REGISTRATION RIGHTS AGREEMENT
-----------------------------
THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made and
entered into as of October 5, 1999, by and between Golden Telecom, Inc., a
Delaware corporation (the "Company"), and First NIS Regional Fund SICAF
("Investor").
RECITALS
--------
A. In connection with the initial public offering of shares of
common stock by the Company (the "Initial Public Offering"), the Company
desires to grant to Investor certain registration rights with respect to an
aggregate of 598,253 shares of common stock of the Company, such number
being subject to adjustment pursuant to Section 6(4) of the Subscription
Agreement, dated September 30, 1999, between the Company and Investor.
B. The parties hereto desire to set forth the terms and
conditions of the Company's covenants and agreements in respect of the
registration of such shares with the Securities and Exchange Commission and
all applicable state securities agencies.
D. In consideration of the premises and the mutual agreements
contained herein, the parties hereby agree as follows:
AGREEMENT
---------
1. Definitions
-----------
As used in this Agreement, the following capitalized terms shall
have the following meanings:
"Advice" has the meaning set forth in the last paragraph of
Section 6 hereof.
"Agents" means any Person authorized to act and who acts on
behalf of Investor with respect to the transactions contemplated by
this Agreement.
"Common Stock" means shares of the Company's common stock, par
value $.01 per share, as the same may be constituted from time to
time.
"Demand Registration" has the meaning set forth in Section 3(a)
hereof.
"Exchange Act" means The Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder as in effect from
time to time.
"Person" means an individual, partnership, corporation trust or
unincorporated organization, or a government or agency or political
subdivision thereof.
"Prospectus" means the prospectus included in any Registration
Statement, as amended or supplemented by any prospectus supplement
with respect to the terms of the offering of any portion of the
Registrable Securities covered by the Registration Statement and all
other amendments and supplements to the Prospectus, including
post-effective amendments and all material incorporated by reference
in such Prospectus.
"Registrable Securities" means (i) the 598,253 shares of Common
Stock currently beneficially owned by Investor, (ii) any shares of
Common Stock issued pursuant to Section 6(4) of the Subscription
Agreement, dated September 30, 1999, between the Company and Investor,
and (iii) any securities issued or issuable with respect to such
shares of Common Stock by way of a stock dividend or stock split or in
connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization, until such shares of Common
Stock or other securities are not Restricted Securities as defined in
Section 2, provided, however, that Registrable Securities shall not
include such securities as may be transferred pursuant to an exemption
from the registration requirements of the Securities Act provided by
Rule 144 under the Securities Act.
"Registration Expenses" has the meaning set forth in Section 7
hereof.
"Registration Statement" means any registration statement of the
Company which covers Registrable Securities pursuant to the provisions
of this Agreement, including (i) the Prospectus, (ii) amendments and
supplements to such Registration Statement, (iii) post-effective
amendments, (iv) all exhibits and all material incorporated by
reference in such Registration Statement and (v) any registration
statement pursuant to a Demand Registration.
"Restricted Securities" means the Registrable Securities upon
original issuance thereof, subject to the provisions of Section 2
hereof.
"Securities Act" means the Securities Act of 1933, as amended
from time to time.
"SEC" means The Securities and Exchange Commission.
"Underwritten Offering" means the offering and sale of securities
of the Company covered by any Registration Statement pursuant to a
firm commitment underwriting to an underwriter at a fixed price for
reoffering or pursuant to agency or best efforts arrangements with an
underwriter.
Unless the context otherwise requires: (i) "or" is not exclusive; and (ii)
words in the singular include the plural and in the plural include the
singular.
2. Securities Subject to this Agreement
------------------------------------
Registrable Securities. The securities entitled to the benefits
of this Agreement are the Registrable Securities but, with respect to any
particular Registrable Security, only so long as such security continues to
be a Restricted Security. A Registrable Security ceases to be a Restricted
Security when (i) it has been effectively registered under the Securities
Act and disposed of in accordance with the Registration Statement covering
it, (ii) it has been distributed pursuant to Rules 144 or 144A under the
Securities Act (or any similar provision then in force) or (iii) it has
otherwise been transferred and a new certificate or other evidence of
ownership for it not bearing a legend restricting transfer under the
Securities Act and not subject to any stop transfer order has been
delivered by or on behalf of the Company and no other restriction on
transfer exists.
