Document:

Exhibit 10.3

 

STOCK PURCHASE AND INVESTOR RIGHTS AGREEMENT

 

THIS STOCK PURCHASE AND INVESTOR RIGHTS AGREEMENT (this “Agreement”) is made as of July 9, 2012, by and between CC Holdings of Delaware, LLC - Series A, a Delaware limited liability company (“Investor”), and Coldwater Creek Inc., a Delaware corporation (the “Company”).  Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to such terms in Section 6M hereof.

 

WHEREAS, Investor and/or its Affiliates has extended to Coldwater Creek U.S. Inc., a Delaware corporation (the “Borrower”), a term loan pursuant to that certain Term Loan Agreement, dated as of the date hereof (the “Credit Agreement”), by and among the Borrower, the Company, as parent, the other guarantors named therein, CC Holdings Agency Corp., a Delaware corporation, as agent, and the other lenders party thereto;

 

WHEREAS, concurrently with the consummation of the transactions contemplated by the Credit Agreement, Investor desires to purchase from the Company, and the Company desires to sell to Investor, 1,000 shares of Convertible Series A Preferred Stock of the Company, $.01 par value (the “Series A Preferred Stock”), upon the terms and subject to the conditions set forth herein; and

 

WHEREAS, the Company and Investor desire, for their mutual benefit and protection, to set forth in this Agreement certain of their respective rights and obligations with respect to the capital stock of the Company (whether Series A Preferred Stock or the Company’s common stock, $.01 par value (the “Common Stock”), into which the Series A Preferred Stock is convertible, and whether outstanding or issued or acquired hereafter, including all shares of capital stock of the Company issuable upon the exercise of warrants, options or other rights to acquire shares of capital stock of the Company, or upon the conversion or exchange of any security) (collectively, the “Shares”).

 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

Section 1.                                            Purchase and Sale of the Series A Preferred Stock; Closing.

 

1A.                             Purchase and Sale of the Preferred Stock.  Prior to the Closing (as defined below), the Company shall have designated one thousand (1,000) shares of the Series A Preferred Stock in accordance with the Certificate of Designation of Preferences of Series A Preferred Stock attached hereto as Exhibit A (the “Certificate of Designation”) and shall have authorized the sale and issuance of such Series A Preferred Stock to Investor at an aggregate purchase price determined in accordance with Section 3.09 of the Credit Agreement.

 

At the Closing and upon the terms and subject to the conditions set forth in this Agreement, the Company shall issue and sell to Investor, and Investor shall purchase from the Company, 1,000 shares of Series A Preferred Stock at an aggregate purchase price determined in accordance with Section 3.09 of the Credit Agreement.

 

 

1B.                               The Closing.  Upon the terms and subject to the conditions contained in this Agreement, the closing of the purchase and sale of the Series A Preferred Stock hereunder (the “Closing”) shall take place at the offices of Kirkland & Ellis LLP, 555 California Street, 27th Floor, San Francisco, California, on the date hereof simultaneous with the execution of this Agreement.  At the Closing, Investor shall deliver an aggregate amount equal to $65 million (i) in consideration for the Series A Preferred Stock and (ii) in satisfaction of Investor’s and its Affiliates’ funding obligations under Section 2.01 of the Credit Agreement to the Company by wire transfer of immediately available funds to a bank account designated in writing by the Company and, upon receipt of such $65 million, the Company shall deliver to Investor (i) certificates representing the shares of Series A Preferred Stock purchased by Investor from the Company hereunder and (ii) evidence of the due and effective filing, effective as of no later than the date hereof (and, in any event, prior to the effectiveness of the Closing hereunder), of the Certificate of Designation with the Secretary of State of the State of Delaware.

 

Section 2.                                            Representations and Warranties of the Company.

 

As a material inducement to Investor to enter into this Agreement and purchase the Series A Preferred Stock hereunder, the Company hereby represents and warrants to Investor as follows:

 

2A.                             Organization, Good Standing, Qualification.  The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.

 

2B.                               Authorization.  The Company has the corporate power and authority to carry on its business as now conducted and presently proposed to be conducted.  The Company has the corporate power and authority to enter into this Agreement and to perform its obligations under, and consummate the transactions contemplated by, this Agreement.  The execution, delivery and performance by the Company of this Agreement and the adoption and filing of the Certificate of Designation and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate actions on the part of the Company, and no further approval or authorization in connection herewith or therewith is required on the part of the Company or its stockholders pursuant to the Certificate of Incorporation, Bylaws, applicable law, the listing requirements of NASDAQ or otherwise.

 

2C.                               Enforceability.  This Agreement constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms, except as such enforceability may be limited by (i) applicable insolvency, bankruptcy, reorganization, moratorium or other similar laws affecting creditors’ rights generally, and (ii) applicable equitable principles (whether considered in a proceeding at law or in equity).

 

2D.                              No Conflicts.  None of the execution and delivery by the Company of this Agreement, the consummation of the transactions contemplated herein or the Company’s performance of and compliance with the terms and provisions hereof will:  (i) violate or conflict with any provision of the Certificate of Incorporation or Bylaws; (ii) violate any law, regulation, order,

 

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writ, judgment, injunction, decree or permit applicable to the Company; (iii) violate or materially conflict with any contractual provisions of, or cause an event of default or give rise to any right of acceleration under, any indenture, loan agreement, mortgage, deed of trust, contract or other agreement or instrument to which the Company is a party or by which the Company or any of the Company’s properties may be bound; or (iv) result in or require the creation of any lien, security interest or other charge or encumbrance (other than those contemplated in or in connection with this Agreement) upon or with respect to the Company’s properties.

 

2E.                                Valid Issuance of Series A Preferred Stock.  The Series A Preferred Stock, when duly issued, delivered and paid for as provided herein, will be duly and validly issued, fully paid and nonassessable, and will be free of restrictions on transfer other than restrictions on transfer under this Agreement, the Certificate of Incorporation, the Certificate of Designation and under the Securities Act and applicable state securities laws.

 

2F.                                Consents.  No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or other Person is required in connection with the execution, delivery or performance of this Agreement by the Company.

 

2G.                               Capitalization.  As of June 30, 2012, the Company’s authorized capital stock consists of 300,000,000 shares of Common Stock and 1,000,000 shares of Preferred Stock, $.01 par value (the “Preferred Stock”).  As of the date hereof, 121,757,524 shares of Common Stock were issued and outstanding, no shares of Preferred Stock (other than the Series A Preferred Stock issued to Investor hereunder) were issued and outstanding, and 6,216,280 stock options and other Common Stock Equivalents were issued and outstanding under the Company’s restricted stock and stock option plans.  There are no securities of the Company of any kind or class authorized or outstanding other than the Common Stock and the Series A Preferred Stock to be issued to Investor hereunder.  The outstanding shares of Common Stock are duly authorized, validly issued, fully paid and non-assessable.  There are no preemptive rights other than as set forth in Section 4D of this Agreement or, except as set forth in this Section 2G, other outstanding rights, options, warrants, conversion rights or agreements or commitments of any character relating to the Company’s authorized and issued or unissued shares of capital stock, and, except as set forth in this Section 2G, the Company has not issued any debt securities, other securities, rights or obligations that are currently outstanding and convertible into or exchangeable for, or giving any Person a right to subscribe for or acquire, capital stock of the Company.  The representations and warranties set forth in this Section 2G are a material inducement to Investor to enter into this Agreement, and to the extent the representations and warranties set forth in this Section 2G are inaccurate in any respect, the number of shares of Conversion Stock into which the Series A Preferred Stock is convertible will be equitably adjusted upward (but not downward), if necessary, such that the number of shares of Conversion Stock into which the Series A Preferred Stock was convertible, as of the date hereof, equals, in the aggregate, a number of shares of Conversion Stock equal to 19.99% of the number of shares of Common Stock outstanding as of the date hereof (rounded down to the nearest whole share), and the Company shall take all actions necessary to cause such equitable adjustment to be made.

 

2H.                              Board Approvals.  The Company’s Board of Directors (the “Board”) has granted all necessary approvals under the Company’s constituent documentation and the Delaware

 

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General Corporation Law with respect to the acquisition and conversion of the Series A Preferred Stock by Investor.

