EXHIBIT 10.8
REGISTRATION RIGHTS AGREEMENT
REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of April ___,
1998, between XXXXXX CORPORATION, a Delaware corporation ("Xxxxxx"), and OMEGA
PROTEIN CORPORATION, a Nevada corporation (the "Company").
R E C I T A L S:
X. Xxxxxx is the owner of 19,676,000 shares of common stock, par value $.01
per share ("Common Stock"), of the Company.
B. The Company, with the consent of Xxxxxx, has determined to offer to the
public 4,000,000 shares of Common Stock, concurrently with the offer to the
public of 4,000,000 of the shares of Common Stock owned by Xxxxxx together with
up to an additional 600,000 shares of Common Stock and 600,000 shares of Common
Stock by the Company and Xxxxxx, respectively, pursuant to over-allotment
options granted to the investment banking firms underwriting such offering (the
"Public Offering").
C. In partial consideration for the consent of Xxxxxx to the Public
Offering by the Company, the Company has, among other things, agreed to grant to
Xxxxxx certain registration rights applicable to Registrable Securities (as
defined below) held by Xxxxxx.
D. The parties hereto desire to enter into this Agreement to set forth the
terms of such registration rights.
NOW, THEREFORE, upon the premises and based on the mutual promises herein
contained, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties agree as follows:
1. CERTAIN DEFINITIONS. As used in this Agreement, the following initially
capitalized terms shall have the following meanings:
(a) "Affiliate" means, with respect to any person, any other person who,
directly or indirectly, is in control of, is controlled by or is under common
control with the former person; and "control" (including the terms
"controlling," "controlled by," and "under common control with") means the
possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of a person, whether through the ownership of voting
securities, by contract or otherwise.
(b) "Company Securities" has the meaning set forth in Section 3 hereof.
(c) "Exchangeable Securities" has the meaning set forth in Section 6 of
this Agreement.
(d) "Fair Market Value" means, with respect to any security, (i) if the
security is listed on a national securities exchange or authorized for quotation
on a national market quotation system, the closing price, regular way, of the
security on such exchange or quotation system, as the case may be, or if no such
reported sale of the security shall have occurred on such date, on the next
preceding date on which there was such a reported sale, or (ii) if the security
is not listed for trading on a national securities exchange or authorized for
quotation on a national market quotation system, the average of the closing bid
and asked prices as reported by the National Association of Securities Dealers
Automated Quotation System or such other reputable entity or system engaged in
the regular reporting of securities prices and on which such prices for such
security are reported or, if no such prices shall have been reported for such
date, on the next preceding date for which such prices were so reported, or
(iii) if the security is not publicly traded, the fair market value of such
security as determined by a nationally recognized investment banking or
appraisal firm mutually acceptable to the Company and the Holders, the fair
market value of whose Registrable Securities is to be determined.
(e) "Holder" means Xxxxxx or any Permitted Transferee.
(f) "Initiating Holders" has the meaning set forth in Section 3 of this
Agreement.
(g) "Other Holders" has the meaning set forth in Section 3 hereof.
(h) "Other Securities" has the meaning set forth in Section 3 hereof.
(i) "Other Voting Securities" means any options, rights, warrants or
other securities convertible into or exchangeable for Voting Stock of the
Company.
(j) "Permitted Transferee" has the meaning set forth in Section 11
hereof.
(k) "Person" means any individual, partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, or other entity of whatever nature.
(l) "Registrable After-Acquired Securities" means any securities of the
Company acquired by Xxxxxx (or any Permitted Transferee).
(m) "Registrable Securities" means (i) all shares of Common Stock (as
presently constituted) owned on the date hereof by Xxxxxx, (ii) all Registrable
After-Acquired Securities, (iii) any stock or other securities into which or for
which such Common Stock or Registrable After-Acquired Securities may hereafter
be changed, converted or exchanged, and (iv) any other securities issued to
holders of such Common Stock or Registrable After-Acquired Securities (or such
stock or other securities into which or for which such Common Stock or
Registrable After-Acquired Securities are so changed, converted or exchanged)
upon any reclassification, share combination, share subdivision, share dividend,
merger, consolidation or similar transaction or event, provided that any such
securities shall cease
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to be Registrable Securities when such securities are sold in any manner to a
person who is not a Permitted Transferee.
(n) "Registration Expenses" means all out-of-pocket expenses incurred in
connection with any registration of Registrable Securities pursuant to this
Agreement including, without limitation, the following; (i) SEC filing fees;
(ii) the fees, disbursements and expenses of the Company's counsel(s) and
accountants in connection with the registration of the Registrable Securities to
be disposed of; (iii) all expenses in connection with the preparation, printing
and filing of the registration statement, any preliminary prospectus or final
prospectus and amendments and supplements thereto and the mailing and delivering
of copies thereof to any Holders, underwriters and dealers and all expenses
incidental to delivery of the Registrable Securities; (iv) the cost of printing
or producing any underwriting agreement, agreement among underwriters, agreement
between syndicates, selling agreement, blue sky or legal investment memorandum
or other document in connection with the offering, sale or delivery of the
Registrable Securities to be disposed of; (v) all expenses in connection with
the qualification of the Registrable Securities to be disposed of for offering
and sale under state securities laws, including the fees and disbursements of
counsel for the underwriters in connection with such qualification and the
preparation of any blue sky and legal investments surveys; (vi) the filing fees
incident to securing any required review by the National Association of
Securities Dealers, Inc. of the terms of the sale of the Registrable Securities
to be disposed of; (vii) transfer agents', depositaries' and registrars' fees
and the fees of any other agent appointed in connection with such offering;
(viii) all security engraving and security printing expenses, (ix) all fees and
expenses payable in connection with the listing of the Registrable Securities on
any securities exchange or inter-dealer quotation system; and (x) any one-time
payment for directors and officers insurance directly related to such offering,
provided the insurer provides a separate statement for such payment.