3. Demand Registration
-------------------
(a) Requests for Registration. At any time after March 25, 2000
(the "Six-Month Lock-Up"), Investor may make written requests for
registration with the SEC under and in accordance with the provisions of
the Securities Act of all or part of its Registrable Securities (a "Demand
Registration"). All requests made pursuant to this Section 3(a) shall
specify the number of Registrable Securities to be registered and the
intended methods of disposition thereof. All such requests shall be
delivered to the Company in accordance with the provisions of Section 9(d)
of this Agreement.
(b) Number of, and Limitations on, Registrations. Investor will
be entitled to request one Demand Registration. The Company will not be
obligated to register any Registrable Securities pursuant to such a Demand
Registration unless there is requested to be included in such registration
at least 250,000 shares of Common Stock (subject to such adjustments as may
be necessary by reason of the occurrence of an event contemplated by clause
(ii) of the definition of Registrable Securities) (unless, at the time of
such request, Investor holds less than 250,000 shares of Common Stock, in
which case such request must be for such entire lesser amount).
(c) Expenses. In any registration initiated as a Demand
Registration, the Company will pay all Registration Expenses, whether or
not the Registration Statement has become effective, provided, however,
that Investor will pay all Registration Expenses, whether or not the
Registration Statement has become effective, in the event that Baring
Vostok Private Equity Fund LP, Guernsey has exercised its demand
registration rights pursuant to Section 3(a) of its registration rights
agreement with the Company, dated the date hereof.
(d) Selection of Underwriters. If any of the Registrable
Securities covered by a Demand Registration are to be sold in an
underwritten offering, or in a best efforts underwritten offering, the
investment banker or investment bankers and manager or managers that will
administer the offering will be selected by Investor. If Investor
disapproves of the terms and conditions of the underwriting, Investor may
elect to withdraw all its Registrable Securities by written notice to the
Company and the managing underwriter.
4. Incidental Registration.
-----------------------
(a) Request for Registration. After the Six-Month Lock-Up, if the
Company at any time proposes to register any of its authorized but unissued
shares of Common Stock on its own behalf or any of its unregistered and
issued shares of Common Stock on behalf of other stockholders, under the
Securities Act on a form and in a manner that would permit registration of
Registrable Securities under the Securities Act for sale to the public
under the Securities Act, it will each such time give prompt notice in
accordance with the provisions of Section 9(d) of this Agreement to
Investor of its intention to do so, specifying the form and manner and the
other relevant facts involved in such proposed registration (including,
without limitation, the identity of the managing underwriter, if any). Upon
the written request of Investor delivered to the Company within 30 days
after such notice shall have been given to Investor (which request shall
specify the Registrable Securities intended to be disposed of by such
holder and the intended method of disposition thereof), the Company will
use its reasonable best efforts to effect the registration under the
Securities Act, as expeditiously as is reasonable, of all Registrable
Securities that the Company has been so requested to register by Investor,
to the extent requisite to permit the sale of the Registrable Securities to
be so registered; provided, however, that:
(i) if, at any time after giving such written notice of its
intention to register any Common Stock proposed to be registered by
the Company and prior to the effective date of the registration
statement filed in connection with such registration, the Company
shall determine for any reason not to register such Common Stock, the
Company shall, at its election, give written notice of such
determination to Investor, and thereupon the Company shall be relieved
of its obligation to register any Registrable Securities in connection
with such registration (but not from its obligation to pay the
Registration Expenses in connection therewith to the extent provided
in Section 4(b));
(ii) if the managing underwriter of such offering shall advise
the Company that, in its judgment, the number of Common Stock proposed
to be included in such offering should be limited because the
inclusion of Registrable Securities is likely to adversely impact the
purchase price obtained for the Common Stock proposed to be included
in such offering, then the Company will promptly advise Investor
thereof and may require, by written notice to Investor accompanying
such advice, that, to the extent necessary to meet such limitation,
all holders of Registrable Securities and of other shares of Common
Stock proposing to sell Common Stock in such offering shall share pro
rata in the number of Common Stock to be excluded from such offering,
such sharing to be based on the respective numbers of Registrable
Securities and other shares of Common Stock as to which registration
has been requested by such holders, and that the distribution of such
Registrable Securities and other shares of Common Stock as are so
excluded be deferred (in case of a deferral as to a portion of such
Registrable Securities and other shares of Common Stock, such portion
to be allocated among such holders in proportion to the respective
numbers of Common Stock so requested to be registered by such holders)
until the completion of the distribution of such Common Stock and any
other securities by such underwriters; and
(b) Expenses. In any registration initiated pursuant to this
Section 4, the Company will pay all Registration Expenses, whether or not
the Registration Statement has become effective.
