REGISTRATION RIGHTS
AGREEMENT
REGISTRATION
RIGHTS AGREEMENT (this “ Agreement ”), dated as
of November 17, 2006, is by and among HCA Inc., a Delaware
corporation (the “ Company ”), Hercules Holding
II, LLC, a Delaware limited liability company (“
Holdings ”) and each of the other parties hereto. Each
of the Persons listed on the signature pages hereto (other than the
Company and Holdings), each Senior Manager and any Person who
becomes a party hereto pursuant to Section 12(c) are referred to
individually as an “ Investor ” and together as
the “ Investors ”.
WHEREAS,
Holdings and the Investors are parties to that certain Amended and
Restated Limited Liability Company Agreement, dated as of the date
hereof, as the same may hereafter be amended from time to time (the
“ LLC Agreement ”);
WHEREAS,
in connection with the entry into the LLC Agreement and the closing
of the transactions contemplated by the Agreement and Plan of
Merger, dated as of July 24, 2006, by and among the Company,
Holdings and Hercules Acquisition Corporation, the parties hereto
desire to enter into this Agreement to provide the Investors with
certain registration rights with respect to the Common Stock (as
defined below); and
NOW,
THEREFORE, for and in consideration of the mutual agreements
contained herein and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the
parties hereto, intending to be legally bound hereby, agree as
follows:
Section 1.
Definitions . As used in this Agreement, the following terms
shall have the following meanings, and terms used herein but not
otherwise defined herein shall have the meanings assigned to them
in the LLC Agreement:
“
Bain Investor ” shall mean Bain Capital HCA Investors,
LLC, Bain Capital Integral Investors 2006, LLC and BCIP TCV, LLC,
Bain Capital Hercules Investors, LLC and their Permitted
Transferees, in each case, that from time to time hold any direct
or indirect interest in the Company.
“
Common Stock ” shall mean all shares hereafter
authorized of any class of common stock of the Company which has
the right (subject always to the rights of any class or series of
preferred stock of the Company) to participate in the distribution
of the assets and earnings of the Company without limit as to per
share amount.
“
Demand Notice ” shall have the meaning set forth in
Section 2(a) hereof.
“
Demand Registration ” shall have the meaning set forth
in Section 2(a) hereof.
“
Exchange Act ” shall mean the Securities Exchange Act
of 1934, as amended, and any successor statute thereto and the
rules and regulations of the SEC promulgated thereunder.
“
Family Investor ” means, as of any date, any of the
individuals or entities identified in Exhibit A to the LLC
Agreement and their respective Permitted Transferees that from time
to time hold any direct or indirect interest in the Company and/or
HCA.
“
Family Member ” shall mean, with respect to any
natural Person, (i) any family member (including any child,
stepchild, grandchild or more remote issue, parent, stepparent,
grandparent, spouse, former spouse, domestic partner, sibling,
child of sibling, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, sister-in-law, cousin and adoptive
relationships) or heir, legatee, beneficiary, devisee or estate of
such Family Member or (ii) any foundation, trust, family
limited partnership, family limited liability company or other
entity created and used for estate planning purposes, so long as
any such foundation, trust, family limited partnership, family
limited liability company or other entity is controlled by, for the
benefit of, or owned by one or more Persons described in clause
(i) and/or clause (ii).
“
Family Representative ” means Frisco Inc. and Frisco
Partners or such other natural person or entity as may be
designated to act as such, and notified to the Company in writing,
by Frisco Inc. and Frisco Partners.
“
KKR Investor ” shall mean KKR Millennium Fund L.P.,
KKR PEI Investments, L.P., KKR 2006 Fund L.P., KKR Partners III,
L.P., OPERF Co-Investment LLC and their respective Permitted
Transferees, in each case, that from time to time hold any direct
or indirect interest in the Company.
“
Losses ” shall have the meaning set forth in
Section 7 hereof.
“
Management Stockholder’s Agreement ” shall mean
the Management Stockholder’s Agreement dated as of the date
hereof among the Company and certain members of senior management
of the Company and any other substantially similar Management
Stockholder’s Agreement subsequently entered into among the
Company and any employee of the Company, in each case as amended
from time to time.
“
MLGPE Investor ” shall mean ML Global Private Equity
Fund, L.P., Merrill Lynch Ventures L.P. 2001 and their respective
Permitted Transferees, in each case, that from time to time hold
any direct or indirect interest in the Company.
