Exhibit 4.101
This
Registration Rights Agreement (this “Agreement”) was made on September
28, 2006 by and between TOWER SEMICONDUCTOR LTD. (the “Company” or
“Tower”), a company organized under the laws of the State of Israel, and
ISRAEL CORPORATION LTD., a corporation organized under the laws of the State of Israel
(“TIC” or the “Investor”) and is hereby amended and
restated by the parties on September 25, 2008.
WHEREAS,
Tower is an independent manufacturer of wafers whose Ordinary Shares are traded on the
Nasdaq Stock Market (“NASDAQ”) under the symbol “TSEM” and
whose Ordinary Shares and certain other securities are traded on the Tel-Aviv Stock
Exchange (“TASE”) under the symbol “TSEM”;
WHEREAS,
TIC and Tower have entered into a Securities Purchase Agreement dated August 24,
2006, the conditions to the effectiveness of which included, inter alia, the
issuance to TIC of an equity-equivalent convertible capital note which will in turn be
convertible, in whole or in part, by the Investor at any time and from time to time into
shares of Tower;
WHEREAS,
TIC and Tower have entered into a Securities Purchase Agreement dated September 25, 2008
(the “Purchase Agreement”), the conditions to the effectiveness of which
include, inter alia, the issuance to TIC of an equity-equivalent convertible
capital note which will in turn be convertible, in whole or in part, by the Investor at
any time and from time to time into shares of Tower;
WHEREAS,
Tower, TIC and certain other shareholders of Tower entered into a Registration Rights
Agreement, dated January 18, 2001 (the “2001 Registration Rights
Agreement”); for the avoidance of doubt, nothing herein shall derogate from or
limit the registration rights granted to TIC pursuant to the 2001 Registration Rights
Agreement.
WHEREAS
the parties intend that the registration rights set forth in this Agreement be applicable
with respect to all shares issuable upon conversion or exercise of any and all capital
notes issued to TIC on September 28, 2006 or issuable pursuant to (i) that certain
Conversion Agreement between Tower and TIC of even date herewith, (ii) that certain
Undertaking made by TIC to the Company of even date herewith (the
“Undertaking”), and (iii) warrants held by TIC; and
WHEREAS,
the parties wish to amend and restate this Agreement in its entirety;
NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Bank hereby agree as follows:
| 1. |
DEFINITIONS
AND INTERPRETATION. |
As
used in this Agreement, the following terms shall have the following meanings:
| |
(a) |
“Capital
Note” means any capital note that is convertible into shares
of Tower. |
| |
(b) |
“Holder” means
TIC, any transferee or assignee to whom TIC, assigns its rights, in
whole or in part, and any transferee or assignee thereof to whom a
transferee or assignee assigns its rights, in accordance with Section
9. |
| |
(c) |
“ISA” means
the Israel Securities Authority or any similar or successor agency of
Israel administering the Israel Securities Law. |
| |
(d) |
“Israel
Securities Law” means the Israel Securities Law, 5728-1968
(including the regulations promulgated thereunder), as amended. |
| |
(e) |
“1933
Act” means the U.S. Securities Act of 1933, as amended, and
the rules and regulations thereunder, or any similar successor statute. |
| |
(f) |
“1934
Act” means the U.S. Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder, or any similar
successor statute. |
| |
(g) |
“Register”,
“registered”, and “registration” refer to a registration
effected by preparing and filing a registration statement in
compliance with the 1933 Act and the effectiveness of such
registration statement in accordance with the 1933 Act or the
equivalent actions under the laws of another jurisdiction. |
| |
(h) |
“Registrable
Securities” means (i) the ordinary shares of the Company
issued or issuable upon conversion of any Capital Note by any Holder,
and (ii) the ordinary shares of the Company issued or issuable upon
exercise of a Warrant, (iii) the ordinary shares of the Company
issuable upon conversion of any Capital Note issued to TIC pursuant
to the Undertaking, and (iv) any shares of capital stock issued or
issuable with respect to the ordinary shares of the Company as a
result of any stock split, stock dividend, rights offering,
recapitalization, merger, exchange or similar event or otherwise,
including as described in any Capital Note. |
| |
(i) |
“Registration
Statement” means registration statements of the Company
covering Registrable Securities filed with (a) the SEC under the 1933
Act, and (b) the ISA under the Israel Securities Law, to the extent
required under the Israel Securities Law, so as to allow the Holder
to freely resell the Registrable Securities in Israel, including on
the TASE. |
| |
(j) |
“SEC” means
the United States Securities and Exchange Commission or any similar
or successor agency of the United States administering the 1933 Act. |
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(k) |
“Warrant” means
the warrants issued to TIC by the Company prior to the date hereof
and which are amended on the date hereof. |
In
this Agreement:
| |
(a) |
Words
importing the singular shall include the plural and vice versa and words
importing any gender shall include all other genders and references to persons