 

2I.                                   No Registration Requirement.  None of the Company, its subsidiaries or any of their respective Affiliates has directly, or through any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any “security” (as defined in the Securities Act) that is or would be integrated with the issuance of the Series A Preferred Stock in a manner that would require the registration under the Securities Act of the Series A Preferred Stock or (ii) engaged in any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) in connection with the offering of the Series A Preferred Stock or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act.  Assuming the accuracy of the representations and warranties of Investor in Section 3C hereof, it is not necessary in connection with the offer, sale and delivery of the Series A Preferred Stock to Investor in the manner contemplated herein to register any of the Series A Preferred Stock under the Securities Act.

 

Section 3.                                            Representations and Warranties of Investor.

 

As a material inducement to the Company to enter into this Agreement and transfer the Series A Preferred Stock hereunder, Investor hereby represents and warrants to the Company as follows:

 

3A.                             Enforceability.  This Agreement has been duly authorized, executed and delivered by Investor and constitutes a valid and legally binding obligation of Investor, enforceable in accordance with its terms, except as such enforceability may be limited by (i) applicable insolvency, bankruptcy, reorganization, moratorium or other similar laws affecting creditors’ rights generally, and (ii) applicable equitable principles (whether considered in a proceeding at law or in equity).

 

3B.                               No Conflicts.  The execution, delivery and performance of this Agreement by Investor does not (i) conflict with, violate or result in the breach of, any agreement, instrument, order, judgment, decree, law or governmental regulation to which Investor is a party or is subject or (ii) violate or materially conflict with any contractual provisions of, or cause an event of default or give rise to any right of acceleration under, any indenture, loan agreement, mortgage, deed of trust, contract or other agreement or instrument to which Investor is a party or by which Investor or any of Investor’s properties may be bound

 

3C.                               Investment. Investor is acquiring the Series A Preferred Stock purchased hereunder or acquired pursuant hereto for its own account with the present intention of holding such securities for purposes of investment, and has no intention of selling such securities in a public distribution in violation of the federal securities laws or any applicable state securities laws.  Investor is an “accredited investor” within the meaning of Rule 501 promulgated under the Securities Act, is sophisticated in financial matters and is able to evaluate the risks and benefits of the investment in the Series A Preferred Stock and is able to bear the economic risk of its investment in the Series A Preferred Stock for an indefinite period of time because such securities

 

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have not been registered under the Securities Act and, therefore, cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is available.

 

3D.                              No Ownership of Company Stock.  Before giving effect to the purchase of the Series A Preferred Stock hereunder, The GGC Group does not Beneficially Own any Common Stock of the Company.

 

Section 4.  Covenants.

 

4A.                             Board Composition.

 

(i)                                     Investor, as the holder of all of the outstanding Series A Preferred Stock, shall initially have the right to designate two directors (each, a “GGC Appointee”) who shall be appointed to the Board (and the Company shall cause their appointment to the Board) as of the Closing hereunder, one of whom shall occupy a newly-created Class I seat and the other of whom shall occupy a newly-created Class III seat.  The initial GGC Appointees shall be, and the Company shall cause the appointment of, the following: (A) Neale Attenborough, who shall be designated a Class I director of the Company, and (B) a director to be designated by the Investor following the Closing, who shall be designated a Class III director of the Company.

 

(ii)                                  The Company will permit the holders of a majority of the outstanding Series A Preferred Stock to elect such directors to serve on the Board as is provided in the Certificate of Designation.  Without limiting the rights and remedies of such holders, and notwithstanding the provisions of the Certificate of Designation to the contrary, in the event such directors are not so elected then, subject to Section 4A(iv), in connection with each meeting of stockholders at which directors in the same class as a GGC Appointee are to be elected to serve on the Board, the Company shall take all necessary steps to nominate the GGC Appointee then up for election (or such alternative persons who are proposed by Investor (or any member of The GGC Group that is a transferee thereof) and notified to the Company on or prior to any date set forth in the Company’s constituent documents or applicable law for Board nominees) and to use its reasonable best efforts to cause the Board to unanimously recommend that the stockholders of the Company vote in favor of such GGC Appointee for election to the Board.  If, for any reason, a candidate designated as a GGC Appointee is determined to be unqualified to serve on the Board because such appointment would constitute a breach of the Board’s fiduciary duties or applicable law, Investor (or any member of The GGC Group that is a transferee thereof) shall have the right to designate an alternative GGC Appointee to be so appointed and the provisions of this Section 4A(ii) shall apply, mutatis mutandis, to such alternative GGC Appointee.

 

(iii)                               Each appointed or elected GGC Appointee will hold his or her office as a director of the Company for such term as is provided in the Company’s constituent documents or until his or her death, resignation or removal from the Board or until his or her successor has been duly elected and qualified in accordance with the provisions of this Agreement, the Company’s constituent documents and applicable law.  If any GGC Appointee ceases to serve as a director of the Company for any reason during his or her term, the vacancy created thereby shall be filled, and the Company will use its reasonable best efforts to cause the Board to fill such vacancy, with a replacement designated by Investor (or any member of The GGC Group that is a transferee thereof).

 

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(iv)                              Investor (or any member of The GGC Group that is a transferee thereof) shall have the right to designate two GGC Appointees pursuant to this Section 4A until such time as the number of shares of Conversion Stock then Beneficially Owned by The GGC Group is less than 66.67% of the aggregate number of shares of Conversion Stock Beneficially Owned by Investor, together with its Affiliates, immediately following the Closing.  Investor (or any member of The GGC Group that is a transferee thereof) shall have the right to designate one GGC Appointee pursuant to this Section 4A until such time as the number of shares of Conversion Stock then Beneficially Owned by The GGC Group is less than 33.33% of the aggregate number of shares of Conversion Stock Beneficially Owned by The GGC Group immediately following the Closing.  Thereafter, the right of Investor (or any member of The GGC Group that is a transferee thereof)to designate any GGC Appointees hereunder shall terminate and Investor (or any member of The GGC Group that is a transferee thereof) shall use commercially reasonable efforts to cause any GGC Appointees then serving as directors to resign if requested by the Company in writing to do so.  In the event that Investor (or any member of The GGC Group that is a transferee thereof) shall have the right to designate only one GGC Appointee in accordance with this Section 4A(iv), Investor (or any member of The GGC Group that is a transferee thereof) shall have the right to designate which of the two GGC Appointees shall remain as the single GGC Appointee.

 

(v)                                 The Company shall provide the same reimbursement of expenses incurred by each GGC Appointee, and the same rights and benefits of indemnity to each GGC Appointee, as are provided to other non-employee directors on the Board.  The GGC Appointees shall be provided the same retainers, including meeting fees, and other cash compensation and equity compensation for their service on the Board or any committee thereof, as other non-employee directors on the Board.  The Company acknowledges that certain directors (including the GGC Appointees) may have certain rights to indemnification, advancement of expenses and/or insurance provided by sources other than the Company (directly or indirectly, including through insurance provided by the Company) with respect to such directors’ association with the Company and its subsidiaries (“Other Indemnitors”).  Notwithstanding the existence of any Other Indemnitor with respect to any director, the Company shall be the indemnitor of first resort (i.e., the Company’s obligations for indemnification and expense advancement to a director are primary and any obligations of any Other Indemnitor to advance expenses or to provide indemnification for the same expenses or liabilities incurred by a director are secondary), with respect to any such directors’ association with the Company and its subsidiaries.  The Company further agrees that no advancement or payment by the Other Indemnitors on behalf of any director with respect to any claim for which such director has sought indemnification from the Company shall affect the foregoing, and such Other Indemnitors shall have a right of contribution and/or be subrogated to the extent of any such advancement or payment to all of the rights of recovery of such director against the Company.  The Other Indemnitors shall be express third party beneficiaries of the terms of this Section 4A(v).

 

(vi)                              For the avoidance of doubt, (x) any members of the Board elected pursuant to Section 5(a) of the Certificate of Designation shall be deemed to satisfy in whole or in part, as applicable, Investor’s right to designate the GGC Appointee(s) under this Section 4A and (y) notwithstanding anything herein to the contrary, Investor and its Affiliates shall not have any right to designate a director or directors of the Company under this Section 4A if the holders of Series A

 

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Preferred Stock shall not have the right to elect a director or directors under the Certificate of Designation.

 

4B.                               Notice of Dividends.  At any time when the Company declares any dividend on its Common Stock (other than a dividend payable solely in shares of Common Stock and other than a dividend declared in connection with a stockholder rights plan, it being understood that the Company shall ensure any rights accruing to holders of the Company’s Common Stock pursuant to any such stockholder rights plan will also accrue proportionately to the holders of the Series A Preferred Stock as the Beneficial Owners of the Conversion Stock), it shall give notice to Investor of any such declaration not less than 35 days prior to the related record date for payment of the dividend so declared.