“
Permitted Transferee ” shall have the meaning set
forth in the LLC Agreement.
“
Person ” shall mean any natural person, corporation,
limited partnership, general partnership, limited liability
company, joint stock company, joint venture, association, company,
estate, trust, bank trust company, land trust, business trust, or
other organization, whether or not a legal entity, custodian,
trustee-executor, administrator, nominee or entity in a
representative capacity and any government or agency or political
subdivision thereof.
“
Piggyback Notice ” shall have the meaning set forth in
Section 3(a) hereof.
“
Piggyback Registration ” shall have the meaning set
forth in Section 3(a) hereof.
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“
Public Offering ” shall mean the sale of Common Stock
to the public pursuant to an effective registration statement
(other than a registration statement on Form S-4 or Form S-8 or any
similar or successor form) filed under the Securities Act or any
comparable law or regulatory scheme of any foreign
jurisdiction.
“
Proceeding ” shall mean an action, claim, suit,
arbitration or proceeding (including, without limitation, an
investigation or partial proceeding, such as a deposition), whether
commenced or threatened.
“
Prospectus ” shall mean the prospectus included in any
Registration Statement (including, without limitation, a prospectus
that discloses information previously omitted from a prospectus
filed as part of an effective Registration Statement in reliance
upon Rule 430A promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Registrable
Securities covered by such Registration Statement, and all other
amendments and supplements to the Prospectus, including
post-effective amendments, and all material incorporated by
reference or deemed to be incorporated by reference in such
prospectus.
“
Qualified Holder ” shall mean any of the Bain
Investor, the Family Investor, the KKR Investor and the MLGPE
Investor; provided that each of the foregoing Investors
shall cease to be a Qualified Holder when such Investor is no
longer entitled to designate a manager to the Board of Holdings
pursuant to the LLC Agreement, other than for purposes of
delivering a Demand Notice relating to an initial Public Offering
pursuant to Section 2(a) and all matters related to such
registration, in which case the foregoing Investors shall not be
considered a Qualified Holder if they are no longer entitled to
designate two managers to the Board of Holdings pursuant to the LLC
Agreement.
“
Registrable Securities ” shall mean all shares of
Common Stock held directly or indirectly by a Registration Rights
Holder (including (i) any shares of Common Stock held
indirectly by a Registration Rights Holder through Holdings and
(ii) any shares of Common Stock issuable upon exercise of an
Option (as defined in the Management Stockholder’s Agreement)
held by a Registration Rights Holder to the extent then
exercisable)). As to any particular Registrable Securities, once
issued such securities shall cease to be Registrable Securities
when (i) they are sold pursuant to an effective Registration
Statement under the Securities Act, (ii) they are sold
pursuant to Rule 144, (iii) they shall have ceased to be
outstanding or (iv) they have been sold in a private
transaction in which the transferor’s rights under this
Agreement are not assigned to the transferee of the securities. No
Registrable Securities may be registered under more than one
Registration Statement at any one time.
“
Registration Rights Holder ” shall mean, each of the
Investors, any employee party to a Management Stockholder’s
Agreement (but only to the extent that such employee is entitled to
registration rights thereunder), and any other person entitled to
incidental or piggyback registration rights pursuant to an
agreement with the Company.
“
Registration Statement ” shall mean any registration
statement of the Company under the Securities Act which permits the
public offering of any of the Registrable Securities pursuant to
the provisions of this Agreement, including the Prospectus,
amendments and
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supplements to
such registration statement, including post-effective amendments,
all exhibits and all material incorporated by reference or deemed
to be incorporated by reference in such registration
statement.
“
Requisite Investors ” shall mean (i) prior to the
third anniversary of an initial Public Offering of the Company, any
three of the Bain Investor, the Family Investor, the KKR Investor
and the MLGPE Investor; provided that if any one of the
foregoing Investor Groups shall cease to be a Qualified Holder,
then Requisite Investors shall mean, any two of the remaining
foregoing Investor Groups provided that they are Qualified Holders;
provided further , if more than one of the foregoing
Investor Groups shall cease to be a Qualified Holder, then, except
as specifically provided herein, the term “Requisite
Investors” shall mean one or more Investor Groups holding in
the aggregate more than (A) with respect to an initial Public
Offering of the Company, 10% of the shares of Common Stock
(including indirect holdings through Holdings) and
(B) thereafter, 5% of the shares of Common Stock (including
indirect holdings through Holdings) and (ii) after the third
anniversary of an initial Public Offering of the Company, except as
specifically provided herein, one or more Investor Groups holding
in the aggregate more than 5% of the shares of Common Stock
(including indirect holdings through Holdings).
