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EXHIBIT 10.15
COMMON STOCK
REGISTRATION RIGHTS AGREEMENT
Dated as of May 4, 2000
By and Among
NASSAU BROADCASTING PARTNERS, L.P.,
and
▇▇▇▇▇▇▇ ▇▇▇▇▇ CAPITAL CORPORATION,
CAISSE DE DEPOT ET PLACEMENT DU QUEBEC,
THE BANK OF NOVA SCOTIA,
OZ MASTER FUND, LTD.
and
BANK OF MONTREAL
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TABLE OF CONTENTS
Page
Section 1. Definitions.............................................................................. 1
Section 2. Registration Rights...................................................................... 6
2.1 (a) Demand Registration.......................................................... 6
(b) Effective Registration....................................................... 7
(c) Priority in Demand Registrations Pursuant to Section 2.1..................... 8
(d) Restrictions on Sale by Holders.............................................. 8
(e) Selection of Underwriter..................................................... 8
(f) Expenses..................................................................... 9
2.2 (a) Piggy-Back Registration...................................................... 9
(b) Priority in Piggy-Back Registration.......................................... 10
(c) Restrictions on Sale by Holders.............................................. 11
2.3 Limitations, Conditions and Qualifications to Obligations Under
Registration Covenants............................................................ 11
2.4 [Reserved]........................................................................ 13
2.5 Rule 144 and Rule 144A............................................................ 13
2.6 Underwritten Registrations........................................................ 13
Section 3. [Reserved]............................................................................... 13
Section 4. Registration Procedures.................................................................. 14
Section 5. Indemnification and Contribution......................................................... 20
Section 6. Miscellaneous............................................................................ 23
(a) Remedies.......................................................................... 23
(b) No Inconsistent Agreements........................................................ 23
(c) No Piggy-Back on Demand Registrations............................................. 23
(d) Amendments and Waivers............................................................ 23
(e) Notices........................................................................... 23
(f) Successors and Assigns............................................................ 24
(g) Counterparts...................................................................... 24
(h) Governing Law..................................................................... 24
(i) Severability...................................................................... 25
(j) Headings.......................................................................... 25
(k) Entire Agreement.................................................................. 25
(l) Securities Held by the Company or its Affiliates.................................. 25
(m) Third Party Beneficiary........................................................... 25
COMMON STOCK REGISTRATION RIGHTS AGREEMENT
This COMMON STOCK REGISTRATION RIGHTS AGREEMENT (the "Agreement") is
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made and entered into as of May 4, 2000, between Nassau Broadcasting
Partners, L.P., (the "Company") a Delaware limited partnership organized under
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the Delaware Revised Uniform Limited Partnership Act, ▇▇▇▇▇▇▇ ▇▇▇▇▇ CAPITAL
CORPORATION ("▇▇▇▇▇▇▇ ▇▇▇▇▇"), ▇▇▇▇▇▇ DE DEPOT ET PLACEMENT DU QUEBEC, THE BANK
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OF NOVA SCOTIA, OZ MASTER FUND, LTD. AND BANK OF MONTREAL (together with ▇▇▇▇▇▇▇
▇▇▇▇▇, the "Purchasers").
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This Agreement is made pursuant to the Units Purchase Agreement dated
as of May 4, 2000, among the Company, Nassau Finance Corp. (collectively with
the Company, the "Issuers") and the Purchasers (the "Purchase Agreement"), with
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respect to the issuance and sale by the Company and the purchase by the
Purchasers, severally, for gross proceeds of $60,000,488.85 of 117,359 units
(the "Units") consisting of $117,359,000 aggregate principal amount at maturity
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of the Issuers' 13% (resetting to 14%) Senior Discount Notes due 2010 (the
"Notes") and 19,303.86 units of partnership interest in the Company representing
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2.0% of the aggregate equity interests in the Company on a fully diluted basis
as of the date hereof plus such additional number of units of partnership
interest or shares of capital stock of the Company representing up to an
additional 3.5% of the aggregate equity interests of the Company on a fully
diluted basis as may be issuable in accordance with the provisions of Section
2.01(a) of the Purchase Agreement. The execution of this Agreement is a
condition to the obligations of the Purchasers under the Purchase Agreement.
In consideration of the foregoing, the parties hereto agree as
follows:
Section 1. Definitions. As used in this Agreement, the following
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defined terms shall have the following meanings:
"Advice" has the meaning ascribed to such term in Section 4 hereof.
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"Affiliate" means, with respect to any specified Person, (i) any other
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Person directly or indirectly controlling or controlled by or under direct
or indirect common control with such specified Person or (ii) any other
Person that owns, directly or indirectly, 10% or more of such specified
Person's Voting Capital Stock (as defined in the Purchase Agreement) or any
executive officer or director of any such specified Person or other Person
or, with respect to any natural Person, any Person having a relationship
with such Person by blood, marriage or adoption not more remote than first
cousin. For purposes of this definition, "control" (including, with
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correlative meanings, the terms "controlling," "controlled by" and "under
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common control with") of any specified Person means the possession,
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directly or indirectly, of the power to direct or cause the direction of
the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by agreement or otherwise.
"Agreement" shall have the meaning ascribed to such term in the
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preamble hereto.
"Aurora Acquisition" means the acquisition of all of the outstanding
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equity interests of Aurora Communications LLC.
"Aurora Investors" has the meaning set forth in the Purchase
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Agreement.
"Aurora Registration Rights Agreement" means the Registration Rights
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Agreement contemplated to be entered into by the Company and the Aurora
Investors at the consummation of the Aurora Acquisition, substantially in
the form of Exhibit C to the Purchase and Exchange Agreement.
"Business Day" shall mean a day that is not a Legal Holiday.
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"Capital Stock" shall mean, with respect to any Person, any and all
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shares, interests, partnership interests, participations, rights in or
other equivalents (however designated and whether voting or non-voting) of
such person's capital stock, and any rights (other than debt securities
convertible into capital stock), warrants or options exchangeable for or
convertible into such capital stock whether outstanding on the Issue Date
or issued after the Issue Date.
"Company" shall have the meaning ascribed to such term in the preamble
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of this Agreement and shall also include the Company's permitted successors
and assigns.
"Common Stock" shall mean the Company's common stock authorized in
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connection with the Reorganization and any other class or series of common
equity equivalent shares of the Company hereafter created.
"Demand Registration" shall have the meaning ascribed to such term in
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Section 2.1(a) hereof.
"DTC" shall have the meaning ascribed to such term in Section 4(i)
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hereof.
"Effectiveness Period" shall have the meaning ascribed to such term in
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Section 2.1(a) hereof.
"Exchange Act" shall mean the Securities Exchange Act of 1934, as
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amended from time to time.
"Fair Market Value" shall mean the value of any securities as
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determined (without any discount for lack of liquidity, the amount of such
securities proposed to be sold or the fact that such securities held by any
Holder of such security may represent a minority interest
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in a private company) by a nationally or regionally recognized investment
banking firm selected by the Company for the determination of such value.
"Holder" shall mean each of the Purchasers for so long as the
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Purchasers own any Registrable Securities, and each of their successors,
assigns and direct and indirect transferees who become registered owners of
such Registrable Securities.
"Included Securities" shall have the meaning ascribed to such term in
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Section 2.1(a) hereof.
"Indemnified Person" shall have the meaning ascribed to such term in
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Section 5(a).
"Initial Public Equity Offering" shall mean a primary public offering
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(whether or not underwritten, but excluding any offering pursuant to Form
S-8 or F-8 under the Securities Act or any other publicly registered
offering pursuant to the Securities Act pertaining to an issuance of shares
of Common Stock or securities exercisable therefor under any benefit plan,
employee compensation plan, or employee or director stock purchase plan) of
Common Stock of the Company pursuant to an effective registration statement
under the Securities Act.
"Inspectors" shall have the meaning ascribed to such term in Section
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4(m) hereof.