 

4C.                               Transfers.  Without duplication of the rights set forth in Section 6(c)(v) of the Certificate of Designation, in the event the Company adopts a stockholder rights plan or similar agreement or plan, the Company shall ensure that the Investor, its Affiliates and any subsequent holders of the Series A Preferred Stock are exempt from any triggering event or similar event pursuant to any such plan or agreement (whether as a result of the acquisition of the Series A Preferred Stock or the underlying Conversion Stock) to the extent of the maximum amount of Conversion Stock then issuable (or already issued) upon conversion of all or any portion of the Series A Preferred Stock held by such parties plus any New Securities acquired by such parties.  Subject to compliance with applicable federal or state securities laws, the Series A Preferred Stock and the Conversion Stock issuable upon conversion of the Series A Preferred Stock shall be freely transferable; provided that Investor and its Affiliates shall not transfer any Series A Preferred Stock if, as a result of such transfer, there would be more than 20 holders of record of the Series A Preferred Stock (for such purpose, counting the Investor and its Affiliates as one record holder); and provided further that Investor shall not transfer any shares of Series A Preferred Stock or Conversion Stock except in connection with a public offering, a broker transaction under Rule 144 or to one or more Permitted Transferees.

 

4D.                              Preemptive Rights.  Upon any issuance by the Company for cash of any equity securities or any securities or instruments containing options or rights to acquire any equity securities or any securities or rights to acquire securities that are convertible or exchangeable into, or exercisable for or into, any equity securities of the Company (the “New Securities”) for cash, subject to obtaining any required approval of the Company’s stockholders to comply with NASDAQ Rule 5635, so long as The GGC Group collectively Beneficially Own at least 33.33% of the total number of shares of Conversion Stock that The GGC Group collectively Beneficially Own immediately after the Closing hereunder, The GGC Group shall have additional subscription rights (at the same per “unit” price being paid by other Persons for such securities, instruments or rights) allowing Investor (or any member of The GGC Group that is a transferee thereof) to maintain its proportionate, as-if-converted ownership interest in the Company based on the number of shares of Common Stock outstanding immediately prior to such issuance.  For the avoidance of doubt, obtaining any such required stockholder approval shall be a condition to the Company’s obligation to undertake any issuance subject to this Section 4D.  In the event that any issuance subject to this Section 4D involves a public or Rule 144A offering, Investor and the Company shall negotiate in good faith as to the provision of such subscription rights so as not to materially delay or jeopardize the success of such public offering.  The foregoing shall not apply to any issuance of Excluded Securities.  It is

 

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agreed that the preemptive rights provided for in this Section 4D shall irrevocably terminate on the first date on which The GGC Group Beneficially Owns less than 33.33% of the Conversion Stock that Investor and its Affiliates Beneficially Own immediately after the Closing hereunder.

 

4E.                                Consent Upon Certain Issuances.  So long as The GGC Group collectively Beneficially Own at least 33.33% of the total number of shares of Conversion Stock that Investor and its Affiliates collectively Beneficially Own immediately after the Closing hereunder, the Company shall not issue any Qualifying Employee or Director Stock consisting of any stock option or stock purchase right with an exercise price, or consisting of a grant of shares where the amount of the grant is denominated in dollars and the number of shares granted is determined by reference to a share price, in either case that is lower than the closing price per share of Common Stock on the date of grant, without, in either such case, the prior written consent of the holders of a majority of the then outstanding shares of Series A Preferred Stock (not to be unreasonably withheld, delayed or conditioned).  It is agreed that the preemptive rights provided for in this Section 4E shall irrevocably terminate on the first date on which The GGC Group Beneficially Owns less than 33.33% of the Conversion Stock that Investor and its Affiliates Beneficially Own immediately after the Closing hereunder.

 

4F.                                Affiliate Transactions.  From the date hereof until the first date on which The GGC Group collectively Beneficially Owns less than 33.33% of the Conversion Stock that Investor and its Affiliates Beneficially Own immediately after the Closing hereunder, any issuance of shares of Common Stock to, or repurchase of any shares of Common Stock from, any Affiliate of the Company, other than Excluded Securities, shall be on terms no less favorable to the Company than those obtainable by or from a party who is not an Affiliate of the Company.

 

4G.                               HSR Act Compliance.  If at any time Investor determines that a notification under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder (the “HSR Act”), is required or desirable in connection with the contemporaneous or future conversion of any shares of Series A Preferred Stock by Investor, the Company shall reasonably cooperate with Investor by (i) promptly effecting all necessary notifications and other filings under the HSR Act that are required to be made by the Company and (ii) responding as promptly as reasonably practicable to all inquiries or requests received from the United States Federal Trade Commission (the “FTC”), the Department of Justice (“DOJ”) or any other governmental authority in connection with such notifications and other filings.  For the avoidance of doubt, nothing in this Section 4G shall require that the Company or any of its subsidiaries commit to any divestiture, license or hold separate or similar arrangement with respect to the business, assets or properties of the Company or any of its subsidiaries.  Any such notifications and responses by the Company will be in full compliance in all material respects with the requirements of the HSR Act.  The Company shall, to the extent legally permissible, keep Investor reasonably apprised of the status of any communications with, and any inquiries or requests for additional information from, the FTC, the DOJ or such other governmental authority.

 

4H.                              Issuances of Series A Preferred Stock.  Except for the shares of Series A Preferred Stock issued pursuant to this Agreement, the Company shall not issue or sell any shares of Series A Preferred Stock or any other securities convertible into or exchangeable for Series A Preferred Stock without the prior written consent of Investor.

 

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4I.                                   No Inconsistent Agreements.  The Company will not enter into any agreement, arrangement or commitment that would conflict with, or otherwise result in the Company being unable to fully and timely perform, the Company’s obligations under this Agreement, the Certificate of Designation, the Registration Rights Agreement, dated as of the date hereof, by and between Investor and the Company, the Credit Agreement or the agreements and instruments executed in connection with any of the foregoing.

 

4J.                                  Other Rights.  Without limiting the foregoing Sections 4A through 4I, the holders of the Series A Preferred Stock shall also have all other voting, approval and other rights specified in the Certificate of Designation.

 

Section 5.  Standstill and Transfer Restriction.

 

5A.                             During the Standstill Period, Investor shall not, and shall cause its Affiliates, directors, officers and employees to not, assist or form a group within the meaning of Section 13(d)(3) of the Exchange Act, or act in concert or participate with or encourage other Persons to, directly or indirectly: (A) acquire, or seek, agree, propose or offer to acquire, by means of a purchase, tender or exchange offer, business combination or in any other manner, Beneficial Ownership of any equity securities of the Company or its subsidiaries, including rights or options to acquire such ownership, or a substantial portion of the assets of the Company or any of its subsidiaries; (B) seek or propose to influence, advise, change or control the management, board of directors, governing instruments or policies or affairs of the Company or its subsidiaries, including among other things, by making, or participating in, a solicitation of proxies or (C) otherwise seek to influence, advise or direct the vote of any holder of voting securities in respect of any transaction proposed to the Board by Investor or any of its Affiliates or in respect of which Investor or any of its Affiliates is the primary sponsor; provided, that the foregoing shall not apply in connection with the exercise by Investor or any of its Affiliates of any rights or remedies expressly set forth in this Agreement, the Certificate of Designation, the Credit Agreement or the agreements and instruments executed in connection with any of the foregoing (as the same may be amended or modified from time to time in accordance with their terms); provided, further, that the foregoing shall not prohibit any acquisition of equity securities by Investor and its Affiliates if the aggregate percentage of equity securities Beneficially Owned by The GGC Group after giving effect to such acquisition shall not exceed the Percentage Limitation; provided, further, that so long as no public announcement by Investor or any of its Affiliates would be required as a result thereof, or, if invited or requested to do so in writing by the Board, the foregoing shall not prevent or otherwise limit Investor or its Affiliates from proposing on a confidential basis such a transaction to the Board or from pursuing or consummating a going-private or other transaction approved by the Board; provided, further, that the foregoing shall not restrict the activities of any individuals elected, designated or nominated by Investor or its Affiliates as directors to the Board acting solely in their capacities as such.  This Section 5A shall supersede and replace in its entirety the standstill provisions set forth in that certain letter agreement, dated as of March 1, 2012, by and between the Company and Golden Gate Private Equity, Inc.

