|
Exhibit 4.2
CRYOCOR, INC.
AMENDED AND
RESTATED
INVESTORS’ RIGHTS AGREEMENT
June 4, 2003
TABLE OF CONTENTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Page
|
|
1.
|
|
Registration Rights
|
|
1
|
|
|
|
|
|
|
|
1.1.
|
|
Definitions
|
|
1
|
|
|
|
|
|
|
|
1.2.
|
|
Request for Registration
|
|
2
|
|
|
|
|
|
|
|
1.3.
|
|
Company Registration
|
|
4
|
|
|
|
|
|
|
|
1.4.
|
|
Obligations of the Company
|
|
5
|
|
|
|
|
|
|
|
1.5.
|
|
Furnish Information
|
|
6
|
|
|
|
|
|
|
|
1.6.
|
|
Expenses of Demand Registration
|
|
7
|
|
|
|
|
|
|
|
1.7.
|
|
Expenses of Company Registration
|
|
7
|
|
|
|
|
|
|
|
1.8.
|
|
Underwriting Requirements
|
|
7
|
|
|
|
|
|
|
|
1.9.
|
|
Delay of Registration
|
|
8
|
|
|
|
|
|
|
|
1.10.
|
|
Indemnification
|
|
8
|
|
|
|
|
|
|
|
1.11.
|
|
Reports Under Securities Exchange Act of
1934
|
|
10
|
|
|
|
|
|
|
|
1.12.
|
|
Form S-3 Registration
|
|
11
|
|
|
|
|
|
|
|
1.13.
|
|
Assignment of Registration Rights
|
|
12
|
|
|
|
|
|
|
|
1.14.
|
|
Limitations on Subsequent Registration
Rights
|
|
12
|
|
|
|
|
|
|
|
1.15.
|
|
"Market Stand-Off" Agreement
|
|
13
|
|
|
|
|
|
|
|
1.16.
|
|
Termination of Registration Rights
|
|
13
|
|
|
|
|
2.
|
|
Covenants of the Company
|
|
14
|
|
|
|
|
|
|
|
2.1.
|
|
Delivery of Financial Statements
|
|
14
|
|
|
|
|
|
|
|
2.2.
|
|
Inspection
|
|
14
|
|
|
|
|
|
|
|
2.3.
|
|
Termination of Inspection Covenants
|
|
14
|
|
|
|
|
|
|
|
2.4.
|
|
Confidentiality Agreement
|
|
14
|
|
|
|
|
|
|
|
2.5.
|
|
Right of First Offer
|
|
15
|
|
|
|
|
|
|
|
2.6.
|
|
Board Covenants
|
|
16
|
|
|
|
|
|
|
|
2.7.
|
|
Termination of Certain Covenants
|
|
17
|
|
|
|
|
|
|
|
2.8.
|
|
Proprietary Rights Assignment
|
|
17
|
|
|
|
|
|
|
|
2.9.
|
|
Reservation of Common Stock
|
|
17
|
|
|
|
|
|
|
|
2.10.
|
|
Key Man Insurance
|
|
17
|
|
|
|
|
|
|
|
2.11.
|
|
Directors and Officers Insurance
|
|
17
|
|
|
|
|
|
|
|
2.12.
|
|
Directors’ Expenses
|
|
17
|
|
|
|
|
|
|
|
2.13.
|
|
Board Approval
|
|
17
|
|
|
|
|
|
|
|
2.14.
|
|
Board Observer Rights
|
|
18
|
-i-
TABLE OF CONTENTS
(continued)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Page
|
|
|
|
2.15.
|
|
Committees of the Board of Directors
|
|
18
|
|
|
|
|
3.
|
|
Miscellaneous
|
|
18
|
|
|
|
|
|
|
|
3.1.
|
|
Successors and Assigns
|
|
18
|
|
|
|
|
|
|
|
3.2.
|
|
Governing Law
|
|
19
|
|
|
|
|
|
|
|
3.3.
|
|
Counterparts
|
|
19
|
|
|
|
|
|
|
|
3.4.
|
|
Titles and Subtitles
|
|
19
|
|
|
|
|
|
|
|
3.5.
|
|
Notices
|
|
19
|
|
|
|
|
|
|
|
3.6.
