EXHIBIT 99.4
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THIRD AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (the
"Agreement"), dated as of June 1, 2001, among EXCHANGE APPLICATIONS, INC., a
Delaware corporation (the "Corporation"), and INVESTORS (as herein defined).
The Investors and the Corporation are party to the Second Amended and
Restated Registration Rights Agreement, dated March 28, 2001 (the "Second
Amended and Restated Registration Rights Agreement").
The Investors and the Corporation hereby desire to amend and restate
the Second Amended and Restated Registration Rights Agreement as hereinafter set
forth.
The Investors own or have the right to purchase or otherwise acquire
shares of the capital stock of the Corporation. The Corporation and the
Investors deem it to be in their respective best interests to set forth the
rights of the Investors in connection with public offerings and sales of the
Common Stock. To that end, the Corporation and the Investors hereby set forth
this Agreement.
NOW, THEREFORE, in consideration of the premises and mutual covenants
and obligations hereinafter set forth, the Corporation and the Investors hereby
agree as follows:
Definitions.
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As used in this Agreement, the following terms shall have the following
meanings:
"April 16 Warrant" means the Warrant dated as of April 16, 2001,
issued by the corporation to the Investors.
"Business Day" means any day that is not a Saturday, Sunday, legal
holiday or other day on which banks are required to be closed in New York and
Massachusetts.
"Closing Date" means January 10, 2001.
"Commission" means the Securities and Exchange Commission or any
other Federal agency at the time administering the Securities Act.
"Common Stock" means the common stock, $.001 par value per share,
of the Corporation.
"Corporation" shall have the meaning ascribed to such term in the
Caption.
"Counsel" shall have the meaning ascribed to such term in Section
6(b).
"Exchange Act" means the Securities Exchange Act of 1934 or any
successor Federal statute, and the rules and regulations of the Commission
promulgated thereunder, all as the same shall be in effect from time to time.
"Information" shall have the meaning ascribed to such term in
Section 6(i).
"Inspectors" shall have the meaning ascribed to such term in
Section 6(i).
"Investor Representative" means Insight Venture Associates IV,
L.L.C., or any successor thereto approved by the Corporation (which approval
shall not be unreasonably withheld).
"Investors" means the Persons set forth on Schedule I and each
additional Person who shall execute a counterpart signature page hereto, and,
subject to Section 15 hereof, includes any successor to, or assignee or
transferee of, any such Person who or which agrees in writing to be treated as
an Investor hereunder and to be bound by the terms and comply with all
applicable provisions hereof.
"Other Shares" means at any time those shares of Common Stock
which do not constitute Primary Shares or Registrable Shares.
"Person" means any individual, partnership, corporation, group,
trust, limited liability company or other legal entity.
"Primary Shares" means at any time the authorized but unissued
shares of Common Stock and shares of Common Stock held by the Corporation in its
treasury.
"Records" shall have the meaning ascribed to such term in Section
6(i).
"Registrable Shares" means, with respect to any Investor, (i) the
shares of Common Stock held by such Investor, (ii) the shares of Common Stock
into which shares of the Series A Preferred held by such Investor are
convertible, (iii) the shares of Common Stock issuable upon exercise of the
April 16 Warrant, (iv) the Original Warrant Shares (as defined in the
Replacement Warrant) held by such Investor, and (v) the Bridge Warrant Shares
(as defined in the Replacement Warrant) held by such Investor, which shares in
each of (i), (ii), (iii), (iv) and (v) constitute Restricted Shares.
"Restricted Shares" means shares of Common Stock held by the
Investors issued or issuable upon conversion of the shares of Series A Preferred
or upon exercise of the Warrants which have not been registered under the
Securities Act. As to any particular Restricted Shares, once issued, such
Restricted Shares shall cease to be Restricted Shares when (i) they have been
registered under the Securities Act, the registration statement in connection
therewith has been declared effective and they have been disposed of pursuant to
such effective registration statement, (ii) they are eligible to be sold or
distributed pursuant to Rule 144 within any consecutive three-month period
(including, without limitation, Rule 144(k)) without volume limitations, or
(iii) they shall have ceased to be outstanding.
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"Registration Statement" means any registration statement of the
Corporation which covers any of the Registrable Shares, and all amendments and
supplements to any such Registration Statement, including post-effective
amendments, in each case including the prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.
"Replacement Warrant" means the Warrant, dated the date hereof,
issued by the Corporation to the Investors.