shall include partnerships, corporations and unincorporated associations. |
| |
(b) |
Any
reference in this Agreement to a specific form or to any rule or regulation
adopted by the SEC shall also include any successor form or amended or
successor rule or regulation subsequently adopted by the SEC, all as the same
may be in effect at the time. |
| |
(c) |
Any
reference in this Agreement to a statute, act or law shall be construed as a
reference to such statute, act or law as the same may have been, or may from
time to time be, amended or reenacted. |
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(d) |
A
“person”shall be construed as a reference to any person, firm,
company, corporation, government, state or agency of a state or any association
or partnership (whether or not having separate legal personality) or two or
more of the aforegoing. |
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(e) |
“Including” and
“includes” means, including, without limiting the generality
of any description preceding such terms. |
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(f) |
The
headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof. |
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(a) |
The
Company shall prepare, no later than 45 days after the date on which the
Company receives a written request from TIC from time to time file with the SEC
a Registration Statement on Form F-3 and make all required filings with the ISA
covering the resale of all, or at the request of TIC, any portion of the then
Registrable Securities that are not already registered. The Company shall use
its best efforts to have the Registration Statement declared effective by the
SEC and the ISA as soon as possible after such filing with the SEC and the ISA. |
| |
(b) |
In
the event that Form F-3 shall not be available for the registration of the
resale of Registrable Securities hereunder, the Company shall (i) register the
resale of the Registrable Securities on another appropriate form reasonably
acceptable to the Holders of the Registrable Securities to be registered on
such Registration Statement and (ii) undertake to register the Registrable
Securities on Form F-3 as soon as such form is available, provided that, in
each such event, the Company shall maintain the effectiveness of the
Registration Statement then in effect until such time as a Registration
Statement on Form F-3 covering the Registrable Securities has been declared
effective by the SEC. |
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(a) |
Following
the filing and effectiveness of each Registration Statement with the SEC
pursuant to Section 2(a), the Company shall keep the Registration Statement
effective pursuant to Rule 415 of the 1933 Act and under the Israel Securities
Law at all times until the earlier of (i) the date as of which all of the
Holders confirm to the Company in writing that they may sell all of the
Registrable Securities covered by such Registration Statement without
restriction pursuant to all of the following: (x) Rule 144(k) under the 1933
Act, (y) the Israel Securities Law and (z) other securities or “blue
sky” laws of each jurisdiction in which the Company obtained a
registration or qualification in accordance with Section 3(d) below or (ii) the
date on which the Holders shall have sold all the Registrable Securities
covered by such Registration Statement (A) in accordance with such Registration
Statement (except to another Holder pursuant to Section 9) or (B) to the public
pursuant to Rule 144 under the 1933 Act (the “Registration Period”)
the Company to ensure that such Registration Statement (including any
amendments or supplements thereto and prospectuses contained therein) shall not
contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein, or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading,
subject to Section 3(e) below. |
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(b) |
The
Company shall prepare and file with the SEC and the ISA (to the extent
required) such amendments (including post-effective amendments) and supplements
to each Registration Statement and the prospectus used in connection with such
Registration Statement, which prospectus is to be filed pursuant to Rule 424
under the 1933 Act or under the Israel Securities Law, as may be necessary to
keep such Registration Statement effective at all times during the Registration
Period, and, during such period, comply with the provisions of the 1933 Act and
the Israel Securities Law with respect to the disposition of all Registrable
Securities of the Company covered by such Registration Statement until such
time as all of such Registrable Securities shall have been disposed of in
accordance with the intended methods of disposition by the seller or sellers
thereof as set forth in such Registration Statement, which, for the avoidance
of doubt, shall include sales on the Nasdaq Stock Market and the TASE, as well
as sales not made on such exchanges. In the case of amendments and supplements
to a Registration Statement which are required to be filed pursuant to the
Agreement (including pursuant to this Section 3(b) by reason of the
Company filing a report on Form 20-F, Form 6-K or any analogous report under
