REGISTRATION RIGHTS AGREEMENT
Exhibit 10.2
This Registration Rights Agreement (the “Agreement”) is made and entered into as of this
9th day of July, 2009, by and between Magellan Petroleum Corporation, a Delaware
corporation (the “Company”), and Young Energy Prize S.A., a Luxembourg corporation (the
“Investor”).
The parties hereby agree as follows:
1. Certain Definitions.
As used in this Agreement, the following terms shall have the following meanings:
“Affiliate” means, with respect to any person, any other person which directly or indirectly
controls, is controlled by, or is under common control with, such person.
“Business Day” means a day, other than a Saturday or Sunday, on which banks in New York City
are open for the general transaction of business.
“Common Stock” shall mean the Company’s common stock, par value $0.01 per share, and any
securities into which such shares may hereafter be reclassified.
“Prospectus” shall mean (i) the prospectus included in any Registration Statement, as amended
or supplemented by any prospectus supplement, with respect to the terms of the offering of any
portion of the Registrable Securities covered by such Registration Statement and by all other
amendments and supplements to the prospectus, including post-effective amendments and all material
incorporated by reference in such prospectus, and (ii) any “free writing prospectus” as defined in
Rule 163 under the 1933 Act.
“Purchase Agreement” shall mean the Securities Purchase Agreement dated as of February 9, 2009
by and between the Company and the Investor.
“Register,” “registered,” and “registration” refer to a registration made by preparing and
filing a Registration Statement or similar document in compliance with the 1933 Act (as defined
below), and the declaration or ordering of effectiveness of such Registration Statement or
document.
“Registrable Securities” shall mean (i) the Shares, (ii) the Warrant Shares, and (iii) any
other securities issued or issuable with respect to or in exchange for Registrable Securities;
provided, that, a security shall cease to be a Registrable Security upon (A) sale pursuant to a
Registration Statement or Rule 144 under the 1933 Act, or (B) such security becoming eligible
for sale by the Investor without restriction pursuant to Rule 144.
“Registration Statement” shall mean any registration statement of the Company filed under the
1933 Act that covers the resale of any of the Registrable Securities pursuant to the provisions of
this Agreement, amendments and supplements to such Registration Statement, including post-effective
amendments, all exhibits and all material incorporated by reference in such Registration Statement.
“Shares” means the shares of Common Stock issued to the Investor at the Closing pursuant to
the Purchase Agreement.
“Trading Day” means (i) if the relevant stock or security is listed or admitted for trading on
The New York Stock Exchange, Inc., the Nasdaq Global Market, the Nasdaq Capital Market, or any
other national securities exchange, a day on which such exchange is open for business; (ii) if the
relevant stock or security is quoted on a system of automated dissemination of quotations of
securities prices, a day on which trades may be effected through such system; or (iii) if the
relevant stock or security is not listed or admitted for trading on any national securities
exchange or quoted on any system of automated dissemination of quotation of securities prices, a
day on which the relevant stock or security is traded in a regular way in the over-the-counter
market and for which a closing bid and a closing asked price for such stock or security are
available, shall mean a day, other than a Saturday or Sunday, on which The New York Stock Exchange,
Inc. is open for trading.
“Warrant Shares” means the shares of Common Stock issuable upon the exercise of the Warrant.
“Warrant” means the warrant to purchase shares of Common Stock issued to the Investor at the
Closing pursuant to the Purchase Agreement, the form of which is attached to the Purchase Agreement
as Exhibit A thereto.
“1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.
“1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.
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2. Registration.
(a) Registration Statement. Following the closing of the purchase and sale of the
securities contemplated by the Purchase Agreement (the “Closing”), the Investor shall have the
right to require the Company, within forty-five days of the Investor’s written request therefor, to
prepare and file with the U.S. Securities and Exchange Commission (the “SEC”) a Registration
Statement on Form S-3 (or, if Form S-3 is not then available to the Company, on such form of
registration statement as is then available to effect a registration for resale of the Registrable
Securities), covering the resale of the Registrable Securities. Subject to any SEC comments, each
Registration Statement filed pursuant to Section 2(a) shall include the plan of distribution
attached hereto as Exhibit A; provided however, that the Investor shall not be named as an
“underwriter” without the Investor’s prior written consent. The Registration Statement also shall
cover, to the extent allowable under the 1933 Act and the rules promulgated thereunder (including
Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock
splits, stock dividends, or similar transactions with respect to the Registrable Securities to
which such Registration Statement relates. Such Registration Statement (and each amendment or
supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided
in accordance with Section 3(c) to the Investor and/or its counsel prior to its filing or other
submission.