5. Registration Procedures
-----------------------
Whenever Investor has requested that any Registrable Securities
be registered pursuant to this Agreement, the Company will promptly take
all such actions as may be necessary or desirable to permit the sale of
such Registrable Securities in accordance with the intended method or
methods of disposition thereof, and pursuant thereto the Company will as
expeditiously as possible:
(a) with respect to a request to file a Registration Statement
covering Registrable Securities made pursuant to Section 3, use its
reasonable best efforts to prepare and file with the SEC not later
than 60 days after receipt of such request (which 60-day period may be
extended by the Company for up to an additional 60 days if at the time
of such request the Company is engaged in negotiations in anticipation
of its participation in a material merger, acquisition or other form
of business combination or, if by reason of such transaction, the
Company is not in a position to timely prepare and file the
Registration Statement and the Company furnishes to Investor a
certificate signed by the president or a vice president of the Company
stating that in the good faith opinion of the board of directors of
the Company such registration would interfere with such transaction
then being pursued by the Company) a Registration Statement on a form
for which the Company then qualifies which is satisfactory to the
Company and Investor (unless the offering is made on an underwritten
basis, including on a best efforts underwriting basis, in which event
the managing underwriter or underwriters may determine the form to be
used) and which form shall be available for the sale of the
Registrable Securities in accordance with the intended method or
methods of distribution thereof, and use its reasonable best efforts
to cause such Registration Statement to become effective; the Company
shall not file any Registration Statement pursuant to Section 3 or any
amendment thereto or any Prospectus or any supplement thereto
(including such documents incorporated by reference) to which Investor
or the underwriters, if any, shall reasonably object in light of the
requirements of the Securities Act or any other applicable laws or
regulations;
(b) before filing a Registration Statement or Prospectus or any
amendments or supplements thereto (excluding documents to be
incorporated by reference therein, except in the case of the
preparation of the initial Registration Statement), the Company shall,
within five days of filing, furnish to Investor and the underwriters,
if any, copies of all such documents in substantially the form
proposed to be filed (including documents incorporated therein by
reference), to enable Investor and the underwriters, if any, to review
such documents prior to the filing thereof, and the Company shall make
such reasonable changes thereto (including changes to, or the filing
of amendments reflecting such changes to, documents incorporated by
reference) as may be reasonably requested by Investor and the managing
underwriter or underwriters, if any;
(c) subject to paragraph (b) above, prepare and file with the SEC
such amendments and post-effective amendments to the Registration
Statement as may be necessary to keep the Registration Statement
continuously effective for a period of not less than 18 months, or
such shorter period which will terminate when all Registrable
Securities covered by such Registration Statement have been sold or
withdrawn; cause the Prospectus to be supplemented by any required
Prospectus supplement, and as so supplemented to be filed pursuant to
Rule 424 under the Securities Act; and comply with the provisions of
the Securities Act with respect to the disposition of all securities
covered by such Registration Statement during the applicable period in
accordance with the intended methods of disposition by Investor
thereof set forth in such Registration Statement or supplement to the
Prospectus;
(d) notify Investor and the managing underwriters, if any,
promptly, and (if requested by any such Person) confirm such advice in
writing, (1) when the Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to the
Registration Statement or any post-effective amendment, when the same
has become effective, (2) of any request by the SEC for amendments or
supplements to the Registration Statement or the Prospectus or for
additional information, (3) of the issuance by the SEC of any stop
order suspending the effectiveness of the Registration Statement or
the initiation of any proceedings for that purpose, (4) if at any time
the representations and warranties of the Company contemplated by
paragraph (o) below cease to be true and correct, (5) of the receipt
by the Company of any notification with respect to the suspension of
the qualification of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for
such purpose, and (6) of the happening of any event which makes any