“
Rule 144 ” shall mean Rule 144 under the
Securities Act, as such Rule may be amended from time to time, or
any similar rule or regulation hereafter adopted by the
SEC.
“
SEC ” shall mean the Securities and Exchange
Commission or any successor agency having jurisdiction under the
Securities Act.
“
Securities Act ” shall mean the Securities Act of
1933, as amended, and any successor statute thereto and the rules
and regulations of the SEC promulgated thereunder.
“
Senior Manager ” shall have the meaning given thereto
in the Management Stockholders Agreement.
“
Sponsor Investors ” shall mean, collectively, the Bain
Investor, the KKR Investor and the MLGPE Investor.
“
underwritten registration or underwritten offering
” shall mean a registration in which securities of the
Company are sold to an underwriter for reoffering to the
public.
Where
this Agreement provides for the vote, consent or approval of the
Bain Investor, the KKR Investor or the MLGPE Investor, each such
group’s vote, consent or approval shall be deemed to be given
if approved by members of such group holding a majority of the
Units then held by all members of such group. Where this Agreement
provides for the vote, consent or approval of the Family Investor,
the Family Investor’s vote, consent or approval shall be
deemed to be given if approved by each of the Family
Representatives. Each Registration Rights Holder shall be deemed,
for purposes hereunder, to be a holder of (i) a percentage of
the number of shares of Common Stock held by Holdings equal to the
percentage of the total “Units” issued by Holdings held
by such Registration Rights Holder, and (ii) any shares of
common stock of HCA Inc held by such Registration Rights
Holder.
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Section 2.
Demand Registrations.
(a)
Requests for Registration . Subject to the following
paragraphs of this Section 2(a), the Requisite Investors shall have
the right by delivering a written notice to the Company (a “
Demand Notice ”) to require the Company to register,
pursuant to the terms of this Agreement under and in accordance
with the provisions of the Securities Act, the number of
Registrable Securities requested to be so registered pursuant to
the terms of this Agreement and, in the case of an initial Public
Offering, a number of shares of Common Stock specified by such
group of Requisite Investors to be issued and sold in the initial
Public Offering (a “ Demand Registration ”);
provided , however , that a Demand Notice may only be
made if the sale of the Registrable Securities requested to be
registered by such group of Requisite Investors and/or, in the case
of an initial Public Offering, the sale of the number of shares of
Common Stock specified by such group of Requisite Investors to be
issued in the initial Public Offering is reasonably expected to
result in aggregate gross cash proceeds in excess of $200,000,000
(without regard to any underwriting discount or commission).
Following receipt of a Demand Notice for a Demand Registration, the
Company shall use its reasonable best efforts to file a
Registration Statement as promptly as practicable, but not later
than 60 days after such Demand Notice (in the case of an
initial Public Offering), and 30 days after such Demand Notice
(in the case of any Public Offering other than an initial Public
Offering), and shall use its reasonable best efforts to cause such
Registration Statement to be declared effective under the
Securities Act as promptly as practicable after the filing
thereof.
No
Demand Registration shall be deemed to have occurred for purposes
of this Section 3 if the Registration Statement relating
thereto (i) does not become effective (ii) is not
maintained effective for the period required pursuant to this
Section 2, or (iii) the offering of the Registrable
Securities pursuant to such Registration Statement is subject to a
stop order, injunction or similar order or requirement of the SEC
during such period in which case such requesting holder of
Registrable Securities shall be entitled to an additional Demand
Registration, as the case may be, in lieu thereof.
Within
10 days after receipt by the Company of a Demand Notice, the
Company shall give written notice (the “ Notice
”) of such Demand Notice to all other holders of Registrable
Securities and shall, subject to the provisions of Section 2(b)
hereof, include in such registration all Registrable Securities
with respect to which the Company received written requests for
inclusion therein within 15 days after such Notice is given by
the Company to such holders.