the 1934 Act), the Company shall have incorporated such report by reference
into the Registration Statement, if applicable, or shall file such amendments
or supplements with the SEC and the ISA on the same day on which the 1934 Act
report is filed which created the requirement for the Company to amend or
supplement the Registration Statement. |
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(c) |
The
Company shall furnish each Holder whose Registrable Securities are included in
any Registration Statement, without charge, (i) promptly after the same is
prepared and filed with the SEC, at least three (3) copies of such Registration
Statement and any amendment(s) thereto, including financial statements and
schedules, all documents incorporated therein by reference, all exhibits and
each preliminary prospectus (or such other number of copies as such Holder may
reasonably request), (ii) upon the effectiveness of any Registration Statement,
at least ten (10) copies of the prospectus included in such Registration
Statement and all amendments and supplements thereto (or such other number of
copies as such Holder may reasonably request) and (iii) such other documents,
including copies of any preliminary or final prospectus and of any Registration
Statements and prospectuses filed with the ISA, as such Holder may reasonably
request from time to time in order to facilitate the disposition of the
Registrable Securities owned by such Holder. |
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(d) |
The
Company shall use its best efforts to (i) register and qualify, unless an
exemption from registration and qualification applies, the resale by the
Holders of the Registrable Securities covered by a Registration Statement under
such other securities or “blue sky” laws of all the states of the
United States, (ii) prepare and file in those jurisdictions, such amendments
(including post-effective amendments) and supplements to such registrations and
qualifications as may be necessary to maintain the effectiveness thereof during
the Registration Period, (iii) take such other actions as may be necessary to
maintain such registrations and qualifications in effect at all times during
the Registration Period, and (iv) take all other actions reasonably necessary
or advisable to qualify the Registrable Securities for sale in such
jurisdictions; provided, however, that the Company shall not be required in
connection therewith or as a condition thereto to (x) qualify to do business in
any jurisdiction where it would not otherwise be required to qualify but for
this Section 3(d), or (y) file a general consent to service of process in any
such jurisdiction. The Company shall promptly notify each Holder who holds
Registrable Securities of the receipt by the Company of any notification with
respect to the suspension of the registration or qualification of any of the
Registrable Securities for sale under the securities or “blue sky” laws
of any jurisdiction in the United States or its receipt of actual notice of the
initiation or threatening of any proceeding for such purpose. |
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(e) |
The
Company shall notify each Holder in writing of the happening of any event, as
promptly as practicable after becoming aware of such event, as a result of
which the prospectus included in a Registration Statement, as then in effect,
includes an untrue statement of a material fact or omission to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading. The
Company shall use its best efforts to minimize the period of time during which
a Registration Statement includes an untrue statement of a material fact or
omission to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading. The Company shall promptly notify each Holder in
writing (i) when a prospectus or any prospectus supplement or post-effective
amendment has been filed so that the Registration Statement does not include an
untrue statement of a material fact or omission to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, and when
a Registration Statement or any post-effective amendment has become effective
(notification of such effectiveness shall be delivered to each Holder by
facsimile on the same day of such effectiveness and by overnight mail), (ii) of
any request by the SEC or the ISA for amendments or supplements to a
Registration Statement or related prospectus or related information, and (iii)
of the Company’s reasonable determination that a post-effective amendment
to a Registration Statement would be appropriate. |
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(f) |
The
Company shall use its best efforts to prevent the issuance of any stop order or
other suspension of effectiveness of a Registration Statement, or the
suspension of the qualification of any of the Registrable Securities for sale
in any jurisdiction and, if such an order or suspension is issued, to obtain
the withdrawal of such order or suspension at the earliest possible moment and
to notify each Holder who holds Registrable Securities being sold of the
issuance of such order and the resolution thereof or its receipt of actual
notice of the initiation or threat of any proceeding for such purpose. |