statement made in the Registration Statement, the Prospectus or any
document incorporated therein by reference untrue or which requires
the making of any changes in the Registration Statement, the
Prospectus or any document incorporated therein by reference in order
to make the statements therein not misleading;
(e) make every reasonable effort to obtain the withdrawal of any
order suspending the effectiveness of the Registration Statement at
the earliest possible moment;
(f) as promptly as practicable after filing with the SEC of any
document which is incorporated by reference into the Registration
Statement or the Prospectus (after initial filing of the Registration
Statement) provide copies of such document to counsel to Investor and
to the managing underwriters;
(g) provide to Investor and each managing underwriter, without
charge, at least one signed copy of the Registration Statement and any
post-effective amendment thereto, including financial statements and
schedules, all documents incorporated therein by reference and all
exhibits (including those incorporated by reference) and a reasonable
number of conformed copies of all such documents;
(h) deliver to Investor and the underwriters, if any, as many
copies of the Prospectus (including each preliminary prospectus) and
any amendment or supplement thereto as such Persons may reasonably
request; the Company consents to the use of the Prospectus or any
amendment or supplement thereto by Investor and the underwriters, if
any, in connection with the offering and sale of the Registrable
Securities covered by the Prospectus or any amendment or supplement
thereto;
(i) prior to the date on which the Registration Statement is
declared effective, use its reasonable best efforts to register or
qualify, or cooperate with Investor and the underwriters, if any, and
their respective counsel in connection with the registration or
qualification of, such Registrable Securities for offer and sale under
the securities or blue sky laws of such jurisdictions as any seller or
underwriter reasonably requests in writing and do any and all other
acts or things necessary or advisable to enable the disposition in
such jurisdictions of the Registrable Securities covered by the
Registration Statement; provided that the Company will not be required
to qualify generally to do business in any jurisdiction where it is
not then so qualified or to take any action which would subject it to
general service of process in any such jurisdiction where it is not
then so subject; provided, further, that the Company will not be
required to qualify such Registrable Securities in any jurisdiction in
which the securities regulatory authority requires that Investor
submit any shares of its Registrable Securities to the terms,
provisions and restrictions of any escrow, lock-up or similar
agreement(s) for consent to sell Registrable Securities in such
jurisdiction unless Investor agrees to do so;
(j) cooperate with Investor and the managing underwriters, if
any, to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold and not bearing any
restrictive legends; and enable such Registrable Securities to be in
such denominations and registered in such names as the managing
underwriters may request at least two business days prior to any sale
of Registrable Securities to the underwriters;
(k) use its reasonable best efforts to cause the Registrable
Securities covered by the Registration Statement to be registered with
or approved by such other governmental agencies or authorities within
the United States as may be necessary to enable the seller or sellers
thereof or the underwriters, if any, to consummate the disposition of
such Registrable Securities;
(1) upon the occurrence of any event contemplated by paragraph
(d)(6) above, prepare a supplement or post-effective Amendment to the
Registration Statement or the Prospectus or any document incorporated
therein by reference or file any other required document so that, as
thereafter delivered to the purchasers of the Registrable Securities,
the Prospectus will not contain an untrue statement of a material fact
or omit to state any material fact necessary to make the statements
therein not misleading;
(m) use its reasonable best efforts to cause all Registrable
Securities covered by the Registration Statement to be listed on each
securities exchange or the Nasdaq National Market on which similar
securities issued by the Company are then listed if requested by
Investor or the managing underwriters, if any;
(n) provide a transfer agent and registrar for all Registrable
Securities;
(o) enter into such agreements (including an underwriting
agreement) and take all such other actions in connection therewith as
Investor or the managing underwriters, if any, reasonably request in
order to expedite or facilitate the disposition of such Registrable
Securities and in such connection, whether or not an underwriting
