance with Section 9. |
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(c) |
“ISA” means
the Israel Securities Authority or any similar or successor agency of
Israel administering the Israel Securities Law. |
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(d) |
“Israel
Securities Law” means the Israel Securities Law, 5728-1968
(including the regulations promulgated thereunder), as amended. |
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(e) |
“1933
Act” means the U.S. Securities Act of 1933, as amended, and the
rules and regulations thereunder, or any similar successor statute. |
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(f) |
“1934
Act” means the U.S. Securities Exchange Act of 1934, as amended,
and the rules and regulations thereunder, or any similar successor
statute. |
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(g) |
“Register”,
“registered”, and “registration” refer to a registration
effected by preparing and filing a registration statement in compliance
with the 1933 Act and the effectiveness of such registration statement in
accordance with the 1933 Act or the equivalent actions under the laws of
another jurisdiction. |
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(h) |
“Registrable
Securities” means: (i) the ordinary shares of the Company
issued or issuable upon conversion of any Capital Note by any Holder, (ii) any
ordinary shares issued as part of the Clause 9.4 Equity Issuances,
including shares issued or issuable upon conversion of Capital Notes or
convertible debentures issued as part of the Clause 9.4 Equity Issuances,
which are held by any Holder, (iii) ordinary shares of the Company
issued or issuable upon exercise of any Warrant, and (iv) any shares
of capital stock issued or issuable with respect to the ordinary shares of
the Company as a result of any stock split, stock dividend, rights
offering, recapitalization, merger, exchange or similar event or
otherwise, including as described in any Capital Note. |
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(i) |
“Registration
Statement” means registration statements of the Company covering
Registrable Securities filed from time to time with (a) the SEC under
the 1933 Act, including the Form F-3 Registration Statement No. 333-131315
previously filed by the Company covering ordinary shares issuable upon the
exercise of the 2003 Warrants and the 2005 Warrants, and (b) the ISA
under the Israel Securities Law, to the extent required under the Israel
Securities Law, so as to allow the Holder to freely resell the Registrable
Securities in Israel, including on the TASE. |
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(j) |
“SEC” means
the United States Securities and Exchange Commission or any similar or
successor agency of the United States administering the 1933 Act. |
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(k) |
“2003
Warrant” means the warrant granted in 2003 to Tarshish to
purchase 448,298 (subject to adjustment in accordance with such warrant)
shares of Tower. |
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(l) |
“2005
Warrant” means the warrant granted in 2005 to the Bank to
purchase 4,132,232 (subject to adjustment in accordance with such warrant)
shares of Tower. |
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(m) |
“2007
Warrant” means the warrant granted in 2007 to the Bank to
purchase 1,470,588 (subject to adjustment in accordance with such warrant)
shares of Tower. |
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(n) |
“Tarshish” means
Tarshish Hahzakot Vehashkaot Hapoalim Ltd., a company organized under the
laws of the State of Israel and an affiliate of the Bank. |
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(o) |
“Warrant” means
the 2003 Warrant, the 2005 Warrant and the 2007 Warrant, or any of them or
any portion thereof as any of such Warrants may be amended at any time or
from time to time. |
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(a) |
Words
importing the singular shall include the plural and vice versa and
words importing any gender shall include all other genders and references
to persons shall include partnerships, corporations and unincorporated
associations. |
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(b) |
Any
reference in this Agreement to a specific form or to any rule or regulation
adopted by the SEC shall also include any successor form or amended or
successor rule or regulation subsequently adopted by the SEC, all as the
same may be in effect at the time. |
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(c) |
Any
reference in this Agreement to a statute, act or law shall be construed as a
reference to such statute, act or law as the same may have been, or may
from time to time be, amended or reenacted. |
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(d) |
A
“person” shall be construed as a reference to any person,
firm, company, corporation, government, state or agency of a state or any
association or partnership (whether or not having separate legal
personality) or two or more of the aforegoing. |
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(e) |
“Including” and
“includes” means, including, without limiting the
generality of any description preceding such terms. |
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(f) |
The
headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof. |
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(a) |
The
Company shall prepare, and, as soon as practicable but in no event later
