REGISTRATION RIGHTS AGREEMENT among SB/RH HOLDINGS, INC., HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD., HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS FUND, L.P., GLOBAL OPPORTUNITIES BREAKAWAY LTD., AVENUE INTERNATIONAL MASTER, L.P., AVENUE...
Exhibit 99.2
among
SB/RH HOLDINGS, INC.,
HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.,
HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS FUND, L.P.,
GLOBAL OPPORTUNITIES BREAKAWAY LTD.,
AVENUE INTERNATIONAL MASTER, L.P.,
AVENUE INVESTMENTS, L.P.,
AVENUE SPECIAL SITUATIONS FUND V, L.P.,
AVENUE SPECIAL SITUATIONS FUND IV, L.P.
and
AVENUE-CDP GLOBAL OPPORTUNITIES FUND, L.P.
Dated: February 9, 2010
TABLE OF CONTENTS
Page | ||||
1. Definitions and Interpretation |
1 | |||
(a) Certain Definitions |
1 | |||
(b) Interpretation |
6 | |||
2. General; Securities Subject to this Agreement |
7 | |||
(a) Grant of Rights |
7 | |||
(b) Registrable Securities |
7 | |||
(c) Holders of Registrable Securities |
7 | |||
3. Demand Registration |
7 | |||
(a) Request for Demand Registration |
7 | |||
(b) Limitations on Demand Registrations |
8 | |||
(c) Incidental or “Piggy-Back” Rights with Respect to a Demand
Registration |
9 | |||
(d) Effective Demand Registration |
9 | |||
(e) Expenses |
10 | |||
(f) Underwriting Procedures |
10 | |||
(g) Selection of Underwriters in a Demand Registration |
10 | |||
4. Incidental or “Piggy-Back” Registration |
11 | |||
(a) Request for Incidental or “Piggy-Back” Registration |
11 | |||
(b) Expenses |
11 | |||
5. Shelf Registration |
12 | |||
(a) Request for Shelf Registration |
12 | |||
(b) Shelf Underwriting Procedures |
12 | |||
(c) Limitations on Shelf Registrations |
13 | |||
(d) Expenses |
13 | |||
(e) Additional Selling Stockholders |
13 | |||
(f) Automatic Shelf Registration |
14 | |||
(g) Not a Demand Registration |
14 | |||
6. Lock-up Agreements |
14 | |||
(a) Demand Registration |
14 | |||
(b) Shelf Registration |
15 | |||
(c) Additional Lock-up Agreements |
15 | |||
(d) Third Party Beneficiaries in Lock-up Agreements |
15 | |||
7. Registration Procedures |
16 | |||
(a) Obligations of the Company |
16 | |||
(b) Seller Obligations |
20 | |||
(c) Notice to Discontinue |
21 | |||
(d) Registration Expenses |
21 |
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Page | ||||
(e) Hedging Transactions |
22 | |||
8. Indemnification; Contribution |
23 | |||
(a) Indemnification by the Company |
23 | |||
(b) Indemnification by Holders |
24 | |||
(c) Conduct of Indemnification Proceedings |
24 | |||
(d) Contribution |
25 | |||
(e) Exchange Act Reporting and Rule 144 |
26 | |||
9. Miscellaneous |
26 | |||
(a) Termination |
26 | |||
(b) Recapitalizations, Exchanges, etc |
26 | |||
(c) No Inconsistent Agreements |
26 | |||
(d) Remedies |
26 | |||
(e) Amendments and Waivers |
27 | |||
(f) Notices |
27 | |||
(g) Successors and Assigns; Third Party Beneficiaries |
30 | |||
(h) Headings |
30 | |||
(i) GOVERNING LAW; CONSENT TO JURISDICTION |
30 | |||
(j) WAIVER OF JURY TRIAL |
30 | |||
(k) Severability |
31 | |||
(l) Rules of Construction |
31 | |||
(m) Interpretation |
31 | |||
(n) Entire Agreement |
31 | |||
(o) Further Assurances |
31 | |||
(p) Other Agreements |
31 | |||
(q) Counterparts |
31 |
Schedule 1 Plan of Distribution
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REGISTRATION RIGHTS AGREEMENT, dated February 9, 2010 (this “Agreement”), among SB/RH
Holdings, Inc., a Delaware corporation (the “Company”), Harbinger Capital Partners Master
Fund I, Ltd., a Cayman Islands exempted company (“Harbinger Master”), Harbinger Capital
Partners Special Situations Fund, L.P., a Delaware limited partnership (“Harbinger Special
Situations”), Global Opportunities Breakaway Ltd., a Cayman Islands exempted company
(“Global Opportunities” and, together with Harbinger Master and Harbinger Special
Situations, the “Harbinger Investors”), Avenue International Master, L.P. (“Avenue
Int’l”), Avenue Investments, L.P. (“Avenue Investments”), Avenue Special Situations
Fund V, L.P. (“Avenue V”), Avenue Special Situations Fund IV, L.P. (“Avenue IV”)
and Avenue-CDP Global Opportunities Fund, L.P. (“Avenue-CDP” and, together with Avenue
Int’l, Xxxxxx Xxxxxxxxxxx, Xxxxxx V and Avenue IV, the “Avenue Investors”). For purposes of
this Agreement, the Harbinger Investors and Avenue Investors shall be referred to collectively as
the “Investors”. Capitalized terms used but not otherwise defined herein shall have the
respective meanings ascribed to such terms in Section 1.
RECITALS :
WHEREAS, concurrently with the execution and delivery of this Agreement, the Company, Battery
Merger Corp., a Delaware corporation and a direct wholly-owned subsidiary of the Company
(“Battery Merger Sub”), Grill Merger Corp., a Delaware corporation and a direct
wholly-owned subsidiary of the Company (“RH Merger Sub”), Battery Brands, Inc. a Delaware
corporation (“Battery”), and RH, Inc., a Delaware corporation (“RH”), are entering
into an Agreement and Plan of Merger, dated as of the date hereof (the “Merger Agreement”),
pursuant to which (i) Battery Merger Sub shall merge with and into Battery, with Battery as the
surviving corporation (the “Battery Merger”), and (ii) RH Merger Sub shall merge with and
into RH, with RH as the surviving corporation (the “RH Merger” and, together with the
Battery Merger, the “Mergers”);
WHEREAS, at the effective time of the Mergers, among other things, (i) Harbinger Master and
Harbinger Special Situations shall receive shares of Common Stock in exchange for the shares of
stock of RH formerly held by them, and (ii) the Investors shall receive shares of Common Stock in
exchange for the shares of stock of Battery formerly held by them; and
WHEREAS, the Company and the Investors desire to enter into this Agreement to provide the
Investors with certain rights relating to the registration of shares of Common Stock to be received
by them, whether pursuant to the Mergers or otherwise, and any other securities that fall within
the definition of “Registrable Securities” hereunder;
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto agree as follows:
1. Definitions and Interpretation.
(a) Certain Definitions. As used in this Agreement, and unless the context requires a
different meaning, the following terms have the meanings indicated:
“Agreement” means this Agreement, as the same may be amended, supplemented or modified
from time to time in accordance to the terms hereof.
“Affiliate” means any Person who is an “affiliate” as defined in Rule 12b-2
promulgated under the Exchange Act.
“Approved Underwriter” has the meaning set forth in Section 3(f).
“Automatic Shelf Registration Statement” means an “automatic shelf registration
statement” as defined in Rule 405 promulgated under the Securities Act.
“Battery” has the meaning set forth in the Recitals.
“Battery Merger” has the meaning set forth in Recitals.
“Battery Merger Sub” has the meaning set forth in Recitals.
“Board of Directors” means the board of directors of the Company.
“Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks in the State of New York are authorized or required by law or executive order to
close.
“Closing Price” means, with respect to the Registrable Securities, as of the date of
determination, (i) if the Registrable Securities are listed on a national securities exchange, the
closing price per share of a Registrable Security officially reported on the principal national
securities exchange on which the Registrable Securities are then listed or admitted to trading; or
(ii) if the Registrable Securities are not then listed or admitted to trading on any national
securities exchange, the average of the reported closing bid and asked prices of the Registrable
Securities on such date on the principal over the counter market on which the Registrable
Securities are traded; or (iii) if none of clauses (i) or (ii) is applicable, a market price per
share determined in good faith by the disinterested members of the Board of Directors or, if such
determination is not satisfactory to the Holder for whom such determination is being made, by a
nationally recognized investment banking firm mutually selected by the Company and such Holder, the
expenses for which shall be borne equally by the Company and such Holder. If trading is conducted
on a continuous basis on any exchange, then the closing price shall be at 4:00 P.M. New York City
time.
“Commission” means the Securities and Exchange Commission.
“Common Stock” means the common stock, par value $[0.01] per share, of the Company or
any other capital stock of the Company (or any successor entity) into which such stock is
reclassified or reconstituted and any other common stock of the Company (or any successor entity).
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“Company” has the meaning set forth in the Preamble.
“Company Underwriter” has the meaning set forth in Section 4(a).
“Contemporaneous Company Offering” has the meaning set forth in Section 5(b).
“Demand Registration” has the meaning set forth in Section 3(a).
“Determination Date” has the meaning set forth in Section 5(f).
“Disclosure Package” means, with respect to any offering of securities, (i) the
preliminary Prospectus, (ii) each Free Writing Prospectus and (iii) all other information, in each
case, that is deemed, under Rule 159 promulgated under the Securities Act, to have been conveyed to
purchasers of securities at the time of sale of such securities (including a contract of sale).
“Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations
of the Commission promulgated thereunder.
“FINRA” means the Financial Industry Regulatory Authority.
“Free Writing Prospectus” means any “free writing prospectus” as defined in Rule 405
promulgated under the Securities Act.
“Global Opportunities” has the meaning set forth in the Preamble.
“Harbinger Master” has the meaning set forth in the Preamble.
“Harbinger Special Situations” has the meaning set forth in the Preamble.