 

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Section 6.  Miscellaneous.

 

6A.                             Expenses.  The Company shall pay all reasonable and documented out-of-pocket expenses of Investor (including the reasonable fees, disbursements and other charges of counsel to Investor) incurred in connection with the execution and delivery of this Agreement and the transactions contemplated hereby.

 

6B.                               Amendment and Waiver.  The provisions of this Agreement may be amended or waived only with the prior written consent of Investor and the Company.

 

6C.                               Successors and Assigns.  Notwithstanding anything to the contrary in this Agreement, nothing in this Agreement, express or implied, is intended to confer any rights or benefits on any persons that are not parties hereto, except as expressly provided for in this Section 6C.  Investor shall be entitled to assign any of its rights and obligations hereunder to any Permitted Transferee(s) of Series A Preferred Stock or Conversion Stock (with such Permitted Transferee(s) thereafter constituting the “Investor” hereunder for so long as such Permitted Transferee holds Series A Preferred Stock or Conversion Stock); provided, that, Investor shall have no right or ability to assign its rights and obligations under Sections  4A, 4D or 4F but may assign its rights and obligations in Section 4D to an Affiliate of Investor; and provided, further, that any such assignment shall not be permitted unless (i) Investor complies with all laws applicable thereto and provides written notice of assignment to the Company promptly after such assignment is effected and (ii) such Permitted Transferee agrees in writing to be bound by this Agreement as if it were a party hereto and bound by all rights and obligations of Investor hereunder.

 

6D.                              Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.

 

6E.                                Counterparts.  This Agreement may be executed simultaneously in two or more counterparts (including via facsimile or electronic transmission), any one of which need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same Agreement.

 

6F.                                Descriptive Headings; Interpretation.  The descriptive headings of this Agreement are inserted for convenience only and do not constitute a substantive part of this Agreement.  The use of the word “including” in this Agreement shall be by way of example rather than by limitation.

 

6G.                               Further Assurances.  The parties hereto agree to execute and deliver any and all papers and documents and to take such further actions, in each case as may be necessary to complete the transactions contemplated hereby in accordance with the terms set forth herein.

 

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6H.                              Governing Law.  All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York.

 

6I.                                   Notices.  All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally to the recipient, sent to the recipient by reputable overnight courier service (charges prepaid) or mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid.  Such notices, demands and other communications shall be sent to Investor and the Company at the addresses indicated below:

 

If to Investor:

 

CC Holdings of Delaware, LLC - Series A

c/o Golden Gate Private Equity, Inc.

One Embarcadero Center, 39th Floor

San Francisco, CA 94111

Telephone No.: (415) 983-2700

Fax No.: (415) 983-2701

Attention: Josh Olshansky

E-mail: jolshansky@goldengatecap.com

 

With a copy (which shall not constitute notice) to:

 

Kirkland & Ellis LLP

555 California Street

San Francisco, California 94104

Attention:  Stephen Oetgen and Robert Nelson

Telephone:  (415) 439-1400

Facsimile:  (415) 439-1500

E-mail:  soetgen@kirkland.com and robert.nelson@kirkland.com

 

If to the Company:

 

Coldwater Creek Inc.

One Coldwater Creek Drive

Sandpoint, Idaho 83864

Attention:  General Counsel

Telephone:  (208) 265-3430

E-mail:  legal.department@thecreek.com

 

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With a copy (which shall not constitute notice) to:

 

Pillsbury Winthrop Shaw Pittman LLP

50 Fremont St

San Francisco, California 94105

Attention:  Blair White

Telephone:  (415) 983-7480

Facsimile:  (415) 983-1200

E-mail:  blair.white@pillsburylaw.com

 

to such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party.

 

6J.                                  No Strict Construction.  The parties hereto have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

 

6K.                              Complete Agreement.  This Agreement and all counterparts thereto, embodies the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

 

6L.                                Remedies.  The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that the Company and Investor will have the right to seek injunctive relief, in addition to all of its rights and remedies at law or in equity, to enforce the provisions of this Agreement.  Nothing contained in this Agreement will be construed to confer upon any Person who is not a signatory hereto or any successor or permitted assign of a signatory hereto any rights or benefits, as a third party beneficiary or otherwise.

 

6M.                           Certain Definitions.  For purposes of this Agreement, the following terms shall have the following meanings (except where otherwise defined in this Agreement):

 

“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with such Person.

 

“Bylaws” means the Company’s Amended and Restated Bylaws, as amended.

 

“Beneficial Owner” or “Beneficially Owned” shall have the meanings ascribed to such term in Rule 13d-3 of the General Rules and Regulations of the Exchange Act. In addition, a Person shall be the “Beneficial Owner” of any voting stock which such Person or any of its Affiliates

 

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has (a) the right to acquire (whether such right is exercisable immediately or only after the passage of time), pursuant to any agreement, arrangement or understanding or upon the exercise of conversion rights, exchange rights, warrants or options or otherwise or (b) the right to vote pursuant to any agreement, arrangement or understanding (but neither such Person nor any such Affiliate shall be deemed to be the Beneficial Owner of any shares of voting stock solely by reason of a revocable proxy or consent granted for a particular meeting of stockholders, pursuant to a public solicitation of proxies or consents for such meeting, and with respect to which shares neither such Person nor any such Affiliate is otherwise deemed the Beneficial Owner).

 

“Certificate of Incorporation” means the Company’s Amended and Restated Certificate of Incorporation, as amended.

 

“Common Stock Equivalents” means, collectively, any warrant, right or option to acquire any shares of Common Stock or any security convertible into or exchangeable for shares of Common Stock.

 

“control” (including, with correlative meanings, the terms “controlling,” “controlled by,” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities or by contract or otherwise.

 

“Conversion Stock” has the meaning ascribed to such term in the Certificate of Designation.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations of the SEC thereunder.

 

“Excluded Securities” means (i) Qualifying Employee or Director Stock; (ii) the Conversion Stock; (iii) any securities issued in connection with a stockholder rights plan adopted by the Company (it being understood that the Company shall ensure any rights accruing to holders of the Company’s Common Stock pursuant to any such stockholder rights plan will also accrue proportionately to the holders of the Series A Preferred Stock as the Beneficial Owners of the Conversion Stock) and (iv) any shares of Common Stock or Common Stock Equivalents issued as non-cash consideration in connection with any merger, consolidation, acquisition or similar business combination, provided, that if any transaction referred to in clause (iv) involves an issuance of Common Stock or Common Stock Equivalents to an Affiliate of the Company, such transaction is made on an arms’ length basis and supported by a fairness opinion from an Independent Financial Expert.

 

“Independent Financial Expert” means a nationally recognized investment banking firm mutually agreed in good faith by the Board of Directors, on the one hand, and the holders of a majority of the outstanding Series A Preferred Stock, on the other hand, which firm does not have a material financial interest in, or other material economic relationship with, the counter-party or its Affiliates to the transaction.

 

“Percentage Limitation” means 19.99% (rounded down to the nearest whole share) of

 

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the number of outstanding shares of Common Stock of the Company (determined, for such purpose, assuming that all of the shares of Conversion Stock Beneficially Owned by The GGC Group were issued and outstanding).

 

“Permitted Transferee” shall mean any Person that, upon acquiring Beneficial Ownership of Series A Preferred Stock or Conversion Stock, will not (together with such Person’s Affiliates and any “group” (within the meaning of Section 13(d) of the Exchange Act) of which such Person or any Affiliate is a part) Beneficially Own greater than 14.99% of the Company’s outstanding Common Stock.

 

“Person” means an individual, corporation, partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization, other entity or government or other agency or political subdivision thereof.

 

“Qualifying Employee or Director Stock” means all equity of the Company, or rights or options related thereto, and any restricted stock and restricted stock units of the Company issued for compensatory purposes under any Company-sponsored employee benefit plan or agreement, any Company-sponsored director compensation plan or agreement, any employment or consulting agreement, any employment offer letter or any similar written agreement, and any Common Stock issued after the date hereof upon exercise of such rights and options.

 

“Rule 144A” means Rule 144A promulgated under the Securities Act (or any successor provision), as such rules may be amended from time to time.