|
|
Expenses
|
|
19
|
|
|
|
|
|
|
|
3.7.
|
|
Amendments and Waivers
|
|
19
|
|
|
|
|
|
|
|
3.8.
|
|
Severability
|
|
19
|
|
|
|
|
|
|
|
3.9.
|
|
Aggregation of Stock
|
|
20
|
|
|
|
|
|
|
|
3.10.
|
|
Entire Agreement
|
|
20
|
|
|
|
|
|
|
|
3.11.
|
|
Amendment of Prior Agreement
|
|
20
|
SCHEDULE A - Schedule of Prior
Investors
SCHEDULE B - Schedule of Investors
AMENDED AND
RESTATED
INVESTORS’ RIGHTS AGREEMENT
THIS AMENDED AND RESTATED INVESTORS’
RIGHTS AGREEMENT (this " Agreement ") is made as
of the 4th day of June, 2003, by and between CryoCor, Inc., a
Delaware corporation (the "Company "), the parties
listed on Schedule A hereto (the "Prior
Investors" ) and the investors listed on Schedule B
hereto, each an " Investor " and collectively the
"Investors" .
RECITALS
WHEREAS , the Company and the Investors
(the "Series D Investors ") are parties to the Series D
Preferred Stock Purchase Agreement of even date herewith (the "
Series D Purchase Agreement "), providing for the
sale and issuance by the Company of its Series D Preferred Stock
(the " Series D Preferred Stock ") to the Series D
Investors;
WHEREAS , certain obligations in the
Series D Purchase Agreement are conditioned upon the execution and
delivery of this Agreement;
WHEREAS , certain of the Investors are
holders of the Company’s Series A Preferred Stock (the
"Series A Investors " and the " Series A Preferred
Stock ", respectively) and/or holders of the
Company’s Series B Preferred Stock (the " Series B
Investors " and the " Series B Preferred
Stock ", respectively) and/or holders of the
Company’s Series C Preferred Stock (the " Series C
Investors " and the " Series C Preferred
Stock ", respectively);
WHEREAS , the Prior Investors and the
Company are parties to an Amended and Restated Investors’
Rights Agreement, dated January 23, 2002 (the " Prior
Agreement ");
WHEREAS , the parties to the Prior
Agreement desire to terminate the Prior Agreement and terminate all
the rights and covenants afforded them under the Prior
Agreement;
WHEREAS, upon amendment and restatement
of the Prior Agreement in accordance with Section 3.11 of this
Agreement, the Prior Investors shall no longer be a party to this
Agreement unless such Prior Investors are listed as Investors on
Schedule B hereto; and
WHEREAS , in connection with the
consummation of the Series D Purchase Agreement, the Company and
the Investors have agreed to the registration rights, information
rights, and other rights as set forth below.
NOW, THEREFORE , in consideration of
these premises and for other good and valid consideration, the
receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:
1. Registration Rights . The Company
covenants and agrees as follows:
1.1. Definitions . For purposes of this
Section 1:
(a) The term " Act " means the
Securities Act of 1933, as amended.
(b) The term " Form S-3 " means
such form under the Act as in effect on the date hereof or any
registration form under the 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.
(c) The term " Holder " means any
person owning or having the right to acquire Registrable Securities
or any assignee thereof in accordance with Section 1.13
hereof.
(d) The term " 1934 Act " shall
mean the Securities Exchange Act of 1934, as amended.
(e) The terms " register ", "
registered ," and " registration "
refer to a registration effected by preparing and filing a
registration statement or similar document in compliance with the
Act, and the declaration or ordering of effectiveness of such
registration statement or document.
(f) The term " Registrable
Securities " means (i) the Common Stock of the Company (the
"Common Stock" ) issuable or issued upon conversion
of the Series A Preferred Stock, the Series B Preferred Stock, the
Series C Preferred Stock and the Series D Preferred Stock; (ii)
Common Stock of the Company issuable upon the exercise of warrants
to purchase up to 4,684,431 shares of Common Stock of the Company
held by certain of the Series B Investors and Series C Investors;
and (iii) any Common Stock of the Company issued as (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 the shares
referenced in (i) and (ii) above, excluding in all cases, however,
any Registrable Securities sold by a person in a transaction in
which his rights under this Section 1 are not assigned.