"Issuers" shall have the meaning ascribed to such term in the preamble
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to this Agreement.
"Legal Holiday" shall mean a Saturday, a Sunday or a day on which (i)
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banking institutions in The City of New York are required or authorized by
law or other government action to be closed and (ii) the principal U.S.
securities exchange or market, if any, on which any Common Stock is listed
or admitted to trading and the principal U.S. securities exchange or
market, if any, on which the Warrants are listed or admitted to trading are
closed for business.
"LP Unit" means a unit of limited partnership interest in the Company
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issued pursuant to the Purchase Agreement.
"▇▇▇▇▇▇▇ ▇▇▇▇▇" shall have the meaning ascribed to such term in the
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preamble hereto.
"Notes" shall have the meaning ascribed to such term in the preamble
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hereto.
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"Original Investors" shall mean Spectrum Equity Investors, L.P.,
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Spectrum Equity Investors II, L.P., Grotech Partners IV, L.P., Toronto Dominion
(USA), Inc., Nassau Holdings, Inc., ▇▇▇▇ ▇. ▇▇▇▇ and Nassau Broadcasting
Company.
"Original Investors Registration Rights Agreement" shall mean the
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Registration Rights Agreement dated as of May 4, 2000 between the Company and
the Original Investors.
"Person" shall mean any individual, corporation, limited liability
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company, partnership, joint venture, association, joint-stock company,
trust, unincorporated organization or government or any agency or political
subdivision thereof or any other entity, including any predecessor of any
such entity.
"Piggy-Back Registration" shall have the meaning ascribed to such term
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in Section 2.2(a) hereof.
"Prospectus" shall mean the prospectus included in any Registration
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Statement (including, without limitation, any prospectus subject to
completion and a prospectus that includes any information previously
omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A promulgated under the Securities Act),
as amended or supplemented by any prospectus supplement, and all other
amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.
"Purchase and Exchange Agreement" means the Purchase and Exchange
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Agreement dated as of March 24, 2000 among the Company and the Sellers
named therein with respect to the Aurora Acquisition, as amended by
Amendment No. 1 to the Purchase and Exchange Agreement dated as of May __,
2000 and as may be further amended from time to time.
"Purchase Agreement" shall have the meaning ascribed to such term in
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the preamble hereof.
"Purchasers" shall have the meaning ascribed to such term in the
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preamble hereof.
"Registrable Securities" shall mean any of (i) the LP Units or
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(following the Reorganization) Shares held by the Holders on or after the
date hereof and (ii) any other securities issued or issuable with respect
to the LP Units or Shares by way of stock dividend or stock split or in
connection with a combination of shares, recapitalization,
reclassification, merger, consolidation or other reorganization or
otherwise. As to any particular Registrable Securities, such securities
shall cease to be Registrable Securities when (a) a registration statement
with respect to the offering of such securities by the holder thereof shall
have been declared effective under the Securities Act and such securities
shall have been disposed of
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by such holder pursuant to such registration statement, (b) such securities
have been sold to the public pursuant to, or are eligible for sale to the
public without volume or manner of sale restrictions under, Rule 144(k) (or
any similar provision then in force, but not Rule 144A) promulgated under
the Securities Act, (c) such securities shall have been otherwise
transferred and new certificates for such securities not bearing a legend
restricting further transfer shall have been delivered by the Company or
its transfer agent and subsequent disposition of such securities shall not
require registration or qualification under the Securities Act or any
similar state law then in force, or (d) such securities shall have ceased
to be outstanding.
"Registration Expenses" shall mean all expenses incident to the
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Company's performance of or compliance with this Agreement, including,
without limitation, all SEC and stock exchange or National Association of
Securities Dealers, Inc. registration and filing fees and expenses, fees
and expenses of compliance with securities or blue sky laws (including,
without limitation, reasonable fees and disbursements of counsel for the
underwriters and the Holders in connection with blue sky qualifications of
the Registrable Securities), printing expenses, messenger, telephone and
delivery expenses, fees and disbursements of counsel for the Company and
all independent certified public accountants, and other reasonable out-of-
pocket expenses of Holders (it being understood that Registration Expenses
shall not include, as to the fees and expenses of counsel, the fees and
expenses of more than one counsel for the Holders and one counsel for the
underwriters as to blue sky matters).
"Registration Statement" shall mean any appropriate registration
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statement of the Company filed with the SEC pursuant to the Securities Act
which covers any of the Registrable Securities pursuant to the provisions
of this Agreement and all amendments and supplements to any such
Registration Statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.
"Reorganization" means a change in the form of organization of the
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Company from a limited partnership to a corporation, including the transfer
of all assets and liabilities of the Company to its corporate successor and
all other transactions consummated in connection therewith, in connection
with the Initial Public Equity Offering of the Company's Common Stock or as
otherwise required by Section 2.1 of this Agreement.
"Requisite Equity Interests" shall mean a number of Registrable
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Securities equivalent to not less than 10% of the Registrable Securities
outstanding as of any date of determination.
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"Rule 144" shall mean Rule 144 promulgated under the Securities Act,
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as such Rule may be amended from time to time, or any similar rule (other
than Rule 144A) or regulation hereafter adopted by the SEC providing for
offers and sales of securities made in compliance therewith resulting in
offers and sales by subsequent holders that are not affiliates of an issuer
of such securities being free of the registration and prospectus delivery
requirements of the Securities Act.
"Rule 144A" shall mean Rule 144A promulgated under the Securities Act,
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as such Rule may be amended from time to time, or any similar rule (other
than Rule 144) or regulation hereafter adopted by the SEC.
"SEC" shall mean the Securities and Exchange Commission.
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"Securities Act" shall mean the Securities Act of 1933, as amended
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from time to time.
"Selling Holder" shall mean a Holder who is selling Registrable
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Securities in accordance with the provisions of Section 2.1 or 2.2,
respectively.
"Shares" shall mean shares of Common Stock issuable upon conversion of
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the LP Units into Common Stock in connection with a Reorganization.
"Suspension Period" shall have the meaning ascribed to such term in
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Section 2.3(a).
"Transfer Notice" shall have the meaning ascribed to such term in
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Section 3.2(c) hereof.
"Units" shall have the meaning ascribed to such term in the preamble
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of this Agreement.
"Voting Stock" shall have the meaning ascribed to such term in the
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Purchase Agreement.
Section 2. Registration Rights.
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2.1 (a) Demand Registration. Upon the earlier of (i) the fifth
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year anniversary of the Issue Date, or (ii) 180 days following the Initial
Public Offering of the Company Holders owning, individually or in the aggregate,
at least the Requisite Equity Interests may, from time to time, make a written
request to the Company to effect up to two registrations (each, a "Demand
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Registration") under the Securities Act of their Registrable Securities. Within
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20 days after the receipt of such written request for a Demand Registration, the
Company shall (i) notify the Holders
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of all Registrable Securities that a Demand Registration has been requested,
(ii) prepare, file with the SEC and use its best efforts to cause to become
effective under the Securities Act within 150 days of such demand a Registration
Statement with respect to such Registrable Securities and (iii) keep such
registration statement continuously effective for such period of time as all of
the Registrable Securities included in such registration statement shall have
been sold thereunder (the "Effectiveness Period"). Any such request will specify
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the number of Registrable Securities proposed to be sold and will also specify
the intended method of disposition thereof. Within 30 days after receipt by any
Holder of Registrable Securities of such notice from the Company, such Holder
may request in writing that such Holder=s Registrable Securities be included in
such Registration Statement and the Company shall include in such Registration
Statement the Registrable Securities of any such Holder requested to be so
included (the "Included Securities"). Each such request by such other Holders
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shall specify the number of Included Securities proposed to be sold and the
intended method of disposition thereof. Subject to Sections 2.1(b) and 2.1(f)
hereof, the Company shall be required to effect a Demand Registration of
Registrable Securities pursuant to this Section 2.1(a) up to a maximum of two
occasions. If at the time of receipt of such request the Company is not a
Subchapter C corporation, the Equity Holders and the Company shall take such
steps as shall be necessary for the Company to reorganize as a Subchapter C
corporation in order to permit Holders who have exercised their registration
rights pursuant to this Section 2.1 to have registered for resale Shares. The
terms of any such Reorganization shall be structured so as to provide the
Holders with such number of Shares as results in the Holders holding an
equivalent percentage of Capital Stock and Voting Stock in the Company after the
Reorganization as they held immediately prior to the Reorganization to this
Agreement.