 

“Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute, and the rules and regulations of the SEC thereunder, all as the same shall be in effect from time to time.

 

“Standstill Period” means the period starting on the date hereof and continuing until the earlier of (i) the first date on which The GGC Group Beneficially Owns less than 33.33% of the total number of shares of Conversion Stock that Investor and its Affiliates collectively Beneficially Owns immediately after the Closing hereunder or (ii) the date on which the GGC Appointee irrevocably renounces his right to serve on the Board under this Agreement and pursuant to the Beneficial Ownership of Conversion Stock.

 

“The GGC Group” means, Golden Gate Private Equity, Inc. and its Affiliates.

 

*        *        *        *        *

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written above.

 

	
INVESTOR:
    	
COMPANY:
    
	
 
    	
 
    
	
CC   Holdings of Delaware, LLC - Series A
    	
Coldwater   Creek Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Joshua Olshansky
    	
 
    	
By:
    	
/s/   James A. Bell
    
	
Name:
    	
Joshua   Olshansky
    	
 
    	
Name:
    	
James   A. Bell
    
	
Its:
    	
Manager
    	
 
    	
Its:
    	
Executive   Vice President, Chief Financial Officer, Chief Operating Officer and   TreasurerExhibit 10.4

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is entered into as of July 9, 2012, by and between Coldwater Creek Inc., a Delaware corporation (the “Company”), and CC Holdings of Delaware, LLC — Series A, a Delaware limited liability company (“Investor”).

 

RECITALS

 

WHEREAS, pursuant to that certain Credit Agreement, dated as of the date hereof, by and among Coldwater Creek U.S. Inc., a Delaware corporation (the “Borrower”), the Company, as parent, the other guarantors named therein,  CC Holdings Agency Corp., a Delaware corporation, as agent, and the other lenders party thereto (the “Loan Agreement”), Investor agreed to loan to the Borrower the aggregate principal amount of $65,000,000 on the terms contained therein,

 

WHEREAS, pursuant to that certain Stock Purchase and Investors Rights Agreement, dated as of the date hereof, by and between the Company and Investor (the “Purchase Agreement”), Investor agreed to purchase from the Company, and the Company agreed to issue and sell to Investor, an aggregate of 1,000 shares of Convertible Series A Preferred Stock of the Company, par value $0.01 per share (the “Convertible Preferred Stock”), which shares are convertible into shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”); and

 

WHEREAS, as a condition to the consummation of the transactions contemplated by each of the Loan Agreement and the Purchase Agreement, the Company has agreed to enter into this Agreement in order to grant certain registration rights to Investor, as set forth below.

 

NOW, THEREFORE, in consideration of the foregoing promises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1.                                      GENERAL

 

1.1                                 Definitions.  As used in this Agreement, the following terms shall have the following respective meanings:

 

“Affiliate” of any Person means any other Person controlling, controlled by or under common control with  such particular person or entity.  The term “control” (including the terms “controlling,” “controlled” and “under common control with”) as used with respect to any Person means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Agreement” has the meaning set forth in the preamble.

 

 

“Business Day” means a day, other than a Saturday or Sunday, on which banks in New York are open for the general transaction of business.

 

“Common Stock” has the meaning set forth in the recitals.

 

“Company” has the meaning set forth in the preamble.

 

“Convertible Preferred Stock” has the meaning set forth in the recitals.

 

“Demand Registration Requests Available” shall mean the number equal to three (3) less (i) the number of Registration Statements requested by Investor pursuant to Section 2.1(b) and (ii) the number of underwritten shelf takedowns requested by Investor pursuant to Section 2.1(g).

 

“Effective Date” means, with respect to a Registration Statement filed pursuant to Section 2.1, the date that such Registration Statement is first declared effective by the Commission.

 

“Effectiveness Deadline” means, with respect to any Registration Statement required to be filed pursuant to Section 2.1, the tenth (10th) Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that such Registration Statement will not be “reviewed” or will not be subject to further review; provided, that if the Effectiveness Deadline falls on a day that the Commission is closed for business, the Effectiveness Deadline shall be extended to the next Business Day on which the Commission is open for business.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or similar federal statute successor thereto, and the rules and regulations of the Commission promulgated thereunder, as they each may, from time to time, be in effect at the time.

 

“Form S-1” means a Registration Statement on Form S-1 under the Securities Act or any successor or similar 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.

 

“Form S-3” means a Registration Statement on Form S-3 under the Securities Act or similar 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.

 

“Investor” has the meaning set forth in the preamble.

 

“Investor Affiliates” has the meaning set forth in Section 2.6(a).

 

“Loan Agreement” has the meaning set forth in the recitals.

 

“Misstatement” has the meaning set forth in Section 2.4.

 

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“Person” means any individual, corporation, partnership, sole proprietorship, joint venture, limited liability company, business trust, joint stock company, trust, association or unincorporated organization or any government or any agency or political subdivision thereof.

 

“Prospectus” means the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement with respect to the terms of the offering of any of the Registrable Securities covered by such Registration Statement and by all other amendments and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in such prospectus.

 

“Register,” “registered,” and “registration” shall 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” means the Shares or other securities issuable at any time upon conversion of the Convertible Preferred Stock.  Registrable Securities shall continue to be Registrable Securities (whether they continue to be held by Investor or they are sold to other Persons) until (i) they are sold pursuant to an effective Registration Statement under the Securities Act, or (ii) they may be sold by their holder pursuant to Rule 144 without regard to the manner of sale and volume requirements thereunder; provided, that, in the case of the foregoing clause (ii), to the extent that any of such securities subsequently become ineligible for sale pursuant to Rule 144 or again cannot be sold in full without limitation of any kind, they shall be deemed Registrable Securities again.

 

“Registration Expenses” shall mean all fees and expenses incurred by the Company and Investor relating to any registration, qualification or compliance pursuant to this Agreement, including, without limitation, all registration and filing fees, exchange listing fees, transfer agent’s and registrar’s fees, cost of distributing Prospectuses in preliminary and final form as well as any supplements thereto, printing expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses, expenses of the Company’s independent accountants, and fees and expenses of underwriters (excluding discounts and commissions) and any other Persons retained by the Company, but shall not include Selling Expenses and the compensation of regular employees of the Company, which shall be paid by the Company.

 

“Registration Statement” means any registration statement (including a Shelf Registration) filed by the Company under the Securities Act pursuant to the registration rights provided hereunder, including the Prospectus, any amendments and supplements to such registration statement, including post-effective amendments, and all exhibits and all material incorporated by reference in such registration statement.

 

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“SEC” or “Commission” means the Securities and Exchange Commission or any successor agency.

 

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“Securities Act” shall mean the Securities Act of 1933, as amended, or similar federal statute successor thereto, and the rules and regulations of the Commission promulgated thereunder, as they each may, from time to time, be in effect.

 

“Selling Expenses” shall mean all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities and any fees and disbursements of any counsel representing Investor in connection with a Registration Statement or the sale of Registrable Securities.

 

“Shares” refers to the shares of Common Stock issuable upon conversion of the Convertible Preferred Stock.

 

“Shelf Registration” has the meaning set forth in Section 2.1(a).

 

“Suspension Notice” has the meaning set forth in Section 2.4(b).

 

“Termination Date” has the meaning set forth in Section 2.1(a)

 

“Underwritten Offering Requests Available” shall mean the number equal to three (3) less (i) the number of underwritten offerings requested by Investor pursuant to Section 2.1(g) and (ii) the number of Registration Statements requested by Investor pursuant to Section 2.1(b) that do not involve an underwriter.

 

“Violation” has the meaning set forth in Section 2.6(a).

 

SECTION 2.                                      REGISTRATION

 

2.1                                 Shelf Registration.

 

(a)                                  Upon the written request of Investor from time to time, the Company shall use its commercially reasonable efforts to file with the SEC a Registration Statement on Form S-3 with respect to the resale from time to time, subject to the restrictions in Section 2.1(g), whether underwritten or otherwise, of the Registrable Securities by Investor (a “Shelf Registration”); provided, that the Company shall not be required to effect any Shelf Registration if Form S-3 is not available for such offering and no other form is available on which to register such offering on a continuous or delayed basis, in which event Investor shall have the right to request that number of registrations for resale under the Securities Act of all or part of the Registrable Securities in accordance with Section 2.1(b) hereof equal to the number of Demand Registration Requests Available, if any; provided, further, that the Company shall not be required to effect a Shelf Registration at any time that another Shelf Registration requested under this Section 2.1(a) remains effective.  The Company shall use its commercially reasonable efforts to cause the Shelf Registration to be filed within sixty (60) days after the initial request and shall use its commercially reasonable efforts to cause such Registration Statement to be declared effective by the SEC as soon as reasonably practicable after filing and no later than the Effectiveness Deadline.  The Company shall use its commercially reasonable efforts to cause each Shelf Registration, once filed and effective, to remain effective until the date on which all Registrable Securities included in the Registration Statement shall have been publicly sold or

 

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shall have otherwise ceased to be Registrable Securities, as determined by counsel to the Company (“Termination Date”).