(o) "Rule 144" means Rule 144 promulgated under the Securities Act, or
any successor rule to similar effect.
(p) "SEC" means the United States Securities and Exchange Commission.
(q) "Securities Act" means the Securities Act of 1933, as amended, or
any successor statute.
(r) "Selling Expenses" means all underwriting discounts and commissions,
selling concessions and stock transfer taxes applicable to the sale by the
Holders of Registrable Securities pursuant to this Agreement and all fees and
disbursements of any legal counsel, investment banker, accountant or other
professional advisor retained by a Holder.
(s) "Selling Holder" has the meaning set forth in Section 5 hereof.
(t) "Transactional Deferral" has the meaning set forth in Section 2 of
this Agreement.
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(u) "Voting Stock" means shares of the Company's capital stock having
the power under ordinary circumstances (and not merely upon the happening of a
contingency) to vote in the election of directors of the Company.
2. Demand Registration.
(a) At any time prior to such time as the rights under this Section 2
terminate with respect to a Holder as provided in Section 2(e) hereof, upon
written notice from such Holder in the manner set forth in Section 12(h) hereof
requesting that the Company effect the registration under the Securities Act of
any or all of the Registrable Securities held by such Holder, which notice shall
specify the intended method or methods of disposition of such Registrable
Securities, the Company shall use its best efforts to effect, in the manner set
forth in Section 5, the registration under the Securities Act of such
Registrable Securities for disposition in accordance with the intended method or
methods of disposition stated in such request (including in an offering on a
delayed or continuous basis under Rule 415 (or any successor rule to similar
effect) promulgated under the Securities Act, if (x) the Company is then
eligible to register such Registrable Securities on Form S-3 (or a successor
form) for such offering and (y) the Company consents to such an offering (except
that no consent of the Company will be required if the contemplated offering on
a delayed or continuous basis under Rule 415 is the offering of Registrable
Securities upon the exercise, exchange or conversion of Exchangeable Securities
as contemplated by Section 6 hereof)), provided that:
(i) if, within 5 business days of receipt of a registration
request pursuant to this Section 2(a), the Holder or Holders making
such request are advised in writing that the Company has in good faith
commenced the preparation of a registration statement for an
underwritten public offering prior to receipt of the notice requesting
registration pursuant to this Section 2(a) and the managing
underwriter of the proposed offering has determined that in such
firm's good faith opinion, a registration at the time and on the terms
requested would materially and adversely affect the offering that is
contemplated by the Company, the Company shall not be required to
effect a registration pursuant to this Section 2(a) (a "Transactional
Deferral") until the earliest of (A) the abandonment of such offering
by the Company, (B) 60 days after receipt by the Holder or Holders
requesting registration of the managing underwriter's written opinion
referred to above in this clause (i), unless the registration
statement for such offering has become effective and such offering has
commenced on or prior to such 60th day, and (C) if the registration
statement for such offering has become effective and such offering has
commenced on or prior to such 60th day, the day on which the
restrictions on the Holders contained in Section 10 hereof lapse,
provided, however, that the Company shall not be permitted to delay a
requested registration in reliance on this clause (i) more than once
in any 12-month period;
(ii) if, while a registration request is pending pursuant to this
Section 2(a), the Company determines, following consultation with and
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receiving advice from its legal counsel, that the filing of a
registration statement would require the disclosure of material
information that the Company has a bona fide business purpose for
preserving as confidential and the disclosure of which the Company
determines reasonably and in good faith would have a material adverse
effect on the Company, the Company shall not be required to effect a
registration pursuant to this Section 2(a) until the earlier of (A)
the date upon which such material information is otherwise disclosed
to the public or ceases to be material and (B) 90 days after the
Company makes such determination;
(iii) the Company shall not be obligated to file a registration
statement relating to a registration request pursuant to this Section
2: (A) prior to the first anniversary of the closing of the Public
Offering, (B) within a period of 365 calendar days after the effective
date of any other registration statement of the Company demanded
pursuant to this Section 2(a), or (C) if such registration request is
for a number of Registrable Securities having a Fair Market Value on
the business day immediately preceding the date of such registration
request of less than $50,000,000.00; and
(iv) the Company shall not be obligated to file a registration
statement relating to a registration request pursuant to this Section
2: (A) in the case of a registration request by Xxxxxx or any
Permitted Transferee that has acquired, in the transaction in which it
became a Permitted Transferee, at least a majority of the then issued
and outstanding Voting Stock, on more than three occasions after such
time as Xxxxxx or such Permitted Transferee, as the case may be, owns
less than a majority of the voting power of the outstanding capital
stock of the Company (it being acknowledged that so long as Xxxxxx or
such Permitted Transferee owns a majority of the voting power of the
outstanding capital stock of the Company, there shall be no limit to
the number of occasions on which Xxxxxx or such Permitted Transferee
may exercise such rights in accordance with, and subject to, the other
provisions hereof), or (B) in the case of a Holder other than Xxxxxx
or a Permitted Transferee described in clause (A) above, on more than
the number of occasions permitted such Holder in accordance with
Section 11 hereof.
(b) Notwithstanding any other provision of this Agreement to the
contrary:
(i) a registration requested by a Holder pursuant to this Section
2 shall not be deemed to have been effected (and, therefore, not
requested for purposes of Section 2(a)), (A) unless the registration
statement filed in connection therewith has become effective, (B) if
after such registration statement has become effective, it becomes
subject to any stop order, or there is issued an injunction or other
order or decree of the SEC or other governmental agency or court for
any reason other than a misrepresentation or an omission by such
Holder, which injunction, order or decree prohibits or otherwise
materially and adversely affects the offer and sale of the
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Registrable Securities so registered prior to the completion of the
distribution thereof in accordance with the plan of distribution set
forth in the registration statement or (C) if the conditions to
closing specified in the purchase agreement or underwriting agreement
entered into in connection with such registration are not satisfied by
reason of some act, misrepresentation or omission by the Company and
are not waived by the purchasers or underwriters; and
(ii) nothing herein shall modify a Holder's obligation to pay
Registration Expenses, in accordance with Section 4 hereof, that are
incurred in connection with any withdrawn registration requested by
such Holder.