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(g) |
The
Company shall cause all the Registrable Securities covered by a Registration
Statement to be listed on each securities exchange on which securities of the
same class or series issued by the Company are then listed, including the
NASDAQ and the TASE. The Company shall deliver to the Holders a copy of the
approvals of the TASE and the NASDAQ (and/or any other exchange, if applicable)
to the listing of the Registrable Securities covered by such Registration
Statement on such exchange, in the case of the TASE, by not later than the date
hereof, and in the case of the NASDAQ (and/or other applicable exchanges) not
later than the effective date of such Registration Statement . |
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(h) |
The
Company shall cooperate with the Holders who hold Registrable Securities being
offered and, to the extent applicable, facilitate the timely preparation and
delivery of certificates (not bearing any restrictive legend) representing the
Registrable Securities to be offered pursuant to a Registration Statement and
enable such certificates to be in such denominations or amounts, as the case
may be, as the Holders may reasonably request and registered in such names as
the Holders may request. |
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(i) |
The
Company shall provide a transfer agent and registrar of all Registrable
Securities and a CUSIP number not later than the effective date of the
applicable Registration Statement. |
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(j) |
If
requested by a Holder, the Company shall (i) as soon as practicable incorporate
in a prospectus supplement or post-effective amendment such information as a
Holder requests to be included therein, information with respect to the number
of Registrable Securities being offered or sold, the purchase price being paid
therefor and any other terms of the offering of the Registrable Securities to
be sold in such offering; (ii) as soon as practicable make all required filings
of such prospectus supplement or post-effective amendment after being notified
of the matters to be incorporated in such prospectus supplement or
post-effective amendment; and (iii) as soon as practicable, supplement or make
amendments to any Registration Statement if reasonably requested by a Holder of
such Registrable Securities. |
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(k) |
In
the event of any underwritten public offering of the Registrable Securities,
enter into and perform its obligations under an underwriting agreement with
usual and customary terms that are generally satisfactory to the managing
underwriter of such offering. The Holder shall also enter into and perform its
obligations under such an agreement (the terms of which must be satisfactory to
the Holder if the Holder is to participate in such offering). |
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(l) |
The
Company shall afford the Holder and its representatives (including counsel) the
opportunity at any time and from time to time during the Registration Period to
make such examinations of the business affairs and other material financial and
corporate documents of the Company and its subsidiaries as the Holder may
reasonably deem necessary to satisfy itself as to the accuracy of the
registration statement (subject to a reasonable confidentiality undertaking on
the part of the Holder and its representatives). |
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(m) |
The
Company shall furnish, at the request of the Holder in connection with the
registration of Registrable Shares pursuant to this Agreement, on the date that
such Registrable Shares are delivered to the underwriters for sale, if such
securities are being sold through underwriters, or, if such securities are not
being sold through underwriters, on the date that the Registration Statement
with respect to such securities becomes effective and on the date of each
post-effective amendment thereof: (i) an opinion, dated such date, of the
counsel representing the Company for the purposes of such registration, in form
and substance as is customarily given to underwriters in an underwritten public
offering, addressed to the underwriters, if any, and to the Holder; and
(ii) a letter, dated such date, from the independent certified public
accountants of the Company, in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten
public offering, addressed to the underwriters, if any, and to the Holder. |
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(n) |
The
Company shall comply with all applicable rules and regulations of the SEC and
shall make generally available to its security holders an earnings statement
satisfying the provisions of Section 11(a) of the 1933 Act as soon as
practicable after the effective date of the Registration Statement and in any
event no later than 45 days after the end of a 12-month period (or 90 days, if
such period is a fiscal year) beginning with the first month of the
Company’s first fiscal quarter commencing after the effective date of the
Registration Statement. |
| 4. |
OBLIGATIONS
OF THE HOLDERS. |
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Each