 

(b)                                 In the event no Shelf Registration can occur due to the unavailability of Form S-3 for the registration requested under Section 2.1(a) above, then Investor may make the number of requests for registration of all or part of the Registrable Securities equal to the Demand Registration Requests Available, if any, at which times the Company shall file a Registration Statement on Form S-1 or any similar long-form registration statement as the Company may elect or is required to use, and the Company shall use its commercially reasonable efforts to keep such registration current and effective until the Termination Date; provided, that the Company shall not be required to effect a registration if the aggregate offering price of the securities to be offered in such registration is less than $10,000,000 unless the Registrable Securities to be offered constitute all of the then outstanding Registrable Securities.  Without the prior written consent of Investor, such Registration Statement shall not include shares of Common Stock for sale for the account of any Person other than Investor.  If any of the Registrable Securities are to be sold in an underwritten offering pursuant to this Section 2.1(b), Investor shall select the managing underwriter or underwriters therefor, subject to the prior approval of the Company (such approval not to be unreasonably withheld, conditioned or delayed).  A request for registration under Section 2.1 shall not count against the number of Demand Registration Requests Available or Underwritten Offering Requests Available if (i) after the applicable Registration Statement has become effective, such Registration Statement or the related offer, sale or distribution of Registrable Securities thereunder becomes the subject of any stop order, injunction or other order or restriction imposed by the SEC or any other governmental agency or court for any reason attributable to the Company and such interference is not thereafter eliminated so as to permit the completion of the contemplated distribution of Registrable Securities or (ii) in the case of an underwritten offering, the conditions specified in the related underwriting agreement, if any, are not satisfied or waived for any reason attributable to the Company or for any reason not attributable to the selling holder(s) or its Affiliates, and as a result of any such circumstances described in clause (i) or (ii), less than all of the Registrable Securities covered by the Registration Statement are sold by the selling holder(s) pursuant to the Registration Statement. In addition, in circumstances other than those described in clauses (i) and (ii) of the immediately preceding sentence, a Registration Statement shall not count against the number of Demand Registration Requests Available or Underwritten Requests Available unless and until it has become effective and Investor is able to register at least a majority of the Registrable Securities requested by Investor to be included in such registration.

 

(c)                                  In addition, if at any time the Company has registered or has determined to register any of its securities for its own account or for the account of other security holders of the Company on any registration form (other than Form S-4 or S-8) which permits the inclusion of the Registrable Securities for the purposes of conducting a public offering (a “Piggyback Registration”), the Company will give Investor written notice thereof no less than fifteen (15) days prior to the anticipated filing date and, subject to Sections 2.1(d), shall include in such registration all Registrable Securities requested in writing by Investor to be included therein; provided, that any such written request by Investor shall be provided to the Company no later than ten (10) days after receipt by Investor of the Company’s notice to Investor of a Piggyback Registration.  The Company shall not grant to any Person the right to request the Company to

 

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register any Common Stock in a Piggyback Registration that would contravene the provisions of Sections 2.1(c)-(f).

 

(d)                                 If the Piggyback Registration is for an underwritten offering, the Company shall so advise in the notice provided to Investor under Section 2.1(c).  In such event, the right of Investor to be included in a Piggyback Registration shall be conditioned upon Investor’s participation in such underwriting and entry into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by the Company.

 

(e)                                  The Company shall have the right to terminate or withdraw any Piggyback Registration initiated by it prior to the effectiveness of such registration, irrespective of whether Investor has elected to include Registrable Securities in such registration.  The Registration Expenses of such withdrawn registration under this Section 2.1(e) shall be borne by the Company in accordance with Section 2.2.

 

(f)                                    If a Piggyback Registration is initiated as an underwritten offering and the managing underwriters advise the Company and Investor that, in their reasonable opinion, the number of shares of Common Stock and other Registrable Securities proposed to be included in such registration exceeds the number of shares of Common Stock that can be sold in such underwritten offering without materially delaying or jeopardizing the success of the offering (including the offering price per share), the Company shall include in such registration: (i) in the case of a primary underwritten offering on behalf of the Company, first, the number of shares of Common Stock that the Company proposes to sell; and second, the number of shares of Common Stock and other Registrable Securities requested to be included therein by holders of Common Stock and other Registrable Securities, including Investor, pro rata among all such holders on the basis of the number of shares of Common Stock and other Registrable Securities requested to be included therein by all such holders or as such holders and the Company may otherwise agree and (ii) in the case of an underwritten registration on behalf of a holder of shares of Common Stock other than Investor, first, the number of shares of Common Stock to be included therein by the holder(s) requesting such registration; second, the number of shares of Common Stock and other Registrable Securities requested in good faith by the Company and Investor (if Investor has elected to include Registrable Securities in such Piggyback Registration), pro rata among the Company and Investor on the basis of the number of shares of Common Stock and other Registrable Securities requested in good faith to be included therein by Investor and the Company.

 

(g)                                 Investor shall have the right to make a number of written requests, which requests shall state the number of shares of Registrable Securities to be disposed of, equal to the Underwritten Offering Requests Available, if any, for underwritten offerings of its Registrable Securities pursuant to a Registration Statement.

 

2.2                                 Expenses of Registration.  Except as specifically provided herein, all Registration Expenses incurred in connection with any Registration, qualification or compliance hereunder shall be borne by the Company.  The obligation of the Company to bear Registration Expenses shall apply irrespective of whether a registration once properly demanded or requested becomes effective or is withdrawn or suspended.  All Selling Expenses incurred in connection with any registrations hereunder shall be borne by Investor.

 

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2.3                                 Obligations of the Company.  Whenever required to effect the registration of any Registrable Securities, the Company shall:

 

(a)                                  Comply with the requirements of Section 2.1 above, including preparing and filing with the SEC a Registration Statement with respect to a proposed offering of Registrable Securities and preparing and filing all amendments and supplements related to such Registration Statement and Prospectus and any related issuer free writing prospectuses as may be necessary to comply with applicable securities laws, and the Company shall use its commercially reasonable efforts to have such Registration Statement declared effective as promptly as reasonably practicable, provided, that before filing a Registration Statement or Prospectus or any amendments or supplements thereto and issuer free writing prospectuses, the Company shall furnish to Investor’s counsel copies of all such documents proposed to be filed and give such counsel a reasonable opportunity to review and comment on such documents before they are filed and the opportunity to object to any information pertaining to Investor that is contained therein, and the Company shall make any changes, with respect to information regarding Investor, reasonably requested by such counsel, to such documents prior to filing.

 

(b)                                 Furnish to Investor such number of copies of the Prospectus, including a preliminary prospectus, and each amendment and supplement thereto, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities.

 

(c)                                  Use its commercially reasonable 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 Investor or any managing underwriter, to keep such registration in effect for so long as such Registration Statement remains in effect and use its commercially reasonable efforts to take any other action which may be reasonably necessary to enable Investor to consummate the disposition in such jurisdiction of the securities owned by Investor; 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 jurisdictions.

 

(d)                                 In the event of any underwritten public offering involving Registrable Securities, enter into and perform its obligations under an underwriting agreement, in usual and customary form, substance and scope, with the managing underwriter of such offering and use its commercially reasonable efforts to take all such other actions reasonably requested by Investor or by the managing underwriter(s), if any, to expedite or facilitate the underwritten disposition of such Registrable Securities, and in connection therewith (i) make such representations and warranties to Investor and the managing underwriter(s), if any, with respect to the business of the Company and its subsidiaries, and the Registration Statement, Prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by the issuer in similar underwritten offerings of equity securities by similar companies, and, if true, confirm the same if and when requested, (ii) if an underwriting agreement is entered into, use its commercially reasonable efforts to ensure it contains indemnification provisions and procedures customarily present in similar underwritten offerings of equity securities by similar companies and consistent with the provisions of Section 2.6 hereof, and (iii) deliver such documents and certificates as are customarily delivered in

 

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similar underwritten offerings of equity securities by similar companies, if any, to evidence the continued validity of the representations and warranties made pursuant to clause (i) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company.  Investor shall also enter into and perform its obligations under any such agreement.

