REGISTRATION RIGHTS AGREEMENT
by and among
POINTE COMMUNICATIONS CORPORATION,
TSG CAPITAL FUND III, L.P.,
OPPORTUNITY CAPITAL PARTNERS II, L.P.,
and
OPPORTUNITY CAPITAL PARTNERS III, L.P.
Dated as of December 31, 1999
REGISTRATION RIGHTS AGREEMENT
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THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is entered into as of
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December 31, 1999, by and among POINTE COMMUNICATIONS CORPORATION, a Nevada
corporation (the "Company"), TSG CAPITAL FUND III, L.P., a Delaware limited
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partnership and its Affiliates ("TSG"), OPPORTUNITY CAPITAL PARTNERS II, L.P. a
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Delaware limited partnership ("OCP II"), and OPPORTUNITY CAPITAL PARTNERS III,
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L.P., a Delaware limited partnership ("OCP III") (hereinafter, TSG, OCP II, and
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OCP III shall each be referred to as a "Purchaser" and shall collectively be
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referred to as "Purchasers").
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WITNESSETH:
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WHEREAS, the Company has entered into that certain Securities Purchase
Agreement (the "Securities Purchase Agreement") dated September 7, 1999, with
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Purchasers pursuant to which the Company issued a Promissory Note (each, a
"Note" and collectively, the "Notes") to each Purchaser convertible into shares
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of the Company's Class B Convertible Senior Preferred Stock, par value $0.01 per
share (the "Class B Preferred"), and Warrants to acquire shares of the Company's
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Common Stock (as defined herein); and
WHEREAS, the Company has agreed to grant certain registration rights with
respect to the shares of the Company's Common Stock, par value $0.00001 per
share (the "Common Stock"), issuable upon conversion of the Class B Preferred
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(including shares of Class B Preferred issued as dividends) and upon exercise of
the Warrants;
NOW, THEREFORE, in consideration of the foregoing and of the mutual
promises and covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties, intending to be legally bound, hereby agree as follows:
ARTICLE 1
DEFINITIONS
As used herein, the following terms shall have the following respective
meanings:
1.1 "Commission" shall mean the Securities and Exchange Commission, or
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any other successor federal agency at the time administering the Securities Act.
1.2 "Common Stock" shall mean the Company's common stock, par value
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$0.00001 per share.
1.3 "Exchange Act" shall mean the Securities Exchange Act of 1934, as
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amended, or any similar federal statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.
1.4 "Initiating Holders" shall mean any Holder or Holders who in the
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aggregate own not less than twenty percent (20%) of the Registrable Securities.
1.5 "Holders" shall mean and include Purchasers and any person or
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entity that shall, pursuant to Article 11 hereof, become a party hereto, and any
permitted transferee under Article 10 hereof which holds Registrable Securities.
1.6 "Qualified Offering" shall mean the closing of a firm commitment
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underwritten public offering pursuant to an effective registration statement
under the Securities Act, covering the offer and sale of Common Stock to the
public that raises net aggregate proceeds for the Company in excess of
$30,000,000 and at a purchase price per share in excess of $4.00 per share.
1.7 The terms "register," "registered" and "registration" refer to a
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registration effected by preparing and filing with the Commission a registration
statement in compliance with the Securities Act, and the declaration or ordering
by the Commission of the effectiveness of such registration statement.
1.8 "Registrable Securities" means any and all shares of Common Stock:
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(1) issued or issuable upon conversion of the Class B Preferred, including
shares of Class B Preferred issued as dividends; (2) issued or issuable upon
exercise of the Warrants; (3) issued or issuable with respect to the securities
referred to in clause (1) above by way of any stock split, stock dividend,
combination, recapitalization, reclassification, merger, consolidation or other
similar event; and (4) otherwise held or acquired by holders of securities
described in clause (1) above, excluding in all cases, however, Registrable
Securities sold by a Holder to the public or pursuant to Rule 144 promulgated
under the Securities Act (or any similar or analogous rule promulgated under the
Securities Act) or shares of Common Stock acquired by a Holder in an open market
transaction. For purposes of this Agreement, a person will be deemed to be a
Holder of Registrable Securities whenever such person has the right to acquire
directly or indirectly such Registrable Securities (upon conversion or exercise
in connection with a transfer of securities or otherwise, but disregarding any
restrictions or limitations upon the exercise of such right), whether or not
such acquisition has actually been effected.
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1.9 "Registration Expenses" shall mean all expenses incurred by
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the Company in complying with Articles 2, 3 and 4 hereof, including, without
limitation, all registration, qualification and filing fees, printing expenses,
messenger and delivery expenses, escrow fees, fees and disbursements of legal
counsel for the Company and all independent certified public accountants,
underwriters (excluding discounts and commissions) and persons retained by the
Company (but excluding the compensation of regular employees of the Company,
which shall be paid in any event by the Company), fees and disbursements of one
legal counsel for the selling Holders (not to exceed $50,000), blue sky fees and
expenses, and the expense of any special audits incident to or required by any
such registration.
1.10 "Securities Act" shall mean the Securities Act of 1933, as
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amended, or any similar federal statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.
1.11 "Selling Expenses" shall mean all underwriting fees, discounts,
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selling commissions and stock transfer taxes applicable to the Registrable
Securities registered by the Holders.
ARTICLE 2
REQUIRED REGISTRATION
2.1 Required Registration.
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(a) Subject to the provisions set forth in Article 5, within 120 days
after conversion of the Notes into shares of Class B Preferred, the Company
shall file with the Commission a registration statement under the Securities Act
on Form S-3 or any appropriate form (or any successor form) pursuant to Rule 415
under the Securities Act (the "Required Registration"). The Company shall use
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its best efforts to cause the Required Registration to be declared effective
under the Securities Act as soon as practicable after filing, and once
effective, the Company shall cause such Required Registration to remain
effective for a Period ending on the earlier of: (i) the third anniversary of
the Closing under the Securities Purchase Agreement; (ii) the date on which all
Registrable Securities have been sold pursuant to the Required Registration; and
(iii) the date as of which there are no longer any Registrable Securities in
existence (the "Effective Period"). The registration statement for the Required
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Registration shall contain a broad-form plan of distribution.