(b) Expenses. The Company will pay all expenses associated with each registration,
including filing and printing fees, the Company’s counsel and accounting fees and expenses, costs
associated with clearing the Registrable Securities for sale under applicable state securities
laws, listing fees, fees and expenses of counsel to the Investor, and the Investor’s reasonable
expenses in connection with the registration, but excluding discounts, commissions, fees of
underwriters, selling brokers, dealer managers, or similar securities industry professionals with
respect to the Registrable Securities being sold.
(c) Effectiveness.
(i) The Company shall use best efforts to have the Registration Statement covering the resale
of the Registrable Securities declared effective by the SEC as soon as practicable and prior to the
earlier of (x) ten (10) Business Days after the SEC shall have informed the Company that no review
of the Registration Statement will be made or that the SEC
has no further comments on the Registration Statement or (y) the 90th day after the
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Registration Statement is filed. The Company shall notify the Investor by facsimile or e-mail as
promptly as practicable, and in any event, within forty-eight (48) hours, after (A) the
Registration Statement is declared effective and (B) the filing of any related Prospectus under
Rule 424(b), at which time the Company shall also provide the Investor with a copy of such related
Prospectus. After the Registration Statement has been declared effective by the SEC, the Company
shall take all actions, including without limitation updating the Registration Statement as
necessary, so that the Registrable Securities may be sold pursuant to the Registration Statement
without restriction except as provided pursuant to subparagraph (ii) below.
(ii) For not more than forty-five (45) consecutive days or for a total of not more than ninety
(90) days in any twelve (12) month period without the approval of the Investor, which approval
shall not be unreasonably withheld, the Company may delay the disclosure of material non-public
information concerning the Company and thereby suspend its obligations under paragraphs (a) and (c)
of this Section 2 (as well as the right of the Investor to use any Prospectus included in any
Registration Statement contemplated by this Section) if the disclosure of such material non-public
information is not, in the good faith opinion of the Company, in the best interests of the Company
(an “Allowed Delay”); provided, that the Company shall promptly (a) notify the Investor in writing
of the existence of (but in no event, without the prior written consent of the Investor, shall the
Company disclose to the Investor any of the facts or circumstances regarding) material non-public
information giving rise to an Allowed Delay, (b) advise the Investor in writing to cease all sales
under the Registration Statement until the end of the Allowed Delay, and (c) use commercially
reasonable efforts to terminate an Allowed Delay as promptly as practicable.
(d) Notwithstanding any other provision of this Agreement to the contrary, the Company shall
not be in breach of this Section 2 if a Registration Statement has not been filed, the
effectiveness of a Registration Statement has been delayed, or a Prospectus has been unavailable as
a result of (i) a failure by the Investor to promptly provide on request by the Company any
information required by this Agreement or requested by the SEC, (ii) the provision of inaccurate or
incomplete information by the Investor, or (iii) a statement or
determination of the SEC that any provision of the rights of the Investor under this Agreement
are contrary to the provisions of the 1933 Act.
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3. Company Obligations. The Company will use commercially reasonable efforts to
effect the registration of the Registrable Securities in accordance with the terms hereof, and
pursuant thereto the Company will, as expeditiously as practicable:
(a) use commercially reasonable efforts to cause the Registration Statement to become
effective after 4:00 p.m. E.S.T. (the date the Registration Statement is declared effective shall
be referred to as the “Effective Date”) and to remain continuously effective for a period that will
terminate upon the earlier of (i) the date on which all Registrable Securities covered by such
Registration Statement, as amended from time to time, have been sold, and (ii) the date on which
all Registrable Securities covered by such Registration Statement may be sold without restriction
pursuant to Rule 144 (the “Effectiveness Period”) and advise the Investor in writing when the
Effectiveness Period has expired;
(b) prepare and file with the SEC such amendments and post-effective amendments to the
Registration Statement and the Prospectus as may be necessary to keep the Registration Statement
effective for the Effectiveness Period and to comply with the provisions of the 1933 Act and the
1934 Act with respect to the distribution of all of the Registrable Securities covered thereby;
(c) provide copies to and permit counsel designated by the Investor, if any, in the selling
securityholder questionnaire attached hereto as Exhibit B (the “Selling Securityholder
Questionnaire”) to review the Registration Statement and all amendments and supplements thereto no
fewer than seven (7) days prior to their filing with the SEC and not file any document to which
such counsel reasonably objects;
(d) furnish to the Investor and its legal counsel, if any, designated in the Selling
Securityholder Questionnaire (i) promptly after the same is prepared and publicly distributed,
filed with the SEC, or received by the Company (but not later than two (2) Business Days after the
filing date, receipt date, or sending date, as the case may be) one (1) copy of the Registration