(c) In the event that any registration pursuant to this Section 2 shall
involve, in whole or in part, an underwritten offering, Holders owning at least
50.1% of the Fair Market Value of the Registrable Securities to be registered in
connection with such offering shall have the right to designate an underwriter
reasonably satisfactory to the Company as the lead managing underwriter of such
underwritten offering, and the Company shall have the right to designate one
underwriter reasonably satisfactory to such Holders as a co-manager of such
underwritten offering.
(d) The Company shall have the right to cause the registration of
additional securities for sale for the account of any person (including the
Company) in any registration of Registrable Securities requested by any Holder
pursuant to Section 2(a) only to the extent the managing underwriter or other
independent marketing agent for such offering (if any) determines that, in its
opinion, the additional securities proposed to be sold will not materially and
adversely affect the offering and sale of the Registrable Securities to be
registered in accordance with the intended method or methods of disposition then
contemplated by such Holder. The rights of a Holder to cause the registration of
additional Registrable Securities held by such Holder in any registration of
Registrable Securities requested by another Holder pursuant to Section 2(a)
shall be governed by the agreement of the Holders with respect thereto as
provided in Section 11(a).
(e) The Company shall not be obligated to file a registration statement
relating to a registration request by a Holder pursuant to this Section 2 from
and after such time as such Holder first owns Registrable Securities
representing (assuming for this purpose the conversion, exchange or exercise of
all Registrable Securities then owned by such Holder that are convertible into
or exercisable or exchangeable for Voting Stock of the Company) less than 10% of
the then issued and outstanding Voting Stock of the Company.
3. Piggyback Registration. If the Company at any time proposes to register
any of its Common Stock or any other of its securities (collectively, "Other
Securities") under the Securities Act, whether or not for sale for its own
account, in a manner which would permit registration of Registrable Securities
for sale for cash to the public under the Securities Act, it will at such time
give prompt written notice to each Holder of its intention to do so at least 10
business days prior to the anticipated filing date of the registration statement
relating to such registration. Such notice shall offer each such Holder the
opportunity to include in
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such registration statement such number of Registrable Securities as each such
Holder may request. Upon the written request of any such Holder made within 5
business days after the receipt of the Company's notice (which request shall
specify the number of Registrable Securities intended to be disposed of and the
intended method of disposition thereof), the Company shall effect, in the manner
set forth in Section 5, in connection with the registration of the Other
Securities, the registration under the Securities Act of all Registrable
Securities which the Company has been so requested to register, to the extent
required to permit the disposition (in accordance with such intended methods
thereof) of the Registrable Securities so requested to be registered, provided
that:
(a) if at any time after giving written notice of its intention to
register any securities and prior to the effective date of such registration,
the Company shall determine for any reason not to register or to delay
registration of such securities, the Company may, at its election, give written
notice of such determination to the Holders and, thereupon, (A) in the case of a
determination not to register, the Company shall be relieved of its obligation
to register any Registrable Securities in connection with such registration and
(B) in the case of a determination to delay such registration, the Company shall
be permitted to delay registration of any Registrable Securities requested to be
included in such registration for the same period as the delay in registering
such other securities, but, in either such case, without prejudice to the rights
of the Holders under Section 2;
(b) (i) if the registration referred to in the first sentence of this
Section 3 is to be a registration in connection with an underwritten offering on
behalf of either the Company or holders of securities (other than Registrable
Securities) of the Company ("Other Holders"), and the managing underwriter for
such offering advises the Company in writing that, in such firm's opinion, such
offering would be materially and adversely affected by the inclusion therein of
Registrable Securities requested to be included therein because such Registrable
Securities are not of the same type, class or series as the securities to be
offered and sold in such offering on behalf of the Company and/or the Other
Holders, the Company may exclude all such Registrable Securities from such
offering provided that the Holder is permitted to substitute for the Registrable
Securities so excluded an equal number of Registrable Securities of the same
type, class or series as those being registered by the Company or the Other
Holders, if and to the extent such Holder owns Registrable Securities of such
type, class or series or can acquire Registrable Securities of such type, class
or series upon exercise or conversion of other Registrable Securities; and
(ii) if the registration referred to in the first sentence of this Section
3 is to be a registration in connection with an underwritten primary offering on
behalf of the Company, and the managing underwriter for such offering advises
the Company in writing that, in such firm's opinion, such offering would be
materially and adversely affected by the inclusion therein of the Registrable
Securities requested to be included therein because the number or principal
amount of such Registrable Securities, considered together with the number or
principal amount of securities proposed to be offered by the Company, exceeds
the aggregate number or principal amount of securities which, in such firm's
opinion, can be sold in such offering without materially and adversely affecting
the offering, the Company shall include in such registration: (1) first, all
securities the Company proposes to sell for its
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own account ("Company Securities") and (2) second, the number or principal
amount of Registrable Securities and securities, if any, requested to be
included therein by Other Holders in excess of the number or principal amount of
Company Securities which, in the opinion of such underwriter, can be so sold
without materially and adversely affecting such offering (allocated pro rata
among the Holders and the Other Holders on the basis of the number of securities
(including Registrable Securities) requested to be included therein by each
Holder and each such Other Holder); and
(iii) if the registration referred to in the first sentence of this Section
3 is to be a registration in connection with an underwritten secondary offering
on behalf of Other Holders made pursuant to demand registration rights granted
by the Company to such Other Holders (the "Initiating Holders"), and the
managing underwriter for such offering advises the Company in writing that, in
such firm's opinion, such offering would be materially and adversely affected by
the inclusion therein of the Registrable Securities requested to be included
therein because the number or principal amount of such Registrable Securities,
considered together with the number or principal amount of securities proposed
to be offered by the Initiating Holders, exceeds the aggregate number or
principal amount of securities which, in such firm's opinion, can be sold in
such offering without materially and adversely affecting the offering, the
Company shall include in such registration; (1) first, to the extent the
registration rights granted to an Initiating Holder permit it to exclude other
securities from its registration on substantially the same basis as that set
forth in the first sentence of Section 2(d) hereof, all securities any such
Initiating Holder proposes to sell for its own account, and (2) second, the
number or principal amount of additional securities (including Registrable
Securities) that such managing underwriter advises can be sold without
materially and adversely affecting such offering, allocated pro rata among any
Other Holders to which clause (1) does not apply and the Holders on the basis of
the number of securities (including Registrable Securities) requested to be
included therein by each Holder and each such Other Holder,
(c) the Company shall not be required to effect any registration of
Registrable Securities under this Section 3 incidental to the registration of
any of its securities in connection with stock option or other executive or
employee benefit or compensation plans of the Company;
(d) no registration of Registrable Securities effected under this
Section 3 shall relieve the Company of its obligation to effect any registration
of Registrable Securities required of the Company pursuant to Section 2 hereof,
except as expressly provided in Section 2(a)(iv) to the extent such registration
under this Section 3 results in a reduction in ownership below the majority
threshold specified therein; and
(e) the Company shall not be required to effect any registration of
Registrable Securities under this Section for any Holder from and after such
time as such Holder is able to dispose of all of its Registrable Securities
within a three-month period pursuant to Rule 144.