2.2 Underwriting.
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(a) An underwriting may be selected as a method of distribution of the
Registrable Securities covered by the Required Registration by Holders holding
sixty-six and two-thirds percent (66 2/3%) (a "Supermajority") of the
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Registrable Securities.
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(b) If a distribution of the Registrable Securities is to be effected
by means of an underwriting, the Company (together with all Holders proposing to
distribute their securities through such underwriting (the "Participating
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Holders")) shall use its best efforts to enter into an underwriting agreement in
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customary form and reasonably acceptable to the Company with a managing
underwriter of nationally recognized standing selected for such underwriting by
the Company and approved by the Participating Holders holding a Supermajority of
the Registrable Securities proposed to be distributed through such underwriting,
which approval shall not be unreasonably withheld. In no event shall the
Company include any securities under the Required Registration which are not
Registrable Securities without the prior written consent of the Holders of a
Supermajority of Registrable Securities, and any such securities permitted to be
sold under the Required Registration shall only be sold in connection with a
sale. Notwithstanding any other provision of this Article 2, if the managing
underwriter advises the Participating Holders in writing that marketing factors
require a limitation of the number of shares to be underwritten, then the
underwriters may exclude some or all of the shares requested to be included in
such underwriting, and the number of shares of Registrable Securities that may
be included in the underwriting shall be allocated among all Participating
Holders thereof in proportion, as nearly as practicable, to the respective
amounts of Registrable Securities held by such Participating Holders. No
Registrable Securities excluded from the underwriting by reason of the managing
underwriter's marketing limitation shall be included in such underwriting.
(c) If a distribution of the Registrable Securities is effected by
means of an underwriting and if any Participating Holder of Registrable
Securities disapproves of the terms of the underwriting, such person may elect
to withdraw therefrom by written notice to the Company, the managing underwriter
and the other Participating Holders. The Registrable Securities and/or other
securities so withdrawn shall also be withdrawn from such underwriting;
provided, however, that if by the withdrawal of such Registrable Securities a
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greater number of Registrable Securities held by other Participating Holders may
be included in such underwriting (up to the maximum of any limitation imposed by
the underwriters), then the Company shall offer to all Participating Holders who
have included Registrable Securities in the registration the right to include
additional Registrable Securities in the same proportion used in determining the
underwriter limitation in this Section 2.2.
2.3 Eligibility. The Company represents, warrants and covenants that
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it currently is, and shall use its best efforts to remain at all times during
the Effective Period, eligible to use Form S-3 under the Securities Act.
2.4 Opinion of Counsel. Upon the request of the Holders of a
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Supermajority of the Registrable Securities, the Company shall furnish such
Holders with an opinion of counsel satisfactory to such Holders stating that the
registration statement filed in connection with the Required Registration is
effective and stating such other opinions as such Holders shall reasonably
request.
ARTICLE 3
REQUESTED REGISTRATION
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3.1 Request for Registration. Beginning on the date which is
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immediately after the third anniversary of the date of this Agreement,
Initiating Holders may request registration in accordance with this Article 3;
provided, that such registration covers Registrable Securities representing 25%
of the then total amount of the Registrable Securities; and further provided
that OCP II and OCP III shall have the right to join in such request by
Initiating Holders. In the event the Company shall receive from any one or more
of the Initiating Holders a written request that the Company effect any such
registration, qualification or compliance with respect to Registrable
Securities, the Company will:
(a) promptly give written notice of the proposed registration,
qualification or compliance to all other Holders; and
(b) use its best efforts to effect such registration, qualification or
compliance as soon as practicable (including, without limitation, undertaking to
file post-effective amendments, appropriate qualifications under applicable blue
sky or other state securities laws, and appropriate compliance with applicable
regulations issued under the Securities Act, and any other governmental
requirements or regulations) as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of such Registrable
Securities as are specified in such request, together with all or such portion
of the Registrable Securities of any Holder or Holders joining in such request
as are specified in a written request received by the Company within 15 days
after the receipt of the written notice from the Company described in Section
3.1(a); provided, however, that the Company shall not be obligated to take any
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action to effect any such registration, qualification or compliance Pursuant to
this Article 3:
(i) in any particular jurisdiction in which the Company would be
required to execute a general consent to service of process in effecting such
registration, qualification or compliance, unless the Company is already subject
to service in such jurisdiction and except as may be required by the Securities
Act ;
(ii) within one hundred and eighty (180) days immediately
following the effective date of any registration statement pertaining to a firm
commitment underwritten offering of securities of the Company for its own
account;
(iii) after the Company has effected three (3) such requested
registrations pursuant to this Article 3, each such registration has been
declared or ordered effective, and the Registrable Securities offered pursuant
to each such registration have been sold, or if the Company has effected any
requested registration pursuant to this Agreement during the previous six-month
period;
(iv) if the Company, within ten (10) days of the receipt of the
request of the Holder or Holders, gives notice of its bona fide intention to
effect the filing of a registration statement with the Commission within
forty-five (45) days of receipt of such request (other than with respect to a
registration statement relating to a Rule 145 transaction or an offering solely
to employees).