“Hedging Counterparty” means a broker-dealer registered under Section 15(b) of the
Exchange Act or an Affiliate thereof.
“Hedging Transaction” means any transaction involving a security linked to the
Registrable Class Securities or any security that would be deemed to be a “derivative security” (as
defined in Rule 16a-1(c) promulgated under the Exchange Act) with respect to the Registrable Class
Securities or transaction (even if not a security) which would (were it a security) be considered
such a derivative security, or which transfers some or all of the economic risk of ownership of the
Registrable Class Securities, including any forward contract, equity swap, put or call, put or call
equivalent position, collar, non-recourse loan, sale of exchangeable security or similar
transaction. For the avoidance of doubt, the following transactions shall be deemed to be Hedging
Transactions:
(i) transactions by a Holder in which a Hedging Counterparty engages in short sales of
Registrable Class Securities pursuant to a Prospectus and may use Registrable Securities to
close out its short position;
3
(ii) transactions pursuant to which a Holder sells short Registrable Class
Securities pursuant to a Prospectus and delivers Registrable Securities to close out its short
position;
(iii) transactions by a Holder in which the Holder delivers, in a transaction exempt from
registration under the Securities Act, Registrable Securities to the Hedging Counterparty who
will then publicly resell or otherwise transfer such Registrable Securities pursuant to a
Prospectus or an exemption from registration under the Securities Act; and
(iv) a loan or pledge of Registrable Securities to a Hedging Counterparty who may then
become a selling stockholder and sell the loaned shares or, in an event of default in the case
of a pledge, sell the pledged shares, in each case, in a public transaction pursuant to a
Prospectus.
“Holder” means the Investors and any Permitted Transferee thereof to whom Registrable
Securities are transferred in accordance with Section [9(g)] other than a transferee to whom
Registrable Securities have been transferred pursuant to a Registration Statement under the
Securities Act or Rule 144 or Regulation S promulgated under the Securities Act.
“Holder Free Writing Prospectus” means each Free Writing Prospectus prepared by or on
behalf of the relevant Holder or used or referred to by such Holder in connection with the offering
of Registrable Securities.
“Holders’ Counsel” has the meaning set forth in Section 7(a)(i).
“Incidental Registration” has the meaning set forth in Section 4(a).
“Indemnified Party” has the meaning set forth in Section 8(c).
“Indemnifying Party” has the meaning set forth in Section 8(c).
“Initiating Holder” has the meaning set forth in Section 3(a).
“Inspectors” has the meaning set forth in Section 7(a)(viii).
“Investor” has the meaning set forth in the Preamble.
“Liability” has the meaning set forth in Section 8(a).
“Lock-up Agreements” has the meaning set forth in Section 6(a).
“Long-Form Registration” has the meaning set forth in Section 3(a).
4
“Market Price” means, on any date of determination, the average of the daily
Closing Price of the Registrable Securities for the immediately preceding 30 days on which the
national securities exchanges are open for trading.
“Merger Agreement” has the meaning set forth in Recitals.
“Person” means any individual, firm, corporation, partnership, limited liability
company, trust, incorporated or unincorporated association, joint venture, joint stock company,
government (or an agency or political subdivision thereof) or other entity of any kind, and shall
include any successor (by merger or otherwise) of such entity.
“Prospectus” means any “prospectus” as defined in Rule 405 promulgated under the
Securities Act.
“RH” has the meaning set forth in Recitals.
“RH Merger” has the meaning set forth in Recitals.
“RH Merger Sub” has the meaning set forth in Recitals.
“Records” has the meaning set forth in Section 7(a)(viii).
“Registrable Class Securities” means the Registrable Securities and any other
securities of the Company that are of the same class as the relevant Registrable Securities.
“Registrable Securities” means each of the following: (i) any and all shares of Common
Stock owned after the date hereof by the Holders (irrespective of when acquired) and any shares of
Common Stock issuable or issued upon exercise, conversion or exchange of other securities of the
Company; and (ii) any securities of the Company issued in respect of the shares of Common Stock
issued or issuable to any of the Holders with respect to the Registrable Securities by way of stock
dividend or stock split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization or otherwise and any shares of Common Stock issuable upon
conversion, exercise or exchange thereof.
“Registration Expenses” has the meaning set forth in Section 7(d).
“Registration Statement” means a registration statement filed pursuant to the
Securities Act, including an Automatic Shelf Registration Statement.
“Requested Shelf Registered Securities” has the meaning set forth in Section 5(b).
“Seasoned Issuer” means an issuer eligible to use Form S-3 or F-3 under the Securities
Act for a primary offering in reliance on General Instruction I.B.1 to those Forms.
5
“Securities Act” means the Securities Act of 1933 and the rules and regulations
of the Commission promulgated thereunder.
“Shelf Initiating Holders” has the meaning set forth in Section 5(a).
“Shelf Registered Securities” means, with respect to a Shelf Registration, any
Registrable Securities whose sale is registered pursuant to the Registration Statement filed in
connection with such Shelf Registration.
“Shelf Registration” has the meaning set forth in Section 5(a).
“Shelf Requesting Holder” has the meaning set forth in Section 5(b).
“Short-Form Registration” has the meaning set forth in Section 3(a).
“Transfer” means, with respect to any security, the offer for sale, sale, pledge,
transfer or other disposition or encumbrance (or any transaction or device that is designed to or
could be expected to result in the transfer or the disposition by any Person at any time in the
future) of such security, and shall include the entering into of any swap, hedge or other
derivatives transaction or other transaction that transfers to another in whole or in part any
rights, economic benefits or risks of ownership, including by way of settlement by delivery of such
security or other securities in cash or otherwise.
“underwritten public offering” of securities means a public offering of such
securities registered under the Securities Act in which an underwriter, placement agent or other
intermediary participates in the distribution of such securities, including a Hedging Transaction
in which a Hedging Counterparty participates.
“Valid Business Reason” has the meaning set forth in Section 3(b).
“Well-Known Seasoned Issuer” means a “well-known seasoned issuer” as defined in Rule
405 promulgated under the Securities Act and which (i) is a “well-known seasoned issuer” under
paragraph (1)(i)(A) of such definition or (ii) is a “well-known seasoned issuer” under paragraph
(1)(i)(B) of such definition and is also eligible to register a primary offering of its securities
relying on General Instruction I.B.1 of Form S-3 or Form F-3 under the Securities Act.
(b) Interpretation. Unless otherwise noted:
(i) All references to laws, rules, regulations and forms in this Agreement shall be
deemed to be references to such laws, rules, regulations and forms, as amended from time to
time or, to the extent replaced, the comparable successor thereto in effect at the time.
(ii) All references to agencies, self-regulatory organizations or governmental entities
in this Agreement shall be deemed to be references to the comparable successor thereto.
6
(iii) All references to agreements and other contractual instruments shall be deemed
to be references to such agreements or other instruments as they may be amended from time to
time.
(iv) Whenever the words “include,” “includes” or “including” are used in this Agreement,
they shall be deemed to be followed by the words “without limitation.”
2. General; Securities Subject to this Agreement.
(a) Grant of Rights. Subject to, and conditioned upon, the consummation of the Battery
Merger and the RH Merger, the Company hereby grants registration rights to the Holders upon the
terms and conditions set forth in this Agreement.
(b) Registrable Securities. For the purposes of this Agreement, any given Registrable
Securities will cease to be Registrable Securities when (i) a Registration Statement covering such
Registrable Securities has been declared effective under the Securities Act by the Commission and
such Registrable Securities have been disposed of pursuant to such effective Registration
Statement, (ii) such Registrable Securities have been sold pursuant to Rule 144 promulgated under
the Securities Act, (iii) the entire amount of the Registrable Securities owned by the relevant
Holder may be sold in a single sale, in the opinion of counsel satisfactory to the Company and such
Holder, each in their reasonable judgment, without any limitation as to volume pursuant to Rule 144
promulgated under the Securities Act, (iv) such Holder owning such Registrable Securities owns less
than 1% of the outstanding shares of Common Stock on a fully diluted basis, (v) the Registrable
Securities are proposed to be sold or distributed by a Person not entitled to the registration
rights granted by this Agreement, or (vi) such Registrable Securities are no longer outstanding.
(c) Holders of Registrable Securities. A Person is deemed to be a holder of
Registrable Securities whenever such Person owns of record or beneficially owns Registrable
Securities, or holds an option granted by the Company to purchase, or a security issued by the
Company that is convertible into, or exercisable or exchangeable for, Registrable Securities
whether or not such purchase, conversion, exercise
or exchange has actually been effected. If the Company receives conflicting instructions,
notices or elections from two or more Persons with respect to the same Registrable Securities, the
Company may act upon the basis of the instructions, notice or election received from the registered
owner of such Registrable Securities. Registrable Securities issuable upon exercise of an option
granted by the Company or upon conversion, exercise or exchange of another security issued by the
Company shall be deemed outstanding for the purposes of this Agreement.
3. Demand Registration.
(a) Request for Demand Registration. At any time, and from time to time, one or more
of the Holders (the “Initiating Holders”) may make a written request to
7
the Company to register, and the Company shall register, in accordance with the terms of this
Agreement, the sale of the number of Registrable Securities stated in such request under the
Securities Act (other than pursuant to a Registration Statement on Form S-4 or S-8), at the
election of the Initiating Holders, (i) on Form S-1 or any similar long-form registration (a
“Long-Form Registration”) or (ii) on Form S-3 or any similar short-form registration (other
than a Shelf Registration), if such a short-form is then available to the Company (a
“Short-Form Registration” and, together with a Long-Form Registration, a “Demand
Registration”); provided, however, that the Company shall not be obligated to
effect (A) more than three such Long-Form Registrations for each Holder and (B) a Demand
Registration if the Initiating Holders propose to sell their Registrable Securities at an
anticipated aggregate offering price (calculated based upon the Market Price of the Registrable
Securities on the date of filing of the Registration Statement with respect to such Registrable
Securities and including any Registrable Securities subject to any applicable over-allotment
option) to the public of less than (x) $30,000,000.00 in the case of a Long-Form Registration or
(y) $5,000,000.00 in the case of a Short-Form Registration. For purposes of the preceding sentence,
two or more Registration Statements filed in response to one demand for a Long-Form Registration
shall be counted as one Long-Form Registration. Each request for a Demand Registration by the
Initiating Holders shall state the amount of the Registrable Securities proposed to be sold and the
intended method of disposition thereof. The Initiating Holders shall be entitled to no more than
one Short-Form Registration every six months.