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4. Expenses. The Holders, on the one hand, by accepting Registrable
Securities, and the Company, on the other hand, each agree to pay one-half of
all Registration Expenses with respect to a registration pursuant to Section 2
hereof, provided that to the extent a registration pursuant to Section 2
includes the registration of shares for the Company or another person in
connection therewith, the Company or such other person shall pay all incremental
expenses of including such additional shares in the registration. The Holders'
portion of any Registration Expenses shall be allocated among them pro rata
based on each Holder's number or principal amount of Registrable Securities
included in such offering. The Company agrees to pay all Registration Expenses
with respect to a registration pursuant to Section 3 hereof. All Registration
Expenses to be paid by the Holder shall be paid within 10 days of the delivery
of a statement from the Company, such statements to be delivered not more
frequently than once every 30 days. All internal expenses of the Company or a
Holder in connection with any offering pursuant to this Agreement, including,
without limitation, the salaries and expenses of officers and employees,
including in-house attorneys, shall be borne by the party incurring them. All
Selling Expenses of the Holders participating in any registration pursuant to
this Agreement shall be borne by such Holders pro rata based on each Holder's
number of Registrable Securities included in such registration.
5. Registration and Qualification. If and whenever the Company is required
to use its best efforts to effect the registration of any Registrable Securities
under the Securities Act as provided in Section 2 or 3 hereof, the Company,
subject to Section 4 hereof, shall:
(a) prepare and file a registration statement under the Securities Act
relating to the Registrable Securities to be offered as soon as practicable, but
in no event later than 45 days (60 days if the applicable registration form is
other than Form S-3) after the date notice is given, and use its best efforts to
cause the same to become effective within 90 days after the date notice is given
(120 days if the applicable registration form is other than Form S-3);
(b) prepare and file with the SEC such amendments and supplements to
such registration statement and the prospectus used in connection therewith as
may be necessary to keep such registration statement effective with respect to
the disposition of all Registrable Securities until the earlier of (i) such time
as all of such Registrable Securities have been disposed of in accordance with
the intended methods of disposition set forth in such registration statement and
(ii) the expiration of nine months after such registration statement becomes
effective; provided, that such nine-month period shall be extended for such
number of days that equals the number of days elapsing from (A) the date the
written notice contemplated by paragraph (f) below is given by the Company to
(B) the date on which the Company delivers to the Holders of Registrable
Securities the supplement or amendment contemplated by paragraph (f) below; and
provided further, that in the case of a registration to permit the exercise or
exchange of Exchangeable Securities for, or the conversion of Exchangeable
Securities into, Registrable Securities, the time limitation contained in clause
(ii) above shall be disregarded to the extent that, in the written opinion of
Xxxxxx'x counsel delivered to the Company, such Registrable Securities are
required to be covered by an effective registration statement under the
Securities Act at the time such Registrable Securities are issued upon exercise,
exchange or conversion of Registrable
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Securities in order for such Registrable Securities to be freely tradeable by
any person who is not an Affiliate of the Company or Xxxxxx;
(c) furnish to the Holders and to any underwriter of such Registrable
Securities such number of conformed copies of such registration statement and of
each such amendment and supplement thereto (in each case including all
exhibits), such number of copies of the prospectus included in such registration
statement (including each preliminary prospectus and any summary prospectus), in
conformity with the requirements of the Securities Act, and such other
documents, as the Holders or such underwriter may reasonably request in order to
facilitate the public sale of the Registrable Securities, and a copy of any and
all transmittal letters or other correspondence to, or received from, the SEC or
any other governmental agency or self-regulatory body or other body having
jurisdiction (including any domestic or foreign securities exchange) relating to
such offering;
(d) use its best efforts to register or qualify all Registrable
Securities covered by such registration statement under the securities or blue
sky laws of such jurisdictions (domestic or foreign) as the Holders or any
underwriter of such Registrable Securities shall request, and use its best
efforts to obtain all appropriate registrations, permits and consents required
in connection therewith, and do any and all other acts and things which may be
necessary or advisable to enable the Holders or any such underwriter to
consummate the disposition in such jurisdictions of its Registrable Securities
covered by such registration statement; provided that the Company shall not for
any such purpose be required to register or qualify generally to do business as
a foreign corporation in any jurisdiction wherein it is not so qualified, or to
subject itself to taxation in any such jurisdiction, or to consent to general
service of process in any such jurisdiction;
(e) (i) use its best efforts to furnish an opinion of counsel for the
Company addressed to the underwriters and each Holder of Registrable Securities
included in such registration (each a "Selling Holder") and dated the date of
the closing under the underwriting agreement (if any) (or if such offering is
not underwritten, dated the effective date of the registration statement), and
(ii) use its best efforts to furnish a "cold comfort" letter addressed to each
Selling Holder, if permissible under applicable accounting practices, and signed
by the independent public accountants who have audited the Company's financial
statements included in such registration statement, in each such case covering
substantially the same matters with respect to such registration statement (and
the prospectus included therein) as are customarily covered in opinions of
issuer's counsel and in accountants' letters delivered to underwriters in
underwritten public offerings of securities and, in the case of such
accountants' letter, with respect to events subsequent to the date of such