Statement and any amendment thereto, each preliminary prospectus and Prospectus and each amendment
or supplement thereto, and each letter written by or on behalf of the Company to the SEC or the
staff of the SEC, and each item of correspondence from the SEC or
the staff of the SEC, in each case relating to such Registration Statement (other than any
portion of any thereof which contains information for which the Company has sought confidential
treatment), and (ii) such number of copies of a Prospectus,
including a preliminary prospectus,
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and
all amendments and supplements thereto and such other documents as each Investor may reasonably
request in order to facilitate the disposition of the Registrable Securities owned by the Investor
that are covered by the related Registration Statement;
(e) use commercially reasonable efforts to (i) prevent the issuance of any stop order or other
suspension of effectiveness and, (ii) if such order is issued, obtain the withdrawal of any such
order at the earliest possible moment;
(f) prior to any public offering of Registrable Securities, use commercially reasonable
efforts to register or qualify or cooperate with the Investor and its legal counsel, if any,
designated in the Selling Securityholder Questionnaire in connection with the registration or
qualification of such Registrable Securities for offer and sale under the securities or blue sky
laws of such jurisdictions requested by the Investor and do any and all other commercially
reasonable acts or things necessary or advisable to enable the distribution in such jurisdictions
of the Registrable Securities; provided, however, that the Company shall not be required in
connection therewith or as a condition thereto to (i) qualify to do business in any jurisdiction
where it would not otherwise be required to qualify but for this Section 3(f), (ii) subject itself
to general taxation in any jurisdiction where it would not otherwise be so subject but for this
Section 3(f), or (iii) file a general consent to service of process in any such jurisdiction;
(g) use commercially reasonable efforts to cause all Registrable Securities to be listed on
each securities exchange, interdealer quotation system, or other market on which similar securities
issued by the Company are then listed;
(h) immediately notify the Investor, at any time prior to the end of the Effectiveness Period,
upon discovery that, or upon the happening of any event as a result of which, the Prospectus
includes an untrue statement of a material fact or omits to state any material fact required to be
stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing, and promptly prepare, file with the SEC, and furnish to such holder a
supplement to or an amendment of such Prospectus as may be necessary so that such Prospectus shall
not include an 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 not misleading in light of the circumstances then existing; and
(i) otherwise use commercially reasonable efforts to comply with all applicable rules and
regulations of the SEC under the 1933 Act and the 1934 Act, including,
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without limitation, Rule 172
under the 1933 Act, file any final Prospectus, including any supplement or amendment thereof, with
the SEC pursuant to Rule 424 under the 1933 Act prior to 9:30 a.m. E.S.T. on the Trading Day
immediately following the Effective Date, promptly inform the Investors in writing if, at any time
during the Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172
and, as a result thereof, the Investor is required to deliver a Prospectus in connection with any
disposition of Registrable Securities and take such other actions as may be reasonably necessary to
facilitate the registration of the Registrable Securities hereunder; and make available to its
security holders, as soon as reasonably practicable, but not later than the Availability Date (as
defined below), an earnings statement covering a period of at least twelve (12) months, beginning
after the effective date of each Registration Statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the 1933 Act, including Rule 158 promulgated thereunder. For the
purpose of this subsection 3(i), “Availability Date” means the 45th day following the end of the
fourth fiscal quarter that includes the effective date of such Registration Statement, except that,
if such fourth fiscal quarter is the last quarter of the Company’s fiscal year, “Availability Date”
means the 90th day after the end of such fourth fiscal quarter.
(j) With a view to making available to the Investor the benefits of Rule 144 (or its successor
rule) and any other rule or regulation of the SEC that may at any time permit the Investor to sell
shares of Common Stock to the public without registration, the Company covenants and agrees to:
(i) make and keep public information available, as those terms are understood and defined in Rule
144, until the earlier of (A) six months after such date as all of the Registrable Securities may
be sold without restriction by the holders thereof pursuant to Rule 144 or any other rule of
similar effect or (B) such date as all of the Registrable Securities shall have been resold; (ii)
file with the SEC in a timely manner all reports and other documents required of the Company under
the 1934 Act; and (iii) furnish to the Investor upon request, as long as the Investor owns any
Registrable Securities, (A) a written statement by the Company
that it has complied with the reporting requirements of the 1934 Act, (B) a copy of the
Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, and (C) such
other information as may be reasonably requested in order to avail the Investor of any rule or
regulation of the SEC that permits the selling of any such Registrable Securities without
registration.