than 45 days after each date on which the Company receives a written
request from the Bank from time to time, file with the SEC a Registration
Statement on Form F-3 and make all required filings with the ISA covering
the resale of all, or at the request of the Bank, any portion of the then
Registrable Securities that are not already registered. The Company shall
use its best efforts to have the Registration Statement declared effective
by the SEC and the ISA as soon as possible after such filing with the SEC
and the ISA. |
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(b) |
In
the event that Form F-3 shall not be available for the registration of the
resale of Registrable Securities hereunder, the Company shall (i) register
the resale of the Registrable Securities on another appropriate form
reasonably acceptable to the Holders of the Registrable Securities to be
registered on such Registration Statement and (ii) undertake to register
the Registrable Securities on Form F-3 as soon as such form is available,
provided that, in each such event, the Company shall maintain the
effectiveness of the Registration Statement then in effect until such time
as a Registration Statement on Form F-3 covering the Registrable
Securities has been declared effective by the SEC. |
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(a) |
Following
the filing and effectiveness of each Registration Statement with the SEC
pursuant to Section 2(a), the Company shall keep the Registration Statement
effective pursuant to Rule 415 of the 1933 Act and under the Israel
Securities Law at all times until the earlier of (i) the date as of which
all of the Holders confirm to the Company in writing that they may sell
all of the Registrable Securities covered by such Registration Statement
without restriction pursuant to all of the following: (x) Rule 144(k)
under the 1933 Act, (y) the Israel Securities Law and (z) other securities
or “blue sky” laws of each jurisdiction in which the Company
obtained a registration or qualification in accordance with Section 3(d)
below or (ii) the date on which the Holders shall have sold all the
Registrable Securities covered by such Registration Statement (A) in
accordance with such Registration Statement (except to another Holder
pursuant to Section 9) or (B) to the public pursuant to Rule 144 under the
1933 Act (the “Registration Period”), the Company to
ensure that such Registration Statement (including any amendments or
supplements thereto and prospectuses contained therein) shall not contain
any untrue statement of a material fact or omit to state a material fact
required to be stated therein, or necessary to make the statements
therein, in light of the circumstances in which they were made, not
misleading, subject to Section 3(e) below. |
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(b) |
The
Company shall prepare and file with the SEC and the ISA (to the extent
required) such amendments (including post-effective amendments) and
supplements to each Registration Statement and the prospectus used in
connection with such Registration Statement, which prospectus is to be
filed pursuant to Rule 424 under the 1933 Act or under the Israel
Securities Law, as may be necessary to keep such Registration Statement
effective at all times during the Registration Period, and, during such
period, comply with the provisions of the 1933 Act and the Israel
Securities Law with respect to the disposition of all Registrable
Securities of the Company covered by such Registration Statement until
such time as all of such Registrable Securities shall have been disposed
of in accordance with the intended methods of disposition by the seller or
sellers thereof as set forth in such Registration Statement, which, for
the avoidance of doubt, shall include sales on the Nasdaq Stock Market and
the TASE, as well as sales not made on such exchanges. In the case of
amendments and supplements to a Registration Statement which are required
to be filed pursuant to the Agreement (including pursuant to this Section 3(b)
by reason of the Company filing a report on Form 20-F, Form 6-K or any
analogous report under the 1934 Act), the Company shall have incorporated
such report by reference into the Registration Statement, if applicable,
or shall file such amendments or supplements with the SEC and the ISA on
the same day on which the 1934 Act report is filed which created the
requirement for the Company to amend or supplement the Registration
Statement. |
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(c) |
The
Company shall furnish each Holder whose Registrable Securities are included
in any Registration Statement, without charge, (i) promptly after the same
is prepared and filed with the SEC, at least three (3) copies of such
Registration Statement and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference,
all exhibits and each preliminary prospectus (or such other number of
copies as such Holder may reasonably request), (ii) upon the effectiveness
of any Registration Statement, at least ten (10) copies of the prospectus
included in such Registration Statement and all amendments and supplements
thereto (or such other number of copies as such Holder may reasonably
request) and (iii) such other documents, including copies of any
preliminary or final prospectus and of any Registration Statements and
prospectuses filed with the ISA, as such Holder may reasonably request
from time to time in order to facilitate the disposition of the
Registrable Securities owned by such Holder. |