"Requisite Investors" means those Investors who hold in the
aggregate in excess of 50% of the Registrable Shares held by all Investors at
the time in question.
"Rule 144" means Rule 144 promulgated under the Securities Act or
any successor rule thereto or any complementary rule thereto (such as Rule
144A).
"Securities Act" means the Securities Act of 1933 or any successor
Federal statute, and the rules and regulations of the Commission thereunder, all
as the same shall be in effect from time to time.
"Series A Preferred" means the Series A Convertible Redeemable
Preferred Stock, $.001 par value per share, of the Corporation.
"Silicon Valley Shares" means the shares of Common Stock issuable
upon exercise of the Warrant, dated April 24, 2001, issued by the Company to
Silicon Valley Bank.
"Warrants" means, collectively, the (i) April 16 Warrant and (ii)
the Replacement Warrant.
Required Registration.
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From and after the 90th day following the Closing Date, if the
Requisite Investors shall in writing state that such holders desire to sell
Registrable Shares in the public securities markets and request the Corporation
to effect the registration under the Securities Act of Registrable Shares, the
Corporation shall promptly use commercially reasonable efforts to effect the
registration under the Securities Act of the Registrable Shares which the
Corporation has been so requested by the Requisite Investors to register.
Anything contained in Section 2(a) to the contrary notwithstanding, the
Corporation shall not be obligated to effect any registration under the
Securities Act pursuant to Section 2(a) except in accordance with the following
provisions:
The Corporation shall not be obligated to use commercially
reasonable efforts to file and cause to become effective (A) more than
two Registration Statements initiated pursuant to this Section 2(a);
provided, however, that if the Investors were unable to sell at least
90% of the Registrable Shares requested to be included in the last
registration initiated by such group of Investors pursuant to Section
2(a) as a result of an underwriter's cutback, then additional
registrations shall be added to this Section 2(b)
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until the foregoing condition is satisfied for such initiating group of
Investors, or (B) any Registration Statement during any period in which
any other Registration Statement (other than on Form S-4 or Form S-8
promulgated under the Securities Act or any successor forms thereto)
pursuant to which Primary Shares or Other Shares are to be or were sold
has been filed and not withdrawn or has been declared effective within
the prior 90 days.
The Corporation may delay the filing or effectiveness of any
Registration Statement for a period of up to 90 days after the date of
a request for registration pursuant to Section 2(a), if at the time of
such request (i) the Corporation is engaged, or has fixed plans to
engage within 90 days of the time of such request, in a firm commitment
underwritten public offering of Primary Shares in which the Investors
holding Registrable Shares may include such Registrable Shares pursuant
to Section 3 or (ii) the Corporation reasonably determines that such
registration and offering would interfere with any material transaction
involving the Corporation; provided, however, that the Corporation may
only delay the filing or effectiveness of a registration statement
pursuant to this Section 2(b) for a total of 90 days after the date of
a request for registration.
With respect to any registration pursuant to this Section
2(a), the Corporation shall give notice of such registration to the
Investors who do not request registration hereunder and to the holders
of all Other Shares which are entitled to registration rights and the
Corporation may include in such registration any Primary Shares or
Other Shares; provided, however, that if the managing underwriter
advises the Corporation that the inclusion of all Registrable Shares,
Primary Shares and/or Other Shares proposed to be included in such
registration would interfere with the successful marketing (including
pricing) of the Registrable Shares proposed to be included in such
registration, then the number of Registrable Shares, Primary Shares
and/or Other Shares proposed to be included in such registration shall
be included in the following order:
first, pro rata among (x) the Registrable Shares
requested by the Investors to be included in such
registration (or, if necessary, such Registrable Shares pro
rata among the holders thereof based upon the number of
Registrable Shares requested to be registered by each such
Investor), (y) the Other Shares (only to the extent required
by an effective Registration Rights Agreement entered into
prior to March 28, 2001 between the Corporation and the
holders of such Other Shares) and (z) the Silicon Valley
Shares;
second, pro rata among (x) the Investors requesting
their Registrable Shares (other than the Registrable Shares
referred to in clauses (i)-(iv) of such definition covered
by subsection (A) above);
third, the Other Shares which are entitled to
registration rights; and
fourth, the Primary Shares.