If such demand occurs during the "lock up" period (not to exceed 180
days) imposed on the Company pursuant to or in connection with any underwriting
or purchase agreement relating to an underwritten Rule 144A or registered public
offering of Common Stock or securities convertible into or exchangeable or
exercisable for Common Stock, the Company shall not be required to so notify
Holders of Registrable Securities and file such Demand Registration Statement
prior to the end of such "lock up" or "black out" period, in which event the
Company will use its best efforts to cause such Demand Registration statement to
become effective no later than the later of (i) 150 days after such demand or
(ii) 90 days after the end of such "lock up" or "black out" period. In the
event of any "lock up" period under any underwriting or other purchase
agreement, the Company shall so notify the holders of Registrable Securities.
(b) Effective Registration. A Registration Statement shall not be
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deemed to have been effected as a Demand Registration unless it shall have been
declared effective by the SEC, no later than the later of (i) 150 days after the
request for a Demand Registration or (ii) 90 days after the end of any "lock up"
period described in Section 2.1(a) hereof and the Company has complied in all
material respects with all of its obligations under this Agreement with respect
thereto; provided, however, that if, after such Registration Statement has
become effective, the offering of Registrable Securities pursuant to such
Registration Statement is or becomes the subject of any stop
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order, injunction or other order or requirement of the SEC or any other
governmental, judicial or administrative order or requirement that prevents,
restrains or otherwise limits the sale of Registrable Securities pursuant to
such Registration Statement for any reason not attributable to any Holder
participating in such registration, and such Registration Statement has not
become effective within a reasonable time period thereafter, such Registration
Statement shall be deemed not to have been effected. If (i) a registration
requested pursuant to this Section 2.1 is deemed not to have been effected or
(ii) a Demand Registration does not remain effective under the Securities Act
until at least the earlier of (A) an aggregate of 60 days (subject to Section
2.3 herein) after the effective date thereof or (B) the consummation of the
distribution by the Holders of all of the Registrable Securities covered
thereby, then such Demand Registration shall not count towards determining if
the Company has satisfied its obligation to effect Demand Registrations pursuant
to this Section 2.1. For purposes of calculating the 60-day period referred to
in the preceding sentence, any period of time during which such Registration
Statement was not in effect shall be excluded. The Holders of Registrable
Securities shall be permitted to withdraw all or any part of the Registrable
Securities from a Demand Registration. Notwithstanding any such withdrawal by a
Holder of Registrable Securities, if the Company has complied with all of its
obligations hereunder and has effected a Demand Registration within 150 days
after the request for a Demand Registration, such withdrawal shall not require
the Company to effect any additional Demand Registrations.
(c) Priority in Demand Registrations Pursuant to Section 2.1. If a
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Demand Registration pursuant to this Section 2.1 involves an underwritten
offering and the lead managing underwriter advises the Company in writing that,
in its view, the number of Registrable Securities requested by the Holders to be
included in such registration, together with any other securities permitted to
be included in such registration exceeds the number which, in the view of such
lead managing underwriter, can be sold, then the number of such Registrable
Securities to be included in such registration shall be allocated pro rata among
all requesting Holders on the basis of the relative number of Registrable
Securities then held by each such Holder (provided that any Registrable
Securities thereby allocated to any such Holder that exceed such Holder=s
request shall be reallocated among the remaining requesting Holders in like
manner). In the event that the number of Registrable Securities requested in
such registration is less than the number which, in view of the lead managing
underwriter, can be sold, the Company may include in such registration the
securities the Company proposes to sell up to the number that, in view of the
lead managing underwriter, can be sold without adversely affecting the success
of the offering, including the price at which the Registrable Securities can be
sold.
(d) Restrictions on Sale by Holders. Each Holder of Registrable
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Securities whose Registrable Securities are covered by a Registration Statement
filed pursuant to this Section 2.1 and are to be sold thereunder agrees, if and
to the extent reasonably requested by the managing underwriter or underwriters
in an underwritten public offering, not to effect any public sale or
distribution of Registrable Securities or of securities of the Company of the
same class as any securities included in such Registration Statement, including
a sale pursuant to Rule 144 (except as
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part of such underwritten offering), during the 30-day period prior to, and
during the 180-day period (in connection with an initial public underwritten
offering) or 90-day period (in connection with any subsequent public
underwritten offering) beginning on, the closing date of such underwritten
offering made pursuant to such Registration Statement, to the extent timely
notified in writing by the Company or such managing underwriter or underwriters.
The foregoing provisions of Section 2.1(d) shall not apply to any
Holders of Registrable Securities if such Holder is prevented by applicable
statute or regulation from entering into any such agreement; provided, however,
that any such Holder shall undertake, in its request to participate in such
underwritten offering, not to effect any public sale or distribution of any
Registrable Securities commencing on the date of sale of such Registrable
Securities unless it has provided 45 days= prior written notice of such sale or
distribution to the managing underwriter or underwriters.
(e) Selection of Underwriter. If the Holders so elect, the offering
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of such Registrable Securities pursuant to such Demand Registration shall be in
the form of an underwritten offering. The Holders making such Demand
Registration shall select one or more nationally recognized firms of investment
bankers, who shall be reasonably acceptable to the Company, to act as the
managing underwriter or underwriters in connection with such offering and shall
select any additional investment bankers and managers to be used in connection
with the offering.
(f) Expenses. The Company will pay all Registration Expenses in
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connection with the registrations requested pursuant to Section 2.1(a) hereof.
Each Holder of Registrable Securities shall pay all underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of
such Holder's Registrable Securities pursuant to a Registration Statement
requested pursuant to this Section 2.1.
2.2 (a) Piggy-Back Registration. If at any time the Company
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proposes to file a Registration Statement under the Securities Act with respect
to an offering by the Company for its own account or for the account of any of
its securityholders of any class of its common equity securities (other than (i)
a registration statement on Form S-4 or S-8 (or F-4 or F-8) (or any substitute
form that may be adopted by the SEC) or any other publicly registered offering
pursuant to the Securities Act pertaining to the issuance of shares of Capital
Stock or securities exercisable therefor under any benefit plan, employee
compensation plan, or employee or director stock purchase plan, (ii) a
registration statement filed in connection with an offer of securities solely to
the Company=s existing securityholders or (iii) a Demand Registration), then the
Company shall give written notice of such proposed filing to the Holders of
Registrable Securities as soon as practicable (but in no event fewer than 15
days before the anticipated filing date or 10 days if the Company is subject to
filing reports under the Exchange Act and able to use Form S-3 (or F-3) under
the Securities Act), and such notice shall offer such Holders the opportunity to
register such number of shares of Registrable Securities as each such Holder may
request in writing within 12 days (or eight days if
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the Company is subject to filing reports under the Exchange Act and able to use
Form S-3 (or F-3) under the Securities Act) after receipt of such written notice
from the Company (which request shall specify the Registrable Securities
intended to be disposed of by such Selling Holder and the intended method of
distribution thereof) (a "Piggy-Back Registration"). The Company shall use its
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best efforts to keep such Piggy-Back Registration continuously effective under
the Securities Act in the qualifying jurisdictions until at least the earlier of
(A) 60 days after the effective date thereof or (B) the consummation of the
distribution by the Holders of all of the Registrable Securities covered
thereby. The Company shall use its best efforts to cause the managing
underwriter or underwriters, if any, of such proposed offering to permit the
Registrable Securities requested to be included in a Piggy-Back Registration to
be included on the same terms and conditions as any similar securities of the
Company or any other securityholder included therein and to permit the sale or
other disposition of such Registrable Securities in accordance with the intended
method of distribution thereof. Any Selling Holder shall have the right to
withdraw its request for inclusion of its Registrable Securities in any
Registration Statement pursuant to this Section 2.2 by giving written notice to
the Company of its request to withdraw. The Company may withdraw a Piggy-Back
Registration at any time prior to the time it becomes effective or the Company
may elect to delay the registration; provided, however, that the Company shall
give prompt written notice thereof to participating Selling Holders. The Company
will pay all Registration Expenses in connection with each registration of
Registrable Securities requested pursuant to this Section 2.2, and each Holder
of Registrable Securities shall pay all underwriting discounts and commissions
and transfer taxes, if any, relating to the sale or disposition of such Holder=s
Registrable Securities pursuant to a Registration Statement effected pursuant to
this Section 2.2.