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(d) |
The
Company shall use its best efforts to (i) register and qualify, unless an
exemption from registration and qualification applies, the resale by the
Holders of the Registrable Securities covered by a Registration Statement
under such other securities or “blue sky” laws of all the states
of the United States, (ii) prepare and file in those jurisdictions, such
amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain the
effectiveness thereof during the Registration Period, (iii) take such
other actions as may be necessary to maintain such registrations and
qualifications in effect at all times during the Registration Period, and
(iv) take all other actions reasonably necessary or advisable to qualify
the Registrable Securities for sale in such jurisdictions; provided,
however, that the Company shall not be required in connection therewith or
as a condition thereto to (x) qualify to do business in any jurisdiction
where it would not otherwise be required to qualify but for this Section
3(d), or (y) file a general consent to service of process in any such
jurisdiction. The Company shall promptly notify each Holder who holds
Registrable Securities of the receipt by the Company of any notification
with respect to the suspension of the registration or qualification of any
of the Registrable Securities for sale under the securities or “blue
sky” laws of any jurisdiction in the United States or its receipt of
actual notice of the initiation or threatening of any proceeding for such
purpose. |
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(e) |
The
Company shall notify each Holder in writing of the happening of any event,
as promptly as practicable after becoming aware of such event, as a result
of which the prospectus included in a Registration Statement, as then in
effect, includes an untrue statement of a material fact or omission to
state 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. The Company shall use its best efforts to
minimize the period of time during which a Registration Statement includes
an untrue statement of a material fact or omission to state 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. The Company shall promptly notify each Holder in writing (i)
when a prospectus or any prospectus supplement or post-effective amendment
has been filed so that the Registration Statement does not include an
untrue statement of a material fact or omission to state 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,
and when a Registration Statement or any post-effective amendment has
become effective (notification of such effectiveness shall be delivered to
each Holder by facsimile on the same day of such effectiveness and by
overnight mail), (ii) of any request by the SEC or the ISA for amendments
or supplements to a Registration Statement or related prospectus or
related information, and (iii) of the Company’s reasonable
determination that a post-effective amendment to a Registration Statement
would be appropriate. |
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(f) |
The
Company shall use its best efforts to prevent the issuance of any stop order
or other suspension of effectiveness of a Registration Statement, or the
suspension of the qualification of any of the Registrable Securities for
sale in any jurisdiction and, if such an order or suspension is issued, to
obtain the withdrawal of such order or suspension at the earliest possible
moment and to notify each Holder who holds Registrable Securities being
sold of the issuance of such order and the resolution thereof or its
receipt of actual notice of the initiation or threat of any proceeding for
such purpose. |
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(g) |
The
Company shall cause all the Registrable Securities covered by a Registration
Statement to be listed on each securities exchange on which securities of
the same class or series issued by the Company are then listed, including
the NASDAQ and the TASE. The Company shall deliver to the Holders a copy
of the approvals of the TASE and the NASDAQ (and/or any other exchange, if
applicable) to the listing of the Registrable Securities covered by such
Registration Statement on such exchange, in the case of the TASE, by not
later than the Amendment Closing Date, and in the case of the NASDAQ
(and/or other applicable exchanges) not later than the effective date of
such Registration Statement. |
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(h) |
The
Company shall cooperate with the Holders who hold Registrable Securities
being offered and, to the extent applicable, facilitate the timely
preparation and delivery of certificates (not bearing any restrictive
legend) representing the Registrable Securities to be offered pursuant to
a Registration Statement and enable such certificates to be in such
denominations or amounts, as the case may be, as the Holders may
reasonably request and registered in such names as the Holders may
request. |
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(i) |
The
Company shall provide a transfer agent and registrar of all Registrable
Securities and a CUSIP number not later than the effective date of the
applicable Registration Statement. |
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(j) |
If
requested by a Holder, the Company shall (i) as soon as practicable
incorporate in a prospectus supplement or post-effective amendment such
information as a Holder requests to be included therein, information with