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A requested registration under Section 2(a) may be rescinded as to
all of the Registrable Shares requested to be so registered prior to such
registration being declared effective by the Commission by written notice from
such Requisite Investors to the Corporation; provided, however, that such
rescinded registration shall not be deemed a Registration Statement initiated
pursuant to Section 2(a) for the purpose of Section 2(b)(i)(A) if the
Corporation shall have been reimbursed for all out-of-pocket expenses incurred
by the Corporation in connection with such rescinded registration.
Piggyback Registration.
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From and after the 90th day following the Closing Date, if the
Corporation at any time proposes for any reason to register Primary Shares or
Other Shares under the Securities Act (other than on Form S-4 or Form S-8
promulgated under the Securities Act or any successor forms thereto), it shall
give written notice to the Investors of its intention to so register such
Primary Shares or Other Shares at least 30 days before the initial filing of
such Registration Statement and, upon the written request, delivered to the
Corporation within 20 days after delivery of any such notice by the Corporation,
of the Investors to include in such registration Registrable Shares (which
request shall specify the number of Registrable Shares proposed to be included
in such registration and shall state that the Investors desire to sell such
Registrable Shares in the public securities markets), the Corporation shall use
commercially reasonable efforts to cause all such Registrable Shares to be
included in such registration on the same terms and conditions as the securities
otherwise being sold in such registration; provided, however, that if the
managing underwriter advises the Corporation that the inclusion of all
Registrable Shares requested to be included in such registration would interfere
with the successful marketing (including pricing) of the Primary Shares or Other
Shares proposed to be registered by the Corporation, then the number of Primary
Shares, Registrable Shares and Other Shares proposed to be included in such
registration shall be included in the following order:
first, pro rata among (w) the Corporation and the
holders of Other Shares initiating such registration, as the case may
be, (x) Investors requesting their Registrable Shares be included in
such registration (or, if necessary, such Registrable Shares pro rata
among the holders thereof based upon the number of Registrable Shares
requested to be registered by each such holder), (y) the Other Shares
(only to the extent required by an effective Registration Rights
Agreement entered into prior to March 28, 2001 between the Corporation
and the holders of such Other Shares and (z) the Silicon Valley Shares;
and
second, the Other Shares which are entitled to
registration rights and are held by holders who are not initiating such
registration under this Section 3.
The number of requests permitted by the Investors pursuant
to this Section 3 shall be unlimited.
Registrations on Form S-3.
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Anything contained in Section 2 to the contrary notwithstanding, from
and after the 90th day following the Closing Date, at such time as the
Corporation shall have qualified for the use
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of Form S-3 promulgated under the Securities Act or any successor form thereto,
each Investor holding Registrable Shares then outstanding shall have the right
to request in writing that the Corporation effect the registration of
Registrable Shares on Form S-3 or such successor form, which request or requests
shall (i) specify the number of Registrable Shares intended to be sold or
disposed of and the holders thereof and (ii) state the intended method of
disposition of such Registrable Shares. The Corporation shall use commercially
reasonable efforts to promptly effect the registration under the Securities Act
of the Registrable Shares so requested to be registered. A requested
registration on Form S-3 or any such successor form in compliance with this
Section 4 shall not count as a registration statement initiated pursuant to
Section 2(a) for purposes of Section 2 (b)(i)(A) and, except as otherwise
expressly provided in this Section 4, shall otherwise be subject to Section 2.
The number of requests permitted by the Investors pursuant to this Section 4
shall be unlimited; provided, however, that the Investors shall not be permitted
to effect more than one registration pursuant to this Section 4 during any
180-day period.
Holdback Agreement.
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If the Corporation at any time shall register shares of Common Stock
pursuant to Section 2, 3, or 4 hereof, no holder of the Registrable Shares so
registered shall sell publicly such Registrable Shares before the 180th day
following the Closing Date.
If the Corporation at any time shall register shares of Common Stock
under the Securities Act (including any registration pursuant to Sections 2, 3
or 4 hereof) for sale to the public in an underwritten offering, no Investor
shall sell, make any short sale of, grant any option for the purchase of, or
otherwise dispose of, any Registrable Shares (other than those shares of Common
Stock included in such registration pursuant to Sections 2, 3 or 4 hereof)
without the prior written consent of the Corporation, for a period as shall be
determined by the relevant managing underwriters, which period shall not last
more than 180 days after the effective date of such Registration Statement. From
and after the date hereof, the Corporation shall use commercially reasonable
efforts to obtain the agreement of any Person permitted to sell shares of stock
in a registration to be bound by and to comply with this Section 5 (or similar
provisions of a separate agreement) as if such Person were an Investor.