No registration effected under this Section 2.2, and no failure to
effect a registration under this Section 2.2, shall relieve the Company of its
obligation to effect a registration upon the request of Holders of Registrable
Securities pursuant to Section 2.1 hereof, and no failure to effect a
registration under this Section 2.2 and to complete the sale of securities
registered thereunder in connection therewith shall relieve the Company of any
other obligation under this Agreement.
(b) Priority in Piggy-Back Registration. In a registration pursuant
-----------------------------------
to Section 2.2 hereof involving an underwritten offering, if the managing
underwriter or underwriters of such underwritten offering have informed, in
writing, the Company and the Selling Holders requesting inclusion in such
offering that in such underwriter's or underwriters' reasonable opinion the
total number of securities which the Company, the Selling Holders and any other
persons desiring to participate in such registration intend to include in such
offering is such as to materially and adversely affect the success of such
offering, including the price at which such securities can be sold, then the
Company will be required to include in such registration only the amount of
securities which it is so advised should be included in such registration. In
such event: (x) in cases only involving the registration for sale of securities
for the Company's own account (which may include securities included pursuant to
the exercise of piggy-back rights herein and in other contractual commitments of
the Company), securities shall be registered in such offering in the following
order
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of priority: (i) first, the securities which the Company proposes to
register, (ii) second, provided that no securities sought to be included by the
Company have been excluded from such registration, the securities which have
been requested to be included in such registration by the Holders of Registrable
Securities pursuant to this Agreement on a pari passu basis with (x) any
securities of the Company as to which the Aurora Investors may be entitled to
exercise "piggy-back" registration rights pursuant to the Aurora Registration
Rights Agreement and (y) any securities of the Company as to which the Original
Investors may be entitled to exercise "piggy-back" registration rights pursuant
to the Original Registration Rights Agreement (such securities for the account
of the Holders, the Aurora Investors and the Original Investors to be allocated
among the Holders, the Aurora Investors and the Original Investors pro rata
based on the amount of securities sought to be registered by the Holders, the
Aurora Investors and the Original Investors) and (iii) third, provided that no
securities sought to be included by the Company, the Aurora Investors, the
Holders or the Original Investors have been excluded from such registration, the
securities of any other Persons entitled to exercise "piggy-back" registration
rights pursuant to contractual commitments of the Company (pro rata based on the
amount of securities sought to be registered by such Persons); and (y) in cases
not involving the registration for sale of securities for the Company's own
account only, securities shall be registered in such offering in the following
order of priority: (i) first, securities to be sold for the account of the
Company and the securities of any Person whose exercise of a "demand"
registration right pursuant to a contractual commitment of the Company is the
basis for the registration (provided that if such Person is a Holder of
Registrable Securities, as among Holders of Registrable Securities there shall
be no priority and Registrable Securities sought to be included by Holders of
Registrable Securities shall be included pro rata based on the amount of
securities sought to be registered by such Persons), (ii) second, provided that
no securities of the Company or such Person referred to in the immediately
preceding clause (i) have been excluded from such registration, the securities
requested to be included in such registration by the Holders of Registrable
Securities (other than any Holder who is also a Person referred to in clause
(i)) pursuant to this Agreement on a pari passu basis with (x) any securities of
the Company as to which the Aurora Investors may be entitled to exercise "piggy-
back" registration rights pursuant to the Aurora Registration Rights Agreement
and (y) any securities of the Company as to which the Original Investors may be
entitled to exercise "piggy-back" registration rights pursuant to the Original
Registration Rights Agreement (such securities for the account of the Holders,
the Aurora Investors and the Original Investors to be allocated among the
Holders, the Aurora Investors and the Original Investors pro rata based on the
amount of securities sought to be registered by the Holders, the Aurora
Investors and the Original Investors) and (iii) third, provided that no
securities of such Person referred to in the immediately preceding clause (i) or
of the Holders, the Aurora Investors or the Original Investors, referred to in
clause (ii) have been excluded from such registration, securities of any other
Persons entitled to exercise "piggy-back" registration rights pursuant to
contractual commitments (pro rata based on the amount of securities sought to be
registered by such Persons).
If, as a result of the provisions of this Section 2.2(b), any Selling
Holder shall not be entitled to include all Registrable Securities in a Piggy-
Back Registration that such Selling Holder
12
has requested to be included, such Selling Holder may elect to withdraw his
request to include Registrable Securities in such registration.
(c) Restrictions on Sale by Holders. Each Holder of Registrable
-------------------------------
Securities whose Registrable Securities are covered by a Registration Statement
filed pursuant to this Section 2.2 and are to be sold thereunder agrees, if and
to the extent reasonably requested by the managing underwriter or underwriters
in an underwritten public offering, not to effect any public sale or
distribution of Registrable Securities or of securities of the Company of the
same class as any securities included in such Registration Statement, including
a sale pursuant to Rule 144 (except as part of such underwritten offering),
during the 30-day period prior to, and during the 180-day period (in connection
with an initial public underwritten offering) or 90-day period (in connection
with each subsequent public underwritten offering) beginning on, the closing
date of each underwritten offering made pursuant to such Registration Statement,
to the extent timely notified in writing by the Company or such managing
underwriter or underwriters.
The foregoing provisions of Section 2.2(c) shall not apply to any
Holders of Registrable Securities if such Holder is prevented by applicable
statute or regulation from entering into any such agreement; provided, however,
that any such Holder shall undertake, in its request to participate in any such
underwritten offering, not to effect any public sale or distribution of any
Registrable Securities commencing on the date of sale of such Registrable
Securities unless it has provided 45 days= prior written notice of such sale or
distribution to the managing underwriter or underwriters.
2.3 Limitations, Conditions and Qualifications to Obligations Under
---------------------------------------------------------------
Registration Covenants. The obligations of the Company set forth in Sections
----------------------
2.1, 2.2 and 2.6 hereof are subject to each of the following limitations,
conditions and qualifications:
(a) Subject to the next sentence of this paragraph, the Company shall
be entitled to postpone, for a reasonable period of time, the filing of, or
suspend the effectiveness of, any registration statement or amendment
thereto, or suspend the use of any prospectus and shall not be required to
amend or supplement the registration statement, any related prospectus or
any document incorporated therein by reference (other than an effective
registration statement being used for an underwritten offering); provided
that the duration of such postponement or suspension (a "Suspension
----------
Period") may not exceed an aggregate of 60 days after the event or
------
circumstance giving rise to such Suspension Period and the duration of such
Suspension Period shall be excluded from the calculation of the 60-day
period described in Section 2.1(b) hereof. Such Suspension Period may be
effected only if (i) an event or circumstance occurs and is continuing as a
result of which the registration statement, any related prospectus or any
document incorporated therein by reference as then amended or supplemented
or proposed to be filed would, in the Company's good faith judgment,
contain an untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were
13
made, not misleading, and (ii) (A) the Company determines in its good faith
judgment that the disclosure of such an event at such time would have a
material adverse effect on the business, operations or prospects of the
Company or (B) the disclosure otherwise relates to a material business
transaction which has not yet been publicly disclosed; provided that the
Effectiveness Period shall be extended by the number of days in any
Suspension Period; provided further that the Company shall not be entitled
to such postponement or suspension more than once in any 12-month period;
provided further that the Company may suspend the effectiveness for a
period not in excess of 5 Business Days to allow for the updating of the
financial statements included in a Registration Statement to the extent
required by law, not to exceed 45 days in aggregate in any 12-month period.