agreement is entered into and whether or not the registration is an
underwritten registration (1) make such representations and warranties
to Investor and the underwriters, if any, in form, substance and scope
as are customarily made by issuers to underwriters in primary
underwritten offerings (including, without limitation, an agreement to
not sell equity securities during a customary lock-up period) and
confirm the accuracy of the same if and when requested, and matters
relating to the compliance of the Registration Statement and the
Prospectus with the Securities Act; (2) obtain opinions of counsel to
the Company, and updates thereof (which counsel and opinions (in form,
scope and substance) shall be reasonably satisfactory to the managing
underwriters) addressed to Investor and the underwriters, if any,
covering the matters customary in underwritten primary offerings and
such other matters as may be reasonably requested by Investor and
underwriters, if any; (3) obtain "comfort" letters and updates thereof
from the Company's independent certified public accountants addressed
to Investor and the underwriters, if any, such letters to be in
customary form and covering matters of the type customarily covered in
"comfort" letters by underwriters in connection with primary
underwritten offerings; (4) if an underwriting agreement is entered
into, the same shall set forth in full the indemnification provisions
and procedures of Section 8 hereof with respect to all parties to be
indemnified pursuant to said Section; and (5) the Company shall
deliver such documents and certificates as may be requested by
Investor and the managing underwriters, if any, to evidence compliance
with clause (1) above and with any customary conditions contained in
the underwriting agreement or other agreement entered into by the
Company. The above shall be done at each closing under such
underwriting or similar agreement or as and to the extent required
thereunder;
(p) make available for inspection during normal business hours by
Investor, any underwriter participating in any disposition pursuant to
such registration statement, and any attorney, accountant or other
agent retained by Investor or any such underwriter, all financial and
other records, pertinent corporate documents and properties of the
Company, and cause the Company's officers, directors and employees to
supply all information reasonably requested by Investor or any such
underwriter, attorney, accountant or agent in connection with such
registration statement; provided that any records, information or
documents that are designated by the Company in writing as
confidential shall be kept confidential by such Persons;
(q) otherwise use its reasonable best efforts to comply with all
applicable rules and regulations of the SEC, and make generally
available to its security holders, earnings statements satisfying the
provisions of Section 11(a) of the Securities Act, no later than 45
days after the end of any 12-month period (1) commencing at the end of
any fiscal quarter in which Registrable Securities are sold to
underwriters in a firm or best efforts underwriting offering, and (2)
beginning with the first month of the Company's first fiscal quarter
commencing after the effective date of the Registration Statement,
which statements shall cover said 12-month periods; and
(r) take such other reasonable steps that are necessary or
advisable to permit the sale of such Registrable Securities.
The Company may require Investor to furnish to the Company such
information and documents regarding Investor and the distribution of the
Registrable Securities as the Company may from time to time reasonably
request in writing.
Investor agrees by acquisition of such Registrable Securities
that, upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 6(d)(6) hereof, Investor will
forthwith discontinue disposition of Registrable Securities until
Investor's receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 6(l) hereof, or until it is advised in writing (the
"Advice") by the Company that the use of the Prospectus may be resumed, and
has received copies of any additional or supplemental filings which are
incorporated by reference in the Prospectus, and, if so directed by the
Company, Investor will, or will request the underwriters to, deliver to the
Company (at the Company's expense) all copies, other than permanent file
copies then in Investor's possession, of the Prospectus covering such
Registrable Securities current at the time of receipt of such notice. If
the Company shall give such notice, the time periods mentioned in Section
6(c) hereof shall be extended by the number of days during the period from
and including the date of the giving of such notice pursuant to Section
6(d)(6) to and including the date when Investor shall have received the
copies of the supplemented or amended prospectus contemplated by Section
6(l) hereof or the Advice.