If the Corporation at any time pursuant to Sections 2 or 3 of this
Agreement shall register under the Securities Act Registrable Shares held by the
Investors for sale to the public pursuant to an underwritten offering, the
Corporation shall not effect any public sale or distribution of securities
similar to those being registered, or any securities convertible into or
exercisable or exchangeable for such securities, for such period as shall be
determined by the Corporation and the managing underwriters, which period shall
not be less than 5 days.
Preparation and Filing.
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If and whenever the Corporation is under an obligation pursuant to the
provisions of this Agreement to effect the registration of any Registrable
Shares, the Corporation shall, as expeditiously as practicable:
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use commercially reasonable efforts to cause a Registration
Statement that registers such Registrable Shares to become and remain effective
for a period of 180 days or until all of such Registrable Shares have been
disposed of (if earlier);
furnish, at least five Business Days before filing a Registration
Statement that registers such Registrable Shares, a prospectus relating thereto
or any amendments or supplements relating to such a Registration Statement or
prospectus, to one counsel selected by the Investors ("Counsel") copies of all
such documents proposed to be filed (it being understood that such five-Business
Day period need not apply to amendments or successive drafts of the same
document proposed to be filed so long as such amendments or successive drafts
are supplied to Counsel in advance of the proposed filing by a period of time
that is customary and reasonable under the circumstances);
prepare and file with the Commission 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 for
at least an additional period of 90 days or until all of such Registrable Shares
have been disposed of (if earlier) and to comply with the provisions of the
Securities Act with respect to the sale or other disposition of such Registrable
Shares;
promptly notify Counsel in writing (i) of the receipt by the
Corporation of any notification with respect to any comments by the Commission
with respect to such registration statement or prospectus or any amendment or
supplement thereto or any request by the Commission for the amending or
supplementing thereof or for additional information with respect thereto, (ii)
of the receipt by the Corporation of any notification with respect to the
issuance by the Commission of any stop order suspending the effectiveness of
such registration statement or prospectus or any amendment or supplement thereto
or the initiation or threatening of any proceeding for that purpose and (iii) of
the receipt by the Corporation of any notification with respect to the
suspension of the qualification of such Registrable Shares for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purposes;
use its best efforts to register or qualify such Registrable
Shares under such other securities or blue sky laws of such jurisdictions as the
holders of the Registrable Shares reasonably request and do any and all other
acts and things which may be reasonably necessary or advisable to enable such
holders to consummate the disposition in such jurisdictions of such holders'
Registrable Shares; provided, however, that the Corporation will not be required
to qualify generally to do business, subject itself to general taxation or
consent to general service of process in any jurisdiction where it would not
otherwise be required to do so but for this paragraph (e);
furnish to the holders of such Registrable Shares such number of
copies of a summary prospectus, if any, or other prospectus, including a
preliminary prospectus, in conformity with the requirements of the Securities
Act, and such other documents as such holders may reasonably request in order to
facilitate the public sale or other disposition of such Registrable Shares;
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without limiting subsection (e) above, use its best efforts to
cause such Registrable Shares to be registered with or approved by such other
governmental agencies or authorities of the United States as may be necessary by
virtue of the business and operations of the Corporation to enable the holders
of such Registrable Shares to consummate the disposition of such Registrable
Shares;
notify the holders of such Registrable Shares on a timely basis at
any time when a prospectus relating to such Registrable Shares is required to be
delivered under the Securities Act within the appropriate period mentioned in
subparagraph (a) of this Section 6, 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 a material
fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing and, at the request
of such holders, prepare and furnish to such 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 offerees of such shares, such prospectus
shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing;
make available upon reasonable notice and during normal business
hours, for inspection by any underwriter participating in any disposition
pursuant to such Registration Statement and any attorney, accountant or other
agent retained by the underwriter (the "Inspectors"), all pertinent financial
and other records, pertinent corporate documents and properties of the
Corporation (collectively, the "Records"), as shall be reasonably necessary to
enable them to exercise their due diligence responsibility, and cause the
Corporation's officers, directors and employees to supply all information
(together with the Records, the "Information") reasonably requested by any such
Inspector in connection with such Registration Statement. Any of the Information
which the Corporation determines in good faith to be confidential, and of which
determination the Inspectors are so notified, shall not be disclosed by the
Inspectors unless (i) the disclosure of such Information is necessary to avoid
or correct a misstatement or omission in the registration statement, (ii) the
release of such Information is ordered pursuant to a subpoena or other order
from a court of competent jurisdiction or (iii) such Information has been made
generally available to the public, and the Investors agree that they will, upon
