Exhibit 99.3
REGISTRATION RIGHTS AGREEMENT
This REGISTRATION
RIGHTS AGREEMENT (“ Agreement
”) is made and entered into as of ___________,
2007, between MPC
CORPORATION , a Colorado
corporation (“ Company ”), and
GATEWAY, INC . , a Delaware corporation
(“ Gateway
”).
RECITALS
WHEREAS, in connection with that certain Asset
Purchase Agreement by and among the Company, MPC-Pro, LLC, a
Delaware limited liability company, Gateway, Inc., a Delaware
corporation, and Gateway Technologies, Inc., a Delaware
corporation, dated as of September 4, 2007 (the “
Purchase Agreement ”), Gateway has agreed to receive from the Company, and
the Company has agreed to issue to Gateway, shares of the
Company’s Common Stock and shares of the Company’s
Series B Preferred Stock, on the terms and conditions set forth in
Purchase Agreement.
WHEREAS, the Purchase Agreement provides that
Gateway shall be granted specified registration rights, as more
fully set forth herein, including certain piggyback registration
rights, with respect to shares of the Company’s Common stock,
all as more fully set forth herein.
AGREEMENT
The Company and Gateway hereby agree as
follows:
As used in this Agreement, the following terms shall
have the following meanings (capitalized terms used but not
otherwise defined herein shall have the meanings ascribed to them
in the Purchase Agreement).
“ Commission ” or
“ SEC ” shall mean the Securities and Exchange Commission or
any other federal agency at the time administering the Securities
Act or the Exchange Act.
“ Common
Stock ” shall mean the common
stock of the Company, no par value.
“ Conversion
Stock ” shall mean the shares
of the Company’s Common Stock issued or issuable pursuant to
conversion of the Gateway Preferred, and shall include any shares
of Common Stock of the Company issued (or issuable upon the
conversion or exercise of any warrant, right or other security
which is issued) as a dividend or other distribution with respect
to, or in exchange for or in replacement of any such shares of the
Company’s Common Stock or any shares of the Gateway
Preferred, including, without limitation, in connection with any
stock split, stock dividend, recapitalization or similar
event.
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“ Exchange
Act ” shall mean the Securities
Exchange Act of 1934, as amended, or any similar federal statute
then in effect, and a reference to a particular section thereof
shall be deemed to include a reference to the comparable section,
if any, of any such similar federal statute.
“ Form
S-3 ” shall mean such form
under the Securities Act as is in effect on the date hereof or any
successor registration form under the Securities Act subsequently
adopted by the SEC which permits inclusion or incorporation of
substantial information by reference to other documents filed by
the Company with the SEC.
“ Gateway
Common ” shall mean the
Company’s Common Stock issued by the Company to Gateway in
connection with the transactions contemplated by the Purchase
Agreement, and shall include any shares of Common Stock of the
Company issued (or issuable upon the conversion or exercise of any
warrant, right or other security which is issued) as a dividend or
other distribution with respect to, or in exchange for or in
replacement of any such shares of the Company’s Common
Stock.
“ Gateway
Preferred ” shall mean the
Company’s Series B Preferred Stock issued by the Company to
Gateway in connection with the transactions contemplated by the
Purchase Agreement, and shall include any shares of Series B
Preferred Stock of the Company issued (or issuable upon the
conversion or exercise of any warrant, right or other security
which is issued) as a dividend or other distribution with respect
to, or in exchange for or in replacement of any such shares of the
Company’s Series B Preferred Stock.
“ Holder ” shall mean Gateway
or any Person owning of record Registrable Securities, and shall
include any Permitted Transferees of Registrable
Securities.
“ Permitted
Transferee ” shall mean any
holder of Registrable Securities, other than any such holder that
receives such Registrable Securities in violation of the transfer
restrictions set forth in the Lock-Up Agreement.
“ Registration. ” The terms
“ register ,” “ registration ” and
“ registered ” refer to a registration effected by preparing and
filing a registration statement in compliance with the Securities
Act, and the declaration or ordering of effectiveness of such
registration statement.
“ Registrable
Securities ” shall mean all of
the shares of the Gateway Common and the Conversion Stock,
excluding in all cases,
however, any Registrable Securities sold by a person in a
transaction in which rights under this Agreement are not assigned
in accordance with this Agreement or any Registrable Securities
with respect to which the Holders are no longer entitled to
registration rights pursuant to this Agreement. As to any
particular Registrable Securities, once issued, such Registrable
Securities shall cease to be Registrable Securities when (w) a
registration statement with respect to the sale by the Holders of
such securities has become effective under the Securities Act and
such securities have been disposed of in accordance with such
registration statement, (x) such securities have been sold under
circumstances in which all of the applicable conditions
to
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Rule 144 (or any successor provision) under the
Securities Act are met, or (y) such securities have ceased to be
outstanding.