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(c) Subject to the foregoing clauses (i) through (iv), the Company
shall file a registration statement covering the Registrable Securities so
requested to be registered as soon as practicable after receipt of the request
of the Initiating Holders and provide notice to the other Holders as required by
Section 3.1(a); provided, however, that if the Company shall furnish to such
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Holders a certificate signed by the Chairman or Chief Executive Officer of the
Company stating that in the good faith judgment of the Board of Directors of the
Company, it would be detrimental to the Company and its stockholders for such
registration statement to be filed, the Company shall have the right to defer
such filing for a period of not more than 180 days after receipt of the request
of the Initiating Holders; provided, further, that the Company shall not be
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permitted to exercise such deferral right under this Section 3.1(c) more than
once in any 365-day period.
3.2 Underwriting.
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(a) The distribution of the Registrable Securities covered by the
request of the Holders shall be effected by means of the method of distribution
selected by the Holders holding a Supermajority of the Registrable Securities
covered by such registration. If such distribution is effected by means of an
underwriting, the right of any Holder to registration pursuant to this Article 3
shall be conditioned upon such Holder's participation in such underwriting and
the inclusion of such Holder's Registrable Securities in the underwriting to the
extent provided herein.
(b) If such distribution is effected by means of an underwriting, the
Company (together with the Participating Holders in such Underwriting) shall use
its best efforts to enter into an underwriting agreement in customary form and
reasonably acceptable to the Company with a managing underwriter of nationally
recognized standing selected for such underwriting by the Company and approved
by a Supermajority in interest of the Participating Holders, which approval
shall not be unreasonably withheld. Notwithstanding any other provision of this
Article 3, if the managing underwriter advises the Participating Holders in
writing that marketing factors require a limitation of the number off shares to
be underwritten, then the underwriters may exclude shares requested to be
included in such registration. The number of shares of Registrable Securities
to be included in the registration and underwriting shall be allocated amongst
the Participating Holders in proportion, as nearly as practicable, to the
respective amounts of Registrable Securities held by such Participating Holders
at the time of filing the registration statement. No Registrable Securities
excluded from the underwriting by reason of the managing underwriter's marketing
limitation shall be included in such registration.
(c) If any Participating Holder disapproves of the terms of the
underwriting, such person may elect to withdraw therefrom by written notice to
the Company, the managing underwriter and the other Participating Holders. The
Registrable Securities and/or other securities so withdrawn shall also be
withdrawn from registration; provided, however, that if by the withdrawal of
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such Registrable Securities a greater number of Registrable Securities held by
other Participating Holders may be included in such registration (up to the
maximum of any limitation imposed by the underwriters), then the Company shall
offer to all Participating Holders who have included Registrable Securities in
the registration the right to include additional Registrable Securities in the
same proportion used in determining the underwriter limitation in this Section
3.2.
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3.3 Cancellation of Registration. A Supermajority in interest of the
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Participating Holders shall have the right to cancel a proposed registration of
Registrable Securities pursuant to Article 3 when, in their discretion, market
conditions are so unfavorable as to be seriously detrimental to an offering
pursuant to such registration. Such cancellation of a registration shall not be
counted as one of the three (3) such requested registrations pursuant to Section
3.1(b)(iii); provided, however, that the Holders canceling such registration
shall pay expenses attributable to such registration.
ARTICLE 4
COMPANY REGISTRATION
4.1 Notice of Registration to Holders. If at any time or from time to
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time the Company shall determine to register any of its securities, either for
its own account or the account of a security holder or holders, other than (i) a
registration relating solely to employee benefit plans on Form S-8 (or any
successor form) or (ii) a registration relating solely to a Commission Rule 145
transaction on Form S-4 (or any successor form), the Company will:
(a) promptly give to each Holder written notice thereof, and
(b) include in such registration (and any related qualification under
blue sky laws or other compliance), and in any underwriting involved therein,
all the Registrable Securities specified in a written request or requests, made
within 30 days after receipt of such written notice from the Company described
in Section 4.1(a), by any Holder or Holders.
4.2 Underwriting. If the registration of which the Company gives
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notice is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written notice given
pursuant to Section 4.1(a). In such event, the right of any Holder to
registration pursuant to this Article 4 shall be conditioned upon such Holder's
participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting shall
(together with the Company) enter into an underwriting agreement in customary
form with the managing underwriter selected for such underwriting by the
Company.
(a) Notwithstanding any other provision of this Article 4, if the
managing underwriter determines that marketing factors require a limitation of
the number of shares to be underwritten, the underwriter may exclude some or all
Registrable Securities from such registration and underwriting. The Company
shall so advise all Holders of Registrable Securities, and the number of shares
of Common Stock to be included in such registration shall be allocated as
follows: first, for the account of the Company, all shares of Common Stock
proposed to be sold by the Company, and second, for the account of any other
stockholders of the Company participating in such registration, the number of
shares of Common Stock requested to be included in the registration by such
other stockholders in proportion, as nearly as practicable, to the respective
amounts of securities that are proposed to be offered and sold by such other
stockholders of such securities at the time of filing the registration
statement. No Registrable Securities excluded from the underwriting by reason
of the underwriters, marketing limitation shall be included in such
registration.
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(b) The Company shall so advise all Holders and the other holders
distributing their securities through such underwriting of any such limitation,
and the number of shares of Registrable Securities held by Holders that may be
included in the registration. If any Holder disapproves of the terms of any
such underwriting, such Holder may elect to withdraw therefrom by written notice
to the Company and the managing underwriter. Any securities excluded or
withdrawn from such underwriting shall be withdrawn from such registration, but
the Holder shall continue to be bound by Article 8 hereof.
(c) The Company shall have the right to terminate or withdraw any
registration initiated by it under this Article 4 prior to the pricing of such
offering, whether or not a Holder has elected to include Registrable Securities
in such registration.