(g) " Registrable Securities then
outstanding " shall be the number of shares determined by
calculating the total number of shares of the Company’s
Common Stock that are Registrable Securities that either (A) are
then issued and outstanding or (B) are issuable pursuant to then
exercisable or convertible securities.
(h) The term " SEC " shall mean the
Securities and Exchange Commission.
1.2. Request for Registration .
(a) If the Company shall receive at any time
after the earlier of (i) June 4, 2006, or (ii) one hundred eighty
(180) days after the effective date of the first registration
statement for a public offering of securities of the Company (other
than a registration statement relating either to the sale of
securities to employees of the Company pursuant to a stock option,
stock purchase or similar plan or a SEC Rule 145 transaction), (A)
a written request from the Holders of a majority of the Registrable
Securities then outstanding that the Company
2
file a registration statement under the Act
covering the registration of at least thirty percent (30%) of the
Registrable Securities then outstanding or (B) a written request
from the Holders of a majority of the Series D Preferred Stock
Registrable Securities then outstanding that the Company file a
registration statement under the Act covering the registration of
at least thirty percent (30%) of the Series D Preferred Stock
Registrable Securities then outstanding (or, in each case, a lesser
percent if the anticipated aggregate offering price, net of
underwriting discounts and commissions, would exceed $10,000,000),
then the Company shall:
(i) within fifteen (15) days of the receipt
thereof, give written notice of such request to all Holders of the
Company’s intention to file a registration statement under
the Act for all Registrable Securities which the Holders request to
be registered, subject to the limitations of subsection 1.2(b) ;
and
(ii) file, as soon as reasonably possible (but in
any event not later than sixty (60) days after the fifteenth
(15 th ) day
following the notice to all Holders), and effect as soon as
reasonably possible thereafter, a registration statement under the
Act covering all Registrable Securities which the Holders request
to be registered, subject to the limitations of subsection
1.2(b).
(b) If the Holders initiating the registration
request hereunder (the " Initiating Holders ") intend
to distribute the Registrable Securities covered by their request
by means of an underwriting, they shall so advise the Company as a
part of their request made pursuant to subsection 1.2(a) and the
Company shall include such information in the written notice
referred to in subsection 1.2(a). The underwriter will be selected
by the Company and shall be reasonably acceptable to a majority in
interest of the Initiating Holders. In such event, the right of any
Holder to include his Registrable Securities in such registration
shall be conditioned upon such Holder’s participation in such
underwriting 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 (together with the
Company as provided in subsection 1.4(e)) enter into an
underwriting agreement in customary form with the underwriter or
underwriters selected for such underwriting. Notwithstanding any
other provision of this Section 1.2, if the underwriter advises the
Initiating Holders in writing that marketing factors require a
limitation of the number of shares to be underwritten, then the
Initiating Holders shall so advise all Holders of Registrable
Securities which would otherwise be underwritten pursuant hereto,
and the number of shares of Registrable Securities that may be
included in the underwriting shall be allocated among all Holders
thereof, including the Initiating Holders, in proportion (as nearly
as practicable) to the amount of Registrable Securities of the
Company owned by each Holder; provided, however , that the
number of shares of Registrable Securities to be included in such
underwriting shall not be reduced unless all other securities are
first entirely excluded from the underwriting.
(c) Notwithstanding the foregoing, if the Company
shall furnish to Holders requesting a registration statement
pursuant to this Section 1.2, within fifteen (15) days of receiving
such request, a certificate signed by the 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
3
statement to be filed and it is therefore
essential to defer the filing of such registration statement, the
Company shall have the right to defer taking action with respect to
such filing for a period of not more than one hundred eighty (180)
days after receipt of the request of the Initiating Holders;
provided, however , that the Company may not utilize this
right more than once in any twelve-month period.