Holder agrees that, upon receipt of any notice from the Company of the happening of any
event of the kind described in the first sentence of Section 3(e) or the issuance of any
stop order or suspension as referred to in Section 3(f), such Holder will immediately
discontinue disposition of Registrable Securities pursuant to any Registration
Statement(s) covering such Registrable Securities until such Holder’s receipt of the
copies of the supplemented or amended prospectus contemplated by clause (i) of Section
3(e) or receipt of notice that no supplement or amendment is required. |
| 5. |
EXPENSES
OF REGISTRATION. |
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All
expenses, other than underwriting discounts and commissions, incurred in connection with
registrations, filings or qualifications pursuant to Sections 2 and 3, including, without
limitation, all registration, listing and qualifications fees, printers and accounting
fees, fees and disbursements of counsel to the Company and the Holders, including in
connection with such examinations described in Section 3(l) above, shall be paid by
the Company. |
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In
the event any Registrable Securities are included in a Registration Statement under this
Agreement: |
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(a) |
To
the fullest extent permitted by law, the Company will, and hereby does,
indemnify, hold harmless and defend each Holder, the directors, officers,
partners, employees, agents, representatives of, and each Person, if any, who
controls any Holder within the meaning of the 1933 Act or 1934 Act (each, an “Indemnified
Person”), against any losses, claims, damages, liabilities, judgments,
fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid
in settlement or expenses, joint or several, (collectively, “Claims”)
incurred in investigating, preparing or defending any action, claim, suit,
inquiry, proceeding, investigation or appeal taken from the foregoing by or
before any court or governmental, administrative or other regulatory agency,
body or the SEC or the ISA, whether pending or threatened, whether or not a
person to be indemnified is or may be a party thereto (“Indemnified
Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect
thereof) arise out of or are based upon: (i) any untrue statement or alleged
untrue statement of a material fact in a Registration Statement or any
post-effective amendment thereto or in any filing made in connection with the
qualification of the offering under the securities or other “blue sky” laws
of any jurisdiction in which Registrable Securities are offered (“Blue
Sky Filing”), or the omission or alleged omission to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading, (ii) any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement, preliminary prospectus,
final prospectus or “free writing prospectus” (as such term is
defined in Rule 405 under the 0000 Xxx) or any amendment or supplement to any
such prospectus or the omission or alleged omission to state therein any
material fact necessary to make the statements made therein, in light of the
circumstances under which the statements therein were made, not misleading,
(iii) any violation or alleged violation by the Company of the 1933 Act, the
1934 Act, any other law, including, without limitation, any state securities
law, the Israel Securities Law or any rule or regulation thereunder relating to
the offer or sale of the Registrable Securities pursuant to a Registration
Statement or (iv) any material violation of this Agreement (the matters in the
foregoing clauses (i) through (iv) being, collectively, “Violations”).
Subject to Section 6(c), the Company shall reimburse the Indemnified Persons
promptly as such expenses are incurred and are due and payable, for any legal
fees or other reasonable expenses incurred by them in connection with
investigating or defending any such Claim. Notwithstanding anything to the
contrary contained herein, the indemnification agreement contained in this
Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in
conformity with information furnished in writing to the Company by such
Indemnified Person expressly for inclusion in any such Registration Statement,
preliminary prospectus, final prospectus or free writing prospectus or any such
amendment thereof or supplement thereto and (ii) shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the
prior written consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of the Indemnified Person and shall
survive the transfer of the Registrable Securities by the Holders pursuant to
Section 9. |
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(b) |
In
connection with any Registration Statement in which a Holder is participating,
each such Holder agrees, severally and not jointly, to indemnify, hold harmless
and defend, to the same extent and in the same manner as is set forth in
Section 6(a), the Company, each of its directors, each of its officers who
signs the Registration Statement, each Person, if any, who controls the Company
within the meaning of the 1933 Act or the 1934 Act (each an “Indemnified Party”),
against any Claim or Indemnified Damages to which any of them may become
subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim
or Indemnified Damages arise out of or are based upon any Violation, in each
case to the extent, and only to the extent, that such Violation occurs in
reliance upon and in conformity with written information furnished to the
Company by such Holder expressly for inclusion in Registration Statement,
preliminary prospectus, final prospectus or free writing prospectus and,
subject to Section 6(c), such Holder will reimburse any legal or other expenses
reasonably incurred by an Indemnified Party in connection with investigating or
defending any such Claim; provided, however, that the indemnity agreement
contained in this Section 6(b) and the agreement with respect to contribution
contained in Section 7 shall not apply to amounts paid in settlement of any
Claim if such settlement is effected without the prior written consent of such
Holder; provided, further, however, that the Holder shall be liable under this
Section 6 for only that amount of a Claim or Indemnified Damages as does not
exceed the net proceeds to such Holder as a result of the sale of Registrable
Securities pursuant to such Registration Statement. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf
of such Indemnified Party and shall survive the transfer of the Registrable
Securities by the Holders pursuant to Section 9. |
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(c) |
Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section
6 of notice of the commencement of any action or proceeding (including any
governmental action or proceeding) involving a Claim, such Indemnified Person
or Indemnified Party shall, if a Claim in respect thereof is to be made against
any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
control of the defense thereof with counsel mutually satisfactory to the
indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party
shall have the right to retain its own counsel with the fees and expenses of
not more than one counsel for such Indemnified Person or Indemnified Party to
be paid by the indemnifying party, if, the representation by such counsel of
the Indemnified Person or Indemnified Party and the indemnifying party would be
inappropriate due to actual or potential differing interests between such
Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding. In the case of an Indemnified Person, legal counsel
referred to in the immediately preceding sentence shall be selected by the
Holders holding a majority in interest of the Registrable Securities included
in the Registration Statement to which the Claim relates. The Indemnified Party
or Indemnified Person shall cooperate with the indemnifying party in connection
with any negotiation or defense of any such action or Claim by the indemnifying
party and shall furnish to the indemnifying party all information reasonably
available to the Indemnified Party or Indemnified Person which relates to such
action or Claim. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall not
relieve such indemnifying party of any liability to the Indemnified Person or
Indemnified Party under this Section 6, except to the extent that the
indemnifying party is prejudiced in its ability to defend such action but the
omission to so notify the indemnifying party will not relieve such indemnifying
party of any liability that it may have to any Indemnified Person or Party
otherwise than under this Section 6(c), including under Section 6(e). |
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(d) |
The
indemnification required by this Section 6 shall be made by periodic payments
of the amount thereof during the course of the investigation or defense, as and
when bills are received or Indemnified Damages are incurred. |
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(e) |
The
indemnity agreements contained herein shall be in addition to (i) any cause of
action or similar right of the Indemnified Party or Indemnified Person against
the indemnifying party or others, and (ii) any liabilities the indemnifying
party may be subject to pursuant to the law. |
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To
the extent any indemnification by an indemnifying party is prohibited or limited by law or
insufficient to hold an Indemnified Person or an Indemnified Party, as the case may be,
harmless, then the indemnifying party, in lieu of indemnifying such Indemnified Person or
Indemnified Party hereunder, shall contribute to the amount paid or payable by such
Indemnified Person or Indemnified Party as a result of such Claims and Indemnified Damages
(each as defined in Section 6(a) above) in such proportion as is appropriate to reflect
the relative fault of the indemnifying party on the one hand and of the Indemnified Person
or Indemnified Party, as the case may be, on the other in connection with the statements
or omissions that resulted in such loss, liability, claim, damage, or expense as well as
any other relevant equitable considerations. The relative fault of the indemnifying party
and of the Indemnified Person or Indemnified Party, as the case may be, shall be
determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission to state a material fact relates to