“ Registrable
Securities Then Outstanding ”
shall mean the number of shares of Gateway Common which are
Registrable Securities that are then (1) issued and
outstanding or (2) issuable pursuant to the exercise or
conversion of then outstanding and then exercisable and qualifying
options, warrants or convertible securities.
“ Registration
Statements ” shall mean the
registration statements required to be filed hereunder including in
each case the prospectus, amendments and supplements to such
registration statement or prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference
in such registration statement.
“ Securities
Act ” shall mean the Securities
Act of 1933, as amended, or any similar federal statute then in
effect, and a reference to a particular section thereof shall be
deemed to include a reference to the comparable section, if any, of
any such similar federal statute.
(a)
Request by Holders . At any time after expiration of the Restriction Period as set
forth in the Lock-Up Agreement, if the Company shall receive a
written request from the Holders of at least forty percent (40%) of
the Registrable Securities Then Outstanding that the Company file a
registration statement under the Securities Act covering the
registration of Registrable Securities pursuant to this
Section 2, then the Company shall, within twenty (20) days
after the receipt of such written request, give written notice of
such request (the “ Request
Notice ”) to all Holders, and
effect, as soon as practicable, the registration under the
Securities Act of all Registrable Securities which Holders request
to be registered and included in such registration by written
notice given by such Holders to the Company within twenty (20) days
after receipt of the Request Notice, subject only to the
limitations of this Section; provided that the Registrable
Securities requested by all Holders to be registered pursuant to
such request must equal or exceed twenty-five (25%) of the total
number of shares of the Company’s Common Stock and the
Gateway Preferred issued to Gateway at the Closing (as defined in
the Purchase Agreement) of the transactions contemplated by the
Purchase Agreement, treating the Gateway Preferred for such purpose
as if it had been converted to Common Stock in accordance with the
terms thereof, and in each case as adjusted for stock splits, stock
combinations, stock dividends and the like.
(b)
Underwriting .
If the Holders initiating the registration request under this
Section 2 (the “ Initiating
Holders ”) intend to distribute
the Registrable Securities covered by their request by means of an
underwriting, then they shall so advise the Company as a part of
their request made pursuant to this Section 2 and the Company
shall include such information in the written notice referred to in
subsection 2(a). In such event, the right of any Holder to
include his, her, or its Registrable Securities in such
registration shall be conditioned upon such Holder’s
participation in such underwriting
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and the inclusion of such Holder’s Registrable
Securities in the underwriting (unless otherwise mutually agreed by
a majority in interest of the Initiating Holders and such Holder)
to the extent provided herein. All Holders proposing to distribute
their securities through such underwriting shall enter into an
underwriting agreement in reasonable and customary form with the
managing underwriter or underwriters selected for such underwriting
by the Company. The Company shall not be required to include any
securities of any Holder in such underwriting unless such Holder
accepts reasonable and customary terms for the underwriting as
agreed upon between the Company and the underwriters selected by
the Company and enters into an underwriting agreement in reasonable
and customary form with the underwriter or underwriters selected by
the Company. Notwithstanding any other provision of this
Section 2, if the underwriter(s) advise(s) the Company in
writing that marketing factors require a limitation of the number
of securities to be underwritten then the Company shall so advise
all Holders of Registrable Securities that would otherwise be
registered and underwritten pursuant hereto, and the number of
Registrable Securities that may be included in the underwriting
shall be reduced as required by the underwriter(s) and allocated
among the Holders of Registrable Securities on a pro rata basis
according to the number of Registrable Securities Then Outstanding
held by each Holder requesting registration (including the
Initiating Holders); provided
, however
, that the number of shares of Registrable
Securities to be included in such underwriting and registration
shall not be reduced unless all other securities of the Company are
first entirely excluded from the underwriting and registration. Any
Registrable Securities excluded and withdrawn from such
underwriting shall be withdrawn from the registration.
(c)
Maximum Number of Demand
Registrations . The Company is
obligated to effect only two (2) such registration pursuant to this
Section 2; provided
, however
, that a registration shall not be deemed to have
occurred pursuant to this Section 2 unless both:
1.
the registration statement relating thereto
(A) has become effective under the Securities Act and
(B) has remained effective for a period of at least 90 days
(or such shorter period in which all Registrable Securities of the
Holders included in such registration have actually been sold
thereunder), provided
that, notwithstanding the foregoing, a registration
shall not be deemed to have occurred pursuant to this Section 2 if,
after the registration statement relating thereto becomes
effective, (1) such registration statement is interfered with
by any stop order, injunction or other order or requirement of the
Commission or other governmental agency or court and (2) less
than 50% of the Registrable Securities included in such
registration statement have been sold thereunder; and
2.
the amount of Registrable Securities included in the
registration statement relating thereto at the time of
effectiveness is at least 50% of the Registrable Securities of the
Holders sought to be included in such registration, taking account
of any limitation on the number of Registrable Securities that may
be included in such registration pursuant to Section 2(b)
above.