ARTICLE 5
HOLDBACK AGREEMENT
If any Participating Holder notifies the Company that they intend to effect
the sale of Registrable Securities pursuant to Articles 2 or 3 above (each, a
"Sale"), the Company shall not effect any public sale or distribution of its
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equity securities, or any securities convertible into or exchangeable or
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exercisable for its equity securities, during the 90-day period beginning on the
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date such notice of a Sale is received; provided that such notice shall not be
given by any Holder or Holders more than one time during any 180-day period.
ARTICLE 6
EXPENSES OF REGISTRATION
All Registration Expenses shall be borne by the Company. All Selling
Expenses relating to Registrable Securities registered by the Holders shall be
borne by the Holders of such Registrable Securities pro rata on the basis of the
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number of shares so registered.
ARTICLE 7
REGISTRATION PROCEDURES
(a) In the case of each registration effected by the Company pursuant
to this Agreement, the Company will keep each Holder advised in writing as to
the initiation of the registration effected by the Company pursuant to this
Agreement and as to the completion thereof. The Company agrees to use its best
efforts to effect or cause such registration to permit the sale of the
Registrable Securities covered thereby by the Holders thereof in accordance with
the intended method or methods of distribution thereof described in such
registration statement. In connection with any registration of any Registrable
Securities pursuant to Articles 2, 3 or 4 hereof, the Company shall, as soon as
reasonably practicable:
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(i) prepare and file with the Commission a registration statement
with respect to such Registrable Securities within the time period prescribed in
Section 2.1(a) and use its best efforts to cause such registration statement
filed to become effective (provided that before filing a registration statement
or prospectus or any amendments or supplements thereto, the Company shall comply
with subparagraph (iii) of this paragraph (a)) as soon as reasonably possible
thereafter;
(ii) prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus included therein
as may be necessary to effect and maintain the effectiveness of such
registration statement as may be required by the applicable rules and
regulations of the Commission and the instructions applicable to Form S-3 (or
any successor form), and furnish to the holders of the Registrable Securities
covered thereby copies of any such supplement or amendment prior to this being
used and/or filed with the Commission; and comply with the provisions of the
Securities Act with respect to the disposition of all the Registrable Securities
to be included in 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) provide (A) the Holders of the Registrable Securities to be
included in such registration statement, (B) the underwriters (which term, for
purposes of this Agreement, shall include a person deemed to be an underwriter
within the meaning of Section 2(11) of the Securities Act), if any, thereof, (C)
the sales or placement agent, if any, therefor, (D) one counsel for such
underwriters or agent, and (E) not more than one counsel for all the Holders of
such Registrable Securities, the opportunity to participate in the preparation
of such registration statement, each prospectus included therein or filed with
the Commission, and each amendment or supplement thereto;
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(iv) for a reasonable period prior to the filing of such
registration statement, and throughout the period specified above, make
available for inspection by the parties referred to in Section 6(a)(iii) above
such financial and other information and books and records of the Company, and
cause the officers, directors, employees, counsel and independent certified
public accountants of the Company to respond to such inquiries, as shall be
reasonably necessary, in the judgment of the respective counsel referred to in
such Section 6(a)(iii), to conduct a reasonable investigation within the meaning
of the Securities Act; provided, however, that each such party shall be required
to maintain in confidence and not disclose to any other Person or entity any of
such information or records reasonably designated by the Company in writing as
being confidential, until such time as (a) such information becomes a matter of
public record (whether by virtue of its inclusion in such registration statement
or otherwise but not as a result of the disclosure by such party), or (b) such
party shall be required so to disclose such information pursuant to the subpoena
or order of any court or other governmental agency or body having jurisdiction
over the matter (in which case such party will provide the Company notice of any
such requirement so that the Company may seek an appropriate protective order),
or (c) such information as is required to be set forth in such registration
statement or the prospectus included therein or in an amendment to such
registration statement or an amendment or supplement to such prospectus in order
that such registration statement, prospectus, amendment or supplement, as the
case may be, does not include an untrue statement of a material fact or omit to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading; and provided, further, that the Company
need not make such information available, nor need it cause any officer,
director or employee to respond to such inquiry, unless each such Holder of
Registrable Securities and such counsel, upon the Company's request, execute and
deliver to the Company an undertaking to substantially the same effect contained
in the second preceding proviso in form reasonably satisfactory to the Company;
(v) promptly notify the Holders of Registrable Securities, the
sales or placement agent, if any, therefor and the managing underwriter of the
securities being sold and confirm such advice in writing, (A) when such
registration statement or the prospectus included therein or any prospectus
amendment or supplement or post-effective amendment has been filed, and, with
respect to such registration statement or any post-effective amendment, when the
same has become effective, (B) of any comments by the Commission and by the blue
sky or securities commissioner or regulator of any state with respect thereto or
any request by the Commission for amendments or supplements to such registration
statement or the prospectus or for additional information, (C) of the issuance
by the Commission of any stop order suspending the effectiveness of such
registration statement or the initiation of any proceedings for that purpose,
(D) of the receipt by the Company of any notification with respect to the
suspension of the qualification of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose, or (E) if it shall be the case, at any time when a prospectus is
required to be delivered under the Securities Act, that such registration
statement, prospectus, or any document incorporated by reference in any of the
foregoing contains an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing;
(vi) use its best efforts to obtain the withdrawal of any order
suspending the effectiveness of such registration statement or any
post-effective amendment thereto or of any order suspending or preventing the