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4. Due Diligence Review; Information. The Company shall make available, during
normal business hours, for inspection and review by the Investor, advisors to and representatives
of the Investor (who may or may not be affiliated with the Investor and who are reasonably
acceptable to the Company), all financial and other records, all SEC Filings (as defined in the
Purchase Agreement) and other filings with the SEC, and all other corporate documents and
properties of the Company as may be reasonably necessary for the purpose of such review, and
cause the Company’s officers, directors and employees, within a reasonable time period, to supply
all such information reasonably requested by the Investor or any such representative, advisor or
underwriter in connection with such Registration Statement (including, without limitation, in
response to all questions and other inquiries reasonably made or submitted by any of them), prior
to and from time to time after the filing and effectiveness of the Registration Statement for the
sole purpose of enabling the Investor and its representatives, advisors, and underwriters and
their respective accountants and attorneys to conduct initial and ongoing due diligence with
respect to the Company and the accuracy of such Registration Statement.
The Company shall not disclose material nonpublic information to the Investor, or to advisors
to or representatives of the Investor, unless prior to disclosure of such information the Company
identifies such information as being material nonpublic information and provides the Investor, such
advisors and representatives with the opportunity to accept or refuse to accept such material
nonpublic information for review and the Investor enters into an appropriate confidentiality
agreement with the Company with respect thereto.
5. Obligations of the Investor.
(a) The Investor has furnished to the Company a Selling Securityholder Questionnaire and shall
furnish in writing to the Company such additional information regarding itself, the Registrable
Securities held by it, and the intended method of disposition of
the Registrable Securities held by it, as shall be reasonably required to effect the
registration of such Registrable Securities, and shall execute such documents in connection with
such registration as the Company may reasonably request. At least five (5) Business Days prior to
the first anticipated filing date of a Registration Statement, the Company shall notify the
Investor of the information the Company requires from the Investor, to the extent not included in
the Selling Securityholder Questionnaire, if the Investor elects to have any of the Registrable
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Securities included in the Registration Statement. The Investor shall provide such information to
the Company at least two (2) Business Days prior to the first anticipated filing date of such
Registration Statement if the Investor elects to have any of the Registrable Securities included in
the Registration Statement.
(b) The Investor, by its acceptance of the Registrable Securities agrees to cooperate with the
Company as reasonably requested by the Company in connection with the preparation and filing of a
Registration Statement hereunder, unless the Investor has notified the Company in writing of its
election to exclude all of its Registrable Securities from such Registration Statement.
(c) The Investor agrees that, upon receipt of any notice from the Company of either (i) the
commencement of an Allowed Delay pursuant to Section 2(c)(ii), or (ii) the happening of an event
pursuant to Section 3(h) hereof, the Investor will immediately discontinue disposition of
Registrable Securities pursuant to the Registration Statement covering such Registrable Securities,
until the Investor is advised by the Company that such dispositions may again be made.
6. Indemnification.
(a) Indemnification by the Company. The Company will indemnify and hold harmless the
Investor and its officers, directors, members, investors, employees and agents, successors and
assigns, and each other person, if any, who controls the Investor within the meaning of the 1933
Act, against any losses, claims, damages, or liabilities, joint or several, to which they may
become subject under the 1933 Act or otherwise, insofar as such losses, claims, damages, or
liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue
statement or omission or alleged untrue statement or omission of any material fact in any
Registration Statement, any preliminary Prospectus or final Prospectus, or any amendment or
supplement thereof required to be stated therein or necessary to make the statements therein
not misleading; (ii) any blue sky application or other document executed by the Company
specifically for that purpose or based upon written information furnished by the Company filed in
any state or other jurisdiction in order to qualify any or all of the Registrable Securities under
the securities laws thereof (any such application, document or information herein called a “Blue
Sky Application”); (iii) any violation by the Company or its agents of any rule or regulation
promulgated under the 1933 Act applicable to the Company or its agents and relating to action
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or
inaction required of the Company in connection with such registration; or (iv) any failure to
register or qualify the Registrable Securities included in any such Registration in any state where
the Company or its agents has affirmatively undertaken or agreed in writing that the Company will
undertake such registration or qualification on an Investor’s behalf and will reimburse such
Investor and each such indemnified party for any legal or other expenses reasonably incurred by
them in connection with investigating or defending any such loss, claim, damage, liability, or
action; provided, however, that the Company will not be liable in any such case if
and to the extent that any such loss, claim, damage or liability arises out of or is based upon (i)
the Investor’s failure to comply with the prospectus delivery requirements of the Securities Act at
any time when the Company does not meet the conditions for use of Rule 172, has advised the
Investor in writing that the Company does not meet such conditions and that therefore the Investor
is required to deliver a Prospectus in connection with any sale or other disposition of Registrable
Securities and has provided the Investor with a current Prospectus for such use, (ii) an untrue
statement or alleged untrue statement or omission or alleged omission so made in conformity with
information furnished by the Investor or any such controlling person in writing specifically for
use in such Registration Statement or Prospectus, or (iii) the use by the Investor of an outdated
or defective Prospectus after the Company has notified the Investor that such Prospectus is
outdated or defective and the use of a corrected or updated Prospectus would have avoided such
losses, claims, damages, liabilities, or expenses.