learning that disclosure of such Information is sought in a court of competent
jurisdiction, give notice to the Corporation and allow the Corporation, at the
Corporation's expense, to undertake appropriate action to prevent disclosure of
the Information deemed confidential;
if required by the underwriters, use commercially reasonable
efforts to obtain from its independent certified public accountants "cold
comfort" letters in customary form and at customary times and covering matters
of the type customarily covered by cold comfort letters;
if required by the underwriters, use commercially reasonable
efforts to obtain from its counsel an opinion or opinions in customary form;
provide a transfer agent and registrar (which may be the same
entity and which may be the Corporation) for such Registrable Shares;
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issue to any underwriter to which the holders of such Registrable
Shares may sell shares in such offering certificates evidencing such Registrable
Shares;
use commercially reasonable efforts to qualify such Registrable
Shares for listing on the Nasdaq Stock Market or such other national securities
exchange on which the Corporation shall from time to time list its securities;
otherwise use commercially reasonable efforts to comply with all
applicable rules and regulations of the Commission; and
subject to all the other provisions of this Agreement, use
commercially reasonable efforts to take all other commercially reasonable steps
necessary to effect the registration of such Registrable Shares contemplated
hereby.
Each holder of the Registrable Shares upon receipt of any notice from
the Corporation of any event of the kind described in Section 6(h) hereof, shall
forthwith discontinue disposition of the Registrable Shares pursuant to the
registration statement covering such Registrable Shares until such holder's
receipt of the copies of the supplemented or amended prospectus contemplated by
Section 6(h) hereof, and, if so directed by the Corporation, such holder shall
deliver to the Corporation all copies, other than permanent file copies then in
such holder's possession, of the prospectus covering such Registrable Shares at
the time of receipt of such notice.
Expenses.
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All expenses incurred by the Corporation in complying with Section 6,
including, without limitation, all registration and filing fees (including all
expenses incident to filing with the National Association of Securities Dealers,
Inc.), fees and expenses of complying with securities and blue sky laws,
printing expenses, fees and expenses of the Corporation's counsel and
accountants and reasonable fees and expenses of Counsel (which fees and expenses
of Counsel shall not exceed $20,000) shall be paid by the Corporation.
Indemnification.
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In connection with any registration of any Registrable Shares under the
Securities Act pursuant to this Agreement, the Corporation shall indemnify and
hold harmless the holders of Registrable Shares, each underwriter, broker or any
other Person acting on behalf of the holders of Registrable Shares, and each
other Person, if any, who controls any of the foregoing Persons within the
meaning of the Securities Act against any losses, claims, damages or
liabilities, joint or several (or actions in respect thereof), to which any of
the foregoing Persons may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon an untrue statement or allegedly untrue
statement of a material fact contained in the registration statement under which
such Registrable Shares were registered under the Securities Act, any
preliminary prospectus or final prospectus contained therein or otherwise filed
with the Commission, any amendment or supplement thereto or any document
incident to registration or qualification of any
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Registrable Shares, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading or, with respect to any
prospectus, necessary to make the statements therein in light of the
circumstances under which they were made not misleading, or any violation by the
Corporation of the Securities Act or state securities or blue sky laws
applicable to the Corporation and relating to action or inaction required of the
Corporation in connection with such registration or qualification under such
state securities or blue sky laws; and shall reimburse the holders of
Registrable Shares, such underwriter, such broker or such other Person acting on
behalf of the holders of Registrable Shares and each such controlling Person for
any legal or other expenses reasonably incurred by any of them in connection
with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the Corporation shall not be liable in any such
case to the extent that any such loss, claim, damage, liability or action
(including any legal or other expenses incurred) arises out of or is based upon
an untrue statement or allegedly untrue statement or omission or alleged
omission made in said registration statement, preliminary prospectus, final
prospectus, amendment, supplement or document incident to registration or
qualification of any Registrable Shares in reliance upon and in conformity with
written information furnished to the Corporation by the holders of Registrable
Shares or their counsel or underwriter specifically for use in the preparation
thereof; provided further, however, that the foregoing indemnity agreement is
subject to the condition that, insofar as it relates to any untrue statement,
allegedly untrue statement, omission or alleged omission made in any preliminary
prospectus but eliminated or remedied in the final prospectus (filed pursuant to
Rule 424 of the Securities Act), such indemnity agreement shall not inure to the
benefit of any Investor, underwriter, broker or other Person acting on behalf of
holders of the Restricted Shares, from whom the Person asserting any loss,
claim, damage, liability or expense purchased the Restricted Shares which are
the subject thereof, if a copy of such final prospectus had been made available
to such Person and such Investor, underwriter, broker or other Person acting on
behalf of holders of the Registrable Shares and such final prospectus was not
delivered to such Person with or prior to the written confirmation of the sale
of such Registrable Shares to such Person.