6. Expenses
--------
Except as otherwise provided herein, all expenses incident to the
Company's performance of or compliance with this Agreement including
without limitation all registration and filing fees, including with respect
to filings required to be made with the National Association of Securities
Dealers, fees and expenses of compliance with securities or blue sky laws
(including reasonable fees and disbursements of counsel for the
underwriters in connection with blue sky qualifications of the Registrable
Securities and determination of their eligibility for investment under the
laws of such jurisdictions as the managing underwriters or holders of a
majority of the Registrable Securities being sold may designate), printing
expenses, messenger, telephone and delivery expenses, and fees and
disbursements of counsel for the Company, Investor and of all independent
certified public accountants (including the expenses of any special audit
and "comfort" letters required by or incident to such performance), the
fees and expenses incurred in connection with the listing of the securities
to be registered on each securities exchange on which similar securities
issued by the Company are then listed, rating agency fees, securities acts
liability insurance if Investor so requires, the reasonable fees and
expenses of any special experts retained by Investor or by the Company at
the request of the managing underwriters in connection with such
registration and fees and expenses of other Persons retained by Investor
(all such expenses being herein called "Registration Expenses") will be
borne by the Company. The Company shall, in any event, pay its internal
expenses (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties) and the
expense of any annual audit which are not "Registration Expenses" for
purposes of this Agreement. In no event shall the Company be liable for the
payment of any discounts, commissions or fees of underwriters, selling
brokers, dealer managers or similar industry professionals relating to the
distribution of the Registrable Securities. Investor shall be liable for
the cost and expense of the time spent by its officers, employees and
Agents incurred in connection with the registration of Registrable
Securities owned by it.
7. Indemnification
---------------
(a) Indemnification by Company. The Company will indemnify and
hold harmless, to the full extent permitted by law, Investor, its officers
and directors, their Agents and each Person who controls Investor (within
the meaning of the Securities Act) against all losses, claims, damages,
liabilities (or actions in respect thereto) and expenses to which any such
Person may be subject, under the Securities Act or otherwise, and reimburse
all such Persons for any legal or other expenses incurred with
investigating or defending against any such losses, claims, damages or
liabilities, insofar as such losses, claims, damages or liabilities arise
out of or are based upon any untrue or alleged untrue statement of a
material fact contained in a Registration Statement, Prospectus or
preliminary prospectus 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, except insofar as the same arise out of
or are based upon an untrue statement of a material fact or omission of a
material fact required to be stated therein or necessary to make the
statements therein not misleading, which statement or omission is made
therein in reliance upon and in conformity with information furnished in
writing to the Company by Investor, expressly for use therein. Such
indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of Investor, Investor's directors and
officers, their Agents or a controlling Person, and shall survive the
transfer of such securities by Investor. The Company will also indemnify
underwriters, selling brokers, dealer managers and similar securities
industry professionals participating in the distribution, their officers
and directors and each Person who controls such Persons (with the meaning
of the Securities Act) to the same extent as provided above with respect to
the indemnification of Investor of Registrable Securities.