(b) Indemnification by the Investor. The Investor agrees to indemnify and hold
harmless, to the fullest extent permitted by law, the Company, its directors, officers, employees,
stockholders and each person who controls the Company (within the meaning of the 0000 Xxx) against
any losses, claims, damages, liabilities and expense (including reasonable
attorney fees) resulting from (i) the Investor’s failure to comply with the prospectus
delivery requirements of the Securities Act at any time when the Company does not meet the
conditions for use of Rule 172, has advised the Investor in writing that the Company does not meet
such conditions and that therefore the Investor is required to deliver a Prospectus in connection
with any sale or other disposition of Registrable Securities and has provided the Investor with a
current Prospectus for such use, (ii) the use by the Investor of an outdated or defective
Prospectus after the Company has notified the Investor that such Prospectus is outdated or
defective and the use of a corrected or updated Prospectus would have avoided such losses,
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claims,
damages, liabilities or expenses, and (iii) any untrue statement of a material fact or any omission
of a material fact required to be stated in the Registration Statement or Prospectus or preliminary
Prospectus or amendment or supplement thereto or necessary to make the statements therein not
misleading, to the extent, but only to the extent, that such untrue statement or omission is
contained in any information furnished in writing by the Investor to the Company specifically for
inclusion in such Registration Statement or Prospectus or amendment or supplement thereto. In no
event shall the liability of the Investor be greater in amount than the dollar amount of the
proceeds (net of all expense paid by the Investor in connection with any claim relating to this
Section 6 and the amount of any damages the Investor has otherwise been required to pay by reason
of such untrue statement or omission) received by the Investor upon the sale of the Registrable
Securities included in the Registration Statement giving rise to such indemnification obligation.
(c) Conduct of Indemnification Proceedings. Any person entitled to indemnification
hereunder shall (i) give prompt notice to the indemnifying party of any claim with respect to which
it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such
claim with counsel reasonably satisfactory to the indemnified party; provided that any
person entitled to indemnification hereunder shall have the right to employ separate counsel and to
participate in the defense of such claim, but the fees and expenses of such counsel shall be at the
expense of such person unless (a) the indemnifying party has agreed to pay such fees or expenses,
or (b) the indemnifying party shall have failed to assume the defense of such claim and employ
counsel reasonably satisfactory to such person, or (c) in the reasonable judgment of any such
person, based upon written advice of its counsel, a conflict of
interest exists between such person and the indemnifying party with respect to such claims (in
which case, if the person notifies the indemnifying party in writing that such person elects to
employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not
have the right to assume the defense of such claim on behalf of such person); and provided,
further, that the failure of any indemnified party to give notice as provided herein shall
not relieve the indemnifying party of its obligations hereunder, except to the extent that such
failure to give notice shall materially adversely affect the indemnifying party in the defense of
any such claim or litigation. It is understood that the indemnifying party shall not, in
connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more
than one separate
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firm of attorneys at any time for all such indemnified parties. No indemnifying
party will, except with the consent of the indemnified party, consent to entry of any judgment or
enter into any settlement that does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability in respect of such
claim or litigation.
(d) Contribution. If for any reason the indemnification provided for in the preceding
paragraphs (a) and (b) is unavailable to an indemnified party or insufficient to hold it harmless,
other than as expressly specified therein, then the indemnifying party shall contribute to the
amount paid or payable by the indemnified party as a result of such loss, claim, damage, or
liability in such proportion as is appropriate to reflect the relative fault of the indemnified
party and the indemnifying party, as well as any other relevant equitable considerations. No
person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the 1933 Act
shall be entitled to contribution from any person not guilty of such fraudulent misrepresentation.
In no event shall the contribution obligation of a holder of Registrable Securities be greater in
amount than the dollar amount of the proceeds (net of all expenses paid by such holder in
connection with any claim relating to this Section 6 and the amount of any damages such holder has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission) received by it upon the sale of the Registrable Securities giving rise to such
contribution obligation.
7. Miscellaneous.
(a) Amendments and Waivers. This Agreement may be amended only by a writing signed by
the Company and the Investor. The Company may take any action herein prohibited, or omit to
perform any act herein required to be performed by it, only if the Company shall have obtained the
written consent of the Investor to such amendment, action, or omission to act.