information supplied by the indemnifying party or by the Indemnified Person or Indemnified
Party and the parties’ relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission. |
| |
Notwithstanding
the foregoing, (i) no person involved in the sale of Registrable Securities, which person
is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000
Xxx) in connection with such sale, shall be entitled to contribution from any person
involved in such sale of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be
limited in amount to the net amount of proceeds received by such seller from the sale of
such Registrable Securities pursuant to such Registration Statement. |
| 8. |
REPORTS
UNDER THE 1934 ACT. |
| |
With
a view to making available to the Holders the benefits of Rule 144 promulgated under the
1933 Act or any other similar rule or regulation of the SEC that may at any time permit
the Holders to sell securities of the Company to the public without registration
(“Rule 144”), the Company agrees to: |
| |
(a) |
make
and keep public information available, as those terms are understood and
defined in Rule 144; |
| |
(b) |
file
with the SEC in a timely manner all reports and other documents required by the
Company under the 1993 Act and the 1934 Act so long as the Company remains
subject to such requirements and the filing of such reports and other documents
is required for the applicable provisions of Rule 144; and |
| |
(c) |
furnish
to each Holder so long as such Holder owns Registrable Securities, promptly
upon request, (i) a written statement by the Company that it has complied with
the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a
copy of the most recent annual or quarterly report of the Company and such
other reports and documents so filed by the Company, and (iii) such other
information as may be reasonably requested to permit the Holders to sell such
securities pursuant to any rule or regulation of the SEC allowing the Holder to
sell any securities without registration. |
| 9. |
ASSIGNMENT
OF REGISTRATION RIGHTS. |
| |
The
rights under this Agreement shall be freely assignable, in whole or in part at any time
and from time to time during the Registration Period, by the Holder to any transferee of
all or any portion of a Capital Note or of the Registrable Securities (provided that, in
the case of the transfer of Registrable Securities only, the rights under the Agreement
may be transferred only if the Holder reasonably believes that such transferee cannot
immediately make a public distribution of such Registrable Securities without restriction
under the 1933 Act, the Israel Securities Law or other applicable securities laws) if: (i)
the Holder agrees in writing with the transferee or assignee to assign such rights, and a
copy of such agreement is furnished to the Company within a reasonable time after such
transfer or assignment; (ii) the Company is, within a reasonable time after such transfer
or assignment, furnished with written notice of (a) the name and address of such
transferee or assignee, and (b) the securities with respect to which such registration
rights are being transferred or assigned; and (iii) within a reasonable period of time
after such transfer or assignment, the transferee or assignee agrees in writing with the
Company to be bound by all of the provisions contained herein. At the transferee’s
request, the Company shall promptly prepare and file any required prospectus supplement
under Rule 424(b)(3) of the 1933 Act or other applicable provision of the 1933 Act and/or
the Israel Securities Law to appropriately amend the list of selling shareholders
thereunder to include such transferee. |
| 10. |
AMENDMENT
OF REGISTRATION RIGHTS. |
| |
Provisions
of this Agreement may be amended and the observance thereof may be waived (either
generally or in a particular instance and either retroactively or prospectively), only
with the written consent of the Company and the Holders. Any amendment or waiver effected
in accordance with this Section 10 shall be binding upon each Holder and the Company. No
such amendment shall be effective to the extent that it applies to less than all of the
Holders of the Registrable Securities. No consideration shall be offered or paid to any
Person to amend or consent to a waiver or modification of any provision of any of this
Agreement unless the same consideration also is offered to all of the parties to this
Agreement. |
| 11. |
OTHER
REGISTRATION STATEMENTS; INCIDENTAL REGISTRATIONS; NO CONFLICTING AGREEMENTS. |
| |
(a) |
From
and after the time of filing of any Registration Statement filed pursuant
hereto and prior to the effectiveness thereof, the Company shall not file a
registration statement (including any shelf registration statements) (other
than on Form S-8) with the SEC with respect to any securities of the Company,
provided that nothing herein shall limit the filing of any registration
statement demanded to be filed pursuant to a “demand” right granted
by the Company prior to the filing of any such Registration Statement. For the
purposes of this Section 11(a) only, Registration Statement shall mean a
Registration Statement that is filed for an amount of Registrable Securities,
that the Holder believes in good faith can be reasonably sold pursuant to such