respect to the number of Registrable Securities being offered or sold, the
purchase price being paid therefor and any other terms of the offering of
the Registrable Securities to be sold in such offering; (ii) as soon as
practicable make all required filings of such prospectus supplement or
post-effective amendment after being notified of the matters to be
incorporated in such prospectus supplement or post-effective amendment;
and (iii) as soon as practicable, supplement or make amendments to any
Registration Statement if reasonably requested by a Holder of such
Registrable Securities. |
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(k) |
In
the event of any underwritten public offering of the Registrable Securities,
enter into and perform its obligations under an underwriting agreement
with usual and customary terms that are generally satisfactory to the
managing underwriter of such offering. The Holder shall also enter into
and perform its obligations under such an agreement (the terms of which
must be satisfactory to the Holder if the Holder is to participate in such
offering). |
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(l) |
The
Company shall afford the Holder and its representatives (including counsel)
the opportunity at any time and from time to time during the Registration
Period to make such examinations of the business affairs and other
material financial and corporate documents of the Company and its
subsidiaries as the Holder may reasonably deem necessary to satisfy itself
as to the accuracy of the Registration Statement (subject to a reasonable
confidentiality undertaking on the part of the Holder and its
representatives). |
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(m) |
The
Company shall furnish, at the request of the Holder in connection with the
registration of Registrable Shares pursuant to this Agreement, on the date
that such Registrable Shares are delivered to the underwriters for sale,
if such securities are being sold through underwriters, or, if such
securities are not being sold through underwriters, on the date that the
Registration Statement with respect to such securities becomes effective
and on the date of each post-effective amendment thereof: (i) an
opinion, dated such date, of the counsel representing the Company for the
purposes of such registration, in form and substance as is customarily
given to underwriters in an underwritten public offering, addressed to the
underwriters, if any, and to the Holder; and (ii) a letter, dated
such date, from the independent certified public accountants of the
Company, in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public
offering, addressed to the underwriters, if any, and to the Holder. |
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(n) |
The
Company shall comply with all applicable rules and regulations of the SEC
and shall make generally available to its security holders an earnings
statement satisfying the provisions of Section 11(a) of the 1933 Act as
soon as practicable after the effective date of the Registration Statement
and in any event no later than 45 days after the end of a 12-month period
(or 90 days, if such period is a fiscal year) beginning with the first
month of the Company’s first fiscal quarter commencing after the
effective date of the Registration Statement. |
| 4. |
OBLIGATIONS
OF THE HOLDERS. |
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Each
Holder agrees that, upon receipt of any notice from the Company of the happening of any
event of the kind described in the first sentence of Section 3(e) or the issuance of
any stop order or suspension as referred to in Section 3(f), such Holder will
immediately discontinue disposition of Registrable Securities pursuant to any Registration
Statement(s) covering such Registrable Securities until such Holder’s receipt of the
copies of the supplemented or amended prospectus contemplated by clause (i) of
Section 3(e) or receipt of notice that no supplement or amendment is required. |
| 5. |
EXPENSES
OF REGISTRATION. |
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All
expenses, other than underwriting discounts and commissions, incurred in connection with
registrations, filings or qualifications pursuant to Sections 2 and 3, including, without
limitation, all registration, listing and qualifications fees, printers and accounting
fees, fees and disbursements of counsel to the Company and the Holders, including in
connection with such examinations described in Section 3(l) above, shall be paid by
the Company. |
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In
the event any Registrable Securities are included in a Registration Statement under this
Agreement: |
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(a) |
To
the fullest extent permitted by law, the Company will, and hereby does,
indemnify, hold harmless and defend each Holder, the directors, officers,
partners, employees, agents, representatives of, and each Person, if any,
who controls any Holder within the meaning of the 1933 Act or 1934 Act
(each, an “Indemnified Person”), against any losses, claims, damages,
liabilities, judgments, fines, penalties, charges, costs, reasonable
attorneys’ fees, amounts paid in settlement or expenses, joint or
several, (collectively, “Claims”) incurred in
investigating, preparing or defending any action, claim, suit, inquiry,
proceeding, investigation or appeal taken from the foregoing by or before
any court or governmental, administrative or other regulatory agency, body