(d) In addition, the Company shall not be
obligated to effect, or to take any action to effect, any
registration pursuant to this Section 1.2:
(i) after the Company has effected two
registrations authorized pursuant to this Section 1.2 by the
Holders of a majority of the Registrable Securities then
outstanding and two registrations authorized pursuant to this
Section 1.2 by the Holders of a majority of the Series D Preferred
Stock Registrable Securities then outstanding and such
registrations have been declared or ordered effective;
(ii) during the period starting with the date
sixty (60) days prior to the Company’s good faith estimate of
the date of filing of, and ending on a date one hundred eighty
(180) days after the effective date of, a registration subject to
Section 1.3 hereof; provided that the Company is actively
employing in good faith all reasonable efforts to cause such
registration statement to become effective;
(iii) if the Initiating Holders propose to
dispose of shares of Registrable Securities that may be immediately
registered on Form S-3 pursuant to a request made pursuant to
Section 1.12 below;
(iv) if within thirty (30) days of receipt of a
written request from the Initiating Holders pursuant to Section
1.2(a), the Company gives notice to the Holders of the
Company’s intention, as evidenced by the approval of such
intention by a majority of the Board of Directors of the Company,
to file a registration statement pursuant to Section 1.3 within
sixty (60) days; or
(v) in any particular jurisdiction in which the
Company would be required to qualify to do business or to execute a
general consent to service of process in effecting such
registration, qualification or compliance.
1.3. Company Registration . If (but
without any obligation to do so) the Company proposes to register
(including for this purpose a registration effected by the Company
for stockholders other than the Holders) any of its stock or other
securities under the Act in connection with the public offering of
such securities solely for cash (other than a registration relating
solely to the sale of securities to participants in a Company stock
plan, or a registration relating to a corporate reorganization or
other transaction under Rule 145, or a registration on any form
which does not include substantially the same information as would
be required to be included in a registration statement covering the
sale of the Registrable Securities), the Company shall, at such
time, promptly give each Holder written notice of such
registration. Upon the written request of each Holder given within
twenty (20) days after mailing of such notice by the Company in
accordance with Section 3.5, the Company shall, subject to the
provisions of Section 1.8, cause to be registered under the Act all
of the Registrable Securities that each such Holder has requested
to be registered.
4
1.4. Obligations of the Company . Whenever
required under this Section 1 to effect the registration of any
Registrable Securities, the Company shall, as expeditiously as
reasonably possible:
(a) Prepare and file with the SEC a registration
statement with respect to such Registrable Securities and use its
best efforts to cause such registration statement to become
effective, and, upon the request of the Holders of a majority of
the Registrable Securities registered thereunder, keep such
registration statement effective for a period of up to one hundred
twenty (120) days or until the distribution contemplated in the
Registration Statement has been completed; provided, however
, that (i) such one hundred twenty (120) day period shall be
extended for a period of time equal to the period the Holder
refrains from selling any securities included in such registration
at the request of an underwriter of Common Stock (or other
securities) of the Company; and (ii) in the case of any
registration of Registrable Securities on Form S-3 which are
intended to be offered on a continuous or delayed basis, such one
hundred twenty (120) day period shall be extended, if necessary, to
keep the registration statement effective until all such
Registrable Securities are sold, provided that Rule 415, or
any successor rule under the Act, permits an offering on a
continuous or delayed basis, and provided further that applicable
rules under the Act governing the obligation to file a
post-effective amendment permit, in lieu of filing a post-effective
amendment which (I) includes any prospectus required by Section
10(a)(3) of the Act or (II) reflects facts or events representing a
material or fundamental change in the information set forth in the
registration statement, the incorporation by reference of
information required to be included in (I) and (II) above to be
contained in periodic reports filed pursuant to Section 13 or 15(d)
of the 1934 Act in the registration statement.
(b) Prepare and file with the SEC such amendments
and supplements to such registration statement and the prospectus
used in connection with such registration statement as may be
necessary to comply with the provisions of the Act with respect to
the disposition of all securities covered by such registration
statement for the period set forth in (a) above.
(c) Furnish to the Holders such numbers of copies
of a prospectus, including a preliminary prospectus, in conformity
with the requirements of the Act, and such other documents as they
may reasonably request in order to facilitate the disposition of
Registrable Securities owned by them.
(d) Use its best efforts to register and qualify
the securities covered by such registration statement under such
other securities or Blue Sky laws of such jurisdictions as shall be
reasonably requested by the Holders; provided that the
Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general
consent to service of process in any such states or
jurisdictions.
(e) In the event of any underwritten public
offering, enter into and perform its obligations under an
underwriting agreement, in usual and customary form, with the
managing underwriter of such offering. Each Holder participating in
such underwriting shall also enter into and perform its obligations
under such an agreement.