Notwithstanding
anything to the contrary in this Agreement, unless otherwise
consented to by the Requisite Investors (which, if there are not
more than two Qualified Holders, shall mean, for purposes of this
sentence, those holders of more than 50% of the shares of Common
Stock held by the Investors (including indirect holdings through
Holdings)), in connection with a Demand Notice for an initial
Public Offering, the Company shall not be required to deliver any
Demand Notice or Piggyback Notice nor include in such registration
any Registrable Securities if the initial Public Offering involves
only a primary offering of the Common Stock in which none of the
Family Investor or the Sponsor Investors are selling shares of
Common Stock beneficially owned by them.
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All
requests made pursuant to this Section 2 will specify the
number of Registrable Securities to be registered and/or, in the
case of an initial Public Offering, the number of shares of Common
Stock to be issued and the intended methods of disposition
thereof.
The
Company shall be required to maintain the effectiveness of the
Registration Statement with respect to any Demand Registration for
a period of at least 270 days after the effective date thereof
or such shorter period in which all Registrable Securities included
in such Registration Statement have actually been sold.
(b) Priority on
Demand Registration .
(i) Initial
Public Offering . If any of the Registrable Securities
registered pursuant to a Demand Registration in connection with an
initial Public Offering are to be sold in a firm commitment
underwritten offering, and the managing underwriter or underwriters
advise the holders of such securities in writing that in its view
the total number or dollar amount of Registrable Securities
proposed to be sold in such offering is such as to adversely affect
the success of such offering (including, without limitation,
securities proposed to be included by other holders of securities
entitled to include securities in such Registration Statement
pursuant to incidental or piggyback registration rights), then
there shall be included in such firm commitment underwritten
offering the number or dollar amount of Registrable Securities that
in the opinion of such managing underwriter can be sold without
adversely affecting such offering, and such number of Registrable
Securities shall be allocated as follows (unless the underwriters
require a different allocation):
(A) first, among
the Sponsor Investors, the Family Investor, Citigroup Capital
Partners II 2006, Citigroup Investment L.P., Citigroup Capital
Partners II Employee Master Fund, L.P., Citigroup Capital Partners
II Onshore, L.P., Citigroup Capital Partners II Cayman Holdings,
L.P., Banc of America Securities LLC and any other holder of
Registrable Securities entitled to exit with the Sponsor Investors
and the Family Investor in a Demand Registration pro rata on the
basis of the percentage of the Registrable Securities owned
directly or indirectly by each such Investor or other Person
relative to the number of Registrable Securities owned directly or
indirectly by all such Persons;
(B) second, among
the other holders of Registrable Securities on the basis of the
percentage of the Registrable Securities owned directly or
indirectly by each such Investor or other Person pro rata relative
to the number of Registrable Securities owned directly or
indirectly by all such Persons; and
(C) third, the
securities for which inclusion in such Demand Registration, was
requested by the Company.
(ii) Subsequent
Public Offerings . If any of the Registrable Securities
registered pursuant to a Demand Registration other than in
connection with an initial Public Offering are to be sold in a firm
commitment underwritten offering,
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and the
managing underwriter or underwriters advise the holders of such
securities in writing that in its view the total number or dollar
amount of Registrable Securities proposed to be sold in such
offering is such as to adversely affect the success of such
offering (including, without limitation, securities proposed to be
included by other holders of securities entitled to include
securities in such Registration Statement pursuant to incidental or
piggyback registration rights), then there shall be included in
such firm commitment underwritten offering the number or dollar
amount of Registrable Securities that in the opinion of such
managing underwriter can be sold without adversely affecting such
offering, and such number of Registrable Securities shall be
allocated as follows (unless the underwriters require a different
allocation):
(A) first, among
the holders of Registrable Securities on the basis of the
percentage of the Registrable Securities owned directly or
indirectly by each such Investor or other Person pro rata relative
to the number of Registrable Securities owned directly or
indirectly by all such Persons; and
(B) second, the
securities for which inclusion in such Demand Registration, as the
case may be, was requested by the Company.