use of any related prospectus or suspending the qualification of any Registrable
Securities included in such registration statement for sale in any jurisdiction
at the earliest practicable date;
(vii) if requested by any managing underwriter or underwriter, any
placement or sales agent or any Holder of Registrable Securities, promptly
incorporate in a prospectus, prospectus supplement or post-effective amendment
such information as is required by the applicable rules and regulations of the
Commission and as such managing underwriter or underwriters, such agent or such
Holder may reasonably specify should be included therein relating to the terms
of the sale of the Registrable Securities included thereunder, including,
without limitation, information with respect to the number of Registrable
Securities being sold by such Holder or agent or to such underwriters, the name
and description of such Holder, the offering price of such Registrable
Securities and any discount, commission or other compensation payable in respect
thereof, the purchase price being paid therefor by such underwriters and with
respect to any other terms of the offering of the Registrable Securities to be
sold in such offering; and make all required filings of such prospectus;
prospectus supplement or post--effective amendment promptly after notification
of the matters to be incorporated in such prospectus, prospectus supplement or
post-effective amendment;
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(viii) furnish to each Holder of Registrable Securities, each
placement or sales agent, if any, therefor, each underwriter, if any, thereof
and the counsel referred to in Section 4(a)(iii) an executed copy of such
registration statement, each such amendment and supplement thereto (in each case
excluding all exhibits and documents incorporated by reference) and such number
of copies of the registration statement (excluding exhibits thereto and
documents incorporated by reference therein unless specifically so requested by
such holder, agent or underwriter, as the case may be) of the prospectus
included in such registration statement (including each preliminary prospectus
and any summary prospectus), in conformity with the requirements of the
Securities Act, as such Holder, agent, if any, and underwriter, if any, may
reasonably request in order to facilitate the disposition of the Registrable
Securities owned by such Holder sold by such agent or underwritten by such
underwriter and to permit such Holder, agent and underwriter to satisfy the
prospectus delivery requirements of the Securities Act; and the Company hereby
consents to the use of such prospectus and any amendment or supplement thereto
by each such Holder and by any such agent and underwriter, in each case in the
form most recently provided to such party by the Company, in connection with the
offering and sale of the Registrable Securities covered by the prospectus
(including such preliminary and summary prospectus) or any supplement or
amendment thereto;
(ix) use its best efforts to (A) register or qualify the
Registrable Securities under such other securities laws or blue sky laws of such
jurisdictions to be designated by the Holders of a Supermajority of such
Registrable Securities and each placement or sales agent, if any, therefor and
underwriter, if any, thereof, as any Holder and each underwriter, if any, of
the securities being sold shall reasonably request, (B) keep such registrations
or qualifications in effect and comply with such laws so as to permit the
continuance of offers, sales and dealings therein in such jurisdictions for so
long as may be necessary to enable such Holder, agent or underwriter to complete
its distribution of the Registrable Securities pursuant to such registration
statement and (C) take any and all such actions as may be reasonably necessary
or advisable to enable such Holder, agent, if any, and underwriter to consummate
the disposition in such jurisdictions of such Registrable Securities; provided,
however, that the Company shall not be required for any such purpose to (1) take
any action to effect any such registration, qualification or compliance in any
particular jurisdiction in which it would not otherwise be required to execute a
general consent to service of process in effectuating such registration,
qualification or compliance, but for the requirements of this Section 7(a)(ix),
or (2) subject itself to taxation in any such jurisdiction;
(x) cooperate with the Holders of the Registrable Securities and
the managing underwriters to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold, which certificates
shall be printed, lithographed or engraved, or produced by any combination of
such methods, on steel engraved borders and which shall not bear any restrictive
legends; and enable such Registrable Securities to be in such denominations and
registered in such names as the managing underwriters may request at least two
business days prior to any sale of the Registrable Securities;
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(xi) obtain a CUSIP number for all Registrable Securities, not
later than the effective date of the registration statement;
(xii) use its best efforts to enter into one or more underwriting
agreements, engagement letters, agency agreements, "best efforts" underwriting
agreements or similar agreements, as appropriate, and take such other actions in
connection therewith as the Holders of at least a Supermajority of the
Registrable Securities being sold shall reasonably request in order to expedite
or facilitate the disposition of such Registrable Securities;
12
(xiii) whether or not an agreement of the type referred to in the
preceding subsection is entered into and whether or not any portion of the
offering contemplated by such registration statement is an underwritten offering
or is made trough a placement or sales agent or any other entity, (A) make such
representations and warranties to the Holders of such Registrable Securities and
the placement or sales agent, if any, therefor and the underwriters, if any,
thereof in form, substance and scope as are customarily made in connection with
any offering or equity securities pursuant to any appropriate agreement and/or
to a registration statement filed on the form applicable to such registration
statement; (B) obtain an opinion of counsel to the Company in customary form and
covering such matters, of the type customarily covered by such an opinion, as
the managing underwriters, if any, and as the Holders of at least a
Supermajority of such Registrable Securities may reasonably request, addressed
to such Holders and the placement or sales agent, if any, therefor and the
underwriters, if any, thereof and dated the effective date of such registration
statement (and if such registration statement contemplates an underwritten
offering of a party or of all of the Registrable Securities, dated the date of
the closing under the underwriting agreement relating thereto) (it being agreed
that the matters to be covered by such opinion shall include, without
limitation, the due organization of the Company, and its subsidiaries, if any;
the qualification of the Company, and its subsidiaries, if any, to transact
business as foreign companies; the due authorization, execution and delivery of
this Agreement and of any agreement of the typed referred to in Section
7(a)(xii) hereof; the due authorization, valid issuance, and the fully paid
status of the capital stock of the Company; the absence of (governmental
approvals required to be obtained in connection with the registration statement,