(b) Notices. All notices and other communications provided for or permitted hereunder
shall be made as set forth in the Purchase Agreement.
(c) Assignments and Transfers by the Investor. The provisions of this Agreement shall
be binding upon and inure to the benefit of the Investor and its respective successors and assigns.
The Investor may transfer or assign, in whole or from time to time in part, to one or more persons
its rights hereunder in connection with the transfer of Registrable
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Securities by the Investor to
such person, provided that the Investor complies with all laws applicable thereto and provides
written notice of assignment to the Company promptly after such assignment is effected.
(d) Assignments and Transfers by the Company. This Agreement may not be assigned by
the Company (whether by operation of law or otherwise) without the prior written consent of the
Investor, provided, however, that the Company may assign its rights and delegate its duties
hereunder to any surviving or successor corporation in connection with a merger or consolidation of
the Company with another corporation, or a sale, transfer, or other disposition of all or
substantially all of the Company’s assets to another corporation, without the prior written consent
of the Investor, after notice duly given by the Company to the Investor.
(e) Benefits of the Agreement. The terms and conditions of this Agreement shall inure
to the benefit of and be binding upon the respective permitted successors and assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in
this Agreement.
(f) Counterparts; Faxes. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. This Agreement may also be executed via facsimile,
which shall be deemed an original.
(g) Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.
(h) Severability. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof but shall be
interpreted as if it were written so as to be enforceable to the maximum extent permitted by
applicable law, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. To the extent
permitted by applicable law, the parties hereby waive any provision of law which renders any
provisions hereof prohibited or unenforceable in any respect.
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(i) Further Assurances. The parties shall execute and deliver all such further
instruments and documents and take all such other actions as may reasonably be required to carry
out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein
contained.
(j) Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. This
Agreement supersedes all prior agreements and understandings between the parties with respect to
such subject matter.
(k) Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement
shall be governed by, and construed in accordance with, the internal laws of the State of Delaware
without regard to the choice of law principles thereof. Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of Delaware for the purpose of any suit,
action, proceeding, or judgment relating to or arising out of this Agreement and the transactions
contemplated hereby. Service of process in connection with any such suit, action, or proceeding
may be served on each party hereto anywhere in the world by the same methods as are specified for
the giving of notices under this Agreement. Each of the parties
hereto irrevocably consents to the jurisdiction of any such court in any such suit, action, or
proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any
objection to the laying of venue of any such suit, action, or proceeding brought in such courts and
irrevocably waives any claim that any such suit, action, or proceeding brought in any such court
has been brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST
A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS
BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.
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IN WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized
officers to execute this Agreement as of the date first above written.
| COMPANY: | ||||||
| MAGELLAN PETROLEUM CORPORATION | ||||||
| By: Name: |
/s/ Xxxxxxx X. Xxxxxxxx
|
|||||
| Title: | President and CEO | |||||
| INVESTOR: | ||||||
| YOUNG ENERGY PRIZE S.A. | ||||||
| By: | /s/ Xxxxxxx X. Xxxxxxxx
|
|||||
| Name: | Xxxxxxx X. Xxxxxxxx | |||||
| Title: | CEO, President and Chairman | |||||
Exhibit A
Plan of Distribution
The selling stockholders, which as used herein includes donees, pledgees, transferees, or other
successors-in-interest selling shares of common stock or interests in shares of common stock
received after the date of this prospectus from a selling stockholder as a gift, pledge,
partnership distribution, or other transfer, may, from time to time, sell, transfer, or otherwise
dispose of any or all of their shares of common stock or interests in shares of common stock on any
stock exchange, market, or trading facility on which the shares are traded or in private
transactions. These dispositions may be at fixed prices, at prevailing market prices at the time
of sale, at prices related to the prevailing market price, at varying prices determined at the time
of sale, or at negotiated prices.
The selling stockholders may use any one or more of the following methods when disposing of
shares or interests therein:
| • | ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; | ||
| • | block trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block as principal to facilitate the transaction; | ||
| • | purchases by a broker-dealer as principal and resale by the broker-dealer for its account; | ||
| • | an exchange distribution in accordance with the rules of the applicable exchange; | ||
| • | privately negotiated transactions; | ||
| • | short sales effected after the date the registration statement of which this Prospectus is a part is declared effective by the SEC; | ||
| • | through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; | ||
| • | broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share; | ||
| • | a combination of any such methods of sale; and | ||
| • | any other method permitted by applicable law. |
A-1
The selling stockholders may, from time to time, pledge or grant a security interest in some
or all of the shares of common stock owned by them and, if they default in the performance of their
secured obligations, the pledgees or secured parties may offer and sell the shares of common stock,
from time to time, under this prospectus, or under an amendment to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act amending the list of selling
stockholders to include the pledgee, transferee or other successors in interest as selling
stockholders under this prospectus. The selling stockholders also may transfer the shares of
common stock in other circumstances, in which case the transferees, pledges, or other successors in
interest will be the selling beneficial owners for purposes of this prospectus.