financial statements;
(f) immediately notify each Selling Holder in writing (i) at any time
when a prospectus relating to a registration pursuant to Section 2 or 3 hereof
is required to be delivered under the Securities Act of the happening of any
event as a result of which the prospectus included in such registration
statement, as then in effect, 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, in light of the circumstances under which they
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were made, not misleading, and (ii) if any request by the SEC or any other
regulatory body or other body having jurisdiction for any amendment of or
supplement to any registration statement or other document relating to such
offering, and in either such case (i) or (ii) at the request of the Selling
Holders, subject to Section 4 hereof, prepare and furnish to the Selling Holders
a reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such Registrable Securities, 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, in light of the
circumstances under which they are made, not misleading;
(g) use its best efforts to list all such Registrable Securities covered
by such registration on each securities exchange and inter-dealer quotation
system on which the Common Stock is then listed, with expenses in connection
therewith (not including any future periodic assessments or fees for such
additional listing, which shall be paid by the Company) to be paid in accordance
with Section 4 hereof;
(h) use its best efforts to list all Registrable Securities covered by
such registration statement on any securities exchange or inter-dealer quotation
system (in each case, domestic or foreign) not described in paragraph (g) above
as the Selling Holders or any underwriter of such Registrable Securities shall
request, and use its best efforts to obtain all appropriate registrations,
permits and consents required in connection therewith, and to do any and all
other acts and things which may be necessary or advisable to effect such
listing; provided, however, that, (i) notwithstanding Section 4, the Holders of
the Registrable Securities to be so listed shall pay all costs and expenses
incurred by the Company in connection with such listing and (ii) the Company
shall have no obligation to use its best efforts to so list Registrable
Securities if in the good faith opinion of counsel for the Company such listing
shall impose on the Company an ongoing material compliance obligation;
(i) to the extent reasonably requested by the lead or managing
underwriters in connection with any underwritten offering, send appropriate
officers of the Company to attend any "road shows" scheduled in connection with
any such registration; and
(j) furnish for delivery in connection with the closing of any offering
of Registrable Securities unlegended certificates representing ownership of the
Registrable Securities being sold in such denominations as shall be requested by
the Selling Holders or the underwriters.
6. Exchangeable Securities. Xxxxxx shall be entitled, if it intends to
offer any options, rights, warrants or other securities issued or to be issued
by it or any other person that are exercisable or exchangeable for or
convertible into any Registrable Securities ("Exchangeable Securities"), to
register the Registrable Securities underlying such options, rights, warrants or
other securities pursuant to (and subject to the limitations contained in)
Section 2 of this Agreement.
- 11 -
7. Underwriting; Due Diligence.
(a) If requested by the underwriters for any underwritten offering of
Registrable Securities pursuant to a registration requested under this
Agreement, the Company shall enter into an underwriting agreement, with such
underwriters for such offering, such agreement to contain such representations
and warranties by the Company and such other terms and provisions as are
customarily contained in underwriting agreements with respect to secondary
distributions, including, without limitation, indemnities and contribution
substantially to the effect and to the extent provided in Section 8 hereof and
the provision of opinions of counsel and accountants' letters to the effect and
to the extent provided in Section 5(e) hereof. The Selling Holders on whose
behalf the Registrable Securities are to be distributed by such underwriters
shall be parties to any such underwriting agreement. Such underwriting agreement
shall also contain such representations and warranties by the Selling Holders on
whose behalf the Registrable Securities are to be distributed as are customarily
contained in underwriting agreements with respect to secondary distributions.
The Selling Holders may require that any additional securities included in an
offering proposed by a Holder be included on the same terms and conditions as
the Registrable Securities that are included therein.
(b) In the event that any registration pursuant to Section 3 shall
involve, in whole or in part, an underwritten offering, the Company may require
the Registrable Securities requested to be registered pursuant to Section 3 to
be included in such underwritten offering on the same terms and conditions as
shall be applicable to the other securities being sold through underwriters
under such registration. If requested by the underwriters for such underwritten
offering, the Selling Holders on whose behalf the Registrable Securities are to
be distributed shall enter into an underwriting agreement with such
underwriters, such agreement to contain such representations and warranties by
the Selling Holders and such other terms and provisions as are customarily
contained in underwriting agreements with respect to secondary distributions,
including, without limitation, indemnities and contribution substantially to the
effect and to the extent provided in Section 8 hereof. Such underwriting
agreement shall also contain such representations and warranties by the Company
and such other person or entity for whose account securities are being sold in
such offering as are customarily contained in underwriting agreements with
respect to secondary distributions.
(c) In connection with the preparation and filing of each registration
statement registering Registrable Securities under the Securities Act, the
Company shall give the Holders of such Registrable Securities and the
Underwriters, if any, and their respective counsel and accountants, such
reasonable and customary access to its banks and records and such opportunities
to discuss the business of the Company with its officers and the independent
public accountants who have certified the Company's financial statements as
shall be necessary, in the opinion of such Holders and such underwriters or
their respective counsel, to conduct a reasonable investigation within the
meaning of the Securities Act.