the offering and sale of the Registrable Securities, this Agreement or any
agreement of the type referred to in Section 7(a)(xii.) hereof; the compliance
as to form of such registration statement and any documents incorporated by
reference therein with the requirements of the Securities Act; the effectiveness
of such registration statement under the Securities Act; and, as of the date of
the opinion and of the registration statement or most recent post-effective
amendment thereto, as the case may be, the absence, to the knowledge of such
counsel, from such registration statement and the prospectus included therein,
as then amended or supplemented, and from the documents incorporated by
reference therein of an untrue statement of a material fact or the omission to
state therein a material fact necessary to make the statements therein not
misleading (in case of such documents, in the light of the circumstances
existing at the time that such documents were filed with the Commission under
the Exchange Act)); (C) obtain a "cold" comfort letter or letters from the
independent certified public accountants of the Company addressed to the Holders
and the placement or sales agent, if any, therefor and the underwriters, if any,
thereof, dated (I) the effective date of such registration statement and (II)
the effective date of any Prospectus supplement to the prospectus included in
such Registration statement or post-effective amendment to such registration
statement which includes unaudited or audited financial statements as of a date
or for a period subsequent to that of the latest such statements included in
such prospectus (and, if such registration statement contemplates an
underwritten offering pursuant to any prospectus supplement to the prospectus
included in such registration statement or post-effective amendment to such
registration statement which includes unaudited or audited financial statements
as of a date or for a period subsequent to that of the latest such statements
included in such prospectus, dated the date of the closing under the
underwriting agreement relating thereto), such letter or letters to be in
customary form and covering such matters of the type customarily covered by
letters of such type; (D) deliver such documents and certificates, including
officers' certificates, as may be reasonably requested by Holders of at least a
Supermajority of the Registrable Securities being sold and the placement or
sales agent, if any, therefor and the managing underwriters, if any, thereof to
evidence the accuracy of the representations and warranties made pursuant to
clause (A) above and the compliance with or satisfaction of any agreements or
conditions contained in the underwriting agreement or other agreement entered
into by the Company; and (E) undertake such obligations relating to expense
reimbursement, indemnification and contribution as are provided in, Article 6
and 8 hereof;
(xiv) notify in writing each Holder of Registrable Securities of
any proposal by the Company to amend or waive any provision of this Agreement
and of any amendment or waiver effected pursuant thereto, each of which notices
shall contain the text of the amendment or waiver proposed or effected, as the
case may be;
(xv) engage to act on behalf of the Company with respect to the
Registrable Securities to be so registered a registrar and transfer agent having
such duties and responsibilities (including, without limitation, registration of
transfers and maintenance of stock registers) as are customarily discharged by
such an agent, and to enter into such agreements and to offer such indemnities
as are customary in respect thereof;
(xvi) otherwise use its best efforts to comply with all applicable
rules and regulations of the Commission, and make available to its Holders, as
soon as practicable, but in any event not later than 18 months after the
effective date of such registration statement, an earnings statement covering a
period of at least twelve months which shall satisfy the provisions of Section
6(a) of the Securities Act (including, at the option of the Company, pursuant to
Rule 158 thereunder); and
13
(xvii) cause all such Registrable Securities to be listed on each
securities exchange, over-the-counter market or on the Nasdaq National Market
("Nasdaq Market") on which similar securities issued by the Company are then
--------------
listed and, if not so listed, to be listed and, if listed on the Nasdaq Market,
-
use its best efforts to secure designation of all such Registrable Securities
covered by such registration statement as a Nasdaq "national market system
security" within the meaning of Rule llAa2-1 of the Commission or, failing that,
to secure Nasdaq Market authorization for such Registrable Securities and,
without limiting the generality of the foregoing, to arrange for at least two
market makers to register as such with respect to such Registrable Securities
with the National Association of Securities Dealers.
(b) In the event that the Company would be required, pursuant to
Section 7(a)(v)(E) above, to notify the Holders of Registrable Securities
included in a registration statement hereunder, the sales or placement agent, if
any, and the managing underwriters, if any, of the securities being sold, the
Company shall prepare and furnish to each such Holder, to each such agent, if
any, and to each underwriter, if any, a reasonable number of copies of a
prospectus supplement or amendment so that, as thereafter delivered to the
purchasers of Registrable Securities, such prospectus shall 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 not misleading in
light of the circumstances then existing. Each Holder agrees that upon receipt
of any notice from the Company pursuant to Section 7(a)(v)(E) hereof, such
Holder shall forthwith discontinue the distribution of Registrable Securities
until such Holder shall have received copies of such amended or supplemented
registration statement or prospectus, 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
covering such Registrable Securities at the time of receipt of such notice.
(c) The Company may require each Holder of Registrable Securities as to
which any registration is being effected to furnish to the Company such
information regarding such Holder and such Holder's method of distribution of
such Registrable Securities as the Company may from time to time reasonably
request in writing but only to the extent that such information is required in
order to comply with the Securities Act. Each such Holder agrees to notify the
Company as promptly as practicable of any inaccuracy or change in information
previously furnished by such Holder to the Company or of the occurrence of any
event in either case as a result of which any prospectus relating to such
registration contains or would contain an untrue statement of a material fact
regarding such Holder or the distribution of such Registrable Securities or
omits to state any material fact regarding such Holder or the distribution of
such Registrable Securities required to be stated therein or necessary to make
the statements therein not misleading in light of the circumstances then
existing, and promptly to furnish to the Company any additional information
required to correct and update any previously furnished information or required
so that such Prospectus shall not contain, with respect to such Holder or the
distribution of such Registrable Securities, an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading in light of the circumstances then
existing.