5
(f) Notify each Holder of Registrable Securities
covered by such registration statement at any time when a
prospectus relating thereto is required to be delivered under the
Act of the happening of any event as a result of which the
prospectus included in such registration statement, as then in
effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the
circumstances then existing.
(g) Cause all such Registrable Securities
registered pursuant hereunder to be listed on each securities
exchange on which similar securities issued by the Company are then
listed or qualify such Registrable Securities for inclusion on
Nasdaq if the Company does not have a class of equity securities
listed on a national securities exchange.
(h) Provide a transfer agent and registrar for
all Registrable Securities registered pursuant hereunder and a
CUSIP number for all such Registrable Securities, in each case not
later than the effective date of such registration.
(i) Use its best efforts to furnish, at the
request of any Holder requesting registration of Registrable
Securities pursuant to this Section 1, on the date that such
Registrable Securities are delivered to the underwriters for sale
in connection with a registration pursuant to this Section 1, if
such securities are being sold through underwriters, or, if such
securities are not being sold through underwriters, on the date
that the registration statement with respect to such securities
becomes effective, (i) an opinion, dated such date, of the counsel
representing the Company for the purposes of such registration, in
form and substance as is customarily given to underwriters in an
underwritten public offering, addressed to the underwriters, if
any, and to the Holders requesting registration of Registrable
Securities and (ii) a letter dated such date, from the independent
certified public accountants of the Company, in form and substance
as is customarily given by independent certified public accountants
to underwriters in an underwritten public offering, addressed to
the underwriters, if any, and to the Holders requesting
registration of Registrable Securities.
1.5. Furnish Information .
(a) It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this
Section 1 with respect to the Registrable Securities of any selling
Holder that such Holder shall furnish to the Company such
information regarding itself, the Registrable Securities held by
it, and the intended method of disposition of such securities as
shall be required to effect the registration of such Holder’s
Registrable Securities as the Company may reasonably request in
writing.
(b) The Company shall have no obligation with
respect to any registration requested pursuant to Section 1.2 or
Section 1.12 if, due to the operation of subsection 1.2(b), the
number of shares or the anticipated aggregate offering price of the
Registrable Securities to be included in the registration does not
equal or exceed the number of shares or the anticipated aggregate
offering price required to originally trigger the Company’s
obligation to initiate such registration as specified in subsection
1.2(a) or subsection 1.12(b)(2), whichever is
applicable.
6
1.6. Expenses of Demand Registration . All
expenses, other than underwriting discounts and commissions,
incurred in connection with registrations, filings or
qualifications pursuant to Section 1.2, including (without
limitation) all registration, filing and qualification fees,
printers’ and accounting fees, fees and disbursements of
counsel for the Company and the reasonable fees and disbursements
of one counsel for the selling Holders, shall be borne by the
Company; provided, however , that the Company shall not be
required to pay for any expenses of any registration proceeding
begun pursuant to Section 1.2 if the registration request is
subsequently withdrawn at the request of the Holders of a majority
of the Registrable Securities to be registered (in which case all
participating holders shall bear such expenses), unless the Holders
of a majority of the Registrable Securities agree to forfeit their
right to one demand registration pursuant to Section 1.2;
provided further, that if (i) the Company fails to register
and sell at least 85% of the Registrable Securities requested to be
registered in such Section 1.2 request, or (ii) the Company
postpones the registration for any reason and the Initiating
Holders withdraw such registration request, the Company shall bear
all such expenses in connection with the registration, but such
registration shall not count against the number of demand
registrations to which such Holders are entitled.
1.7. Expenses of Company Registration .
The Company shall bear and pay all expenses incurred in connection
with any registration, filing or qualification of Registrable
Securities with respect to the registrations pursuant to Section
1.3 for each Holder (which right may be assigned as provided in
Section 1.13), including (without limitation) all registration,
filing, and qualification fees, printers and accounting fees
relating or apportionable thereto and the fees and disbursements of
one counsel for the selling Holders selected by them, but excluding
underwriting discounts and commissions relating to Registrable
Securities.