 

(e)                                  Promptly notify Investor in writing, when Registrable Securities are covered by such Registration Statement, at any time when the Prospectus is required to be delivered under the Securities Act of the happening of any event as a result of which the Prospectus, 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 light of the circumstances under which they were made and the Company shall promptly prepare and file with the SEC (and furnish to Investor a reasonable number of copies of) a supplement or amendment to such Prospectus so that, as thereafter delivered to Investor and the purchasers of such Registrable Securities, such Prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading in light of the circumstances under which they were made.

 

(f)                                    Promptly notify Investor in writing (i) when any Registration Statement filed pursuant to Section 2.1 or any amendment thereto has been filed with the Commission and when such Registration Statement or any post-effective amendment thereto has become effective, (ii) of any request by the Commission for amendments or supplements to any Registration Statement or the Prospectus included therein or for additional information, and (iii) of the receipt by the Company or its legal counsel 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.

 

(g)                                 Use its commercially reasonable  efforts to furnish, on the date that such Registrable Securities are delivered to the underwriters for sale, if such securities are being sold through underwriters, (i) an opinion, dated as of such date, of the outside counsel representing the Company for the purposes of such registration, in form, scope and substance as is customarily given to underwriters in similar underwritten public offerings of equity securities by similar companies, addressed to the underwriters, if any, and (ii) a “comfort” letter dated as of such date, from the independent registered public accountants of the Company (and, if necessary, any other independent certified public accountant of any business acquired by the Company for which financial statements and financial data are included in the Registration Statement), in form, scope and substance as is customarily given by independent registered public accountants to underwriters in similar underwritten public offerings of equity securities by similar companies addressed to the underwriters, if any.

 

(h)                                 Use commercially reasonable efforts to prevent the issuance of, and promptly notify Investor in writing if Registrable Securities are covered by such Registration Statement in the event of the issuance of, any stop order suspending the effectiveness of a Registration Statement, or any order suspending or preventing the use of any related Prospectus or suspending the qualification of any equity securities included in such Registration Statement for sale in any jurisdiction, and use its commercially reasonable efforts promptly to obtain the withdrawal of such order.

 

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(i)                                     Cooperate with Investor and use commercially reasonable efforts to procure the timely preparation and delivery of Registrable Securities (whether through The Depository Trust Company, book-entry or physical certificates), which certificates shall be free, to the extent permitted under law, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such name as Investor may reasonably request.  Registrable Securities in certificated form and free from all restrictive legends may be transmitted by the transfer agent to Investor by crediting the account of Investor’s prime broker with DTC as directed by Investor.

 

(j)                                     Otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission under the Securities Act and the Exchange Act, including Rule 172, notify Investor promptly if the Company no longer satisfies the conditions of Rule 172 and take such other actions as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder.

 

(k)                                  (i) Use commercially reasonable efforts to list the Registrable Securities covered by such Registration Statement with any national securities exchange on which the Common Stock of the Company is then listed or national market interdealer quotation system on which the Common Stock is then listed, and enter into such customary agreements, including a supplemental listing application and indemnification agreement in customary form; provided, however, that the applicable listing requirements are satisfied, and (ii) provide a transfer agent and registrar for such Registrable Securities covered by such Registration Statement no later than the Effective Date of such Registration Statement.  The Company shall bear the cost of all reasonable expenses associated with any listing.  A copy of any opinion of counsel accompanying a listing application by the Company with respect to such Registrable Securities shall be furnished to Investor.

 

(l)                                     Make available for inspection by a single representative of Investor and the managing underwriter(s), if any, and their respective attorneys or accountants, at the offices where normally kept, during reasonable business hours, financial and other records, pertinent corporate documents and properties of the Company, and cause the officers, directors and employees of the Company to supply all information in each case reasonably requested by any such representative, managing underwriter(s), attorney or accountant in connection with such Registration Statement.

 

(m)                               Make reasonably available senior executives of the Company to participate in “road show” and other customary marketing presentations from time to time as reasonably requested by the managing underwriter(s); provided, that the Company shall not be obligated to participate in such “road show” and other customary marketing presentations more than one (1) time in any 180 day period; provided, further, that the Company shall not be obligated to participate in any such “road show” and other customary marketing presentations that would materially interfere with the performance of such senior executives’ duties to the Company.

 

2.4                                 Suspension of Sales.  Upon (a) receipt of any notice from the Company that:  (i) the SEC has issued a stop order suspending the effectiveness of any Registration Statement, or has initiated or threatened any proceeding for such purpose; (ii) the Company has received a

 

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notification with respect to the suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, or the initiation of any proceeding for such purpose; (iii) the SEC has made a request for an amendment or supplement to any Registration Statement or any Prospectus or (iv) any Registration Statement or any Prospectus relating thereto is found to contain 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 light of the circumstances under which they were made (a “Misstatement”); or (b) receipt of written notice from the Company that the Company’s Board of Directors has determined, in good faith, based upon the advice of counsel, that a registration or disposition of Registrable Securities would require the disclosure of material non-public information, the disclosure of which would have a material adverse effect on the Company and its subsidiaries, taken as a whole, or would adversely affect a material financing, acquisition, disposition, merger, reorganization or other comparable transaction (the written notices referred to in the preceding clauses (a) and (b), each, a “Suspension Notice”), the Company shall be entitled, for a reasonable period of time, to postpone the filing or effectiveness of, or suspend the effectiveness of, such Registration Statement (or any amendment thereto) or suspend the use of any related Prospectus and, except in the case of Section 2.4(a)(iii) or Section 2.4(a)(iv) above, as applicable, shall not be required to amend or supplement such Registration Statement, any related Prospectus or any document incorporated by reference therein, and Investor shall forthwith discontinue disposition of Registrable Securities pursuant to such Registration Statement, until, in the case of Section 2.4(a)(iii) or Section 2.4(a)(iv) above, as applicable, Investor has received copies of any supplemented or amended Prospectus that corrects any Misstatement, or until Investor is advised in writing by the Company that the use of the Prospectus may be resumed.  If so directed by the Company in connection with a Prospectus subject to a suspension of sales under this Section 2.4, Investor shall deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in Investor’s possession, of such Prospectus as soon as reasonably practicable following receipt of such notice.  In the case of clauses (a)(iv) and (b) of this Section 2.4, (y) notice from the Company that disposition of Registrable Securities may resume shall be given not later than ninety (90) days after the Suspension Notice and (z) at least thirty (30) days shall elapse between such notice and any subsequent Suspension Notice.  The Company shall use its commercially reasonable efforts to minimize the duration of any suspension under this Section 2.4, which shall not, in the case of clauses (a)(iv) and (b) of this Section 2.4, exceed ninety days in any twelve month period.

 

2.5                                 Delay of Registration; Furnishing Information.  It shall be a condition precedent to the obligations of the Company to take any action pursuant to Section 2.1 that Investor shall furnish to the Company such information regarding Investor, the Registrable Securities held by Investor and the intended method of disposition of such securities as shall be required to effect the registration of their Registrable Securities.

 

2.6                                 Indemnification.  In the event any Registrable Securities are included in a Registration Statement under this Section 2:

 

(a)                                  To the extent permitted by law, the Company will indemnify and hold harmless Investor and its officers, directors, agents, general partners, managing members, managers and employees and each Person, if any, who controls Investor within the meaning of the Securities Act or the Exchange Act against any losses, claims, damages, or liabilities (joint or

 

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several) to which they may become subject under the Securities Act, or the Exchange 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 Prospectus, except to the extent that such untrue statement or alleged untrue statement is based solely upon information provided in writing by Investor expressly for use therein, (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, except to the extent that such omission or alleged omission is based solely upon information provided in writing by Investor expressly for use therein or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law; and the Company will pay to Investor or any controlling Person, as accrued, 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 Section 2.6(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 prior written consent of the Company (such consent not to be unreasonably withheld, conditioned or delayed).