In connection with the sale of our common stock or interests therein, the selling stockholders
may enter into hedging transactions with broker-dealers or other financial institutions, which may
in turn engage in short sales of the common stock in the course of hedging the positions they
assume. The selling stockholders may also sell shares of our common stock short and deliver these
securities to close out their short positions, or loan or pledge the common stock to broker-dealers
that in turn may sell these securities. The selling stockholders may also enter into option or
other transactions with broker-dealers or other financial institutions or the creation of one or
more derivative securities which require the delivery to such broker-dealer or other financial
institution of shares offered by this prospectus, which shares such broker-dealer or other
financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect
such transaction).
The aggregate proceeds to the selling stockholders from the sale of the common stock offered
by them will be the purchase price of the common stock less discounts or commissions, if any. Each
of the selling stockholders reserves the right to accept and, together with their agents from time
to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly
or through agents. We will not receive any of the proceeds from this offering. Upon any exercise
of the Warrants by payment of cash, however, we will receive the exercise price of the Warrants.
The selling stockholders also may resell all or a portion of the shares in open market
transactions in reliance upon Rule 144 under the Securities Act of 1933, as amended, provided that
they meet the criteria and conform to the requirements of that rule.
A-2
Any underwriters, broker-dealers, or agents that participate in the sale of the common stock
or interests therein may be “underwriters” within the meaning of Section 2(11) of the Securities
Act. Any discounts, commissions, concessions, or profit they earn on any resale of the shares may
be underwriting discounts and commissions under the Securities Act.
To the extent required, the shares of our common stock to be sold, the names of the selling
stockholders, the respective purchase prices and public offering prices, the names of any agent,
dealer, or underwriter, any applicable commissions or discounts with respect to a particular offer
will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective
amendment to the registration statement that includes this prospectus.
In order to comply with the securities laws of some states, if applicable, the common stock
may be sold in these jurisdictions only through registered or licensed brokers or dealers. In
addition, in some states the common stock may not be sold unless it has been registered or
qualified for sale or an exemption from registration or qualification requirements is available and
is complied with.
We have advised the selling stockholders that the anti-manipulation rules of Regulation M
under the Exchange Act may apply to sales of shares in the market and to the activities of the
selling stockholders and their affiliates. In addition, to the extent applicable we will make
copies of this prospectus (as it may be supplemented or amended from time to time) available to the
selling stockholders for the purpose of satisfying the prospectus delivery requirements of the
Securities Act. The selling stockholders may indemnify any broker-dealer that participates in
transactions involving the sale of the shares against certain liabilities, including liabilities
arising under the Securities Act.
We have agreed to indemnify the selling stockholders against liabilities, including
liabilities under the Securities Act and state securities laws, relating to the registration of the
shares offered by this prospectus.
We have agreed with the selling stockholders to keep the registration statement of which this
prospectus constitutes a part effective until the earlier of (1) such time as all of the shares
covered by this prospectus have been disposed of pursuant to and in accordance with the
registration statement or (2) the date on which the shares may be sold without restriction pursuant
to Rule 144 of the Securities Act.
A-3
Exhibit B
Magellan Petroleum Corporation
Selling Securityholder Questionnaire
The undersigned beneficial owner (the “Selling Securityholder”) of common stock (the “Common
Stock”), of Magellan Petroleum Corporation (the “Company”) understands that the Company has filed
or intends to file with the Securities and Exchange Commission (the “Commission”) one or more
Registration Statements for the registration and resale of the Registrable Securities, in
accordance with the terms of the Registration Rights Agreement, dated as of July 8, 2009 (the
“Registration Rights Agreement”), among the Company and the Investors named therein. A copy of the
Registration Rights Agreement is available from the Company upon request at the address set forth
below. All capitalized terms used and not otherwise defined herein shall have the meanings
ascribed thereto in the Registration Rights Agreement.