Registration Statement. |
| |
(b) |
If
at any time the Company shall determine to prepare and file with the SEC and/or
the ISA a registration statement relating to an underwritten offering for its
own account or the account of others under the 1933 Act and/or the Israel
Securities Law of any of its equity securities, other than on Form F-4 or Form
S-8 (each as promulgated under the 0000 Xxx) or their then equivalents relating
to equity securities to be issued solely in connection with any acquisition of
any entity or business or equity securities issuable in connection with stock
option or other employee benefit plans, then the Company shall send each Holder
written notice of such determination and, if within twenty days after receipt
of such notice, any such Holder shall so request in writing, the Company shall
include in such registration statement all or any part of such Registrable
Securities such Holder requests to be registered, subject to customary
underwriter cutbacks applicable on a basis consistent with the Company’s
obligation to other existing holders of registration rights. |
| |
(c) |
The
Company represents and warrants to the Holder that the Company is not a party
to any agreement that conflicts in any manner with the Holder’s rights to
cause the Company to register Registrable Shares pursuant to this Agreement. |
| |
(a) |
Any
notices, consents, waivers or other communications required or permitted to be
given under the terms of this Agreement must be in writing and will be deemed
to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of transmission is
mechanically or electronically generated and kept on file by the sending
party); or (iii) three business days after deposit if deposited in the mail for
mailing by certified mail, postage prepaid, in each case properly addressed to
the party to receive the same. The addresses and facsimile numbers for such
communications shall be: |
| |
Acting
Chief Financial Officer |
| |
00xx Xxxxx,
Xxx Xxxxx Xxxxx |
| |
Attention: Xxxxx X. Xxxxxxxx, Adv. |
| |
to TIC at: |
Israel Corporation Ltd. |
| |
Attention: Chief Financial Officer |
| |
Attention: Xxx Xxxxxx, Adv. |
| |
to any other Holder at: |
such address as shall be notified to the Company pursuant
to Section 9 above. |
| |
(b) |
Failure
of any party to exercise any right or remedy under this Agreement or otherwise,
or delay by a party in exercising such right or remedy, shall not operate as a
waiver thereof. |
| |
(c) |
This
Agreement shall be governed by and construed in accordance with the laws of the
State of Israel as applicable to contracts between two residents of the State
of Israel entered into and to be performed entirely within the State of Israel.
Any dispute arising under or in relation to this Agreement shall be resolved in
the competent court for Tel Aviv-Jaffa district, and each of the parties hereby
submits irrevocably to the jurisdiction of such court. |
| |
(d) |
This
Agreement constitutes the entire agreement among the parties hereto with
respect to the subject matter hereof and thereof. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein and therein. This Agreement supersedes all prior agreements and
understandings among the parties hereto with respect to the subject matter
hereof and thereof. |
| |
(e) |
Neither
this Agreement, nor any of Tower’s obligations hereunder, may be assigned
by Tower, except with the prior written consent of all the Holders. Subject to
the requirements of Section 9, this Agreement shall inure to the benefit of and
be binding upon the successors and permitted assigns of each of the parties
hereto. |
| |
(f) |
The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof. |
| |
(g) |
This
Agreement may be executed in identical counterparts, each of which shall be
deemed an original but all of which shall constitute one and the same
agreement. This Agreement, once executed by a party, may be delivered to the
other party hereto by facsimile transmission of a copy of this Agreement
bearing the signature of the party so delivering this Agreement. |
| |
(h) |
Each
party shall do and perform, or cause to be done and performed, all such further
acts and things, and shall execute and deliver all such other agreements,
certificates, instruments and documents, as another party may reasonably
request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated hereby. |
| |
(i) |
The
language used in this Agreement will be deemed to be the language chosen by the
parties to express their mutual intent and no rules of strict construction will
be applied against any party. |
| |
(j) |
This
Agreement is intended for the benefit of the parties hereto and their
respective successors and permitted assigns, and is not for the benefit of, nor
may any provision hereof be enforced by, any other person. |
[Remainder of page
intentionally left blank]
[Signature Page to TIC Amended and
Restated Registration Rights Agreement]
IN WITNESS WHEREOF, the parties have
caused this amended and restated Registration Rights Agreement to be duly executed as of
the day and year first above written.
|
|
ISRAEL CORPORATION LTD.:
By:
——————————————
Name: ____________________________
Its: _______________________________ |