ARTICLE 8
INDEMNIFICATION
14
8.1 The Company will indemnify each Holder, each of its Officers and
directors and partners, and each person controlling any such persons within the
meaning of Section 15 of the Securities Act, with respect to which registration
of any of the Registrable Securities under the Securities Act has been effected
pursuant to this Agreement, and each underwriter, if any, and each person who
controls any underwriter within the meaning of Section 15 of the Securities Act,
against all expenses, claims, losses, damages and liabilities (or actions in
respect thereof), including any of the foregoing incurred in settlement of any
litigation, commenced or threatened, arising out of or based on any untrue
statement (or alleged untrue statement) of a material fact contained in any
registration statement, prospectus, offering circular or other document, or any
amendment or supplement thereof, incident to any such registration of any of the
Registrable Securities under the Securities Act which has been effected pursuant
to this Agreement, or based on any omission (or alleged omission) to state
therein, a material fact required to be stated therein or necessary to make the
statements therein, not misleading, or any violation by the Company of any rule
or regulation promulgated under the Securities Act or any state securities laws
applicable to the Company and relating to action or inaction by the Company in
connection with any such Registration, qualification or compliance, and will
reimburse each such Holder, each of its officers and directors and partners, and
each person controlling any such persons, each such Underwriter and each person
who controls any such underwriter, for any legal and any other expenses
reasonably incurred in connection with investigating, preparing or defending any
such claim, loss, damage, liability or action; provided, however, that the
-------- -------
Company will not be liable in any such case to the extent that any such claim,
loss, damage, liability or expense arises out of or is based on any untrue
statement or omission or alleged untrue statement or omission, made in reliance
upon and in conformity with written information furnished to the Company by such
Holder or underwriter and expressly intended for use in such registration
statement, prospectus, offering circular or other, document, or any amendment or
supplement thereof.
15
8.2 Each Holder will, if Registrable Securities held by such Holder are
included in the securities as to which such registration is being effected,
severally and not jointly, indemnify and hold harmless the Company, each of its
directors and officers, each underwriter, if any, of the Company's securities
covered by such a registration statement, each person who controls the Company
or such underwriter within the meaning of Section 15 of the Securities Act, and
each other such Holder, each of its officers, directors, partners, and each
person controlling such Holder within the meaning of Section 15 of the
Securities Act, against all expenses, claims, losses, damages and liabilities
(or actions in respect thereof), to which the Company or such officer, director,
underwriter or person who controls the Company or such underwriter, within the
meaning of Section 15 of the Securities Act, including any of the foregoing
incurred in settlement of any litigation, commenced or threatened, arising out
of or based on any untrue statement (or alleged untrue statement) of a material
fact contained in any such registration statement, prospectus, offering circular
or other document, or any amendment or supplement thereto, incident to any such
registration, qualification or compliance or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse the
Company, such Holders, such directors, officers, partners, underwriters or
control persons for any legal or any other expenses reasonably incurred in
connection with investigating, preparing or defending any such claim, loss,
damage, liability or action, in each case to the extent, but only to the extent,
that such untrue statement (or alleged untrue statement) or omission (or alleged
omission), made in such registration statement, prospectus, offering circular,
other document or amendment or supplement in reliance upon and in conformity
with written information furnished to the Company by such Holder and expressly
intended for use in such registration statement, prospectus, offering circular
or other document, or any amendment or supplement thereof; provided, however,
-------- -------
that the obligations of each Holder hereunder shall be limited to an amount
equal to the proceeds to such Holder of Registrable Securities sold as
contemplated herein.
8.3 Each party entitled to indemnification under this Section 5 (the
"Indemnified Party") shall give notice to the party required to provide
-----------------
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
------ ------------------
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not unreasonably be
withheld). The Indemnified Party may participate in such defense at such
party's expense; provided, however, that the Indemnifying Party shall bear the
expense of such defense of the Indemnified Party if representation of both
parties by the same counsel would be inappropriate due to actual or potential
conflicts of interest. The failure of any Indemnified Party to give notice as
provided herein shall not relieve the Indemnifying Party of its obligations
under this Agreement, unless such failure is prejudicial to the ability of the
Indemnifying Party to defend the action. No Indemnifying Party, in the defense
of any such claim or litigation, shall, except with the consent of each
Indemnified Party not to be unreasonably withheld, consent to entry of any
judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party
of a release from all liability in respect of such claim or litigation.
16
8.4 If the indemnification provided for in Section 8.1 or 8.2 is
unavailable or insufficient to hold harmless an Indemnified Party, then each
Indemnifying Party shall contribute to the amount paid or payable by such
Indemnified Party as a result of the expenses, claims, losses, damages or
liabilities (actions or proceedings in respect thereof) referred to in Section
8.1 or 8.2, in such proportion as is appropriate to reflect the relative fault
of the Company on the one hand and the sellers of Registrable Securities on the
other hand in connection with statements or omissions which resulted in such
losses, claims, damages or liabilities (or actions or proceedings in respect
thereof) or expenses, as well as any other relevant equitable considerations.
The relative fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company or the sellers of Registrable Securities and the
parties, relative intent, knowledge, access to information and opportunity to
correct or prevent such untrue statement or omission. The Company and the
Holders agree that it would not be just and equitable if contributions pursuant
to this Section 8.4 were to be determined by pro rata allocation (even if all
Sellers of Registrable Securities were treated as one entity for such purpose)
or by any other method of allocation which does not take account of the
equitable considerations referred to in the first sentence of this Section 8.4.
The amount paid by an Indemnified Party as a result of the expenses, claims,
losses, damages or liabilities (or actions or proceedings in respect thereof)
referred to in the first sentence of this Section 8.4 shall be deemed to include
any legal or other expenses reasonably incurred by such Indemnified Party in
connection with investigating or defending any claim, action or proceeding which
is the subject of this Section 8.4. 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. The obligations of sellers of Registrable
Securities to Contribute pursuant to this Section 8.4 shall be several in
Proportion to the respective amount of Registrable Securities sold by them
pursuant to a registration statement.
ARTICLE 9
RULE 144 REPORTING
With a view to making available the benefits of certain rules and
regulations of the Commission which may at any time permit the sale of
securities of the Company to the public without registration, the Company agrees
use its best efforts to:
9.1 Make and keep public information available as those terms are
understood and defined in Rule 144 under the Securities Act (or any similar or
analogous rule promulgated under the Securities Act); and
9.2 File with the Commission in a timely manner all reports, and other
documents required of the Company under the Securities Act and the Exchange Act
and make available the benefits of Rule 144; and
9.3 So long as any Holder owns any Registrable Securities, furnish to
such Holder forthwith upon request a written statement by the Company as to its
compliance with the public information requirements of said Rule 144, the
Securities Act and the Exchange Act, a copy of the most recent annual or
quarterly report of the Company, and such other reports and documents of the
Company as such Holder may reasonably request in availing itself of any rule or
regulation of the Commission allowing it to sell any such securities without
registration.