or the SEC or the ISA, whether pending or threatened, whether or not a
person to be indemnified is or may be a party thereto (“Indemnified
Damages”), to which any of them may become subject insofar as
such Claims (or actions or proceedings, whether commenced or threatened,
in respect thereof) arise out of or are based upon: (i) any untrue
statement or alleged untrue statement of a material fact in a Registration
Statement or any post-effective amendment thereto or in any filing made in
connection with the qualification of the offering under the securities or
other “blue sky” laws of any jurisdiction in which Registrable
Securities are offered (“Blue Sky Filing”), or the
omission or alleged omission to state 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 Registration Statement, preliminary prospectus, final
prospectus or “free writing prospectus” (as such term is defined
in Rule 405 under the 0000 Xxx) or any amendment or supplement to any such
prospectus or the omission or alleged omission to state therein any
material fact necessary to make the statements made therein, in light of
the circumstances under which the statements therein were made, not
misleading, (iii) any violation or alleged violation by the Company of the
1933 Act, the 1934 Act, any other law, including, without limitation, any
state securities law, the Israel Securities Law or any rule or regulation
thereunder relating to the offer or sale of the Registrable Securities
pursuant to a Registration Statement or (iv) any material violation of
this Agreement (the matters in the foregoing clauses (i) through (iv)
being, collectively, “Violations”). Subject to Section 6(c), the
Company shall reimburse the Indemnified Persons promptly as such expenses
are incurred and are due and payable, for any legal fees or other
reasonable expenses incurred by them in connection with investigating or
defending any such Claim. Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this Section
6(a): (i) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in
conformity with information furnished in writing to the Company by such
Indemnified Person expressly for inclusion in any such Registration
Statement, preliminary prospectus, final prospectus or free writing
prospectus or any such amendment thereof or supplement thereto and (ii) shall
not apply to amounts paid in settlement of any Claim if such settlement is
effected without the prior written consent of the Company, which consent
shall not be unreasonably withheld. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of
the Indemnified Person and shall survive the transfer of the Registrable
Securities by the Holders pursuant to Section 9. |
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(b) |
In
connection with any Registration Statement in which a Holder is
participating, each such Holder agrees, severally and not jointly, to
indemnify, hold harmless and defend, to the same extent and in the same
manner as is set forth in Section 6(a), the Company, each of its
directors, each of its officers who signs the Registration Statement, each
Person, if any, who controls the Company within the meaning of the 1933
Act or the 1934 Act (each an “Indemnified Party”), against any Claim or
Indemnified Damages to which any of them may become subject, under the
1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified
Damages arise out of or are based upon any Violation, in each case to the
extent, and only to the extent, that such Violation occurs in reliance
upon and in conformity with written information furnished to the Company
by such Holder expressly for inclusion in Registration Statement,
preliminary prospectus, final prospectus or free writing prospectus and,
subject to Section 6(c), such Holder will reimburse any legal or other
expenses reasonably incurred by an Indemnified Party in connection with
investigating or defending any such Claim; provided, however, that the
indemnity agreement contained in this Section 6(b) and the agreement with
respect to contribution contained in Section 7 shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the
prior written consent of such Holder; provided, further, however, that the
Holder shall be liable under this Section 6 for only that amount of a
Claim or Indemnified Damages as does not exceed the net proceeds to such
Holder as a result of the sale of Registrable Securities pursuant to such
Registration Statement. 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 the Registrable
Securities by the Holders pursuant to Section 9. |
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(c) |
Promptly
after receipt by an Indemnified Person or Indemnified Party under this
Section 6 of notice of the commencement of any action or proceeding
(including any governmental action or proceeding) involving a Claim, such
Indemnified Person or Indemnified Party shall, if a Claim in respect
thereof is to be made against any indemnifying party under this Section 6,
deliver to the indemnifying party a written notice of the commencement
thereof, and the indemnifying party shall have the right to participate
in, and, to the extent the indemnifying party so desires, jointly with any
other indemnifying party similarly noticed, to assume control of the
defense thereof with counsel mutually satisfactory to the indemnifying
party and the Indemnified Person or the Indemnified Party, as the case may
be; provided, however, that an Indemnified Person or Indemnified Party
shall have the right to retain its own counsel with the fees and expenses