In connection with any registration of Registrable Shares under the
Securities Act pursuant to this Agreement, each holder of Registrable Shares
shall severally and not jointly indemnify and hold harmless (in the same manner
and to the same extent as set forth in the preceding paragraph of this Section
8) the Corporation, each director of the Corporation, each officer of the
Corporation who shall sign such registration statement, each underwriter, broker
or other Person acting on behalf of the holders of Registrable Shares and each
Person who controls any of the foregoing Persons within the meaning of the
Securities Act with respect to any statement or omission from such registration
statement, any preliminary prospectus or final prospectus contained therein or
otherwise filed with the Commission, any amendment or supplement thereto or any
document incident to registration or qualification of any Registrable Shares if
such statement or omission was made in reliance upon and in conformity with
written information furnished to the Corporation or such underwriter
specifically for use in connection with the preparation of such registration
statement, preliminary prospectus, final prospectus, amendment, supplement or
document; provided, however, that the maximum amount of liability in respect of
such indemnification shall be limited, in the case of each seller of Registrable
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Shares to an amount equal to the net proceeds actually received by such seller
from the sale of Registrable Shares effected pursuant to such registration.
Promptly after receipt by an indemnified party of notice of the
commencement of any action involving a claim referred to in the preceding
paragraphs of this Section 8, such indemnified party will, if a claim in respect
thereof is made against an indemnifying party, give written notice to the latter
of the commencement of such action. The failure of any indemnified party to
notify an indemnifying party of any such action shall not (unless such failure
shall have a material adverse effect on the indemnifying party) relieve the
indemnifying party from any liability in respect of such action that it may have
to such indemnified party on account of this Section 8. In case any such action
is brought against an indemnified party, the indemnifying party will be entitled
to participate in and to assume the defense thereof, jointly with any other
indemnifying party similarly notified to the extent that it may wish, with
counsel reasonably satisfactory to such indemnified party, and after notice from
the indemnifying party to such indemnified party of its election so to assume
the defense thereof, the indemnifying party shall not be responsible for any
legal or other expenses subsequently incurred by the indemnified party in
connection with the defense thereof; provided, however, that if any indemnified
party shall have reasonably concluded that there may be one or more legal or
equitable defenses available to such indemnified party which are additional to
or conflict with those available to the indemnifying party, or that such claim
or litigation involves or could have an effect upon matters beyond the scope of
the indemnity agreement provided in this Section 8, the indemnifying party shall
not have the right to assume the defense of such action on behalf of such
indemnified party (but shall have the right to participate therein with counsel
of its choice) and such indemnifying party shall reimburse such indemnified
party and any Person controlling such indemnified party for that portion of the
fees and expenses of any counsel retained by the indemnified party which is
reasonably related to the matters covered by the indemnity agreement provided in
this Section 8. If the indemnifying party is not entitled to, or elects not to,
assume the defense of a claim, it will not be obligated to pay the fees and
expenses of more than one counsel with respect to such claim.
If the indemnification provided for in this Section 8 is held by a
court of competent jurisdiction to be unavailable to an indemnified party with
respect to any loss, claim, damage, liability or action referred to herein, then
the indemnifying party, in lieu of indemnifying such indemnified party
hereunder, shall contribute to the amounts paid or payable by such indemnified
party as a result of such loss, claim, damage, liability or action in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party on the one hand and of the indemnified party on the other in connection
with the statements or omissions which resulted in such loss, claim, damage,
liability or action as well as any other relevant equitable considerations. The
relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the indemnifying party or by
the indemnified party and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The parties agree that it would not be just and equitable if contribution
pursuant hereto were determined by pro rata allocation or by any other method or
allocation
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which does not take account of the equitable considerations referred to herein.