If the Company shall so postpone the filing of a Registration Statement it
shall, as promptly as possible, deliver a certificate signed by the chief
financial officer of the Company or its general partner to the Selling
Holders as to such determination, and the Selling Holders shall (1) have
the right, in the case of a postponement of the filing or effectiveness of
a Registration Statement, upon the affirmative vote of the Holders of not
less than a majority of the Registrable Securities to be included in such
Registration Statement, to withdraw the request for registration by giving
written notice to the Company within 10 days after receipt of such notice
or (2) in the case of a suspension of the right to make sales, receive an
extension of the registration period equal to the number of days of the
suspension. Any Demand Registration as to which the withdrawal election
referred to in the preceding sentence has been effected shall not be
counted for purposes of the Demand Registration the Company is required to
effect pursuant to Section 2.1 hereof.
(b) The Company's obligations shall be subject to the obligations of
the Selling Holders, which the Selling Holders acknowledge, to furnish all
information and materials and to take any and all actions as may be
required under applicable federal and state securities laws and regulations
to permit the Company to comply with all applicable requirements of the
SEC, if applicable, and to obtain any acceleration of the effective date of
such Registration Statement.
2.4 [Reserved]
----------
2.5 Rule 144 and Rule 144A. The Company covenants that it will file
----------------------
the reports required to be filed by it under the Securities Act and the Exchange
Act and the rules and regulations adopted by the SEC thereunder in a timely
manner and, if at any time the Company is not required to file such reports, it
will, upon the request of any Holder or beneficial owner of Warrants or
Registrable Securities, make available such information necessary to permit
sales pursuant to Rule 144A under the Securities Act. The Company further
covenants that it will take such further action as any Holder of Warrants or
Registrable Securities may reasonably request, all to the extent required from
time to time to enable such Holder to sell Warrants or Registrable Securities
without registration under the Securities Act within the limitation of the
exemptions provided by
14
(a) Rule 144(k) and Rule 144A under the Securities Act, as such Rules may be
amended from time to time, or (b) any similar rule or regulation hereafter
adopted by the SEC. Upon the request of any Holder of Warrants or Registrable
Securities, the Company will in a timely manner deliver to such Holder a written
statement as to whether it has complied with such information requirements.
2.6 Underwritten Registrations. If any of the Registrable Securities
--------------------------
covered by any Registration Statement are to be sold in an underwritten public
offering, the investment banker or investment bankers and manager or managers
that will administer the offering will be selected by the Holders of not less
than a majority of the Registrable Securities to be sold thereunder and will be
reasonably acceptable to the Company.
No Holder of Registrable Securities may participate in any
underwritten registration pursuant to a Registration Statement filed under this
Agreement unless such Holder (a) agrees to (i) sell such Holder's Registrable
Securities on the basis provided in and in compliance with any underwriting
arrangements approved by the Holders of not less than a majority of the
Registrable Securities to be sold thereunder and (ii) comply with Rules 101, 102
and 104 of Regulation M under the Exchange Act and (b) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements.
If the Company has complied with all its obligations under this
Agreement with respect to a Demand Registration or a Piggy-Back Registration
relating to an underwritten public offering, all holders of Registrable
Securities, upon request of the lead managing underwriter with respect to such
underwritten public offering, will be required to not sell or otherwise dispose
of any Registrable Security owned by them for a period not to exceed 180 days
from the consummation of such underwritten public offering.
Section 3. [Reserved].
----------
Section 4. Registration Procedures. In connection with the
-----------------------
obligations of the Company with respect to any Registration Statement pursuant
to Sections 2.1, 2.2 and 2.6 hereof, the Company shall, except as otherwise
provided:
(a) A reasonable period of time prior to the initial filing of a
Registration Statement and a reasonable period of time prior to the filing
of any amendment or supplement thereto (including any document that would
be incorporated or deemed to be incorporated therein by reference), furnish
to the Holders and the managing underwriters, if any, copies of all such
documents proposed to be filed, which documents (other than those
incorporated or deemed to be incorporated by reference) shall be subject to
the review of such Holders, and such underwriters, if any, and cause the
officers and directors of the Company, counsel to the Company and
independent certified public accountants to the
15
Company to respond to such reasonable inquiries as shall be necessary, in
the opinion of counsel to such underwriters, to conduct a reasonable
investigation within the meaning of the Securities Act; provided that the
foregoing inspection and information gathering shall be coordinated on
behalf of the Holders by ▇▇▇▇▇▇▇ ▇▇▇▇▇. The Company shall not file any such
Registration Statement or any amendments or supplements thereto which the
Holders of a majority of the Registrable Securities included in such
Registration Statement shall reasonably object on a timely basis.
(b) Prepare and file with the SEC such amendments, including post-
effective amendments to each Registration Statement as may be necessary to
keep such Registration Statement continuously effective for the applicable
time period required hereunder; cause the related Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented
to be filed pursuant to Rule 424 (or any similar provisions then in force)
promulgated under the Securities Act; and comply with the provisions of the
Securities Act and the Exchange 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 as so amended or in such
Prospectus as so supplemented.
(c) Notify the Holders of Registrable Securities to be sold and the
managing underwriters, if any, promptly, and (if requested by any such
person) confirm such notice in writing, (i)(A) when a Prospectus or any
Prospectus supplement or post-effective amendment is proposed to be filed,
and (B) with respect to a Registration Statement or any post-effective
amendment, when the same has become effective, (ii) of any request by the
SEC or any other Federal or state governmental authority for amendments or
supplements to a Registration Statement or related Prospectus or for
additional information, (iii) of the issuance by the SEC, any state
securities commission, any other governmental agency or any court of any
stop order suspending the effectiveness of such Registration Statement or
of any order or injunction suspending or enjoining the use of a Prospectus
or the effectiveness of a Registration Statement or the initiation of any
proceedings for that purpose, (iv) 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 proceeding for
such purpose, and (v) of the happening of any event, the existence of any
information becoming known that makes any statement made in a Registration
Statement or related Prospectus or any document incorporated or deemed to
be incorporated therein by reference untrue in any material respect 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 the
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.
16
(d) Use its best efforts to avoid the issuance of or, if issued,
obtain the withdrawal of any order enjoining or suspending the
effectiveness of the Registration Statement or the use of a Prospectus or
the lifting of any suspension of the qualification (or exemption from
qualification) of any of the Registrable Securities covered thereby for
sale in any jurisdiction described in Section 4(h) at the earliest
practicable moment.
(e) If requested by the managing underwriters, if any, or if none,
by the Holders of a majority of the Registrable Securities being sold
pursuant to such Registration Statement, (i) promptly incorporate in a
Prospectus supplement or post-effective amendment such information as the
managing underwriters, if any, or if none, such Holders reasonably believe
should be included therein, and (ii) make all required filings of such
Prospectus supplement or such post-effective amendment under the Securities
Act as soon as practicable after the Company has received notification of
the matters to be incorporated in such prospectus supplement or post-
effective amendment; provided, however, that the Company shall not be
required to take any action pursuant to this Section 4(e) that would in the
opinion of counsel for the Company, violate applicable law.