(b) Limitations on Demand Registrations. If the Board of Directors, in its good faith
judgment, determines that any registration of Registrable Securities should not be made or
continued because it would materially interfere with any material financing, acquisition, corporate
reorganization or merger or other material transaction involving the Company or is necessary to
avoid premature disclosure of a matter the Board has determined would not be in the best interests
of the Company to be disclosed at such time (a “Valid Business Reason”), (i) the Company
may postpone filing a Registration Statement relating to a Demand Registration until such Valid
Business Reason no longer exists, and (ii) in case a Registration Statement has been filed relating
to a Demand Registration, the Company, upon the approval of a majority of the Board of Directors,
may postpone amending or supplementing such Registration Statement and, if the Valid Business
Reason has not resulted from actions taken by the Company, may cause such Registration Statement to
be withdrawn and its effectiveness terminated. The Company shall give written notice to all Holders
of its determination to postpone or withdraw a Registration Statement and of the fact that the
Valid Business Reason for such postponement or withdrawal no longer exists, in each case, promptly
after the occurrence thereof. If the Company gives notice of its determination to postpone or
withdraw a Registration Statement pursuant to this Section 3(b), the Company shall extend the
period during which such Registration Statement shall be maintained effective pursuant to this
Agreement (including, in the case of a Long-Form Registration, the period referred to in the second
sentence of Section 3(d)) by the number of days during the period from and including the date of
the giving of such notice pursuant to this Section 3(b) to and including the date when sellers of
such Registrable Securities under such Registration Statement shall have received the copies of the
supplemented or
8
amended Prospectus contemplated by and meeting the requirements of Section 7(a)(vi).
Notwithstanding anything to the contrary contained herein, the Company may not withdraw a filing
under this Section 3(b) or Section 5(c) due to a Valid Business Reason more than once in any 12
month period, and may not postpone an offering under this Section 3(b) or Section 5(c) due to a
Valid Business Reason for a period of greater than 90 days during any 12-month period.
(c) Incidental or “Piggy-Back” Rights with Respect to a Demand Registration. Any
Holder which has not requested the relevant Demand Registration under Section 3(a)) may offer such
Holder’s Registrable Securities under any such Demand Registration pursuant to this Section 3(c).
The Company shall (i) as promptly as reasonably practicable but in no event later than five days
after the receipt of a request for a Demand Registration from any Initiating Holders, give written
notice thereof to all of the Holders (other than such Initiating Holders), which notice shall
specify the number of Registrable Securities subject to the request for Demand Registration,
whether such Demand Registration is a Short-Form Registration or Long-Form Registration, the names
and notice information of the Initiating Holders and the intended method of disposition of such
Registrable Securities and (ii) subject to Section 3(f), include in the Registration Statement
filed pursuant to such Demand Registration all of the Registrable Securities requested by such
Holders for inclusion in such Registration Statement from whom the Company has received a written
request for inclusion therein within 10 days after the receipt by such Holders of such written
notice referred to in clause (i) above. Each such request by such Holders shall specify the number
of Registrable Securities proposed to be registered and such Holder shall send a copy of such
request to the Initiating Holders. The failure of any Holder to respond within such 10-day period
referred to in clause (ii) above shall be deemed to be a waiver of such Holder’s rights under this
Section 3(c) with respect to such Demand Registration. Any Holder may waive its rights under this
Section 3(c) prior to the expiration of such 10-day period by giving written notice to the Company,
with a copy to the Initiating Holders. If a Holder sends the Company a written request for
inclusion of part or all of such Holder’s Registrable Securities in a registration, such Holder
shall not be entitled to withdraw or revoke such request without the prior written consent of the
Company in the Company’s sole discretion unless, as a result of facts or circumstances arising
after the date on which such request was made relating to the Company or to market conditions, such
Holder reasonably determines that participation in such registration would have a material adverse
effect on such Holder.
(d) Effective Demand Registration. The Company shall use its reasonable best efforts
to cause any such Demand Registration to become effective within (i) 60 days after it receives a
request under Section 3(a) for a Long-Form Registration and (ii) 45 days after it receives a
request under Section 3(a) for a Short-Form Registration, and in each case to remain effective
thereafter. A registration shall not constitute a Long-Form Registration until it has become
effective and remains continuously effective for the lesser of (A) the period during which all
Registrable Securities registered in the Long-Form Registration are sold and (B) 120 days;
provided, however, that a registration shall not constitute a Long-Form
Registration if (x) after such Long-Form Registration has become effective, such registration or
the related offer, sale or distribution of Registrable
9
Securities thereunder is interfered with by any stop order, injunction or other order or
requirement of the Commission or other governmental agency, court or other Person for any reason
not attributable to the Initiating Holders and such interference is not thereafter eliminated or
(y) the conditions specified in the underwriting agreement, if any, entered into in connection with
such Long-Form Registration are not satisfied or waived, other than by reason of a failure by the
Initiating Holders.
(e) Expenses. The Company shall pay all Registration Expenses in connection with a
Demand Registration, whether or not such Demand Registration becomes effective; provided,
however, that in no event shall the Company be responsible for the expenses of any Holder
who voluntarily withdraws Registrable Securities from any registration or offering (except as
contemplated by Section 3(f)) or was required to withdraw such Registrable Securities as a result
of a breach, or failure to satisfy any condition, of this Agreement.
(f) Underwriting Procedures. If the Company or the Initiating Holders holding a
majority of the Registrable Securities held by all of the Initiating Holders so elect, the Company
shall use its reasonable best efforts to cause the offering made pursuant to such Demand
Registration to be in the form of a firm commitment underwritten public offering, and the managing
underwriter or underwriters for such offering shall be an investment banking firm or firms of
national reputation selected to act as the managing underwriter or underwriters of the offering in
accordance with Section 3(g) (each, an “Approved Underwriter”). In connection with any
Demand Registration under this Section 3 involving an underwritten public offering, none of the
Registrable Securities held by any Holder making a request for inclusion of such Registrable
Securities pursuant to Section 3(c) shall be included in such underwritten public offering unless
such Holder accepts the terms of the offering as agreed upon by the Company, the Initiating Holders
and the Approved Underwriters, and then only in such quantity as will not, in the opinion of the
Approved Underwriters, jeopardize the success of such offering by the Initiating Holders. If the
Approved Underwriters advise the Company that the aggregate amount of such Registrable Securities
requested to be included in such offering is sufficiently large to have a material adverse effect
on the success of such offering, then the Company shall include in such registration only the
aggregate amount of Registrable Securities that the Approved Underwriters believe may be sold
without any such material adverse effect and shall reduce the amount of Registrable Securities to
be included in such registration, first, as to the equity securities offered by the Company
for its own account; second, as to the Registrable Securities of Holders who are not
Initiating Holders, as a group, if any; and third, as to the Registrable Securities of the
Initiating Holders, as a group, pro rata within each group based on the number of Registrable
Securities owned by each such party; provided, however, that any party whose right
to participate in such offering is reduced by greater than thirty percent (30%) may withdraw all of
its Registrable Securities from such registration.
(g) Selection of Underwriters in a Demand Registration. If an offering of Registrable
Securities made pursuant to any Demand Registration is in the form of an underwritten public
offering, the Initiating Holders holding a majority of the Registrable
10
Securities held by all of the Initiating Holders shall select the Approved Underwriters;
provided, however, that the Approved Underwriters shall, in any case, also be
reasonably acceptable to the Company.
4. Incidental or “Piggy-Back” Registration.
(a) Request for Incidental or “Piggy-Back” Registration. If the Company proposes to
file a Registration Statement with respect to an offering by the Company for its own account (other
than a Registration Statement on Form S-4 or S-8) or for the account of any stockholder of the
Company (other than for the account of any Holder pursuant to Section 3 or Section 5), then the
Company shall give written notice of such proposed filing to each of the Holders at least 20 days
before the anticipated filing date, and such notice shall describe the proposed registration,
offering price (or reasonable range thereof) and distribution arrangements, and offer such Holders
the opportunity to register the number of Registrable Securities as each such Holder may request
(an “Incidental Registration”). In connection with any Incidental Registration under this
Section 4(a) involving an underwritten public offering, the Company shall use its reasonable best
efforts (within 20 days after the notice provided for in the preceding sentence) to cause the
managing underwriter or underwriters (the “Company Underwriter”) to permit each of the
Holders who has requested in writing to participate in the Incidental Registration to include the
number of such Holder’s Registrable Securities specified by such Holder in such offering on the
same terms and conditions as the securities of the Company or for the account of such other
stockholder, as the case may be, included therein. In connection with any Incidental Registration
under this Section 4(a) involving an underwritten public offering, the Company shall not be
required to include any Registrable Securities in such underwritten public offering unless the
Holders thereof accept the terms of the underwritten public offering as agreed upon between the
Company, such other stockholders, if any, and the Company Underwriter, and then only in such
quantity as the Company Underwriter believes will not jeopardize the success of the offering by the
Company. If the Company Underwriter determines that the registration of all or part of the
Registrable Securities which the Holders have requested to be included would materially adversely
affect the success of such offering, then the Company shall include in such Incidental
Registration only the aggregate amount of Registrable Securities that the Company Underwriter
believes may be sold without any such material adverse effect and shall include in such
registration, first, all of the securities to be offered for the account of the Company;
second, the Registrable Securities to be offered for the account of the Holders pursuant to
this Section 4, as a group, pro rata based on the number of Registrable Securities owned by each
such Holder; and third, any other securities requested to be included in such offering by
other security holders of the Company, pro rata based on the number of relevant securities owned by
the securityholders in such group.