For purposes of
any underwriter cutback, all Registrable Securities held by any
Investor (other than a Family Investor) shall also include any
Registrable Securities held by the partners, retired partners,
shareholders or affiliates of such holder, or the estates and
family members of any such holder or such partners and retired
partners, any trusts for the benefit of any of the foregoing
persons and, at the election of such holder or such partners,
retired partners, trusts or affiliates, any charitable
organization, in each case to which any of the foregoing shall have
distributed, transferred or contributed Common Stock prior to the
execution of the underwriting agreement in connection with such
underwritten offering; provided that such distribution,
transfer or contribution occurred not more than 90 days prior
to such execution, and such holder and other persons shall be
deemed to be a single selling holder, and any pro rata reduction
with respect to such selling holder shall be based upon the
aggregate amount of Common Stock owned by all entities and
individuals included in such selling holder, as defined in this
sentence. No securities excluded from the underwriting by reason of
the underwriter’s marketing limitation shall be included in
such registration.
For purposes of
any underwriter cutback, all Registrable Securities held by any
Family Investor shall also include any Registrable Securities held
by the estates and family members of any such Family Investor, any
trusts for the benefit of any of the foregoing persons and, at the
election of such Family Investor, any charitable organization, in
each case to which any of the foregoing shall have distributed,
transferred or contributed Common Stock prior to the execution of
the underwriting agreement in connection with such underwritten
offering provided that such distribution, transfer or
contribution occurred not more than 90 days prior to such
execution, and such holder and other persons shall be deemed to be
a single selling holder, and any pro rata reduction with respect to
such selling holder shall be based upon the aggregate amount of
Common Stock owned by all entities and individuals included in such
selling holder, as defined in this sentence. No securities excluded
from the underwriting by reason of the underwriter’s
marketing limitation shall be included in such
registration.
7
(c)
Postponement of Demand Registration . The Company shall be
entitled to postpone (but not more than once in any 12-month
period), for a reasonable period of time not in excess of
60 days, the filing of a Registration Statement if the Company
delivers to the holders requesting registration a certificate
signed by both the president and chief financial officer of the
Company certifying that, in the good faith judgment of the board of
directors of the Company, such registration and offering would
reasonably be expected to materially adversely affect or materially
interfere with any bona fide material financing of
the Company or any material transaction under consideration by the
Company or would require disclosure of information that has not
been, and is not otherwise required to be, disclosed to the public,
the premature disclosure of which would materially adversely affect
the Company. Such certificate shall contain a statement of the
reasons for such postponement and an approximation of the
anticipated delay. The holders receiving such certificate shall
keep the information contained in such certificate confidential
subject to the same terms set forth in Section 5(p). If the
Company shall so postpone the filing of a Registration Statement,
the Requisite Investors (which, if there are not more than two
Qualified Holders, shall mean, for purposes of this sentence, those
holders of more than 50% of the Registrable Securities to be
included in such registration statement) shall have the right to
withdraw the request for registration by giving written notice to
the Company within 20 days of the anticipated termination date
of the postponement period, as provided in the certificate
delivered to the holders.
(d)
Cancellation of Demand Registration . Holders of a majority
of the Registrable Securities which are to be registered in a
particular offering pursuant to this Section 2 shall have the
right to notify the Company that they have determined that the
registration statement be abandoned or withdraw, in which event the
Company shall abandon or withdraw such registration
statement.
Section 3.
Piggyback Registration .
(a)
Right to Piggyback . Except with respect to a Demand
Registration, the procedures for which are addressed in
Section 2, if the Company proposes to file a registration
statement under the Securities Act with respect to an offering of
Common Stock whether or not for sale for its own account (other
than a registration statement (i) on Form S-4, Form S-8 or any
successor forms thereto or (ii) filed solely in connection
with an exchange offer or any employee benefit or dividend
reinvestment plan, then, each such time), the Company shall give
prompt written notice of such proposed filing at least twenty
(20) days before the anticipated filing date (the “
Piggyback Notice ”) to all of the holders of
Registrable Securities. The Piggyback Notice shall offer such
holders the opportunity to include in such registration statement
the number of Registrable Securities as each such holder may
request (a “ Piggyback Registration ”). Subject
to Section 3(b) hereof, the Company shall include in each such
Piggyback Registration all Registrable Securities with respect to
which the Company has received written requests for inclusion
therein within fifteen (15) days after notice has been given
to the applicable holder. The eligible holders of Registrable
Securities shall be permitted to withdraw all or part of the
Registrable Securities from a Piggyback Registration at any time at
least two business days prior to the effective date of such
Piggyback Registration. The Company shall not be required to
maintain the effectiveness of the Registration Statement for a
Piggyback Registration beyond the earlier to occur of
(i) 180 days after the effective date thereof and
(ii)
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consummation of
the distribution by the holders of the Registrable Securities
included in such Registration Statement.