of not more than one counsel for such Indemnified Person or Indemnified
Party to be paid by the indemnifying party, if, the representation by such
counsel of the Indemnified Person or Indemnified Party and the
indemnifying party would be inappropriate due to actual or potential
differing interests between such Indemnified Person or Indemnified Party
and any other party represented by such counsel in such proceeding. In the
case of an Indemnified Person, legal counsel referred to in the
immediately preceding sentence shall be selected by the Holders holding a
majority in interest of the Registrable Securities included in the
Registration Statement to which the Claim relates. The Indemnified Party or
Indemnified Person shall cooperate with the indemnifying party in
connection with any negotiation or defense of any such action or Claim by
the indemnifying party and shall furnish to the indemnifying party all
information reasonably available to the Indemnified Party or Indemnified
Person which relates to such action or Claim. The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall not relieve such indemnifying party
of any liability to the Indemnified Person or Indemnified Party under this
Section 6, except to the extent that the indemnifying party is prejudiced
in its ability to defend such action but the omission to so notify the
indemnifying party will not relieve such indemnifying party of any
liability that it may have to any Indemnified Person or Party otherwise
than under this Section 6(c), including under Section 6(e). |
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(d) |
The
indemnification required by this Section 6 shall be made by periodic
payments of the amount thereof during the course of the investigation or
defense, as and when bills are received or Indemnified Damages are
incurred. |
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(e) |
The
indemnity agreements contained herein shall be in addition to (i) any cause
of action or similar right of the Indemnified Party or Indemnified Person
against the indemnifying party or others, and (ii) any liabilities the
indemnifying party may be subject to pursuant to the law. |
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To
the extent any indemnification by an indemnifying party is prohibited or limited by law or
insufficient to hold an Indemnified Person or an Indemnified Party, as the case may be,
harmless, then the indemnifying party, in lieu of indemnifying such Indemnified Person or
Indemnified Party hereunder, shall contribute to the amount paid or payable by such
Indemnified Person or Indemnified Party as a result of such Claims and Indemnified Damages
(each as defined in Section 6(a) above) in such proportion as is appropriate to reflect
the relative fault of the indemnifying party on the one hand and of the Indemnified Person
or Indemnified Party, as the case may be, on the other in connection with the statements
or omissions that resulted in such loss, liability, claim, damage, or expense as well as
any other relevant equitable considerations. The relative fault of the indemnifying party
and of the Indemnified Person or Indemnified Party, as the case may be, shall be
determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission to state a material fact relates to
information supplied by the indemnifying party or by the Indemnified Person or Indemnified
Party and the parties’ relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission. |
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Notwithstanding
the foregoing, (i) no person involved in the sale of Registrable Securities, which person
is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000
Xxx) in connection with such sale, shall be entitled to contribution from any person
involved in such sale of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be
limited in amount to the net amount of proceeds received by such seller from the sale of
such Registrable Securities pursuant to such Registration Statement. |
| 8. |
REPORTS
UNDER THE 1934 ACT. |
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With
a view to making available to the Holders the benefits of Rule 144 promulgated under the
1933 Act or any other similar rule or regulation of the SEC that may at any time permit
the Holders to sell securities of the Company to the public without registration
(“Rule 144”), the Company agrees to: |
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(a) |
make
and keep public information available, as those terms are understood and
defined in Rule 144; |
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(b) |
file
with the SEC in a timely manner all reports and other documents required by
the Company under the 1993 Act and the 1934 Act so long as the Company
remains subject to such requirements and the filing of such reports and
other documents is required for the applicable provisions of Rule 144; and |
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(c) |
furnish
to each Holder so long as such Holder owns Registrable Securities,
promptly upon request, (i) a written statement by the Company that it has
complied with the reporting requirements of Rule 144, the 1933 Act and the
1934 Act, (ii) a copy of the most recent annual or quarterly report of the
Company and such other reports and documents so filed by the Company, and
(iii) such other information as may be reasonably requested to permit the
Holders to sell such securities pursuant to any rule or regulation of the