No Person guilty of fraudulent misrepresentation shall be entitled to
contribution from any Person.
Underwriting Agreement.
----------------------
Notwithstanding the provisions of Sections 5, 6, 7 and 8, to the extent
that the Investors shall enter into an underwriting or similar agreement, which
agreement contains provisions covering one or more issues addressed in such
Sections, the provisions contained in such agreement addressing such issue or
issues shall control; provided, however, that any such agreement to which the
Corporation is not a party shall not be binding upon the Corporation. No holder
may participate in any underwritten registration hereunder unless such holder
(a) agrees to sell such holder's securities on the basis provided in any
underwriting arrangements and (b) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
reasonably and customarily required under the terms of such underwriting
arrangements.
Information.
-----------
Each Investor shall furnish to the Corporation such written information
regarding such Person and the distribution proposed by such Person as the
Corporation may reasonably request in writing and as shall be reasonably
required in connection with any registration, qualification or compliance
referred to in this Agreement.
Exchange Act Compliance.
-----------------------
The Corporation shall use commercially reasonable efforts to comply
with all of the reporting requirements of the Exchange Act applicable to it
(whether or not it shall be required to do so) and to comply with all other
public information reporting requirements of the Commission which are conditions
to the availability of Rule 144 for the sale of the Common Stock. The
Corporation shall cooperate with the Investors supplying such information as may
be necessary for the Investors to complete and file any information reporting
forms presently or hereafter required by the Commission as a condition to the
availability of Rule 144.
No Conflict of Rights.
---------------------
The Corporation shall not, after the date hereof, grant any
registration rights which conflict with or impair the registration rights
granted hereby.
Termination.
-----------
This Agreement shall terminate and be of no further force or effect
when there shall no longer be any Registrable Shares outstanding.
-12-
Successors and Assigns.
----------------------
This Agreement shall bind and inure to the benefit of the Corporation
and the Investors and, subject to Section 15, the respective successors and
assigns of the Corporation and the Investors.
Assignment; Investor Representative.
-----------------------------------
Each Investor may assign its rights hereunder to (i) its limited
partners or any Affiliate of such Investor or (ii) any purchaser or transferee
from such Investor of Restricted Shares with the consent of the Corporation;
provided, however, that any such purchaser or transferee shall, as a condition
to the effectiveness of such assignment, be required to execute a counterpart to
this Agreement agreeing to be treated as an Investor, whereupon such purchaser
or transferee shall have the benefits of, and shall be subject to the
restrictions contained in, this Agreement as if such purchaser or transferee had
originally been a party hereto and was originally included in the definition of
an Investor herein.
A decision, act, consent or instruction of the Investor Representative
in respect of any action hereunder shall constitute a decision of all holders of
Registrable Shares and shall be final, binding and conclusive upon each such
holder of Registrable Shares and the Corporation may rely upon any decision, act
consent or instruction of the Investor Representative hereunder as being the
decision, act, consent or instruction of each and every such holder of
Registrable Shares. Notice delivered to the Investor Representative shall for
all purposes constitute notice of all holders of Registrable Shares. The
foregoing shall be binding upon all holders of Registrable Shares and all
transferees and assignees thereof.
Entire Agreement.
----------------
This Agreement and the other writings referred to herein or therein or
delivered pursuant hereto or thereto, contain the entire agreement among the
Investors and the Corporation with respect to the subject matter hereof and
supersede all prior and contemporaneous arrangements or understandings with
respect thereto, including, without limitation, the Amended and Restated
Registration Rights Agreement, all of which are hereby automatically terminated
in their entirety and of no further force or effect, without any action by the
parties thereto.
Notices.
-------
All notices, requests, consents and other communications hereunder to
any party shall be deemed to be sufficient if contained in a written instrument
delivered in person or sent by telecopy, nationally-recognized overnight courier
or first class registered or certified mail, return receipt requested, postage
prepaid, addressed to such party at the address set forth below or such other
address as may hereafter be designated in writing by such party to the other
parties:
-13-
if to the Corporation, to:
Exchange Applications, Inc.
00 Xxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: Xxxxxx Xxxxxxx
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
with a copy to:
Xxxxxxx Xxxx LLP
000 Xxxx Xxxxxx
Xxx Xxxx, X.X. 00000-0000
Attention: Xxxx X. Xxxxxxxx
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
if to the Investors, to:
InSight Capital Partners
000 Xxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, X.X. 00000
Attention: Xxxxx Xxxxxx
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
with a copy to:
X'Xxxxxxxx Graev & Karabell, LLP
00 Xxxxxxxxxxx Xxxxx
Xxx Xxxx, X.X. 00000
Attention: Xxxx X. Nissan, Esq.