(b) Indemnification by Investor. Investor will indemnify and hold
harmless, to the full extent permitted by law, the Company, its directors
and officers and each Person who controls the Company (within the meaning
of the Securities Act) against any losses, claims, damages, liabilities (or
actions in respect thereto) and expenses to which any such Person may be
subject, under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities arise out of or are based upon any untrue or
alleged untrue statement of a material fact contained in a Registration
Statement or Prospectus or preliminary prospectus or any omission or
alleged omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading, to the extent, but
only if and to the extent, that such untrue or alleged untrue statement or
omission or alleged omission is made therein in reliance upon and in
conformity with the information furnished in writing by Investor
specifically for inclusion therein. In no event shall the liability of
Investor hereunder be greater in amount than the dollar amount of the
proceeds received by Investor upon the sale of the Registrable Securities
giving rise to such indemnification obligation. The Company shall be
entitled to receive indemnities from underwriters, selling brokers, dealer
managers and similar securities industry professionals participating in the
distribution, to the same extent as provided above with respect to
information so furnished in writing by such Persons.
(c) Conduct of Indemnification Proceedings. Any Person entitled
to indemnification hereunder will (i) give prompt notice to the
indemnifying party of any claim with respect to which it seeks
indemnification and (ii) unless in such indemnified party's reasonable
judgment a conflict of interest may exist between such indemnified and
indemnifying parties with respect to such claim, permit such indemnifying
party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party and in that case the indemnified
party shall have the right to participate in the conduct of such defense
provided that it will pay for the fees of its own counsel. Whether or not
such defense is assumed by the indemnifying party, the indemnifying party
will not be subject to any liability for any settlement made without its
consent (but such consent will not be unreasonably withheld). No
indemnifying party will consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the
giving of the claimant or plaintiff to such indemnified party of a release
from all liability in respect to such claim or litigation. An indemnifying
party who is not entitled to, or elects not to, assume the defense of a
claim will not be obligated to pay the fees and expenses of more than one
counsel for all parties indemnified by such indemnifying party with respect
to such claim, unless in the reasonable judgment of any indemnified party a
conflict of interest may exist between such indemnified party and any other
of such indemnified parties with respect to such claim, in which event the
indemnifying party shall be obligated to pay the fees and expenses of such
additional counsel or counsels. The failure to notify an indemnifying party
promptly of the commencement of any such action, if and to the extent
prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this
Section, but the omission so to notify the indemnifying party will not
relieve it of any liability that it may have to any indemnified party
otherwise than under this Section.
(d) Contribution. To the extent any indemnification by an
indemnifying party is prohibited or limited by law, the indemnifying party,
in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such
losses, claims, damages or liabilities in such proportion as is appropriate
to reflect the relative fault of the indemnifying party and indemnified
party in connection with the actions which resulted in such losses, claims,
damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of such indemnifying party and
indemnified party shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue
statement of material fact or omission or alleged omission to state a
material fact, has been made, or relates to information supplied by, such
indemnifying party or indemnified party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action. The amount paid or payable by a party as a result of the losses,
claims, damages or liabilities referred to above shall be deemed to include
any legal or other fees or expenses reasonably incurred by such party in
connection with any investigation or proceeding.
The parties hereto agree that it would not be just and equitable
if contribution pursuant to this Section 8(d) were determined by pro rata
allocation or by any other method of allocation which does not take account
of the equitable considerations referred to in the immediately preceding
paragraph. 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.
8. Transfer of Registration Rights
-------------------------------
The registration rights of Investor under this Agreement with
respect to any Registrable Securities may be transferred to any transferee
of such Registrable Securities, including any affiliate of Investor;
provided, however, that (i) Investor shall give the Company written notice
at or prior to the time of such transfer stating the name and address of
the transferee and identifying the securities with respect to which the
rights under this Agreement are being transferred and (ii) such transferee
shall agree in writing, in form and substance reasonably satisfactory to
the Company, to be bound by the provisions of this Agreement.
9. Miscellaneous
-------------
(a) Remedies. Investor shall be entitled to exercise all rights
provided herein or granted by law, including recovery of damages, and each
will be entitled to specific performance of their rights under this
Agreement. The Company agrees that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the
provisions of this Agreement and hereby agrees to waive the defense in any
action for specific performance that a remedy at law would be adequate.