SEC allowing the Holder to sell any securities without registration. |
| 9. |
ASSIGNMENT
OF REGISTRATION RIGHTS. |
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The
rights under this Agreement shall be freely assignable, in whole or in part at any time
and from time to time during the Registration Period, by the Holder to any transferee of
all or any portion of a Capital Note or of the Registrable Securities (provided that, in
the case of the transfer of Registrable Securities only, the rights under the Agreement
may be transferred only if the Holder reasonably believes that such transferee cannot
immediately make a public distribution of such Registrable Securities without restriction
under any of the 1933 Act, the Israel Securities Law and other applicable securities laws)
if: (i) the Holder agrees in writing with the transferee or assignee to assign such
rights, and a copy of such agreement is furnished to the Company within a reasonable time
after such transfer or assignment; (ii) the Company is, within a reasonable time after
such transfer or assignment, furnished with written notice of (a) the name and
address of such transferee or assignee, and (b) the securities with respect to which
such registration rights are being transferred or assigned; and (iii) within a reasonable
period of time after such transfer or assignment, the transferee or assignee agrees in
writing with the Company to be bound by all of the provisions contained herein. At the
transferee’s request, the Company shall promptly prepare and file any required
prospectus supplement under Rule 424(b)(3) of the 1933 Act or other applicable provision
of the 1933 Act and/or the Israel Securities Law to appropriately amend the list of
selling shareholders thereunder to include such transferee. |
| 10. |
AMENDMENT
OF REGISTRATION RIGHTS. |
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Provisions
of this Agreement may be amended and the observance thereof may be waived (either
generally or in a particular instance and either retroactively or prospectively), only
with the written consent of the Company and the Holders. Any amendment or waiver effected
in accordance with this Section 10 shall be binding upon each Holder and the Company. No
such amendment shall be effective to the extent that it applies to less than all of the
Holders of the Registrable Securities. No consideration shall be offered or paid to any
Person to amend or consent to a waiver or modification of any provision of any of this
Agreement unless the same consideration also is offered to all of the parties to this
Agreement. |
| 11. |
OTHER
REGISTRATION STATEMENTS; INCIDENTAL REGISTRATIONS; NO CONFLICTING
AGREEMENTS. |
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(a) |
From
and after the time of filing of any Registration Statement filed pursuant
hereto and prior to the effectiveness thereof, the Company shall not file
a registration statement (including any shelf registration statements)
(other than on Form S-8) with the SEC with respect to any securities of
the Company, provided that nothing herein shall limit the filing of any
registration statement demanded to be filed pursuant to a “demand” right
granted by the Company prior to the filing of any such Registration
Statement. For the purposes of this Section 11(a) only, Registration
Statement shall mean a Registration Statement that is filed for an amount
of Registrable Securities, that the Holder believes in good faith can be
reasonably sold pursuant to such Registration Statement. |
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(b) |
If
at any time the Company shall determine to prepare and file with the SEC
and/or the ISA a registration statement relating to an underwritten
offering for its own account or the account of others under the 1933 Act
and/or the Israel Securities Law of any of its equity securities, other
than on Form F-4 or Form S-8 (each as promulgated under the 0000 Xxx) or
their then equivalents relating to equity securities to be issued solely
in connection with any acquisition of any entity or business or equity
securities issuable in connection with stock option or other employee
benefit plans, then the Company shall send each Holder written notice of
such determination and, if within twenty days after receipt of such
notice, any such Holder shall so request in writing, the Company shall
include in such registration statement all or any part of such Registrable
Securities such Holder requests to be registered, subject to customary
underwriter cutbacks applicable on a basis consistent with the Company’s
obligation to other existing holders of registration rights. |
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(c) |
The
Company represents and warrants to the Holder that the Company is not a
party to any agreement that conflicts in any manner with the Holder’s
rights to cause the Company to register Registrable Shares pursuant to
this Agreement. |
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(a) |
Any
notices, consents, waivers or other communications required or permitted to
be given under the terms of this Agreement must be in writing and will be
deemed to have been delivered: (i) upon receipt, when delivered
personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated
and kept on file by the sending party); or (iii) three business days
after deposit if deposited in the mail for mailing by certified mail,
postage prepaid, in each case properly addressed to the party to receive
the same. The addresses and facsimile numbers for such communications