The undersigned hereby provides the following information to the Company and represents and
warrants that such information is accurate:
QUESTIONNAIRE
1. Name.
(a) Full legal name of Selling Securityholder:
(b) Full legal name of registered Holder (if not the same as (a) above) through which
Registrable Securities listed in Item 3 below are held:
B-1
(c) Full legal name of Natural Control Person (which means a natural person who directly or
indirectly alone or with others has power to vote or dispose of the securities covered by the
questionnaire):
(d) State of organization or domicile of Selling Securityholder:
2. Address for Notices to Selling Securityholder:
Telephone:
Fax:
Contact Person:
Email:
Fax:
Contact Person:
Email:
| Note: | By providing an email address, the undersigned hereby consents to receipt of notices by email. |
Any such notice shall also be sent to the following address (which shall not constitute notice):
Telephone:
Fax:
Contact Person:
Email:
Fax:
Contact Person:
Email:
3. Beneficial Ownership of Registrable Securities:
Type and principal amount of Registrable Securities beneficially owned:
B-2
If applicable, provide the information required by Items 1 and 2 for each beneficial
owner.
4. Broker-Dealer Status:
(a) Are you a broker-dealer?
Yes o No o
| Note: | If yes, the Commission’s staff has indicated that you should be identified as an underwriter in any Registration Statement filed pursuant to the Registration Rights Agreement. |
(b) Are you an affiliate of a broker-dealer?
Yes o No o
(c) If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable
Securities in the ordinary course of business, and at the time of the purchase of the Registrable
Securities to be resold, you had no agreements or understandings, directly or indirectly, with any
person to distribute the Registrable Securities?
Yes o No o
| Note: | If no, the Commission’s staff has indicated that you should be identified as an underwriter in any Registration Statement filed pursuant to the Registration Rights Agreement. |
If you checked “Yes” to either of the questions in Item 4(a) or Item 4(b) above, please
state (a) the name of any such broker-dealer, (b) the nature of your affiliation or
association with such broker-dealer, (c) information as to such broker-dealer’s
participation in any capacity in the offering or the original placement of the Securities,
(d) the number of shares of equity securities or face value of debt securities of the
Company
owned by you, (e) the date such securities were acquired and (f) the price paid for
such securities.
B-3
5. Beneficial Ownership of Other Securities of the Company Owned by the Selling Securityholder.
Except as set forth below in this Item 5, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable Securities
listed above in Item 3.
Type and amount of other securities beneficially owned by the Selling
Securityholder:
6. Relationships with the Company:
Except as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% of more of the equity securities of the
undersigned) has held any position or office or has had any other material relationship with
the Company (or its predecessors or affiliates) during the past three years.
State any exceptions here:
7. Plan of Distribution:
B-4
Except as set forth below, the undersigned intends to distribute the Registrable Securities
listed above in Item 3 only as set forth in Exhibit B to the Registration Rights Agreement
(if at all):
The undersigned agrees to promptly notify the Company of any inaccuracies or changes in the
information provided herein that may occur subsequent to the date hereof and prior to the effective
date of any applicable Registration Statement filed pursuant to the Registration Rights Agreement.
By signing below, the undersigned consents to the disclosure of the information contained
herein in its answers to Items 1 through 7 and the inclusion of such information in each
Registration Statement filed pursuant to the Registration Rights Agreement and each related
prospectus. The undersigned understands that such information will be relied upon by the Company
in connection with the preparation or amendment of any such Registration Statement and the related
prospectus.
By signing below, the undersigned acknowledges that it understands its obligation to comply,
and agrees that it will comply, with the provisions of the Exchange Act and the rules and
regulations thereunder, particularly Regulation M. The undersigned also acknowledges that it
understands that the answers to this Questionnaire are furnished for use in connection with
Registration Statements filed pursuant to the Registration Rights Agreement and any amendments or
supplements thereto filed with the Commission pursuant to the Securities Act.
I confirm that, to the best of my knowledge and belief, the foregoing statements (including
without limitation the answers to this Questionnaire) are correct.
[Signature Page Follows.]
B-5
IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Questionnaire to
be executed and delivered either in person or by its duly authorized agent.
Dated:
|
Beneficial Owner: |
| By: | ||||||
| Title: |
PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT
MAIL, TO:
Magellan Petroleum Corporation
00 Xxxxxxxx Xxxxxxxxx
Xxxxxxxx, XX 00000
Fax No.: (000) 000-0000
Attn: Xxxxxxx X. Xxxxxxxx, President and CEO
00 Xxxxxxxx Xxxxxxxxx
Xxxxxxxx, XX 00000
Fax No.: (000) 000-0000
Attn: Xxxxxxx X. Xxxxxxxx, President and CEO
with a copy to:
Xxxxxx Xxxxxxx LLP
CityPlace I
000 Xxxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxxx, XX 00000
Fax No.: (000) 000-0000
Attn: Xxxxxx X. Xxxxxxxxxx, Esq.
CityPlace I
000 Xxxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxxx, XX 00000
Fax No.: (000) 000-0000
Attn: Xxxxxx X. Xxxxxxxxxx, Esq.
B-6