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(d) 8. Indemnification and Contribution.
(a) In the case of each offering of Registrable Securities made pursuant
to this Agreement, the Company agrees to indemnify and hold harmless each
Holder, its officers and directors, each underwriter of Registrable Securities
so offered and each person, if any, who controls any of the foregoing persons
within the meaning of the Securities Act, from and against any and all claims,
liabilities, losses, damages, expenses and judgments, joint or several, to which
they or any of them may become subject, under the Securities Act or otherwise,
including any amount paid in settlement of any litigation commenced or
threatened which is approved by the indemnifying party as provided below, and
shall promptly reimburse them, as and when incurred, for any reasonable legal or
other expenses incurred by them in connection with investigating any claims and
defending any actions, insofar as such losses, claims, damages, liabilities or
actions shall arise out of, or shall be based upon, any untrue statement or
alleged untrue statement of a material fact contained in the registration
statement (or in any preliminary or final prospectus included therein) or any
amendment thereof or supplement thereto, or in any document incorporated by
reference therein, or any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading; provided, however, that the Company shall not be liable
to a particular Holder in any such case to the extent that any such loss, claim,
damage, liability or action arises out of, or is based upon, any untrue
statement or alleged untrue statement, or any omission, if such statement or
omission shall have been made in reliance upon and in conformity with
information relating to such Holder furnished to the Company in writing by or on
behalf of such Holder specifically for use in the preparation of the
registration statement (or in any preliminary or final prospectus included
therein) or any amendment thereof or supplement thereto. Such indemnity shall
remain in full force and affect regardless of any investigation made by or on
behalf of a Holder and shall survive the transfer of such securities. The
foregoing indemnity agreement is in addition to any liability which the Company
may otherwise have to each Holder, any of such Holder's directors or officers,
underwriters of the Registrable Securities or any controlling person of the
foregoing; provided, further, that this indemnity does not apply in favor of any
underwriter or person controlling an underwriter (or if a Selling Holder offers
Registrable Securities directly without an underwriter, the Selling Holder) with
respect to any loss, liability, claim, damage or expense arising out of or based
upon any untrue statement or alleged untrue statement or omission or alleged
omission in any preliminary prospectus if a copy of a final prospectus was not
sent or given by or on behalf of an underwriter (or the Selling Holder, if the
Selling Holder offered the Registrable Securities directly without an
underwriter) to the person asserting such loss, claim, damage, liability or
action at or prior to the written confirmation of the sale of the Registrable
Securities as required by the Securities Act and such untrue statement or
omission had been corrected in such final prospectus.
(b) In the case of each offering made pursuant to this Agreement, each
Holder of Registrable Securities included in such offering, by exercising its
registration rights hereunder, agrees to indemnify and hold harmless the
Company, its officers and directors and each person, if any, who controls any of
the foregoing within the meaning of the Securities Act (and if requested by the
underwriters, each underwriter who participates in
- 13 -
the offering and each person, if any, who controls any such underwriter within
the meaning of the Securities Act), from and against any and all claims,
liabilities, losses, damages, expenses and judgments, joint or several, to which
they or any of them may become subject, under the Securities Act or otherwise,
including any amount paid in settlement of any litigation commenced or
threatened which is approved by the indemnifying party as provided below, and
shall promptly reimburse them, as and when incurred, for any legal or other
expenses incurred by them in connection with investigating any claim and
defending any actions, insofar as any such losses, claims, damages, liabilities
or actions shall arise out of, or shall be based upon, any untrue statement or
alleged untrue statement of a material fact contained in the registration
statement (or in any preliminary or final prospectus included therein) or any
amendment thereof or supplement thereto, or any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, but in each case only to the extent that
such untrue statement of a material fact is contained in, or such material fact
is omitted from, information relating to such Holder furnished in writing to the
Company by or on behalf of such Holder specifically for use in the preparation
of such registration statement (or in any preliminary or final prospectus
included therein). The foregoing indemnity is in addition to any liability which
such Holder may otherwise have to the Company, any of its directors or officers,
underwriters of the Registrable Securities or any controlling person of the
foregoing; provided, however, that this indemnity does not apply in favor of any
underwriter or person controlling an underwriter (or if the Company offers
Registrable Securities directly without an underwriter, the Company) with
respect to any loss, liability, claim, damage or expense arising out of or based
upon any untrue statement or alleged untrue statement or omission or alleged
omission in any preliminary prospectus if a copy of a final prospectus was not
sent or given by or on behalf of an underwriter (or the Company, if the Company
offered the Registrable Securities directly without an underwriter) to the
person asserting such loss, claim, damage, liability or action at or prior to
the written confirmation of the sale of the Registrable Securities as required
by the Securities Act and such untrue statement or omission had been corrected
in such final prospectus.