Notwithstanding
anything to the contrary in this Agreement, unless otherwise
consented to by the Requisite Investors (which, if there are not
more than two Qualified Holders, shall mean, for purposes of this
sentence, those holders of more than 50% of the shares of Common
Stock held by the Investors (including indirect holdings through
Holdings)), in connection with an initial Public Offering the
Company shall not be required to deliver a Piggyback Notice nor
include in such registration any Registrable Securities if the
initial Public Offering involves only a primary offering of the
Common Stock in which none of the Family Investor or the Sponsor
Investors are selling shares of Common Stock beneficially owned by
them.
(b)
Priority on Piggyback Registrations . The Company shall use
reasonable efforts to cause the managing underwriter or
underwriters of a proposed underwritten offering to permit holders
of Registrable Securities requested to be included in the
registration for such offering to include all such Registrable
Securities on the same terms and conditions as any other shares of
capital stock, if any, of the Company included therein.
Notwithstanding the foregoing, if the managing underwriter or
underwriters of such underwritten offering have informed the
Company in writing that it is their good faith opinion that the
total amount of securities that such holders, the Company and any
other Persons having rights to participate in such registration,
intend to include in such offering is such as to adversely affect
the success of such offering, then the amount of securities to be
offered for the account of holders of Registrable Securities (other
than the Company) shall be reduced to the extent necessary to
reduce the total amount of securities to be included in such
offering to the amount recommended by such managing underwriter or
underwriters by reducing the securities requested to be included by
the holders of Registrable Securities requesting such registration
pro rata among such holders based on the number of Registrable
Securities owned directly or indirectly by all such
Persons.
(c)
Shelf Take-Downs . At any time that a shelf registration
statement covering Registrable Securities pursuant to
Section 2 or this Section 3 is effective, if any holder
or group of holders of Registrable Securities delivers a notice to
the Company (a “ Take-Down Notice ”) stating
that it intends to effect an underwritten offering of all or part
of its Registrable Securities included by it on the shelf
registration statement (a “ Shelf Underwritten
Offering ”) and stating the number of the Registrable
Securities to be included in the Shelf Underwritten Offering, then,
provided that the Committee (as defined in the LLC
Agreement) approves of such Shelf Underwritten Offering, the
Company shall amend or supplement the shelf registration statement
as may be necessary in order to enable such Registrable Securities
to be distributed pursuant to the Shelf Underwritten Offering
(taking into account the inclusion of Registrable Securities by any
other holders pursuant to this Section 3(c)). In connection
with any Shelf Underwritten Offering:
(i) such
proposing holder(s) shall also deliver the Take-Down Notice to all
other holders included on such shelf registration statement and
permit each holder to include its Registrable Securities included
on the shelf registration statement in the Shelf Underwritten
Offering if such holder notifies the proposing holders
and
9
the Company
within five business days after delivery of the Take-Down Notice to
such holder; and
(ii) in
the event that the underwriter determines that marketing factors
(including an adverse effect on the per share offering price)
require a limitation on the number of shares which would otherwise
be included in such take-down, the underwriter may limit the number
of shares which would otherwise be included in such take-down
offering in the same manner as is described in
Section 2(b)(ii) with respect to a limitation of shares to be
included in a registration.
Section 4.