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(d)
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Deferral; Postponements;
Suspensions .
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1.
If at the time of any request to register
Registrable Securities pursuant to this Section 2 the Company is
engaged or has fixed plans to engage within ninety (90) days of the
time of the request in a registered public offering as to which the
Holders may include Registrable Securities under this Agreement,
then the Company may at its option direct that such request be
delayed for a period not in excess of ninety (90) days from the
earlier of the effective date of such offering or the date of
commencement of such other material activity, provided that in no
event shall such right to delay a request to be exercised by the
Company more than once in any one-year period.
2.
If the Board of Directors of the Company, in its
good faith and reasonable judgment, determines that any
registration under the Securities Act of Registrable Securities
should not be made or continued because it would materially
interfere with any material financing, acquisition, corporation
reorganization, merger, or other transaction involving the Company
or any of its subsidiaries (a "Valid Business Reason"), (i) the
Company may postpone filing a Registration Statement until such
Valid Business Reason no longer exists, but in no event for more
than ninety (90) days, and (ii) in case a Registration Statement
has been filed, if the Valid Business Reason has not resulted from
actions taken by the Company, the Company may postpone amending or
supplementing such Registration Statement until such Valid Business
Reason no longer exists, but in no event for more than ninety (90)
days (the "Postponement Period"); provided, however, that in no
event shall the Company be permitted to postpone filing, amending
or supplementing a Registration Statement within sixty (60) days
after the expiration of any Postponement Period.
Notwithstanding the foregoing, if the Company shall
furnish to Holders requesting the filing of a registration
statement pursuant to this Section 2, a certificate signed by
the President 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 seriously detrimental to the Company and its
stockholders for such registration statement to be filed and it is
therefore essential to defer the filing of such registration
statement, then the Company shall have the right to defer such
filing for a period of not more than ninety (90) days after receipt
of the request of the Initiating Holders.
(e)
Expenses . All
expenses incurred in connection with a registration pursuant to
this Section 2, including without limitation all registration
and qualification fees, printers’ and accounting fees, fees
and disbursements of counsel for the Company, and the reasonable fees and disbursements, not to exceed
$25,000, of one counsel for the selling Holders, which shall not be
counsel for the Company (but excluding underwriters’
discounts and commissions), shall be borne by the Company. Each
Holder participating in a registration pursuant to this
Section 2 shall bear such Holder’s proportionate share
(based on the number of shares sold by such Holder over the total
number of shares included in such registration at the time it is
declared effective) of all discounts, commissions or other amounts
payable to underwriters or brokers in connection with such
offering. Notwithstanding the foregoing, the Company shall not be
required to pay for any expenses of any demand registration
proceeding begun pursuant to this Section 2 if the
registration request is subsequently withdrawn at the request of
the Holders of a
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majority of the Registrable Securities to be
registered unless, at the time of such withdrawal, the withdrawing
Holders have learned of a material adverse change in the condition
or business of the Company from that known to such Holders at the
time of their registration request.
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3.
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Piggyback Registrations
.
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(a)
The Company shall notify all Holders of Registrable
Securities in writing at least thirty (30) days prior to filing any
registration statement, at any time after the expiration of the
Restriction Period as set forth in the Lock-Up Agreement, under the
Securities Act for purposes of effecting a public offering of
securities of the Company (including, but not limited to,
registration statements relating to secondary offerings of
securities of the Company, but excluding registration statements
relating to any registration required of Company under this
Agreement or to any employee benefit plan or a corporate
reorganization or other transaction covered by Rule 145
promulgated under the Securities Act, or a registration on any
registration form which does not permit secondary sales or does not
include substantially the same information as would be required to
be included in a registration statement covering the sale of
Registrable Securities,) and will afford each such Holder an
opportunity to include in such registration statement all or any
part of the Registrable Securities then held by such Holder. Each
Holder desiring to include in any such registration statement all
or any part of the Registrable Securities held by such Holder
shall, within twenty (20) days after receipt of the above-described
notice from the Company, so notify the Company in writing, and in
such notice shall inform the Company of the number of Registrable
Securities such Holder wishes to include in such registration
statement. If a Holder decides not to include all of its
Registrable Securities in any registration statement thereafter
filed by the Company, such Holder shall nevertheless continue to
have the right to include any Registrable Securities in any
subsequent registration statement or registration statements as may
be filed by the Company with respect to offerings of its
securities, all upon the terms and conditions set forth
herein.
(b)
Underwriting .
If a registration statement under which the Company gives notice
under this Section 3 is for an underwritten offering, then the
Company shall so advise the Holders of Registrable Securities. In
such event, the right of any such Holder’s Registrable
Securities to be included in a registration pursuant to this
Section 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. All Holders proposing to distribute their
Registrable Securities th