(c) Each party indemnified under Paragraph (a) or (b) of this Section 8
shall, promptly after receipt of notice of any claim or the commencement of any
action against such indemnified party in respect of which indemnity may be
sought, notify the indemnifying party in writing of the claim or the
commencement thereof; provided that the failure to notify the indemnifying party
shall not relieve it from any liability which it may have to an indemnified
party on account of the indemnity agreement contained in paragraph (a) or (b) of
this Section 8, except to the extent the indemnifying party was prejudiced by
such failure, and in no event shall relieve the indemnifying party from any
other liability which it may have to such indemnified party. If any such claim
or action shall be brought against an indemnified party, and it shall notify the
indemnifying party thereof, the indemnifying party shall be entitled to
participate therein, and, to the extent that it wishes, jointly with any other
similarly notified indemnifying party, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by the indemnified
- 14 -
party in connection with the defense thereof; provided that each indemnified
party, its officers and directors, if any, and each person, if any, who controls
such indemnified party within the meaning of the Securities Act, shall have the
right to employ separate counsel reasonably approved by the indemnifying party
to represent them if the named parties to any action (including any impleaded
parties) include both such indemnified party and an indemnifying party or an
Affiliate of an indemnifying party, and such indemnified party shall have been
advised by counsel either (i) that there may be one or more legal defenses
available to such indemnifying party that are different from or additional to
those available to such indemnified party or such Affiliate or (ii) a conflict
may exist between such indemnified party and such indemnifying party or such
Affiliate, and in that event the fees and expenses of one such separate counsel
for all such indemnified parties shall be paid by the indemnifying party. An
indemnified party will not settle any claim or action for which he or it is
being indemnified hereunder unless the terms thereof are first approved in
writing by the indemnifying party, such approval not to be unreasonably
withheld. The indemnifying party may not agree to any settlement of any such
claim or action which provides for any remedy or relief other than monetary
damages for which the indemnifying party shall be responsible hereunder, without
the prior written consent of the indemnified party, which consent shall not be
unreasonably withheld. In any action hereunder as to which the indemnifying
party has assumed the defense thereof with counsel reasonably satisfactory to
the indemnified party, the indemnified party shall continue to be entitled to
participate in the defense thereof, with counsel of its own choice, but, except
as set forth above, the indemnifying party shall not be obligated hereunder to
reimburse the indemnified party for the costs thereof. In all instances, the
indemnified party shall cooperate fully with the indemnifying party or its
counsel in the defense of such claim or action.
(d) If the indemnification provided for in this Section 8 shall for any
reason be unavailable to or insufficient to hold harmless an indemnified party
in respect of any loss, claim, damage or liability, or any action in respect
thereof, referred to herein, then each indemnifying party shall, in lieu of
indemnifying such indemnified party, contribute to the amount paid or payable by
such indemnified party as a result of such loss, claim, damage or liability, or
action in respect thereof, in such proportion as shall be appropriate to reflect
the relative fault of the indemnifying party on the one hand and the indemnified
party on the other with respect to the statements or omissions which resulted in
such loss, claim, damage or liability, or action in respect thereof, as well as
any other relevant equitable considerations. The relative fault shall be
determined by reference to whether the untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information supplied by the indemnifying party on the one hand or the
indemnified party on the other, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such
statement or omission, but not by reference to any indemnified party's stock
ownership in the Company. In no event, however, shall a Holder be required to
contribute in excess of the amount of the net proceeds received by such Holder
in connection with the sale of Registrable Securities in the offering which is
the subject of such loss, claim, damage or liability. The amount paid or payable
by an indemnified party as a result of the loss, claim, damage or liability, or
action in respect thereof, referred to above in this paragraph shall be deemed
to include, for purposes of this paragraph, any legal or other expenses
reasonably incurred by such
- 15 -
indemnifying party in connection with investigating or defending any such action
or claim. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.
9. Rule 144. The Company shall take such measures and file such
information, documents and reports as shall be required by the SEC as a
condition to the availability of Rule 144 (or any successor provision). The
Company shall use its best efforts to cause all conditions to the availability
of Form S-3 (or any successor form thereto) under the Securities Act for the
filing of registration statements under this Agreement to be met as soon as
possible after the completion of the Public Offering.
10. Holdback.
(a) Each Holder agrees by the acquisition of Registrable Securities, if
so required by the managing underwriter of any offering of equity securities by
the Company, not to sell, make any short sale of, loan, grant any option for the
purchase of, effect any public sale or distribution of or otherwise dispose of
any Registrable Securities owned by such Holder, during the 30 days prior to and
the 90 days after the registration statement relating to such offering has
become effective (or such shorter period as may be required by the underwriter),
except as part of such underwritten offering. Notwithstanding the foregoing
sentence, each Holder subject to the foregoing sentence shall be entitled to
sell during the foregoing period any securities of the Company owned by it in a
private sale. The Company may legend and may impose stop transfer instructions
on any certificate evidencing Registrable Securities relating to the
restrictions provided for in this Section 10.
(b) The Company agrees, if so required by the managing underwriter of
any offering of Registrable Securities, not to sell, make any short sale of,
loan, grant any option for the purchase of (other than pursuant to employee
benefit plans), effect any public sale or distribution of or otherwise dispose
of any of its equity securities during the 30 days prior to and the 90 days
after any underwritten registration pursuant to Section 2 or 3 hereof has become
effective, except as part of such underwritten registration and except pursuant
to registrations on Form X-0, X-0 or any successor or similar forms thereto.
11. Transfer of Registration Rights.
(a) A Holder may transfer all or any portion of its rights under this
Agreement to any transferee of Registrable Securities that represent (assuming
the conversion, exchange or exercise of all Registrable Securities so
transferred that are convertible into or exercisable or exchangeable for the
Company's Voting Stock) at least 20% of the then issued and outstanding Voting
Stock of the Company (each, a "Permitted Transferee"); provided, however, that
(i) with respect to any transferee of less than a majority but more than 30% of
the then issued and outstanding Voting Stock, the Company shall not be obligated
to file a registration statement pursuant to a registration request made by such
transferee pursuant to Section 2 hereof on more than two occasions, and (ii)
with respect to any transferee of 30% or less of the then issued and outstanding
Voting Stock, the
- 16 -
Company shall not be obligated to file a registration statement pursuant to a
registration request made by such transferee pursuant to Section 2 hereof on
more than one occasion. No transfer of registration rights pursuant to this
Section shall be effective unless the Company has received written notice from
the Holder of an intention to transfer at least 20 days prior to the Holder's
entering into a binding agreement to transfer Registrable Securities (10 days in
the event of an unsolicited offer). Such notice need not contain proposed terms
or name a proposed Permitted Transferee. On or before the time of the transfer,
the Company shall receive a written notice stating the name and address of any
Permitted Transferee and identifying the number and/or aggregate principal
amount of Registrable Securities with respect to which the rights under this
Agreement are being transferred and the scope of the rights so transferred. In
connection with any such transfer, the term Xxxxxx as used in this Agreement
(other than in Section 2(a)(iv)) shall, where appropriate to assign the rights
and obligations hereunder to such Permitted Transferee, be deemed to refer to
the Permitted Transferee of such Registrable Securities. Xxxxxx and any
Permitted Transferees may exercise the registration rights hereunder in such
priority, as among themselves, as they shall agree among themselves, and the
Company shall observe any such agreements of which it shall have notice as
provided above.