shall be: |
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|
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|
|
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|
|
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|
|
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|
|
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to the Borrower at: |
Tower Semiconductor Ltd. |
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|
X.X. Xxx 000 |
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Xxxxxx Xxxxxx |
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Xxxxxx |
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Facsimile: (00) 000 0000 |
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Attention: Xxxx Xxxxxxx |
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|
Acting Chief Financial Officer |
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|
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with a copy to (which shall |
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not constitute notice): |
Xxxxx Xxxxx & Xx. |
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0 Xxxxxxx Xxxxxx |
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00xx Xxxxx, Xxx Xxxxx Xxxxx |
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Xxx-Xxxx 00000 |
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Xxxxxx |
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Facsimile: (00) 000 0000 |
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Attention: Xxxxx X. Xxxxxxxx, Adv. |
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|
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to the Bank at: |
Corporate Division |
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Xxxxxx Xxxxxxxxxx |
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00 Xxxxxxxx Xxxxx Xxxx |
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Xxx-Xxxx |
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Xxxxxx |
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Facsimile: (00) 000 0000 |
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Attention: Head of Corporate Division |
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|
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to any other Holder at: |
such address as shall be notified to the |
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|
Company pursuant to Section 9 above. |
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(b) |
Failure
of any party to exercise any right or remedy under this Agreement or
otherwise, or delay by a party in exercising such right or remedy, shall
not operate as a waiver thereof. |
| |
(c) |
This
Agreement shall be governed by and construed in accordance with the laws of
the State of Israel as applicable to contracts between two residents of
the State of Israel entered into and to be performed entirely within the
State of Israel. Any dispute arising under or in relation to this
Agreement shall be resolved in the competent court for Tel Aviv-Jaffa
district, and each of the parties hereby submits irrevocably to the
jurisdiction of such court. |
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(d) |
This
Agreement constitutes the entire agreement among the parties hereto with
respect to the subject matter hereof and thereof. There are no
restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein and therein. This Agreement supersedes all
prior agreements and understandings among the parties hereto with respect
to the subject matter hereof and thereof. |
| |
(e) |
Neither
this Agreement, nor any of Tower’s obligations hereunder, may be
assigned by Tower, except with the prior written consent of all the
Holders. Subject to the requirements of Section 9, this Agreement shall
inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties hereto. |
| |
(f) |
The
headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof. |
| |
(g) |
This
Agreement may be executed in identical counterparts, each of which shall be
deemed an original but all of which shall constitute one and the same
agreement. This Agreement, once executed by a party, may be delivered to
the other party hereto by facsimile transmission of a copy of this
Agreement bearing the signature of the party so delivering this Agreement. |
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(h) |
Each
party shall do and perform, or cause to be done and performed, all such
further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as another party may
reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions
contemplated hereby. |
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(i) |
The
language used in this Agreement will be deemed to be the language chosen by
the parties to express their mutual intent and no rules of strict
construction will be applied against any party. |
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(j) |
This
Agreement is intended for the benefit of the parties hereto and their
respective successors and permitted assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other person. |
IN
WITNESS WHEREOF, the parties have caused this amended and restated Registration Rights
Agreement to be duly executed as of the day and year first above written.
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BANK HAPOALIM B.M. |
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|
|
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By:
Name:
Title: |
________________________
________________________
________________________ |