(f) Upon written request to the Company, furnish to each Holder of
Registrable Securities to be sold pursuant to a Registration Statement and
each managing underwriter, if any, without charge, at least one conformed
copy of the Registration Statement and each amendment thereto, including
financial statements and schedules, all documents incorporated or deemed to
be incorporated therein by reference, and all exhibits to the extent
requested (including those previously furnished or incorporated by
reference) as soon as practicable after the filing of such documents with
the SEC.
(g) Deliver to each Holder of Registrable Securities to be sold
pursuant to a Registration Statement and each managing underwriter, if any,
without charge, as many copies of each Prospectus (including each form of
prospectus) and each amendment or supplement thereto as such Persons may
reasonably request; and, subject to the other provisions of this Agreement,
the Company hereby consents to use of such Prospectus and each amendment or
supplement thereto and each document supplemental thereto by each of the
selling Holders of Registrable Securities and the underwriters or agents,
if any, in connection with the offering and sale of the Registrable
Securities covered by such Prospectus and any amendment or supplement
thereto.
(h) Prior to any offering of Registrable Securities, use its best
efforts to register or qualify or cooperate with the Holders of Registrable
Securities to be sold, the managing underwriter or underwriters, if any,
and their respective counsel in connection with the registration or
qualification (or exemption from such registration or qualification) of
such Registrable Securities for offer and sale under the securities or Blue
Sky laws of such jurisdictions as any such Holder or underwriter reasonably
requests in writing; keep each
17
such registration or qualification (or exemption therefrom) effective
during the period such Registration Statement is required to be kept
effective hereunder and do any and all other acts or things necessary or
advisable to enable the disposition in such jurisdictions of the
Registrable Securities covered by the applicable Registration Statement;
provided, however, that the Company shall not be required to (i) qualify
generally to do business in any jurisdiction where it is not then so
qualified or (ii) take any action that would subject it to general service
of process in any such jurisdiction where it is not then so subject or to
taxation in any jurisdiction where it is not so subject.
(i) In connection with any sale or transfer of Registrable
Securities that will result in such securities no longer being Registrable
Securities, cooperate with the Holders of Registrable Securities and the
managing underwriters, if any, to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be sold,
which certificates shall not bear any restrictive legends whatsoever and
shall be in a form eligible for deposit with The Depository Trust Company
("DTC") or the stock transfer agent appointed by the Company; and to enable
---
such Registrable Securities to be in such denominations and registered in
such names as the managing underwriter or underwriters, if any, or such
Holders may reasonably request at least two business days prior to any sale
of Registrable Securities.
(j) Upon the occurrence of any event contemplated by Section 4(c)(v)
above, as promptly as practicable prepare a supplement or amendment,
including if appropriate a post-effective amendment to each Registration
Statement or a supplement to the related Prospectus or any document
incorporated or deemed to be incorporated therein by reference, and file
any other required document so that, as thereafter delivered, such
Prospectus will not contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading.
(k) Prior to the effective date of a Registration Statement, (i)
provide the registrar for the Registrable Securities with certificates for
such securities in a form eligible for deposit with DTC or the stock
transfer agent and (ii) provide a CUSIP number for such securities.
(l) Enter into such agreement (including an underwriting agreement
in such form, scope and substance as is customary in underwritten
offerings) and take all such other reasonable actions in connection
therewith (including those reasonably requested by the managing
underwriters, if any, or the Holders of a majority of the Registrable
Securities being sold) in order to expedite or facilitate the disposition
of such Registrable Securities, and, whether or not an underwriting
agreement is entered into and whether or not the registration is an
underwritten registration, (i) make such representations and warranties to
18
the Holders of such Registrable Securities and the underwriter or
underwriters, if any, with respect to the business of the Company and the
subsidiaries of the Company (including with respect to businesses or assets
acquired or to be acquired by any of them), and the Registration Statement,
Prospectus and documents, if any, incorporated or deemed to be incorporated
by reference therein, in each case, in form, substance and scope as are
customarily made by issuers to underwriters in underwritten offerings, and
confirm the same if any when requested; (ii) obtain opinions of counsel to
the Company and updates thereof (which counsel and opinions (in form, scope
and substance) shall be reasonably satisfactory to the managing
underwriters, if any, addressed to each selling Holder of Registrable
Securities and each of the underwriters, if any), covering the matters
customarily covered in opinions requested in underwritten offerings and
such other matters as may be reasonably requested by such underwriters;
(iii) use their best efforts to obtain customary "cold comfort" letters and
updates thereof from the independent certified public accountants of the
Company (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any business acquired by
the Company for which financial statements and financial data are, or are
required to be, included in the Registration Statement), addressed (where
reasonably possible) to each Selling Holder of Registrable Securities and
each of the underwriters, if any, such letters to be in customary form and
covering matters of the type customarily covered in "cold comfort" letters
in connection with underwritten offerings; (iv) if an underwriting
agreement is entered into, the same shall contain customary indemnification
provisions and procedures no less favorable to the Selling Holder and the
underwriters, if any, than those set forth in Section 5 hereof (or such
other provisions and procedures acceptable to Holders of a majority of
Registrable Securities covered by such Registration Statement and the
managing underwriter, if any); and (v) deliver such documents and
certificates as may be reasonably requested by the Holders of a majority of
the Registrable Securities being sold and the managing underwriters or
underwriters to evidence the continued validity of the representations and
warranties made pursuant to clause (i) above and evidence compliance with
any customary conditions contained in the underwriting agreement or other
agreements entered into by the Company.
(m) Make available for inspection by a representative of the selling
Holders of Registrable Securities, any underwriter participating in any
such disposition of Registrable Securities, if any, and any attorney,
consultant or accountant retained by such representative of the selling
Holders of Registrable Securities or underwriter (collectively, the
"Inspectors"), at the offices where normally kept, during the reasonable
----------
business hours, all financial and other records, pertinent corporate
documents and properties of the Company and the subsidiaries of the Company
(including with respect to businesses and assets acquired or to be acquired
to the extent that such information is available to the Company), and cause
the officers, directors, agents and employees of the Company and its
subsidiaries of the Company (including with respect to businesses and
assets acquired or to be acquired to the extent that such information is
available to the Company) to supply all information in each
19
case reasonably requested by any such Inspector in connection with such
Registration Statement; provided, however, that such persons shall first
agree in writing with the Company that any information that is reasonably
and in good faith designated by the Company in writing as confidential at
the time of delivery of such information shall be kept confidential by such
Persons, unless (i) disclosure of such information is required by court or
administrative order or is necessary to respond to inquiries of regulatory
authorities, (ii) disclosure of such information is required by law
(including any disclosure requirements pursuant to U.S. securities laws in
connection with the filing of the Registration Statement or the use of any
Prospectus), (iii) such information becomes generally available to the
public other than as a result of a disclosure or failure to safeguard such
information by such person or (iv) such information becomes available to
such person from a source other than the Company and its subsidiaries and
such source is required to maintain the confidentiality of the information;
provided further that the foregoing investigation shall be coordinated on
behalf of the selling Holders of Registrable Securities by ▇▇▇▇▇▇▇ ▇▇▇▇▇.
(n) Comply with all applicable rules, regulations and policies of
the SEC and make generally available to its securityholders earnings
statements satisfying the provisions of Section 11(a) of the Securities Act
and Rule 158 thereunder no later than 60 days after the end of any 12-month
period (or 135 days after the end of any 12-month period if such period is
a fiscal year) (i) commencing at the end of any fiscal quarter in which
Registrable Securities are sold to an underwriter or to underwriters in a
firm commitment or reasonable efforts underwritten offering and (ii) if not
sold to an underwriter or to underwriters in such an offering, commencing
on the first day of the first fiscal quarter of the Company after the
effective date of the relevant Registration Statement, which statements
shall cover said such period, consistent with the requirements of Rule 158
under the Securities Act.
(o) Use its best efforts to cause all Registrable Securities
relating to such Registration Statement to be listed on each securities
exchange, if any, on which securities of the same class issued by the
Company are then listed.