(b) Expenses. The Company shall bear all Registration Expenses in connection with any
Incidental Registration pursuant to this Section 4, whether or not such Incidental Registration
becomes effective; provided, however, that in no event shall the Company be responsible for the
expenses of any Holder who voluntarily withdraws
11
Registrable Securities from any registration or offering (except as contemplated by Section
3(f)) or was required to withdraw such Registrable Securities as a result of a breach, or failure
to satisfy any condition, of this Agreement.
(c) Right to Terminate Registration. The Company shall have the right to terminate or
withdraw any registration initiated by it prior to the effectiveness of such registration whether
or not any Holder has requested to include Registrable Securities in such registration.
5. Shelf Registration.
(a) Request for Shelf Registration. Upon the Company becoming eligible for use of Form
S-3 under the Securities Act in connection with a secondary public offering of its equity
securities, in the event that the Company shall receive from one or more of the Holders (the
“Shelf Initiating Holders”), a written request that the Company register, under the
Securities Act on Form S-3 in an offering on a delayed or continuous basis pursuant to Rule 415
promulgated under the Securities Act (a “Shelf Registration”), the sale of at least
$25,000,000.00 of Registrable Securities owned by such Shelf Initiating Holders, the Company shall
give written notice of such request to all of the Holders (other than the Shelf Initiating Holders)
as promptly as reasonably practicable but in no event later than 10 days before the anticipated
filing date of such Form S-3, and such notice shall describe the proposed Shelf Registration, the
intended method of disposition of such Registrable Securities and any other information that at the
time would be appropriate to include in such notice, and offer such Holders the opportunity to
register the number of Registrable Securities as each such Holder may request in writing to the
Company, given within 10 days after their receipt from the Company of the written notice of such
Shelf Registration. The “Plan of Distribution” section of such Form S-3 shall permit all lawful
means of disposition of Registrable Securities, including firm-commitment underwritten public
offerings, block trades, agented transactions, sales directly into the market, purchases or sales
by brokers, Hedging Transactions, distributions to stockholders, partners or members of such
Holders and sales not involving a public offering. With respect to each Shelf Registration, the
Company shall (i) as promptly as reasonably practicable after the written request of the Shelf
Initiating Holders, file a Registration Statement and (ii) use its reasonable best efforts to cause
such Registration Statement to be declared effective within 45 days after it receives a request
therefor, and remain effective until there are no longer any Shelf Registered Securities. The
obligations set forth in this Section 5(a) shall not apply if the Company has a currently effective
Automatic Shelf Registration Statement covering all Registrable Securities in accordance with
Section 5(f) and has otherwise complied with its obligations pursuant to this Agreement.
(b) Shelf Underwriting Procedures. Upon written request made from time to time by a
Holder of some or all of such Holder’s Self Registered Securities (the “Shelf Requesting
Holder”), which request shall, subject to Section 5(a), specify the amount of such Shelf
Requesting Holder’s Shelf Registered Securities to be sold (the “Requested Shelf Registered
Securities”), the Company shall use its reasonable best
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efforts to cause the sale of such Requested Shelf Registered Securities to be in the form of a
firm commitment underwritten public offering (unless otherwise consented to by the Shelf Requesting
Holder) if the anticipated aggregate offering price (calculated based upon the Market Price of the
Registrable Securities on the date of such written request and including any Registrable Securities
subject to any applicable over-allotment option) to the public equals or exceeds $10,000,000.00
(including causing to be produced and filed any necessary Prospectuses or Prospectus supplements
with respect to such offering). The managing underwriter or underwriters selected for such offering
shall be selected by the Shelf Requesting Holder and shall be reasonably acceptable to the Company,
and each such underwriter shall be deemed to be an Approved Underwriter with respect to such
offering. Notwithstanding the foregoing, in connection with any offering of Requested Shelf
Registered Securities involving an underwritten public offering that occurs or is scheduled to
occur within 30 days of a proposed registered underwritten public offering of equity securities for
the Company’s own account (a “Contemporaneous Company Offering”), the Company shall not be
required to cause such offering of Requested Shelf Registered Securities to take the form of an
underwritten public offering but shall instead offer the Shelf Requesting Holder the ability to
include its Requested Shelf Registered Securities in the Contemporaneous Company Offering pursuant
to Section 4.
(c) Limitations on Shelf Registrations. If the Board of Directors has a Valid Business
Reason, (i) the Company may postpone filing a Registration Statement relating to a Shelf
Registration until such Valid Business Reason no longer exists and (ii) in case a Registration
Statement has been filed relating to a Shelf Registration, the Company may postpone the offering of
Registrable Securities thereunder or, if the Valid Business Reason has not resulted from actions
taken by the Company, the Company, upon the approval of a majority of the Board of Directors, may
suspend other required registration actions under this Agreement. The Company shall give written
notice to all Holders of its determination to so suspend required registration actions and of the
fact that the Valid Business Reason for such postponement or withdrawal no longer exists, in each
case, promptly after the occurrence thereof. Notwithstanding anything to the contrary contained
herein, the Company may not cause such suspension due to a Valid Business Reason under this Section
5(c) or Section 3(b) more than once in any 12 month period, and may not postpone an offering under
this Section 5(c) or Section 3(b) due to a Valid Business Reason for a period of greater than 90
days during any 12-month period.
(d) Expenses. The Company shall bear all Registration Expenses in connection with any
Shelf Registration pursuant to this Section 5, whether or not such Shelf Registration becomes
effective; provided, however, that in no event shall the Company be responsible for
the expenses of any Holder who voluntarily withdraws Registrable Securities from any registration
or offering (except as contemplated by Section 3(f)) or was required to withdraw such Registrable
Securities as a result of a breach, or failure to satisfy any condition, of this Agreement.
(e) Additional Selling Stockholders. After the Registration Statement with respect to
a Shelf Registration is declared effective, upon written request by one or
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more Holders (which written request shall specify the amount of such Holders’ Registrable
Securities to be registered), the Company shall, as promptly as reasonably practicable after
receiving such request, (i) if it is a Seasoned Issuer or Well-Known Seasoned Issuer, or if such
Registration Statement is an Automatic Shelf Registration Statement, file a Prospectus supplement
to include such Holders as selling stockholders in such Registration Statement or (ii) if it is not
a Seasoned Issuer or Well-Known Seasoned Issuer, and the Registrable Securities requested to be
registered represent more than 1% of the outstanding Registrable Securities, file a post-effective
amendment to the Registration Statement to include such Holders in such Shelf Registration and use
reasonable best efforts to have such post-effective amendment declared effective.
(f) Automatic Shelf Registration. Upon the Company becoming a Well-Known Seasoned
Issuer, (i) the Company shall give written notice to all of the Holders as promptly as reasonably
practicable but in no event later than five Business Days thereafter, and such notice shall
describe, in reasonable detail, the basis on which the Company has become a Well-Known Seasoned
Issuer, and (ii) the Company shall,
as promptly as reasonably practicable, register, under an Automatic Shelf Registration
Statement, the sale of all of the Registrable Securities in accordance with the terms of this
Agreement. The Company shall use its reasonable best efforts to file such Automatic Shelf
Registration Statement within 10 Business Days after it becomes a Well-Known Seasoned Issuer, and
to cause such Automatic Shelf Registration Statement to remain effective thereafter until there are
no longer any Registrable Securities. The Company shall give written notice of filing such
Registration Statement to all of the Holders as promptly as reasonably practicable thereafter. At
any time after the filing of an Automatic Shelf Registration Statement by the Company, if it is
reasonably likely that it will no longer be a Well-Known Seasoned Issuer as of a future
determination date (the “Determination Date”), at least 30 days prior to such Determination
Date, the Company shall (A) give written notice thereof to all of the Holders as promptly as
reasonably practicable but in no event later than 10 Business Days prior to such Determination Date
and (B) if the Company is eligible to file a Registration Statement on Form S-3 with respect to a
secondary public offering of its equity securities, file a Registration Statement on Form S-3 with
respect to a Shelf Registration in accordance with Section 5(a), treating all selling stockholders
identified as such in the Automatic Shelf Registration Statement (and amendments or supplements
thereto) as Shelf Requesting Holders and use all commercially reasonable efforts to have such
Registration Statement declared effective prior to the Determination Date. Any registration
pursuant to this Section 5(f) shall be deemed a Shelf Registration for purposes of this Agreement.
(g) Not a Demand Registration. No Shelf Registration pursuant to this Section 5 shall
be deemed a Demand Registration pursuant to Section 3.
6. Lock-up Agreements.
(a) Demand Registration. With respect to any Demand Registration, the Company shall
not (except as part of such Demand Registration) effect any Transfer of Registrable Class
Securities, or any securities convertible into or exchangeable or
14
exercisable for Registrable Class Securities (except pursuant to a Registration Statement on
Form S-8), during the period beginning on the effective date of any Registration Statement in which
the Holders are participating and ending on the date that is 120 days after date of the final
Prospectus relating to such offering, except as part of such Demand Registration. Upon request by
the Approved Underwriters or the Company Underwriter (as the case may be), the Company shall, from
time to time, enter into customary Lock-up agreements (“Lock-up Agreements”) on terms
consistent with the preceding sentence.
(b) Shelf Registration. With respect to any Shelf Registration and offering of
Requested Shelf Registered Securities that takes the form of an underwritten public offering, the
Company shall not (except as part of such offering) effect any Transfer of Registrable Class
Securities, or any securities convertible into or exchangeable or exercisable for such Registrable
Class Securities (except pursuant to a Registration Statement on Form S-8), during the period
beginning on the date the Shelf Requesting Holder delivers its request pursuant to the first
sentence of Section 5(b) and ending on the date that is 90 days after date of the final Prospectus
relating to such offering, except as part of such Shelf Registration. Upon request by the Approved
Underwriters or the Company Underwriter (as the case may be), the Company shall, from time to time,
enter into Lock-up Agreements on terms consistent with the preceding sentence.