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
All such notices, requests, consents and other communications shall be deemed to
have been delivered (a) in the case of personal delivery or delivery by
telecopy, on the date of such delivery, (b) in the case of dispatch by
nationally-recognized overnight courier, on the next Business Day following such
dispatch and (c) in the case of mailing, on the third Business Day after the
posting thereof.
-14-
Modifications; Amendments; Waivers.
----------------------------------
The terms and provisions of this Agreement may not be modified or
amended, nor may any provision be waived, except pursuant to a writing signed,
in the case of a modification or amendment, by the Corporation and the
Investors, or in the case of a waiver, by the party against whom the waiver is
to be effective.
Counterparts.
------------
This Agreement may be executed in any number of counterparts, and each
such counterpart hereof shall be deemed to be an original instrument, but all
such counterparts together shall constitute but one agreement.
Headings.
--------
The headings of the various sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed to be a part
of this Agreement.
Governing Law.
-------------
This Agreement shall be governed by and construed in accordance with
the laws of the State of New York applicable to contracts made and to be
performed wholly therein.
-15-
IN WITNESS WHEREOF, the parties hereto have executed this Third Amended
and Restated Registration Rights Agreement on the date first written above.
CORPORATION:
------------
EXCHANGE APPLICATIONS, INC.
By: _____________________________
Name:
Title:
INVESTORS:
----------
INSIGHT CAPITAL PARTNERS IV, L.P.
By: Insight Venture Associates IV, L.L.C.,
its general partner
By:
-----------------------------
Name:
Title:
INSIGHT CAPITAL PARTNERS (CAYMAN) IV, L.P.
By: Insight Venture Associates IV, L.L.C.,
its general partner
By:
-------------------------------
Name:
Title:
INSIGHT CAPITAL PARTNERS IV (FUND B), L.P.
By: Insight Venture Associates IV, L.L.C.,
its general partner
By:
-----------------------------------------
Name:
Title:
INSIGHT CAPITAL PARTNERS IV (CO-INVESTORS), L.P.
By: Insight Venture Associates IV, L.L.C.,
its general partner
By:
---------------------------------------
Name:
Title:
SCHEDULE 1
Investors
---------
InSight Capital Partners IV, L.P.
InSight Capital Partners (Cayman) IV, L.P.
InSight Capital Partners IV (Fund B), L.P.
InSight Capital Partners IV (Co-investors), L.P.
TABLE OF CONTENTS
-----------------
Page
----
SECTION 1. DEFINITIONS.....................................................1
SECTION 2. REQUIRED REGISTRATION...........................................3
SECTION 3. PIGGYBACK REGISTRATION..........................................5
SECTION 4. REGISTRATIONS ON FORM S-3.......................................5
SECTION 5. HOLDBACK AGREEMENT..............................................6
SECTION 6. PREPARATION AND FILING..........................................6
SECTION 7. EXPENSES........................................................9
SECTION 8. INDEMNIFICATION.................................................9
SECTION 9. UNDERWRITING AGREEMENT.........................................12
SECTION 10. INFORMATION....................................................12
SECTION 11. EXCHANGE ACT COMPLIANCE........................................12
SECTION 12. NO CONFLICT OF RIGHTS..........................................12
SECTION 13. TERMINATION....................................................12
SECTION 14. SUCCESSORS AND ASSIGNS.........................................13
SECTION 15. ASSIGNMENT; INVESTOR REPRESENTATIVE............................13
SECTION 16. ENTIRE AGREEMENT...............................................13
SECTION 17. NOTICES........................................................13
SECTION 18. MODIFICATIONS; AMENDMENTS; WAIVERS.............................15
SECTION 19. COUNTERPARTS...................................................15
SECTION 20. HEADINGS.......................................................15
SECTION 21. GOVERNING LAW..................................................15
EXHIBIT D
---------
================================================================================
THIRD AMENDED AND RESTATED
REGISTRATION RIGHTS AGREEMENT
DATED AS OF JUNE 1, 2001,
AMONG
EXCHANGE APPLICATIONS, INC.
AND
THE
INVESTORS
IDENTIFIED HEREIN
================================================================================