Restrictions on Public Sale by Holders of Registrable
Securities; Restrictions on the Company . Each Investor agrees,
in connection with an initial Public Offering, and each holder of
Registrable Securities agrees, in connection with any underwritten
offering made pursuant to a Registration Statement filed pursuant
to Section 2 or Section 3 hereof (whether or not such
holder elected to include Registrable Securities in such
Registration Statement), if requested (pursuant to a written
notice) by the managing underwriter or underwriters in an
underwritten offering, not to effect any public sale or
distribution of any of the Company’s securities (except as
part of such underwritten offering), including a sale pursuant to
Rule 144 or any swap or other economic arrangement that
transfers to another any of the economic consequences of owning the
Common Stock, or to give any Demand Notice during the period
commencing on the date of the request and continuing for not more
than 180 days (with respect to an initial Public Offering) or
90 days after the date of the Prospectus (or Prospectus
supplement if the offering is made pursuant to a
“shelf” registration) pursuant to which such Public
Offering shall be made, plus such extension period, which shall be
no longer than 17 days, as may be proposed by the managing
underwriter to address NASD regulations regarding the publishing of
research, or such lesser period as is required by the managing
underwriter. Notwithstanding the foregoing, any discretionary
waiver or termination of this lock-up provision by the Company or
the underwriters with respect to any of the Sponsor Investors or
the Family Investor shall apply to the other Sponsor Investors and
the Family Investor as well pro rata based upon the number of
shares subject to such obligations. The Coordination Committee
shall be responsible for negotiating all “lock-up”
agreements with underwriters and, in addition to the foregoing
provisions of this Section 4, the Investor and holders of
Registrable Securities agree to execute the form so
negotiated.
If any
registration pursuant to Section 2 of this Agreement shall be
in connection with any underwritten Public Offering, the Company
will not effect any public sale or distribution of any common
equity (or securities convertible into or exchangeable or
exercisable for common equity) (other than a registration statement
(i) on Form S-4, Form S-8 or any successor forms thereto or
(ii) filed solely in connection with an exchange offer or any
employee benefit or dividend reinvestment plan) for its own
account, within 90 days (or such shorter periods as the
managing underwriters may agree to with the Coordination Committee)
after the effective date of such registration.
Section 5.
Registration Procedures . If and whenever the Company is
required to use its reasonable best efforts to effect the
registration of any Registrable Securities under the Securities Act
as provided in Section 2 and Section 3 hereof, the
Company shall effect such registration to permit the sale of such
Registrable Securities in accordance with the intended
10
method or
methods of disposition thereof, and pursuant thereto the Company
shall cooperate in the sale of the securities and shall, as
expeditiously as possible:
(a) Prepare
and file with the SEC a Registration Statement or Registration
Statements on such form which shall be available for the sale of
the Registrable Securities by the holders thereof or the Company in
accordance with the intended method or methods of distribution
thereof, and use its reasonable best efforts to cause such
Registration Statement to become effective and to remain effective
as provided herein (including by means of a shelf registration
pursuant to Rule 415 under the Securities Act if so requested
and if the Company is then eligible to use such registration);
provided , however , that before filing a
Registration Statement or Prospectus or any amendments or
supplements thereto (including documents that would be incorporated
or deemed to be incorporated therein by reference), the Company
shall furnish or otherwise make available to the Sponsor Investors
and the Family Investor who are selling Shares under such
Registration Statement, their counsel and the managing
underwriters, if any, copies of all such documents proposed to be
filed, which documents will be subject to the reasonable review and
comment of such counsel, and such other documents reasonably
requested by such counsel, including any comment letter from the
SEC, and, if requested by such counsel, provide such counsel
reasonable opportunity to participate in the preparation of such
Registration Statement and each Prospectus included therein and
such other opportunities to conduct a reasonable investigation
within the meaning of the Securities Act, including reasonable
access to the Company’s books and records, officers,
accountants and other advisors. The Company shall not file any such
Registration Statement or Prospectus or any amendments or
supplements thereto (including such documents that, upon filing,
would be incorporated or deemed to be incorporated by reference
therein) with respect to a Demand Registration to which the holders
of a majority of the Registrable Securities held by the Sponsor
Investors and the Family Investor (represented by the Family
Representative) who are selling Shares under such Registration
Statement, their counsel, or the managing underwriters, if any,
shall reasonably object, in writing, on a timely basis, unless, in
the opinion of the Company, such filing is necessary to comply with
applicable law.
(b) Prepare
and file with the SEC such amendments and post-effective amendments
to each Registration Statement as may be necessary to keep such
Registration Statement continuously effective during the period
provided herein and comply in all material respects with the
provisions of the Securities Act with respect to the disposition of
all securities covered by such Registration Statement; and cause
the related Prospectus to be supplemented by any Prospectus
supplement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of the securities
covered by such Registration Statement, and as so supplemented to
be filed pursuant to Rule 424 (or any similar provisions then
in force) under the Securities Act.
(c) Notify
each selling holder of Registrable Se
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