(c) Additional Lock-up Agreements. With respect to each relevant offering, the Company
shall use its reasonable best efforts to cause all of its officers, directors and holders of more
than 1% of the Registrable Class Securities (or any securities convertible into or exchangeable or
exercisable for such Registrable Class Securities) (but excluding any Holder) to execute lock-up
agreements that contain restrictions that are no less restrictive than the restrictions contained
in the Lock-up Agreements executed by the Company.
(d) Third Party Beneficiaries in Lock-up Agreements. Any Lock-up Agreements executed
by the Company, its officers, its directors or other stockholders pursuant to this Section 6 shall
contain provisions naming the selling stockholders in the relevant offering that are Holders as
intended third-party
beneficiaries thereof and requiring the prior written consent of such stockholders holding a
majority of the Registrable Securities for any amendments thereto or waivers thereof.
15
7. Registration Procedures.
(a) Obligations of the Company. Whenever registration of Registrable Securities has
been requested or required pursuant to Section 3, Section 4 or Section 5, the Company shall,
subject to any terms, conditions or limitations set forth in Section 3, Section 4 or Section 5, as
applicable, use its reasonable best efforts to effect the registration and sale of such Registrable
Securities in accordance with the intended method of distribution thereof as promptly as reasonably
practicable, and in connection with any such request or requirement, the Company shall:
(i) as soon as reasonably practicable, prepare and file with the Commission a
Registration Statement on any form for which the Company then qualifies or which counsel for
the Company shall deem appropriate and which form shall be available for the sale of such
Registrable Securities in accordance with the intended method of distribution thereof, and
cause such Registration Statement to become effective; provided, however, that
(A) before filing a Registration Statement or Prospectus or any amendments or supplements
thereto (including any documents incorporated by reference therein), or before using any Free
Writing Prospectus, the Company shall provide the single law firm selected as counsel by the
Holders holding a majority of the Registrable Securities being registered in such registration
(“Holders’ Counsel”) and any other Inspector with an adequate and appropriate
opportunity to review and comment on such Registration Statement, each Prospectus included
therein (and each amendment or supplement thereto), each document incorporated by reference
therein and each Free Writing Prospectus to be filed with the Commission, subject to such
documents being under the Company’s control, and (B) the Company shall notify the Holders’
Counsel and each seller of Registrable Securities pursuant to such Registration Statement of
any stop order issued or threatened by the Commission and take all actions required to prevent
the entry of such stop order or to remove it if entered;
(ii) as soon as reasonably practicable, 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 the
lesser of (A) 120 days and (B) such shorter period which will terminate when all Registrable
Securities covered by such Registration Statement have been sold; provided, that in
the case of a Shelf Registration, the Company shall keep such Registration Statement effective
until all Registrable Securities covered by such Registration Statement shall have been sold,
and shall comply with the provisions of the Securities Act with respect to the disposition of
all securities covered by such Registration Statement during such period in accordance with
the intended methods of disposition by the sellers thereof set forth in such Registration
Statement;
(iii) as soon as reasonably practicable, furnish to each seller of Registrable
Securities, prior to filing a Registration Statement, at least one copy of such Registration
Statement as is proposed to be filed, and thereafter such number
16
of copies of such Registration Statement, each amendment and supplement thereto (in each
case including all exhibits thereto), the Prospectus included in such Registration Statement
(including each preliminary Prospectus), any Prospectus filed pursuant to Rule 424 promulgated
under the Securities Act and any Free Writing Prospectus as each such seller may reasonably
request in order to facilitate the disposition of the Registrable Securities owned by such
seller;
(iv) as soon as reasonably practicable, register or qualify such Registrable Securities
under such other securities or “blue sky” laws of such jurisdictions as any seller of
Registrable Securities may request, and to continue such registration or qualification in
effect in such jurisdiction for as long as permissible pursuant to the laws of such
jurisdiction, or for as long as any such seller requests or until all of such Registrable
Securities are sold, whichever is shortest, and do any and all other acts and things which may
be reasonably necessary or advisable to enable any such seller to
consummate the disposition in such jurisdictions of the Registrable Securities owned by
such seller; provided, however, that the Company shall not be required to (A)
qualify generally to do business in any jurisdiction where it would not otherwise be required
to qualify but for this Section 7(a)(iv), (B) subject itself to taxation in any such
jurisdiction or (C) consent to general service of process in any such jurisdiction;
(v) as soon as reasonably practicable, notify each seller of Registrable Securities: (A)
when a Prospectus, any Prospectus supplement, any Free Writing Prospectus, a Registration
Statement or a post-effective amendment to a Registration Statement has been filed with the
Commission, and, with respect to a Registration Statement or any post-effective amendment,
when the same has become effective; (B) of any request by the Commission or any other federal
or state governmental authority for amendments or supplements to a Registration Statement,
related Prospectus or Free Writing Prospectus or for additional information; (C) of the
issuance by the Commission or any other federal or state governmental authority of any stop
order suspending the effectiveness of a Registration Statement or the initiation or
threatening of any proceedings for that purpose; (D) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption from
qualification of any of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceedings for such purpose; (E) of the existence of any
fact or happening of any event of which the Company has knowledge which makes any statement of
a material fact in such Registration Statement, related Prospectus or Free Writing Prospectus
or any document incorporated or deemed to be incorporated therein by reference untrue or which
would require the making of any changes in the Registration Statement, Prospectus or Free
Writing Prospectus in order that, in the case of the Registration Statement, it will not
contain any untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein not misleading, and that in the
case of such Prospectus or Free Writing Prospectus, it will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances
17
under which they were made, not misleading; and (F) of the determination by counsel of
the Company that a post-effective amendment to a Registration Statement is advisable;
(vi) as soon as reasonably practicable, upon the occurrence of any event contemplated by
Section 7(a)(v)(E) or, subject to Sections 3(b) and 5(c), the existence of a Valid Business
Reason, as promptly as reasonably practicable, prepare a supplement or amendment to such
Registration Statement, related Prospectus or Free Writing Prospectus and furnish to each
seller of Registrable Securities a reasonable number of copies of such supplement to or an
amendment of such Registration Statement, Prospectus or Free Writing Prospectus as may be
necessary so that, after delivery to the purchasers of such Registrable Securities, in the
case of the Registration Statement, it will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein not misleading, and that in the case of such Prospectus or Free Writing
Prospectus, it will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading;
(vii) enter into and perform customary agreements (including underwriting and
indemnification and contribution agreements in customary form with the Approved Underwriter or
the Company Underwriter, as applicable) and take such other commercially reasonable actions as
are required in order to expedite or facilitate each disposition of Registrable Securities and
shall provide all reasonable cooperation, including causing appropriate officers to attend and
participate in “road shows” and other information meetings organized by the Approved
Underwriter or Company Underwriter, if applicable, and causing counsel to the Company to
deliver customary legal opinions in connection with any such underwriting agreements;
(viii) make available at reasonable times for inspection by any seller of Registrable
Securities, any managing underwriter participating in any disposition of such Registrable
Securities pursuant to a Registration Statement, Holders’ Counsel and any attorney, accountant
or other agent
retained by any such seller or any managing underwriter (collectively, the
“Inspectors”), all financial and other records, pertinent corporate documents and
properties of the Company and its subsidiaries (collectively, the “Records”) as shall
be reasonably necessary to enable them to exercise their due diligence responsibility, and
cause the Company’s and its subsidiaries’ officers, directors and employees, and the
independent public accountants of the Company, to supply all information reasonably requested
by any such Inspector in connection with such Registration Statement. Records that the Company
determines, in good faith, to be confidential and which it notifies the Inspectors are
confidential shall not be disclosed by the Inspectors (and the Inspectors shall confirm their
agreement in writing in advance to the Company if the Company shall so request) unless (A) the
disclosure of such Records is necessary, in the Inspector’s judgment, to
18
avoid or correct a misstatement or omission in the Registration Statement, (B) the
release of such Records is ordered pursuant to a subpoena or other order from a court of
competent jurisdiction after exhaustion of all appeals therefrom or (C) the information in
such Records was known to the Inspectors on a non-confidential basis prior to its disclosure
by the Company or has been made generally available to the public. Each seller of Registrable
Securities agrees that it shall, upon learning that disclosure of such Records is sought in a
court of competent jurisdiction, give notice to the Company and allow the Company, at the
Company’s expense, to undertake appropriate action to prevent disclosure of the Records deemed
confidential;
(ix) if such sale is pursuant to an underwritten public offering, use its commercially
reasonable best efforts to obtain a “cold comfort” letter or letters, dated as of such date or
dates as the Holders’ counsel or the managing underwriter reasonably requests, from the
Company’s independent public accountants in customary form and covering such matters of the
type customarily covered by “cold comfort” letters as Holders’ Counsel or the managing
underwriter reasonably requests;
(x) furnish, at the request of any seller of Registrable Securities on the date such
securities are delivered to the underwriters for sale pursuant to such registration or, if
such securities are not being sold through underwriters, on the date the Registration
Statement with respect to such securities becomes effective, an opinion with respect to legal
matters and a negative assurance letter with respect to disclosure matters, dated such date,
of counsel representing the Company for the purposes of such registration, addressed to the
underwriters, if any, and to the seller making such request, covering such matters with
respect to the registration in respect of which such opinion and letter are being delivered as
the underwriters, if any, and such seller may reasonably request and are customarily included
in such opinions and negative assurance letters;
(xi) with respect to each Free Writing Prospectus or other materials to be included in
the Disclosure Package, ensure that no Registrable Securities be sold “by means of” (as
defined in Rule 159A(b) promulgated under the Securities Act) such Free Writing Prospectus or
other materials without the prior written consent of the Holders of the Registrable Securities
covered by such registration statement, which Free Writing Prospectuses or other materials
shall be subject to the review of Holders’ Counsel;
(xii) as soon as reasonably practicable and within the deadlines specified by the
Securities Act, make all required filings of all Prospectuses and Free Writing Prospectuses
with the Commission;
(xiii) as soon as reasonably practicable and within the deadlines specified by the
Securities Act, make all required filing fee payments in respect of any Registration Statement
or Prospectus used under this Agreement (and any offering covered thereby);
19
(xiv) comply with all applicable rules and regulations of the Commission, and make
available to its security holders, as soon as reasonably practicable but no later than 15
months after the effective date of the Registration Statement, an earnings statement covering
a period of 12 months beginning after the effective date of the Registration Statement, in a
manner which satisfies the provisions of Section 11(a) of the Securities Act and Rule 158
promulgated thereunder;
(xv) cause all such Registrable Securities to be listed on each securities exchange on
which Registrable Class Securities issued by the Company are then listed, provided
that the applicable listing requirements are satisfied;
(xvi) as expeditiously as practicable, keep Holders’ Counsel advised in writing as to the
initiation and progress of any registration under Section 3, Section 4 or Section 5 and
provide Holders’ Counsel with all correspondence with the Commission in connection with any
such Registration Statement;
(xvii) cooperate with each seller of Registrable Securities and each underwriter
participating in the disposition of such Registrable Securities and their respective counsel
in connection with any filings required to be made with FINRA;
(xviii) if such registration is pursuant to a Registration Statement on Form S-3 or any
similar short-form registration, include in the body of the prospectus included in such
Registration Statement such additional information for marketing purposes as the managing
underwriter reasonably requests; and
(xix) take all other steps reasonably necessary to effect the registration and
disposition of the Registrable Securities contemplated hereby.