(p) Cooperate with each seller of Registrable Securities to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends
and registered in such names as the Selling Holders may reasonably request
at least two business days prior to the closing of any sale of Registrable
Securities.
(q) Cooperate with each seller of Registrable Securities covered by
any Registration Statement and each underwriter, if any, participating in
the disposition of such Registrable Securities and its respective counsel
in connection with any filings required to be made with the National
Association of Securities Dealers, Inc.
20
The Company may require a Holder of Registrable Securities to be
included in a Registration Statement to furnish to the Company such information
regarding (i) the intended method of distribution of such Registrable
Securities, (ii) such Holder and (iii) the Registrable Securities held by such
Holder as is required by law or applicable regulations to be disclosed in such
Registrable Statement and the Company may exclude from such Registration
Statement the Registrable Securities of any Holder who fails to furnish such
information within a reasonable time after receiving such request.
If any such Registration Statement refers to any Holder by name or
otherwise as the Holder of any securities of the Company, then such Holder shall
have the right to require (i) the insertion therein of language, in form and
substance reasonably satisfactory to such Holder, to the effect that the holding
by such Holder of such securities is not to be construed as a recommendation by
such Holder of the investment quality of the Company's securities covered
thereby and that such holding does not imply that such Holder will assist in
meeting any future financial requirements of the Company, or (ii) in the event
that such reference to such Holder by name or otherwise is not required by the
Securities Act, the deletion of the reference to such Holder in such amendment
or supplement to the Registration Statement filed or prepared subsequent to the
time that such reference ceases to be required.
Each Holder of Registrable Securities agrees by acquisition of such
Registrable Securities that, upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 4(c)(ii), 4(c)(iv) or
4(c)(v) hereof, such Holder will forthwith discontinue disposition of such
Subject Equity covered by the Registration Statement or Prospectus until such
Holder's receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 4(j) hereof, or until it is advised in writing (the
"Advice") by the Company that the use of the applicable Prospectus may be
------
resumed, and in either case has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by
reference in such Prospectus. If the Company shall give any such notice, the
Effectiveness Period shall be extended by the number of days during such periods
from and including the date of the giving of such notice to and including the
date when each seller of Registrable Securities covered by such Registration
Statement shall have received (x) the copies of the supplemented or amended
Prospectus contemplated by Section 4(j) hereof or (y) the Advice, and, in either
case, has received copies of any additional or supplemental filings that are
incorporated or deemed to be incorporated by reference in such Prospectus.
Holders of the Registrable Securities shall be obligated to keep
confidential the existence of a Suspension Period or any confidential
information communicated by the Company to the Holder with respect thereto.
Section 5. Indemnification and Contribution. (a) The Company agrees
--------------------------------
to indemnify and hold harmless each Purchaser, each Holder, their respective
affiliates, and their respective
21
directors, officers and employees, and each Person, if any, who controls any of
such parties within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act as follows:
(i) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, arising out of any untrue statement or alleged
untrue statement of a material fact contained in any Registration Statement
(or any amendment thereto) pursuant to which Registrable Securities were
registered under the 1933 Act, including all documents incorporated therein
by reference, or the omission or alleged omission therefrom of a material
fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading or arising out of any untrue statement or alleged untrue
statement of a material fact contained in any Prospectus (or any amendment
or supplement thereto) or the omission or alleged omission therefrom of a
material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading;
(ii) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement of any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or of any claim
whatsoever, in each case, based upon any such untrue statement or omission,
or any such alleged untrue statement or omission; provided that (subject to
Section 5(d) below) any such settlement is effected with the written
consent of the Company; and
(iii) against any and all expenses whatsoever, as incurred (including
the reasonable fees and disbursements of one counsel chosen by ▇▇▇▇▇▇▇
▇▇▇▇▇), reasonably incurred in investigating, preparing or defending
against any litigation, or any investigation or proceeding by any court or
governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, to the extent that any such expense
is not paid under subparagraph (i) or (ii) of this Section 5(a);
provided, however, that this indemnity agreement does not apply to any loss,
liability, claim, damage or expense to the extent (i) arising out of an untrue
statement or omission or alleged untrue statement or omission (A) made in
reliance upon and in conformity with written information furnished to the
Company by the Selling Holders of Registrable Securities, any Holder, or any
underwriter expressly for use in the Registration Statement (or any amendment
thereto) or the Prospectus (or any amendment or supplement thereto) or (B)
resulting from the use of the Prospectus during a period when the use of the
Prospectus has been suspended or is otherwise unavailable for sales thereunder
in accordance with this Agreement, provided, in each case, that Holders received
prior notice of such suspension or other unavailability.
22
(b) In the case of any registration of Registrable Securities, each
Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, each Purchaser, each underwriter, if any, who participates in an
offering of Registrable Securities and the other Selling Holders and each of
their respective directors, officers and employees (including each officer of
the Company who signed the Registration Statement) and each Person, if any, who
controls the Company, any Purchaser, any underwriter or any other Selling Holder
within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act,
against any and all loss, liability, claim, damage and expense described in the
indemnity contained in Section 5(a) hereof, as incurred, but only with respect
to untrue statements or omissions, or alleged untrue statements or omissions,
made in the Registration Statement (or any amendment thereto) or the Prospectus
(or any amendment or supplement thereto) in reliance upon and in conformity with
written information furnished to the Company by such Holder expressly for use in
the Registration Statement (or any amendment thereto), or the Prospectus (or any
amendment or supplement thereto); provided, however, that no such Holder shall
be liable for any claims hereunder in excess of the amount of net proceeds
received by such Holder from the sale of Registrable Securities pursuant to such
Registration Statement.
(c) In case any action shall be commenced involving any Person in
respect of which indemnity may be sought pursuant to either paragraph (a) or (b)
above, such Person (the "indemnified party") shall give notice as promptly as
-----------------
reasonably practicable to each Person against whom such indemnity may be sought
(the "indemnifying party"), but failure to so notify an indemnifying party shall
------------------
not relieve such indemnifying party from any liability hereunder to the extent
it is not materially prejudiced as a result thereof and in any event shall not
relieve it from any liability which it may have otherwise than on account of
this indemnity agreement. An indemnifying party may participate at its own
expense in the defense of such action; provided, however, that counsel to the
indemnifying party shall not (except with the consent of the indemnified party
which consent shall not be unreasonably withheld) also be counsel to the
indemnified party. In no event shall the indemnifying party or parties be liable
for the fees and expenses of more than one counsel (in addition to any local
counsel) separate from their own counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in the
same jurisdiction arising out of the same general allegations or circumstances.
No indemnifying party shall, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any litigation, or any investigation or proceeding by
any governmental agency or body, commenced or threatened, or any claim
whatsoever in respect of which indemnification or contribution could be sought
under this Section 5 (whether or not the indemnified parties are actual or
potential parties thereof), unless such settlement, compromise or consent (i)
includes an unconditional release of each indemnified party from all liability
arising out of such litigation, investigation, proceeding or claim and (ii) does
not include a statement as to or an admission of fault, culpability or a failure
to act by or on behalf of any indemnified party.
(d) If at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, such indemnifying party
23
agrees that it shall be liable for any settlement of the nature contemplated by
Section 5(a)(ii) hereof effected without its written consent if (i) such
settlement is entered into more than 45 days after receipt by such indemnifying
party of the aforesaid request, (ii) such indemnifying party shall have received
notice of the terms of such settlement at least 30 days prior to such settlement
being entered into and (iii) such indemnifying party shall not have reimbursed
such indemnified party in accordance with such request prior to the date of such
settlement.