(b) After any such transfer, the transferring Holder shall retain its
rights under this Agreement with respect to all other Registrable Securities
owned by such transferring Holder.
(c) Upon the request of the transferring Holder, the Company shall
execute an agreement with a Permitted Transferee substantially similar to this
Agreement.
12. Miscellaneous.
(a) Injunctions. Each party acknowledges and agrees that irreparable
damage would occur in the event that any of the provisions of this Agreement was
not performed in accordance with its specific terms or was otherwise breached.
Therefore, each party shall be entitled to an injunction or injunctions to
prevent breaches of the provisions of this Agreement and to enforce specifically
the terms and provisions hereof in any court having jurisdiction, such remedy
being in addition to any other remedy to which such party may be entitled at law
or in equity.
(b) Severability. If any term or provision of this Agreement is held by
a court of competent jurisdiction to be invalid, void or unenforceable, the
remainder of the terms and provisions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and
each of the parties shall use its best efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated
by such term or provision.
(c) Further Assurances. Subject to the specific terms of this Agreement,
each of the parties hereto shall make, execute, acknowledge and deliver such
other instruments and documents, and take all such other actions, as may be
reasonably required
- 17 -
in order to effectuate the purposes of this Agreement and to consummate the
transactions contemplated hereby.
(d) Waivers, etc. Except as otherwise expressly set forth in this
Agreement, no failure or delay on the part of either party in exercising any
power or right hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. Except as
otherwise expressly set forth in this Agreement, no modification or waiver of
any provision of this Agreement nor consent to any departure therefrom shall in
any event be effective unless the same shall be in writing and signed by an
authorized officer of each of the parties, and then such waiver or consent shall
be effective only in the specific instance and for the purpose for which given.
(e) Entire Agreement. This Agreement contains the final and complete
understanding of the parties with respect to its subject matter. This Agreement
supersedes all prior agreements and understandings between the parties, whether
written or oral, with respect to the subject matter hereof. The paragraph
headings contained in this Agreement are for reference purposes only, and shall
not affect in any manner the meaning or interpretation of this Agreement
(f) Counterparts. For the convenience of the parties, this Agreement may
be executed in any number of counterparts, each of which shall be deemed to be
an original but all of which together shall be one and the same instrument.
(g) Amendment. This Agreement may be amended only by a written
instrument duly executed by an authorized officer of each of the parties.
(h) Notices. Unless expressly provided herein, all notices, claims,
certificates, requests, demands and other communications hereunder shall be in
writing and shall be deemed to be duly given (i) when personally delivered or
(ii) if mailed registered or certified mail, postage prepaid, return receipt
requested, on the date the return receipt is executed or the letter refused by
the addressee or its agent or (iii) if sent by overnight courier which delivers
only upon the signed receipt of the addressee, on the date the receipt
acknowledgment is executed or refused by the addressee or its agent or (iv) if
sent by facsimile or other generally accepted means of electronic transmission,
on the date confirmation of transmission is received (provided that a copy of
any notice delivered pursuant to this clause (iv) shall also be sent pursuant to
clause (ii) or (iii)), addressed as follows or sent by facsimile to the
following number (or to such other address or facsimile number for a party as it
shall have specified by like notice):
- 18 -
(i) if to Xxxxxx, to:
Xxxxxx Corporation
0000 Xx. Xxxxx Xxxxx, Xxxxx 000
Xxxxxxx, Xxxxx 00000
Attention: Xxxxx Xxxxxx, Chief Executive Officer
with a copy to:
Xx. Xxxxx Xxxxxx
00 Xxxxxx Xxxxxx Xxxx
Xxxxxxxxx, Xxx Xxxx 00000
(ii) if to the Company, to:
Omega Protein Corporation
0000 Xx. Xxxxx Xxxxx, Xxxxx 000
Xxxxxxx, Xxxxx 00000
Attention: Xxxxxx X. xxx Xxxxxxxxx III,
Chief Executive Officer and President
(iii) if to a Holder of Registrable Securities, to the name
and address as the same appear in the security transfer
books of the Company,
or to such other address as either party (or other Holders of Registrable
Securities) may, from time to time, designate in a written notice in a like
manner.
(i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA, WITHOUT REGARD TO THE CONFLICTS
OF LAWS PRINCIPLES THEREOF.
(j) Assignment. Except as specifically provided herein, the parties may
not assign their rights under this Agreement. The Company may not delegate its
obligations under this Agreement.
(k) Conflicting Agreements. The Company shall not hereafter grant any
rights to any person to register securities of the Company, the exercise of
which would conflict with the rights granted to the Holders of the Registrable
Securities under this Agreement. The Company shall not hereafter grant to any
person demand registration rights permitting it to exclude the Holders from
including Registrable Securities in a registration on behalf of such person on a
basis more favorable than that set forth in Section 2(d) hereof with respect to
the Holders.
- 19 -
IN WITNESS WHEREOF, Xxxxxx and the Company have caused this Agreement
to be duly executed by their authorized representative as of the date first
above written.
XXXXXX CORPORATION
By:
--------------------------------------
Name: Xxxxx Xxxxxx
Title: Chief Executive Officer
OMEGA PROTEIN CORPORATION
By:
--------------------------------------
Name: Xxxxxx X. xxx Xxxxxxxxx III
Title: Chief Executive Officer and President
- 20 -