 

(b)                                 To the extent permitted by law and provided that Investor is not entitled to indemnification pursuant to Section 2.6(a) above with respect to such matter, Investor, when selling Registrable Securities, will indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the Registration Statement, and each Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities to which any of the foregoing persons may become subject under the Securities Act, the Exchange 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 (i) untrue statement or alleged untrue statement of a material fact regarding Investor and provided in writing by Investor expressly for use in such Registration Statement, including any Prospectus or free writing prospectus thereto or (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, in each case to the extent (and only to the extent) that such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, preliminary or final Prospectus, amendment, supplement or free writing prospectuses thereto, in reliance upon and in conformity with written information furnished by Investor expressly for use in connection with such Registration Statement; and Investor will pay the Company or controlling Person, as accrued, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action as a result of Investor’s untrue statement or omission; provided, however, that the indemnity agreement contained in this Section 2.6(b) 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 Investor; provided, that in no event shall the aggregate of all indemnification payments by Investor under this Section 2.6(b) exceed the net proceeds from the offering received by Investor.

 

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(c)                                  Promptly after receipt by an indemnified party under this Section 2.6 of notice of the commencement of any claim or action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.6, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the reasonable fees and expenses of such counsel to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding.  The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the indemnified party under this Section 2.6, except to the extent such failure to give notice has a material adverse effect on the ability of the indemnifying party to defend such action.

 

(d)                                 If the indemnification provided for in this Section 2.6 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations.  The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission.  Notwithstanding the foregoing, the amount Investor will be obligated to contribute pursuant to this Section 2.6(d) will be limited to an amount equal to  the net proceeds received by Investor from the offering giving rise to such obligation to contribute (less the aggregate amount of any damages which Investor has otherwise been required to pay in respect of such loss, liability, claim, damage, or expense or any substantially similar loss, liability, claim, damage, or expense arising from the sale of such Registrable Securities).  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution hereunder from any person who was not guilty of such fraudulent misrepresentation.

 

(e)                                  Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in any underwriting agreement entered into in connection with the underwritten public offering of Registrable Securities are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control; provided, that the indemnification provisions of Investor in any underwriting agreement may not conflict with the provisions of this Section 2.6 without the consent of Investor.

 

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(f)                                    The obligations of the Company and Investor under this Section 2.6 shall survive the completion of any offering of shares of Common Stock in a Registration Statement under this Section 2.6, and otherwise, regardless of (i) any termination of any underwriting or agency agreement or (ii) the consummation of the sale or successive resales of the registered securities.  The indemnity and contribution agreements contained in this Section 2.6 are in addition to any liability that an indemnifying party may have to an indemnified party.

 

2.7                                 Lock-up Agreement.  Whenever the Company proposes either to register any of its equity securities under the Securities Act or offer for sale its registered equity securities in an underwritten offering for its own account (other than on Form S-4 or S-8 or any similar successor form or another form used for a purpose similar to the intended use of such forms), Investor agrees not to effect any sale or distribution, including any sale pursuant to Rule 144, or to request registration under Section 2.1(a) of any Registrable Securities for the time period reasonably requested by the managing underwriter for the underwritten offering; provided, that in no event shall such period exceed ninety (90) days after the Effective Date of the Registration Statement relating to such registration or the pricing of any such offering, as applicable.  The Company agrees that, in connection with an underwritten offering in respect of which Registrable Securities are being sold, if requested by the managing underwriter(s), it will not, directly or indirectly, sell, offer to sell, grant any option for the sale of (other than under the terms of any employment or consulting agreement, any employment offer letter or any similar written agreement for the employment of employees of the Company), or otherwise dispose of, any Common Stock or securities convertible into or exchangeable or exercisable for Common Stock (subject to customary exceptions), other than any such sale or distribution of Common Stock upon conversion of the Convertible Preferred Stock, in the case of an underwritten offering, for a period of ninety (90) days from the Effective Date of the Registration Statement pertaining to such Registrable Securities or such shorter period to which Investor is subject.  If requested by such managing underwriter(s), each of the Company and Investor agrees to execute a lock-up agreement, in customary form and subject to customary exceptions, consistent with the terms of this Section 2.7.

 

2.8                                 Current Public Information.  The Company shall file all reports required to be filed by it under the Securities Act and the Exchange Act and shall take such further action as any holder or holders of Registrable Securities may reasonably request, all to the extent required to enable such holders to sell Registrable Securities pursuant to Rule 144 or a registration on Form S-3.  Upon request, the Company shall deliver to any holder of Registrable Securities a written statement as to whether the Company has complied with the requirements of this Section 2.8.

 

SECTION 3.                                      MISCELLANEOUS

 

3.1                                 Successors and Assigns.  Nothing in this Agreement, express or implied, is intended to confer any rights or benefits on any persons that are not parties hereto, except as expressly provided in this Agreement; provided, that Investor shall be entitled to assign any or all of its rights under this Agreement, in whole or in part, to any transferee of Registrable Securities if such transferee, after such transfer, will hold greater than 25% of the aggregate number of shares of Registrable Securities held by Investor immediately following the closing of the Purchase Agreement.

 

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3.2                                 Governing Law.  This Agreement shall be governed by and construed under the laws of the State of New York without regard to its conflicts of laws rules.

 

3.3                                 Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

3.4                                 Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

3.5                                 Notices.  Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed effectively given upon personal delivery to the party to be notified or upon deposit with the United States Post Office, by registered or certified mail, postage prepaid and addressed to the party to be notified at the address set forth below, or at such other address as such party may designate, or with a reliable overnight delivery service.

 

	
If to the   Company:
    	
Coldwater   Creek Inc.
    
	
 
    	
One   Coldwater Creek Drive
    
	
 
    	
Sandpoint, Idaho   83864
    
	
 
    	
Attention:  General Counsel
    
	
 
    	
Telephone:  (208) 265-3430
    
	
 
    	
E-mail:  legal.department@thecreek.com
    
	
 
    	
 
    
	
 
    	
with a copy   (which shall not constitute notice) to:
    
	
 
    	
 
    
	
 
    	
Pillsbury   Winthrop Shaw Pittman LLP
    
	
 
    	
50 Fremont   St
    
	
 
    	
San   Francisco, California 94105
    
	
 
    	
Attention:  Blair White
    
	
 
    	
Telephone:  (415) 983-7480
    
	
 
    	
Facsimile:  (415) 983-1200
    
	
 
    	
E-mail:  blair.white@pillsburylaw.com
    
	
 
    	
 
    
	
To   Investor:
    	
CC Holdings   of Delaware, LLC - Series A
    
	
 
    	
c/o Golden   Gate Private Equity, Inc.
    
	
 
    	
One   Embarcadero Center, 39th Floor
    
	
 
    	
San   Francisco, CA 94111
    
	
 
    	
Telephone   No.:  (415) 983-2700
    
	
 
    	
Fax No.:  (415) 983-2701
    
	
 
    	
Attention:  Joshua Olshansky
    
	
 
    	
 
    
	
 
    	
with a   copy (which shall not constitute notice) to:
    
	
 
    	
 
    
	
 
    	
Kirkland &   Ellis LLP
    
	
 
    	
555   California Street, 27th Floor
    
	
 
    	
San   Francisco, CA 94104
    

 

14

 

	
 
    	
Telephone   No.:  (415) 439-1400
    
	
 
    	
Fax   No.:  (415) 439-1500
    
	
 
    	
Attention:  Stephen D. Oetgen and Robert C. Nelson
    

 

3.6                                 Amendments and Waivers.  Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and Investor as long as Investor holds Registrable Securities.  Any amendment or waiver effected in accordance with this paragraph shall be binding upon Investor and the Company.

 

3.7                                 Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

3.8                                 Entire Agreement.  This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subject matter hereof.

 

*                                         *                                         *                                         *                                         *

 

15

 

IN WITNESS WHEREOF, the parties hereto have caused and this Agreement to be executed by their respect undersigned officers thereunder duly authorizing as of the date first set forth above.

 

 

	
 
    	
COLDWATER CREEK INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James A. Bell
    
	
 
    	
 
    	
Name:  James A. Bell
    
	
 
    	
 
    	
Title:  Executive Vice President, Chief Financial   Officer, Chief Operating Officer and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CC HOLDINGS OF DELAWARE, LLC - SERIES A
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joshua Olshansky
    
	
 
    	
 
    	
Name:  Joshua Olshansky
    
	
 
    	
 
    	
Title:  Manager
    

 

{Coldwater Creek Inc. -
 Registration Rights Agreement}

 

S-1

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