1.8. Underwriting Requirements . In
connection with any offering involving an underwriting of shares of
the Company’s capital stock, the Company shall not be
required under Section 1.3 to include any of the Holders’
securities in such underwriting unless they accept the terms of the
underwriting as agreed upon between the Company and the
underwriters selected by it (or by other persons entitled to select
the underwriters), and then only in such quantity as the
underwriters determine in their sole discretion will not,
jeopardize the success of the offering by the Company. If the total
amount of securities, including Registrable Securities, requested
by stockholders to be included in such offering exceeds the amount
of securities sold other than by the Company that the underwriters
determine in their sole discretion is compatible with the success
of the offering, then the Company shall be required to include in
the offering only that number of such securities, including
Registrable Securities, which the underwriters determine in their
sole discretion will not jeopardize the success of the offering
(the securities so included to be apportioned pro rata among the
selling stockholders according to the total amount of securities
entitled to be included therein owned by each selling stockholder
or in such other proportions as shall mutually be agreed to by such
selling stockholders) but in no event shall (i) the amount of
securities of the selling Holders included in the offering be
reduced below forty percent (40%) of the total amount of securities
included in such offering, unless such offering is the initial
public offering of the Company’s securities in which case the
selling stockholders may be excluded if the underwriters make the
determination described above and
7
no other stockholder’s securities are
included or (ii) notwithstanding (i) above, any shares being sold
by a stockholder exercising a demand registration right similar to
that granted in Section 1.2 be excluded from such offering. For
purposes of the preceding parenthetical concerning apportionment,
for any selling stockholder which is a holder of Registrable
Securities and which is a partnership, limited liability company or
corporation, the partners, members, retired partners or members and
stockholders of such holder, or the estates and family members of
any such partners, members, retired partners or members and any
trusts for the benefit of any of the foregoing persons shall be
deemed to be a single "selling stockholder", and any pro-rata
reduction with respect to such "selling stockholder" shall be based
upon the aggregate amount of shares carrying registration rights
owned by all entities and individuals included in such "selling
stockholder", as defined in this sentence.
1.9. Delay of Registration . No Holder
shall have any right to obtain or seek an injunction restraining or
otherwise delaying any such registration as the result of any
controversy that might arise with respect to the interpretation or
implementation of this Section 1.
1.10. Indemnification . In the event any
Registrable Securities are included in a registration statement
under this Section 1:
(a) To the extent permitted by law, the Company
will indemnify and hold harmless each Holder, any underwriter (as
defined in the Act) for such Holder and each person, if any, who
controls such Holder or underwriter within the meaning of the Act
or the 1934 Act, against any losses, claims, damages, or
liabilities (joint or several) to which they may become subject
under the Act, or the 1934 Act or other federal or state law,
insofar as such losses, claims, damages, or liabilities (or actions
in respect thereof) arise out of or are based upon any of the
following statements, omissions or violations (collectively a
"Violation"): (i) any untrue statement or alleged untrue statement
of a material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto, (ii) the 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 (iii) any violation or alleged violation by the
Company of the Act, the 1934 Act, or other federal or state laws or
any rule or regulation promulgated thereunder; and the Company will
pay to each such Holder, underwriter or controlling person any
legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damage,
liability, or action; provided, however , that the indemnity
agreement contained in this subsection 1.10(a) shall not apply to
amounts paid in settlement of any such loss, claim, damage,
liability, or action if such settlement is effected without the
consent of the Company (which consent shall not be unreasonably
withheld), nor shall the Company be liable in any such case for any
such loss, claim, damage, liability, or action to the extent (and
only to the extent) that it arises out of or is based upon a
Violation which occurs in reliance upon and in conformity with
written information furnished expressly for use in connection with
such registration by any such Holder, underwriter or controlling
person of such Holder.
(b) To the extent permitted by law, each selling
Holder will, severally and not jointly, if Registrable Securities
held by such Holder are included in the registration, indemnify and
hold harmless the Company, each of its directors, each of its
officers
8
who has signed the registration statement, each
person, if any, who controls the Company within the meaning of the
Act, any underwriter, any other Holder selling securities in such
registration statement and any controlling person of any such
underwriter or other Holder, against any losses, claims, damages,
or liabilities (joint or several) to which any of the foregoing
persons may become subject, under the Act, or the 1934 Act or other
federal or state law insofar as such losses, clai
|