(e) If the indemnification provided for in any of the indemnity
provisions set forth in this Section 5 is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses,
liabilities, claims, damages or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount of such losses,
liabilities, claims, damages and expenses incurred by such indemnified party, as
incurred, in such proportion as is appropriate to reflect the relative fault of
such indemnifying party or parties on the one hand, and such indemnified party
or parties on the other hand, in connection with the statements or omissions
which resulted in such losses, liabilities, claims, damages or expenses, as well
as any other relevant equitable considerations. The relative fault of such
indemnifying party or parties on the one hand, and such indemnified party or
parties on the other hand shall be determined by reference to, among other
things, whether any such untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact relates to information
supplied by such indemnifying party or parties or such indemnified party or
parties and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company, the
Purchasers and the Holders of the Registrable Securities agree that it would not
be just and equitable if contribution pursuant to this Section 5 were determined
by pro rata allocation (even if the Selling Holders of Registrable Securities
were treated as one entity, and the Holders were treated as one entity, for such
purpose) or by another method of allocation which does not take account of the
equitable considerations referred to above in Section 5. The aggregate amount of
losses, liabilities, claims, damages and expenses incurred by an indemnified
party and referred to above in this Section 5 shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in
investigating, preparing or defending against any litigation, or any
investigation or proceeding by an governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the ▇▇▇▇ ▇▇▇) shall be
entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section 5, each Person, if any, who
controls a Purchaser or Holder within the meaning of this Section 15 of the 1933
Act or Section 20 of the 1934 Act shall have the same rights to contribution as
such Purchaser or Holder, and each director of the Company, each officer of the
Company who signed the Registration Statement, and each Person, if any, who
controls the Company within the meaning of Section 15 of the 1933 Act or Section
20 of the 1934 Act shall have the same rights to contribution as the Company.
Section 6. Miscellaneous.
-------------
24
(a) Remedies. In the event of a breach by the Company of any of its
--------
obligations under this Agreement, each Holder and Permitted Holders, in addition
to being entitled to exercise all rights provided herein, in the Purchase
Agreement or granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Agreement. The Company agrees that
monetary damages would not be adequate compensation for any loss incurred by
reason of a breach by it of any of the provisions of this Agreement.
(b) No Inconsistent Agreements. The Company and the Permitted
--------------------------
Holders will not enter into any agreement which is inconsistent with the rights
granted to the Holders of Warrants and Registrable Securities in this Agreement
or otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Company's other issued and outstanding
securities, if any, under any such agreements.
Notwithstanding the foregoing, this Agreement shall not in any way
affect the execution by the parties thereto, validity or binding effect of the
Aurora Registration Rights Agreement and the parties hereto hereby consent to
the execution and delivery by the Company of the Aurora Registration Rights
Agreement.
(c) No Piggy-Back on Demand Registrations. The Company shall not
-------------------------------------
grant to any of its securityholders (other than the Holders in such capacity,
the parties to the Aurora Registration Rights Agreement and the parties to the
Original Investors Registration Rights Agreement) the right to include any of
their securities in any Registration Statement filed pursuant to a Demand
Registration.
(d) Amendments and Waivers. The provisions of this Agreement,
----------------------
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, otherwise than with the prior written consent of the Holders
of not less than a majority of the then outstanding Registrable Securities;
provided, however, that, for the purposes of this Agreement, Registrable
Securities that are owned, directly or indirectly, by the Company or any of its
Affiliates are not deemed outstanding. Notwithstanding the foregoing, a waiver
or consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of one or more Holders and that does not
directly or indirectly affect the rights of other Holders may be given by a
majority of the Holders so affected; provided, however, that the provisions of
this sentence may not be amended, modified or supplemented except in accordance
with the provisions of the immediately preceding sentence. Notwithstanding the
foregoing, no amendment, modification, supplement, waiver or consent with
respect to Section 5 shall be made or given otherwise than the prior written
consent of each Person affected thereby.
25
(e) Notices. All notices and other communications provided for or
-------
permitted hereunder shall be made in writing by hand delivery, registered first-
class mail, telecopier, or any courier guaranteeing overnight delivery (i) if to
a Holder, at the most current address of such Holder as set forth in the
register for the Registrable Securities, which address initially is, with
respect to each Purchaser, the address set forth with respect to such Purchaser
in the Purchase Agreement; and (ii) if to the Company, initially at the address
set forth below the Company's name on the signature pages hereto and thereafter
at such other address, notice of which is given in accordance with the
provisions of this Section 6(e), with a copy to Skadden, Arps, Slate, ▇▇▇▇▇▇▇ &
▇▇▇▇ LLP, ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇, Attention: ▇▇▇▇▇▇▇ ▇.
▇▇▇▇▇, Esq., and thereafter at such other address notice of which is given in
accordance with the provisions of this Section 6(e).
All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five Business
Days after being deposited in the mail, first-class postage prepaid, if mailed;
when answered back, if telexed; when receipt is acknowledged, if telecopied; and
on the next Business Day, if timely delivered to an air courier guaranteeing
overnight delivery.
(f) Successors and Assigns. This Agreement shall inure to the
----------------------
benefit of and be binding upon the successors and permitted assigns of each of
the parties and shall inure to the benefit of each Holder. If any transferee of
any Holder shall acquire Registrable Securities, in any manner, whether by
operation of law or otherwise, such Registrable Securities shall be held subject
to all of the terms of this Agreement, and by taking and holding such
Registrable Securities such Person shall be conclusively deemed to have agreed
to be bound by and to perform all of the terms and provisions of this Agreement
and such Person shall be entitled to receive the benefits hereof. The Company
may not assign any of its rights or obligations hereunder without the prior
written consent of each Holder of Registrable Securities. Notwithstanding the
foregoing, no successor or assignee of the Company shall have any rights granted
under the Agreement until such person shall acknowledge its rights and
obligations hereunder by a signed written statement of such person's acceptance
of such rights and obligations.
(g) 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.
(h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
-------------
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS
MADE AND PERFORMED WITHIN THE STATE OF NEW YORK. THE COMPANY AND THE PURCHASERS
HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY NEW YORK STATE COURT
SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL
26
COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF
ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND
EACH IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY
AND UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS.
(i) Severability. If any term, provision, covenant or restriction of
------------
this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their best efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared
to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that
may be hereafter declared invalid, illegal, void or unenforceable.
(j) Headings. The headings in this Agreement are for convenience of
--------
reference only and shall not limit or otherwise affect the meaning hereof.
(k) Entire Agreement. This Agreement, together with the Purchase
----------------
Agreement, is intended by the parties as a final expression of their agreement,
and is intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained
herein and therein. This Agreement and the Purchase Agreement supersede all
prior agreements and understandings between the parties with respect to such
subject matter.
(l) Securities Held by the Company or its Affiliates. Whenever the
------------------------------------------------
consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or
by any of its affiliates (as such term is defined in Rule 405 under the
Securities Act) shall not be counted (in either the numerator or the
denominator) in determining whether such consent or approval was given by the
Holders of such required percentage
(m) Third Party Beneficiary. The Holders shall be third party
-----------------------
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Purchasers, on the other hand, and shall have the right to enforce
such agreements directly to the extent they deem such enforcement necessary or
advisable to protect the rights of Holders hereunder.
[Signature Page Follows]
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.
NASSAU BROADCASTING PARTNERS, L.P.
By: NASSAU BROADCASTING PARTNERS,
INC., its General Partner
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, ▇▇.
---------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, ▇▇.
Title: President
Confirmed and accepted as of
the date first above written:
▇▇▇▇▇▇▇ ▇▇▇▇▇ CAPITAL CORPORATION
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
--------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Managing Member
OZ MASTER FUND, LTD.
By: /s/ ▇▇▇▇▇▇ ▇. Och
--------------------------------
Name: ▇▇▇▇▇▇ ▇. Och
Title: Managing Director
CAISSE DE DEPOT ET PLACEMENT DU QUEBEC
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
--------------------------------
Name: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Title:
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
----------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title:
THE BANK OF NOVA SCOTIA
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, ▇▇.
--------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, ▇▇.
Title: Authorized Signatory
BANK OF MONTREAL
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇
---------------------
Name: ▇▇▇▇▇ ▇▇▇▇▇▇▇
Title: Director