ARTICLE 10
TRANSFER OF REGISTRATION RIGHTS
The rights to cause the Company to register Registrable Securities granted
Holders under Articles 2, 3 and 4 hereof may be assigned in connection with any
permitted transfer or assignment of the Holder's Registrable Securities. All
transferees and assignees of the rights to cause the Company to register
Registrable Securities granted Holders under Articles 2, 3 and 4 hereof, as a
condition to the transfer of such rights, shall agree in writing to be bound by
the agreements set forth herein.
ARTICLE 11
LIMITATIONS ON REGISTRATION RIGHTS
GRANTED TO OTHER SECURITIES
The parties hereto agree that additional holders may, with the consent of
the Company and the Holders of a Supermajority of the Registrable Securities
then outstanding, be added as parties to this Agreement with respect to any or
all securities of the Company held by them; provided, however, that from and
-------- -------
after the date of this Agreement, the Company shall not without the prior
written consent of the Holders of a Supermajority of the Registrable Securities
then outstanding, enter into any agreement with any holder or prospective holder
of any securities of the Company providing for the grant to such holder of
registration rights superior to, or pari passu with, those granted herein. Any
---- -----
additional parties shall execute a counterpart of this Agreement, and upon
execution by such additional parties and by the Company, shall be considered
Holders for purposes of this Agreement, and shall be added to the Schedule of
Registration Rights Holders.
17
ARTICLE 12
MISCELLANEOUS
12.1 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
---------
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN
THE STATE WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.
12.2 WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES,
--------------------
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR (II) IN
ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO,
IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT,
TORT, EQUITY, OR OTHERWISE. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES
AND CONSENTS THAT ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED
BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN
ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY.
12.3 Successors and Assigns. Except as otherwise expressly provided
------------------------
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors and administrators of the
parties hereto.
12.4 Entire Agreement. This Agreement constitutes the full arid entire
----------------
understanding and agreement between the parties with regard to the subject
matter hereof. Any provision of this Agreement may be amended, waived or
modified, and this Agreement may be terminated, if, but only if, such amendment,
waiver or modification or termination is in writing and is signed by the Company
and the holders of a Supermajority of the Registrable Securities; whenever any
provision of this Agreement requires action or approval by the holders of a
specified number of Registrable Securities, such action or approval may be
evidenced by a written consent executed by the requisite holders of Registrable
Securities, without any requirement of a meeting or prior notice to the other
holders of such shares.
12.5 Notices. All notices, requests, consents, and other
-------
communications hereunder shall be in writing and shall be deemed effectively
given and received upon delivery in person, or two business days after delivery
by national overnight courier service or by telecopier transmission with
acknowledgment of transmission receipt, or five business days after deposit via
certified or registered mail, return receipt requested, in each case addressed
as follows:
18
if to the Company:
Pointe Communications Corporation
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Facsimile: (▇▇▇)▇▇▇-▇▇▇▇
with a copy to (which shall not constitute notice):
Gardere & ▇▇▇▇▇, L.L.P.
3000 Thanksgiving Tower
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: W. ▇▇▇▇▇▇ ▇▇▇▇, Jr.
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
if to TSG:
TSG Capital Fund III, L.P.
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
with copy to (which shall not constitute notice):
▇▇▇▇▇, ▇▇▇▇▇ & ▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
if to OCP II:
Opportunity Capital Partners II, L.P.
▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
with a copy to (which shall not constitute notice):
▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇, L.L.P.
Embarcadero Center West
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Esq.
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
if to OCP III:
Opportunity Capital Partners III, L.P.
▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
19
with a copy to (which shall not constitute notice):
▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇, L.L.P.
Embarcadero Center West
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Esq.
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
or, in any such case, at such other address or addresses as shall have been
furnished in writing by such party to the others.
12.6 Severability. In case any provision of this Agreement shall be
------------
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions of this Agreement shall not in any way be affected or
impaired thereby.
12.7 Titles and Subtitles. The titles of the sections and subsections
---------------------
of this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.
12.8 Counterparts. This Agreement may be executed in any number of
------------
counterparts, each of which shall be an original, but all of which together
constitute one instrument. Facsimile transmission of any signed original
document and/or retransmission of any signed facsimile transmission will be
deemed the same as delivery of an original. At the request of any party, the
parties will confirm facsimile transmission by signing a duplicate original
document.
[SIGNATURES ON FOLLOWING PAGE]
20
IN WITNESS WHEREOF, the parties have executed this Agreement as of the 31st
day of December, 1999.
POINTE COMMUNICATIONS CORPORATION,
a Nevada corporation
By:_______________________________________
Name:_____________________________________
Title:______________________________________
TSG CAPITAL FUND III, L.P.,
a Delaware limited partnership
By: TSG Associates III, L.L.C.,
Its General Partner
By:___________________________
Name:_________________________
Title:__________________________
OPPORTUNITY CAPITAL PARTNERS II, L.P.,
a Delaware limited partnership
By: ▇▇▇▇▇▇▇▇ Capital Management, L.P.
Its General Partner
By:___________________________
▇▇▇▇▇ ▇. ▇▇▇▇
Partner
OPPORTUNITY CAPITAL PARTNERS III, L.P.,
a Delaware limited partnership
By: JM Capital Management, L.P.
Its General Partner
By:___________________________
▇▇▇▇▇ ▇. ▇▇▇▇
General Partner
21