(b) Seller Obligations. In connection with any offering under any Registration
Statement under this Agreement:
(i) each Holder shall promptly furnish to the Company in writing such information with
respect to such Holder and the intended method of disposition of its Registrable Securities as
the Company may reasonably request or as may be required by law for use in connection with any
related Registration Statement or Prospectus (or amendment or supplement thereto) and all
information required to be disclosed in order to make the information previously furnished to
the Company by such Holder not contain a material misstatement of fact or necessary to cause
such Registration Statement or Prospectus (or amendment or supplement thereto) not to omit a
material fact with respect to such Holder necessary in order to make the statements therein
not misleading;
(ii) each Holder shall comply with the Securities Act and the Exchange Act and all
applicable state securities laws and comply with all applicable regulations in connection with
the registration and the disposition of the Registrable Securities; and
20
(iii) each Holder shall not use any Free Writing Prospectus without the prior
written consent of the Company;
(iv) with respect to any underwritten offering pursuant to Section 3, (x) each Initiating
Holder shall enter into an underwriting agreement in customary form with the managing
underwriter or underwriters and (y) no selling Holder may participate in any such underwritten
offering unless such selling Holder completes and/or provides all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents or information reasonably
required under the terms of, or in connection with, such underwriting agreement; and
(v) each Shelf Requesting Holder shall enter into an underwriting agreement in customary
form with managing underwriter or underwriters, and no Shelf Requesting Holder shall
participate in any underwritten registration pursuant to Section 5(b) unless such selling
Holder completes and/or provides all questionnaires, powers of attorney, indemnities, and
other documents or information reasonably required under the terms of, or in connection with
such underwriting agreement.
(c) Notice to Discontinue. Each Holder agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Section 7(a)(v)(E), such Holder
shall forthwith discontinue disposition of Registrable Securities pursuant to the Registration
Statement covering such Registrable Securities until such Holder’s receipt of the copies of the
supplemented or amended Prospectus or Free Writing Prospectus contemplated by Section 7(a)(vi) and,
if so directed by the Company, such Holder shall deliver to the Company (at the Company’s expense)
all copies, other than
permanent file copies then in such Holder’s possession, of the Prospectus or Free Writing
Prospectus covering such Registrable Securities which is current at the time of receipt of such
notice. If the Company shall give any such notice, the Company shall extend the period during which
such Registration Statement shall be maintained effective pursuant to this Agreement (including the
period referred to in Section 7(a)(ii)) by the number of days during the period from and including
the date of the giving of such notice pursuant to Section 7(a)(v)(E) to and including the date when
sellers of such Registrable Securities under such Registration Statement shall have received the
copies of the supplemented or amended Prospectus or Free Writing Prospectus contemplated by and
meeting the requirements of Section 7(a)(vi).
(d) Registration Expenses. Subject to the last sentence of this Section 7(d), and
except as otherwise provided in this Agreement, the Company shall pay all expenses arising from or
incident to its performance of, or compliance with, this Agreement, including (i) Commission, stock
exchange and FINRA registration and filing fees, (ii) all fees and expenses incurred in complying
with securities or “blue sky” laws (including reasonable fees, charges and disbursements of counsel
to any underwriter
21
incurred in connection with “blue sky” qualifications of the Registrable Securities as may be
set forth in any underwriting agreement), (iii) all printing, messenger and delivery expenses, (iv)
the reasonable fees, charges and expenses of Holders’ Counsel, any necessary counsel with respect
to state securities law matters, counsel to the Company and of its independent public accountants,
and any other accounting fees, charges and expenses incurred by the Company (including any expenses
arising from any “cold comfort” letters or any special audits incident to or required by any
registration or qualification) and any reasonable legal fees, charges and expenses incurred by the
Initiating Holders, the Shelf Initiating Holders or the Shelf Requesting Holders, as the case may
be, and (v) any liability insurance or other premiums for insurance obtained in connection with any
Demand Registration or piggy-back registration thereon, Incidental Registration or Shelf
Registration pursuant to the terms of this Agreement, regardless of whether such Registration
Statement is declared effective. All of the expenses described in the preceding sentence of this
Section 7(d) are referred to herein as “Registration Expenses.” Notwithstanding the
foregoing, (x) the Holders of Registrable Securities sold pursuant to a Registration Statement
shall bear the expense of any broker’s commission or underwriter’s discount or commission relating
to the registration and sale of such Holders’ Registrable Securities and, subject to clause (iv)
above, shall bear the fees and expenses of their own counsel, and (y) in no event shall the Company
be responsible under the foregoing clause (iv) above for any fees, charges or expenses with respect
to any Holder who voluntarily withdraws Registrable Securities from any registration or offering
(except as contemplated by Section 3(f)) or was required to withdraw such Registrable Securities as
a result of a breach, or failure to satisfy any condition, of this Agreement.
(e) Hedging Transactions.
(i) The Company agrees that, in connection with any proposed Hedging Transaction, if, in
the reasonable judgment of Holders’ Counsel, it is necessary or desirable to register under
the Securities Act such Hedging Transaction or sales or transfers (whether short or long) of
Registrable Class Securities in connection therewith, then the Company shall use its
reasonable best efforts to take such actions (which may include, among other things, the
filing of a post-effective amendment to a Registration Statement to include additional or
changed information that is material or is otherwise required to be disclosed, including a
description of such Hedging Transaction, the name of the Hedging Counterparty, identification
of the Hedging Counterparty or its Affiliates as underwriters or potential underwriters, if
applicable, or any change to the plan of distribution) as may reasonably be required to
register such Hedging Transaction or sales or transfers of Registrable Class Securities in
connection therewith under the Securities Act in a manner consistent with the rights and
obligations of the Company hereunder with respect to the registration of Registrable
Securities. Any information provided by the Holders regarding the Hedging Transaction that is
included in a Registration Statement, Prospectus or Free Writing Prospectus pursuant to this
Section 7(e) shall be deemed to be information provided by the Holders selling Registrable
Securities pursuant to such Registration Statement for purposes of Section 7(b).
22
(ii) All Registration Statements in which Holders may include Registrable Securities
under this Agreement shall be subject to the provisions of this Section 7(e), and the
registration of Registrable Class Securities thereunder pursuant to this Section 7(e) shall be
subject to the provisions of this Agreement applicable to any such Registration Statements;
provided, however, that the selection of any Hedging Counterparty shall not be
subject to Section 3(g), but the Hedging Counterparty shall be selected by the Holders of a
majority of the Registrable Class Securities subject to the Hedging Transaction that are
proposed to be included in such Registration Statement.
(iii) If in connection with a Hedging Transaction, a Hedging Counterparty or any
Affiliate thereof is (or may be considered) an underwriter or selling stockholder, then it
shall be required to provide customary indemnities to the Company regarding the plan of
distribution and like matters.
(iv) The Company further agrees to include, under the caption “Plan of Distribution” (or
the equivalent caption), in each Registration Statement, and any related Prospectus (to the
extent such inclusion is permitted under applicable Commission regulations and is consistent
with comments received from the Commission during any Commission review of the Registration
Statement), language substantially in the form of Schedule 1 hereto and to include in
each Prospectus supplement filed in connection with any proposed Hedging Transaction language
mutually agreed upon by the Company, the relevant Holders and the Hedging Counterparty
describing such Hedging Transaction.
8. Indemnification; Contribution.
(a) Indemnification by the Company. The Company shall indemnify and hold harmless each
Holder, its stockholders, partners, members, directors, managers, officers, employees, trustees,
attorneys, advisors, Affiliates and each Person who controls (within the meaning of Section 15 of
the Securities Act) such Holder from and against any and all losses, claims, damages, liabilities
and expenses, or any action or proceeding in respect thereof (including reasonable costs of
investigation and reasonable attorneys’ fees and expenses) (each, a “Liability”) arising
out of or based upon (i) any untrue statement or alleged untrue statement of a material fact
contained in the Disclosure Package, the Registration Statement, the Prospectus, any Free Writing
Prospectus or in any amendment or supplement thereto, (ii) the omission or alleged omission to
state in the Disclosure Package, the Registration Statement, the Prospectus, any Free Writing
Prospectus or in any amendment or supplement thereto any material fact required to be stated
therein or necessary to make the statements therein not misleading, and (iii) any violation or
alleged violation by the Company of the Securities Act, the Exchange Act, any other federal law,
any state or foreign securities law, or any rule or regulation promulgated under any of the
foregoing laws, relating to the offer or sale of the Registrable Securities; provided,
however, that the Company shall not be liable in any
23
such case to the extent that any such Liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in such Disclosure
Package, Registration Statement, Prospectus or preliminary prospectus or amendment or supplement
thereto in reliance upon and in conformity with written information furnished to the Company by or
on behalf of the Holder (including the information provided pursuant to Section 7(b)(i)) expressly
for use therein.
(b) Indemnification by Holders. In connection with any offering in which a Holder is
participating pursuant to Section 3, 4 or 5, such Holder shall indemnify and hold harmless the
Company, each other Holder, their respective directors, officers, other Affiliates and each Person
who controls the Company, and such other Holders (within the meaning of Section 15 of the
Securities Act) from and against any and all Liabilities arising out of or based upon (i) any
untrue statement or alleged untrue statement of a material fact contained in the Disclosure
Package, the Registration Statement, the Prospectus, any Holder Free Writing Prospectus or in any
amendment or supplement thereto, and (ii) the omission or alleged omission to state in the
Disclosure Package, the Registration Statement, the Prospectus, any Holder Free Writing Prospectus
or in any amendment or supplement thereto any material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case, to the extent such
Liabilities arise out of or are based upon written information furnished by such Holder or on such
Holder’s behalf expressly for inclusion in the Disclosure Package, the Registration Statement,
the Prospectus or any amendment or supplement thereto relating to the Registrable Securities
(including the information provided pursuant to Section 7(b)(i)); provided,
however, that the obligation to indemnify shall be individual, not joint and several, for
each Holder and the total amount to be indemnified by such Holder pursuant to this Section 8(b)
shall be limited to the net proceeds (after deducting the underwriters’ discounts and commissions)
received by such Holder in the offering to which the Registration Statement, Prospectus, Disclosure
Package or Holder Free Writing Prospectus relates.
(c) Conduct of Indemnification Proceedings. Any Person entitled to indemnification
hereunder (the “Indemnified Party”) shall give prompt written notice to the indemnifying
party (the “Indemnifying Party”) after the receipt by the Indemnified Party of any written
notice of the commencement of any action, suit, proceeding or investigation or threat thereof made
in writing for which the Indemnified Party intends to claim indemnification or contribution
pursuant to this Agreement; provided, however, that the failure to so notify the
Indemnifying Party shall not relieve the Indemnifying Party of any Liability that it may have to
the Indemnified Party hereunder (except to the extent that the Indemnifying Party forfeits
substantive rights or defenses by reason of such failure). If notice of commencement of any such
action is given to the Indemnifying Party as above provided, the Indemnifying Party shall be
entitled to participate in and, to the extent it may wish, jointly with any other Indemnifying
Party similarly notified, to assume the defense of such action at its own expense, with counsel
chosen by it and reasonably satisfactory to such Indemnified Party. The Indemnified Party shall
have the right to employ separate counsel in any such action and participate in the defense
thereof, but the fees and expenses of such counsel shall be paid by the Indemnified Party unless
24
(i) the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume
the defense of such action with counsel reasonably satisfactory to the Indemnified Party or (iii)
the named parties to any such action (including any impleaded parties) include both the
Indemnifying Party and the Indemnified Party and such parties have been advised by such counsel
that either (A) representation of such Indemnified Party and the Indemnifying Party by the same
counsel would be inappropriate under applicable standards of professional conduct or (B) there may
be one or more legal defenses available to the Indemnified Party which are different from or
additional to those available to the Indemnifying Party. In any of such cases, the Indemnifying
Party shall not have the right to assume the defense of such action on behalf of such Indemnified
Party; it being understood, however, that the Indemnifying Party shall not be liable for the fees
and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all
Indemnified Parties. No Indemnifying Party shall be liable for any settlement entered into without
its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall,
without the written consent of such Indemnified Party, effect any settlement of any pending or
threatened proceeding in respect of which such Indemnified Party is a party and indemnity has been
sought hereunder by such Indemnified Party, unless such settlement includes an unconditional
release of such Indemnified Party from all liability for claims that are the subject matter of such
proceeding.
(d) Contribution. If the indemnification provided for in this Section 8 from the
Indemnifying Party is unavailable to an Indemnified Party hereunder in respect of any Liabilities
referred to herein, then 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
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 Liabilities, as
well as any other relevant equitable considerations. The relative faults 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 a material fact or omission or
alleged omission to state a material fact, has been made by, 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 Liabilities referred to above shall be deemed to include, subject to the
limitations set forth in Sections 8(a), 8(b) and 8(c), any legal or other fees, charges or expenses
reasonably incurred by such party in connection with any investigation or proceeding;
provided, that the total amount to be contributed by any Holder shall be limited to the net
proceeds (after deducting the underwriters’ discounts and commissions)
received by such Holder in the offering. 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.
25
(e) Exchange Act Reporting and Rule 144. The Company covenants that it shall (a)
file any reports required to be filed by it under the Exchange Act and (b) take such further action
as each Holder may reasonably request (including providing any information necessary to comply with
Rule 144 promulgated under the Securities Act), all to the extent required from time to time to
enable such Holder to sell Registrable Securities without registration under the Securities Act
within the limitation of the exemptions provided by (i) Rule 144 promulgated under the Securities
Act, as such rule may be amended from time to time, or Regulation S promulgated under the
Securities Act or (ii) any similar rules or regulations hereafter adopted by the Commission. The
Company shall, upon the request of any Holder, deliver to such Holder a written statement as to
whether it has complied with such requirements.
9. Miscellaneous.
(a) Termination. In the event the Merger Agreement is terminated, this Agreement shall
automatically terminate and be of no further force and effect. This Agreement shall automatically
terminate with respect to a Holder once such Holder no longer owns Registrable Securities.
(b) Recapitalizations, Exchanges, etc. The provisions of this Agreement shall apply to
the full extent set forth herein with respect to (i) the shares of Common Stock and (ii) any and
all securities of the Company or any successor or assign of the Company (whether by merger,
consolidation, sale of assets, recapitalization, reorganization or otherwise) which may be issued
in respect of, in conversion of, in exchange for or in substitution of, the shares of Common Stock
and shall be appropriately adjusted for any stock dividends, splits, reverse splits, combinations,
recapitalizations and the like occurring after the date hereof. The Company shall cause any
successor or assign (whether by merger, consolidation, sale of assets, recapitalization,
reorganization or otherwise) to assume this Agreement or enter into a new registration rights
agreement with the Holders on terms substantially the same as this Agreement as a condition of any
such transaction.
(c) No Inconsistent Agreements. The Company represents and warrants that it has not
granted to any Person the right to request or require the Company to register any securities issued
by the Company, other than the rights granted to the Holders herein. The Company shall not enter
into any agreement with respect to its securities that is inconsistent with the rights granted to
the Holders in this Agreement or grant any additional registration rights to any Person or with
respect to any securities which are not Registrable Securities which are prior in right to or
inconsistent with the rights granted in this Agreement.
(d) Remedies. The Holders, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, shall be entitled to specific performance of their
rights under this Agreement, without need for a bond. 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 in any action for specific performance the
defense that a remedy at law would be adequate or that there is need for a bond.
26
(e) Amendments and Waivers. Except as otherwise provided herein, the provisions
of this Agreement may not be amended, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given unless consented to in writing by (i) the
Company and (ii) the Holders holding Registrable Securities representing (after giving effect to
any adjustments) at least a majority of the aggregate number of Registrable Securities owned by all
of the Holders; provided that such majority shall include the Investors. Any such written consent
shall be binding upon the Company and all of the Holders.
(f) Notices. All notices, demands and other communications provided for or permitted
hereunder shall be made in writing and shall be made by registered or certified first-class mail,
return receipt requested, telecopy, electronic transmission, courier service or personal delivery:
(i) if to the Company:
c/o RH, Inc.
0000 Xxxxxxxx Xxxx
Xxxxxxx, XX 00000
Fax: (000) 000-0000
Attn: Xxxx Xxxxxxxxxxx, Esq.
0000 Xxxxxxxx Xxxx
Xxxxxxx, XX 00000
Fax: (000) 000-0000
Attn: Xxxx Xxxxxxxxxxx, Esq.
with a copy to:
Xxxx, Weiss, Rifkind, Xxxxxxx & Xxxxxxxx LLP
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Fax: (000) 000-0000
Attn: Xxxxxxx X. Xxxxxx, Esq.
Xxxxxxx X. Xxxxx, Esq.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Fax: (000) 000-0000
Attn: Xxxxxxx X. Xxxxxx, Esq.
Xxxxxxx X. Xxxxx, Esq.
and (until such time as the Merger closes)
Xxxxxxxxxx Xxxxxx & Xxxxxxx LLP
000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxxxx, XX 00000
Fax No: (000) 000-0000
Attention: Xxxx X. Xxxxxxx, Esq.
Xxxxx X. Xxxxxxxxx, Esq.
000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxxxx, XX 00000
Fax No: (000) 000-0000
Attention: Xxxx X. Xxxxxxx, Esq.
Xxxxx X. Xxxxxxxxx, Esq.
27
if to Harbinger Master:
Harbinger Capital Partners Master Fund I, Ltd.
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Fax: (000) 000-0000
Attn: General Counsel
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Fax: (000) 000-0000
Attn: General Counsel
with a copy to:
Xxxx, Weiss, Rifkind, Xxxxxxx & Xxxxxxxx LLP
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Fax: (000) 000-0000
Attn: Xxxxxxx X. Xxxxxx, Esq.
Xxxxxxx X. Xxxxx, Esq.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Fax: (000) 000-0000
Attn: Xxxxxxx X. Xxxxxx, Esq.
Xxxxxxx X. Xxxxx, Esq.
(ii) if to Harbinger Special Situations:
Harbinger Capital Partners Special Situations Fund, L.P.
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Fax: (000) 000-0000
Attn: Xxxxx Xxxxx, General Counsel
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Fax: (000) 000-0000
Attn: Xxxxx Xxxxx, General Counsel
with a copy to:
Xxxx, Weiss, Rifkind, Xxxxxxx & Xxxxxxxx LLP
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Fax: (000) 000-0000
Attn: Xxxxxxx X. Xxxxxx, Esq.
Xxxxxxx X. Xxxxx, Esq.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Fax: (000) 000-0000
Attn: Xxxxxxx X. Xxxxxx, Esq.
Xxxxxxx X. Xxxxx, Esq.
28
(iii) if to Global Opportunities:
Global Opportunities Breakaway Ltd.
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Fax: (000) 000-0000
Attn: Xxxxx Xxxxx, General Counsel
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Fax: (000) 000-0000
Attn: Xxxxx Xxxxx, General Counsel
with a copy to:
Xxxx, Weiss, Rifkind, Xxxxxxx & Xxxxxxxx LLP
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Fax: (000) 000-0000
Attn: Xxxxxxx X. Xxxxxx, Esq.
Xxxxxxx X. Xxxxx, Esq.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Fax: (000) 000-0000
Attn: Xxxxxxx X. Xxxxxx, Esq.
Xxxxxxx X. Xxxxx, Esq.
(iv) if to Avenue Investors
Avenue Capital Group
000 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Fax: (000) 000-0000
Attn: Xx. Xxxxxxx Xxxxxx
000 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Fax: (000) 000-0000
Attn: Xx. Xxxxxxx Xxxxxx
with a copies to:
Akin Gump Xxxxxxx Xxxxx & Xxxx LLP
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000
Fax: (000) 000-0000
Attn: Xxx Xxxxxxxxx
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000
Fax: (000) 000-0000
Attn: Xxx Xxxxxxxxx
and
Xxxx Xxxx Xxxxxxx Xxxxx & Xxxx LLP
0000 Xxx Xxxxxxxxx Xxx, XX
Xxxxxxxxxx, XX 00000
Fax: (000) 000-0000
Attn: Xxxxxxx X. Xxxxx, Xx.
0000 Xxx Xxxxxxxxx Xxx, XX
Xxxxxxxxxx, XX 00000
Fax: (000) 000-0000
Attn: Xxxxxxx X. Xxxxx, Xx.
All such notices, demands and other communications shall be deemed to have been duly given when
delivered by hand, if personally delivered; when delivered by courier, if delivered by commercial
courier service; five Business Days after being deposited in the mail, postage prepaid, if mailed;
and when receipt is acknowledged, if telecopied or electronically transmitted. Any party may by
notice given in accordance with this Section 9(f) designate another address or Person for receipt
of notices hereunder.
29
(g) Successors and Assigns; Third Party Beneficiaries. This Agreement shall inure
to the benefit of and be binding upon the successors and permitted assigns of the parties hereto as
provided herein. The registration rights and requirements and related rights of the Holders
contained in this Agreement, shall be with respect to any Registrable Security, transferred to any
Person who is the transferee of such Registrable Security, without the consent of the Company, but
only if transferred in compliance with this Agreement and only to the extent such transfer would
not cause the Registrable Securities to cease being Registrable Securities under section 2(b). At
the time of the transfer of any Registrable Security as contemplated by this Section 9(g), such
transferee shall execute and deliver to the Company an instrument, in form and substance reasonably
satisfactory to the Company, to evidence its agreement to be bound by, and to comply with, this
Agreement as a Holder. All of the obligations of the Company hereunder shall survive any such
transfer. The Company shall not assign this Agreement, in whole or in part. Except as provided in
Section 8, no Person other than the parties hereto and their successors and permitted assigns is
intended to be a beneficiary of this Agreement.
(h) Headings. The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the meaning hereof.
(i) GOVERNING LAW; CONSENT TO JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF
CONFLICTS OF LAW THEREOF THAT WOULD APPLY THE LAWS OF ANOTHER JURISDICTION. The parties hereto
irrevocably submit to the exclusive jurisdiction of any state or federal court sitting in the
County of New York, in the State of New York over any suit, action or proceeding arising out of or
relating to this Agreement or the affairs of the Company. To the fullest extent they may
effectively do so under applicable law, the parties hereto irrevocably waive and agree not to
assert, by way of motion, as a defense or otherwise, any claim that they are not subject to the
jurisdiction of any such court, any objection that they may now or hereafter have to the laying of
the venue of any such suit, action or proceeding brought in any such court and any claim that any
such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum.
(j) WAIVER OF JURY TRIAL. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY DISPUTE OR
CONTROVERSY THAT MAY ARISE, WHETHER IN WHOLE OR IN PART, UNDER THIS AGREEMENT IS LIKELY TO INVOLVE
COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.
30
(k) Severability. If any one or more of the provisions contained herein, or the
application thereof in any circumstance, is held invalid, illegal or unenforceable in any respect
for any reason, the validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way impaired, unless the
provisions held invalid, illegal or unenforceable shall substantially impair the benefits of the
remaining provisions hereof.
(l) Rules of Construction. Unless the context otherwise requires, references to
sections or subsections refer to sections or subsections of this Agreement. Terms defined in the
singular have a comparable meaning when used in the plural, and vice versa.
(m) Interpretation. The parties hereto acknowledge and agree that (i) each party
hereto and its counsel reviewed and negotiated the terms and provisions of this Agreement and have
contributed to its revision, (ii) the rule of construction to the effect that any ambiguities are
resolved against the drafting party shall not be employed in the interpretation of this Agreement
and (iii) the terms and provisions of this Agreement shall be construed fairly as to all parties
hereto, regardless of which party was generally responsible for the preparation of this Agreement.
(n) Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto with respect to the subject matter contained herein. There are
no restrictions, promises, representations, warranties or undertakings with respect to the subject
matter contained herein, other than those set forth or referred to herein. This Agreement
supersedes all prior agreements and understandings among the parties with respect to such subject
matter.
(o) Further Assurances. Each of the parties shall execute such documents and perform
such further acts as may be reasonably required or desirable to carry out or to perform the
provisions of this Agreement.
(p) Other Agreements. Nothing contained in this Agreement shall be deemed to be a
waiver of, or release from, any obligations any party hereto may have under, or any restrictions on
the transfer of Registrable Securities or other securities of the Company imposed by, any other
agreement, including the Merger Agreements.
(q) Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement.
[Remainder of page intentionally left blank]
31
IN WITNESS WHEREOF, the undersigned have executed, or have caused to be executed, this
Agreement on the date first written above.
SB/RH HOLDINGS, INC. |
||||
By: | /s/ Xxxx Xxxxxxxxxxx | |||
Name: | Xxxx Xxxxxxxxxxx | |||
Title: | Vice President | |||
HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD. |
||||
By: | Harbinger Capital Partners LLC, its investment Manager |
|||
By: | /s/ Xxxxx Xxxxxx | |||
Name: | Xxxxx Xxxxxx | |||
Title: | Vice President | |||
HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS FUND, L.P. |
||||
By: | /s/ Xxxxx Xxxxxx | |||
Name: | Xxxxx Xxxxxx | |||
Title: | Vice President | |||
GLOBAL OPPORTUNITIES BREAKAWAY LTD. |
||||
By: |
Harbinger Capital Partners II LP, its investment
manager |
|||
By: | /s/ Xxxxx Xxxxxx | |||
Name: | Xxxxx Xxxxxx | |||
Title: | Vice President | |||
Signature Page to Registration Rights Agreement
AVENUE INTERNATIONAL MASTER, L.P. |
||||
By: | /s/ Xxxxx X. Xxxxxxx | |||
Name: | Xxxxx X. Xxxxxxx | |||
Title: | Director | |||
AVENUE INVESTMENTS, L.P. |
||||
By: | /s/ Xxxxx X. Xxxxxxx | |||
Name: | Xxxxx X. Xxxxxxx | |||
Title: | Member | |||
AVENUE SPECIAL SITUATIONS FUND V, L.P. |
||||
By: | /s/ Xxxxx X. Xxxxxxx | |||
Name: | Xxxxx X. Xxxxxxx | |||
Title: | Member | |||
AVENUE SPECIAL SITUATIONS FUND IV, L.P. |
||||
By: | /s/ Xxxxx X. Xxxxxxx | |||
Name: | Xxxxx X. Xxxxxxx | |||
Title: | Member | |||
AVENUE-CDP GLOBAL OPPORTUNITIES FUND, L.P. |
||||
By: | /s/ Xxxxx X. Xxxxxxx | |||
Name: | Xxxxx X. Xxxxxxx | |||
Title: | Member | |||
Signature Page to Registration Rights Agreement
Schedule 1
Plan of Distribution
A selling stockholder may also enter into hedging and/or monetization transactions. For
example, a selling stockholder may:
(a) enter into transactions with a broker-dealer or affiliate of a broker-dealer or other
third party in connection with which that other party will become a selling stockholder and engage
in short sales of the common stock under this prospectus, in which case the other party may use
shares of common stock received from the selling stockholder to close out any short positions;
(b) itself sell short common stock under this prospectus and use shares of common stock held
by it to close out any short position;
(c) enter into options, forwards or other transactions that require the selling stockholder to
deliver, in a transaction exempt from registration under the Securities Act, common stock to a
broker-dealer or an affiliate of a broker-dealer or other third party who may then become a selling
stockholder and publicly resell or otherwise transfer that common stock under this prospectus; or
(d) loan or pledge common stock to a broker-dealer or affiliate of a broker-dealer or other
third party who may then become a selling stockholder and sell the loaned shares or, in an event of
default in the case of a pledge, become a selling stockholder and sell the pledged shares, under
this prospectus.