(b) No Inconsistent Agreements. The Company will not on or after
the date of this Agreement enter into any agreement with respect to its
securities which is inconsistent with the rights granted to Investor in
this Agreement or otherwise conflicts with the provisions hereof. The
Company has not previously entered into any agreement with respect to its
securities granting any registration rights to any Person.
(c) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions
hereof may not be given unless the Company has obtained the written consent
of Investor.
(d) Notices. All notices, requests, demands and other
communications provided for by this Agreement shall be in writing
(including telecopier or similar writing) and shall be deemed to have been
given at the time when mailed in any general or branch office of the United
States Postal Service, enclosed in a registered or certified postpaid
envelope, or sent by Federal Express or other similar overnight courier
service, addressed to the address of the parties stated below or to such
changed address as such party may have fixed by notice or, if given by
telecopier, when such telecopy is transmitted and the appropriate
answerback is received.
(i) If to Investor:
x/x Xxxx xx Xxxxxxx (Xxxxxxxxxx) S.A.
00, xxx Xxxxxx
X.X. 000
X-0000 Xxxxxxxxxx
(xx) If to the Company:
Golden Telecom, Inc.
c/o Golden Teleservices, Inc.
0000 Xxxxxx Xxxxxxxxx
0xx Xxxxx
Xxxxxxxxx, XX 00000
Facsimile: (000) 000-0000
Attn: General Counsel
(e) Assignment. Neither party shall assign or transfer any of its
rights under this Agreement without the prior written consent of the other
party. If any transferee of a holder of Registrable Securities shall
acquire Registrable Securities, in any manner, whether by operation of law
or otherwise, such Registrable Securities shall be held subject to all of
the terms of this Agreement, and by taking and holding such Registrable
Securities such transferee shall be conclusively deemed to have agreed to
be bound by and to perform all of the terms and provisions of this
Agreement and such transferee shall be entitled to receive the benefits
hereof.
(f) Governing Law. This Agreement shall be governed by the laws
of the State of New York.
(g) Entire Agreement. This Agreement, together with any other
agreements between the parties, constitutes the entire understanding
between the parties and supersedes all proposals, commitments, writings,
negotiations and understandings, oral and written, and all other
communications between the parties relating to the subject matter of this
Agreement.
(h) Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same document.
(i) Severability. Should any part, term or condition hereof be
declared illegal or unenforceable or in conflict with any other law, the
validity of the remaining portions or provisions of this Agreement shall
not be affected thereby, and the illegal or unenforceable portions of this
Agreement shall be and hereby are redrafted to conform with applicable law,
while leaving the remaining portions of this Agreement intact.
(j) Force Majeure. No party shall be deemed to have breached this
Agreement or be held liable for any failure or delay in the performance of
all or any portion of its obligations under this Agreement if prevented
from doing so by a cause or causes beyond its control. Without limiting the
generality of the foregoing, such causes include acts of God or the public
enemy, fires, floods, storms, earthquakes, riots, strikes, lock-outs, wars
and war-operations, restraints of government power or communication line
failure or other circumstances beyond such party's control, or by reason of
the judgment, ruling or order of any court or agency of competent
jurisdiction or change of law or regulation subsequent to the execution of
this Agreement.
(k) Successors and Assigns. Subject to the provisions of Section
9(e), this Agreement is solely for the benefit of the parties and their
respective successors and assigns. Nothing herein shall be construed to
provide any rights to any other entity or individual.
(l) Headings. Section headings are for convenience only and do
not control or affect the meaning or interpretation of any terms or
provisions of this Agreement.
(m) Attorneys' Fees. In any action or proceeding brought to
enforce any provision of this Agreement, or where any provision hereof or
thereof is validly asserted as a defense, the successful party shall be
entitled to recover reasonable attorneys, fees in addition to any other
available remedy.
IN WITNESS WHEREOF, the parties have executed this Agreement as
of the date first written above.
FIRST NIS REGIONAL FUND SICAF
By: /s/
---------------------------------
Name:
Title:
GOLDEN TELECOM, INC.
By: /s/
---------------------------------
Name:
Title:
