Document:

exv10w4

 

Exhibit 10.4

Execution Copy

WORKING CAPITAL LOAN AGREEMENT

     AGREEMENT made August 23, 2005 (the “Effective Date”), between The Williams Companies, Inc., a
Delaware corporation, with principal offices at One Williams Center, Tulsa, Oklahoma 74172
(“Lender”) and Williams Partners L.P., a Delaware limited partnership with principal offices at One
Williams Center, Tulsa, Oklahoma 74172 (“Borrower”) (this “Agreement”).

1. Loan. Lender shall make revolving loans to Borrower during the term of this Agreement in an
aggregate amount outstanding of up to, but not exceeding, $20,000,000 at any time.

2. Term. Borrower may borrow sums from Lender up to the total loan commitment of $20,000,000 at
any time from the Effective Date to May 3rd, 2007 (the “Maturity Date”). Notwithstanding the
foregoing, for a period of at least fifteen consecutive days during each twelve month period
commencing with the Effective Date, Borrower shall have no borrowings under this loan outstanding.
Borrower hereby promises to pay to Lender interest when due hereunder and all outstanding
principal, interest and other payments owing under this Agreement in full on the Maturity Date.

3. Early Termination. Notwithstanding anything contained in this Agreement to the contrary, in the
event of a Change of Control (hereinafter defined) of the General Partner (hereinafter defined),
the Maturity Date shall be deemed to have immediately occurred as of the date of such Change of
Control. As used herein, the following terms shall have the following meanings: “General Partner”
means Williams Partners GP LLC, a Delaware limited liability company (including any permitted
successors and assigns under the Limited Partnership Agreement of the Borrower). “Change of
Control” means any of the following events: (i) any sale, lease, exchange or other transfer (in
one transaction or a series of related transactions) of all or substantially all of the General
Partner’s assets to any other Person, unless immediately following such sale, lease, exchange or
other transfer such assets are owned, directly or indirectly, by the General Partner; (ii) the
dissolution or liquidation of the General Partner; (iii) the consolidation or merger of the General
Partner with or into another Person pursuant to a transaction in which the outstanding membership
interests of the General Partner are changed into or exchanged for cash, securities or other
property, other than any such transaction where (a) the outstanding membership interests of the
General Partner are changed into or exchanged for Voting Securities of the surviving corporation or
its parent and (b) the Lender continues to own, directly or indirectly, not less than a majority of
the outstanding Voting Securities of the surviving corporation or its parent immediately after such
transaction; and (iv) other than Lender and its affiliates, a “person” or “group” (within the
meaning of Sections 13(d) or 14(d)(2) of the Exchange Act) being or becoming the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act) of more than 50% of all of the then
outstanding membership interests of the General Partner, except in a merger or consolidation which
would not constitute a Change of Control under clause (iii) above. “Exchange Act” means the
Securities Exchange Act of 1934, as amended. “Person” means a corporation, partnership, joint
venture, trust, limited liability company, unincorporated organization or any other entity.
“Voting Securities” means securities of any class of Person entitling the holders thereof to vote
in the election of members of the

 

 

board of directors or other similar governing body of the Person, or in the case of a limited
partnership, a majority of the general partner interests in such limited partnership.

4. Procedure for Borrowing. Borrower may borrow in amounts of not less than $50,000.00, and in
additional multiples of not less than $5,000.00, by giving written notice to Lender. The
procedure for the Borrower requesting borrowings and the Lender making advances hereunder shall be
the same as that for Revolving Credit Borrowings and Revolving Credit Advances under the Amended
and Restated Credit Agreement dated as of May 20, 2005 among The Williams Companies, Inc.,
Northwest Pipeline Corporation, Transcontinental Gas Pipe Line Corporation, and Williams Partners
L.P. as Borrowers, and Citicorp USA, Inc. as Administrative Agent and Collateral Agent, Citibank
N.A. and Bank of America N.A., as Issuing Banks, and the Banks parties thereto as it may be amended
or restated from time to time (the “Williams Companies Credit Agreement”) except that notices and
payments shall be sent to the applicable addresses for the Lender and the Borrower as set forth
herein.

5. Revolving Nature and Availability. Subject to the terms and conditions hereof, the Borrower may
increase or decrease loans under this Agreement by making drawdowns, repayments and further
drawdowns.

6. Conditions of Loans. The obligation of Lender to make the loans described herein is subject to
the following conditions:

     (a) A Default has not occurred and is continuing;

     (b) the proceeds of the proposed loan disbursement are, at the date of the relevant request,
needed by the Borrower for working capital purposes, as reasonably determined by Borrower.

7. Interest. The Borrower promises to pay interest on the unpaid principal amount from time to
time outstanding, on the same dates and at the same rates and calculated in the same manner as
apply to Revolving Credit Advances made to Lender under the Williams Companies Credit Agreement,
including, without limitation, that Borrower shall have the right to elect whether borrowings made
hereunder shall be Base Rate Advances or Eurodollar Rate Advances and, with respect to Eurodollar
Rate Advances, shall have the right to select interest periods in the same manner as Lender has the
right to select such periods under the Williams Companies Credit Agreement. All payments of
principal and interest shall be payable in lawful currency of the United States of America at the
office of the Lender as provided above or such other address as the holder hereof shall have
designated to the Borrower, in immediately available funds.

8. Prepayment. Borrower may prepay all or part of any amounts outstanding hereunder at any time
without payment of penalty. Any partial prepayment, however, shall be applied against unpaid
installments outstanding hereunder in the inverse order of maturity beginning with the shortest
maturity and shall not be made in amounts of less than $5,000.

 

 

9. Default. Borrower shall be in default (“Default”) if any of the following events occur and
continue:

     (a) It becomes insolvent or admits in writing its inability to pay its debts as they mature;
applies for, consents to, or acquiesces in the appointment of a trustee or receiver for any of its
property; in the absence of an application, consent, or acquiescence a trustee or receiver is
appointed for it or a substantial part of its property and is not discharged within 60 days; it
otherwise commits an act of bankruptcy; or any bankruptcy, reorganization, debt arrangement, or
other proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation
proceeding, is instituted by or against it and if instituted is consented to or acquiesced in by it
or remains for 60 days undismissed;

     (b) It defaults in the performance of the terms and conditions of this Agreement and such
default continues for 30 days after notice thereof from Lender; or

     (c) Any government, board, agency, department, or commission takes possession or control of a
substantial part of Borrower’s property and such possession or control continues for 30 days.

10. Acceleration at Option of Lender. If any of the events listed in paragraph 9(a), (b), or (c)
occur and continue, Lender may declare the amounts outstanding under this Agreement immediately due
and payable, at which time all unpaid installments shall immediately become due and payable.
Lender shall promptly advise Borrower in writing of any acceleration under this paragraph, but the
failure to do so shall not impair the effect of a subsequent declaration.

11. Cross-References to Williams Companies Credit Agreement. Notwithstanding anything contained in
this Agreement to the contrary, in the event (i) there is a default under the Williams Companies
Credit Agreement, and/or (ii) the Williams Companies Credit Agreement or the commitments of the
lenders to make loans thereunder are terminated for any reason, Lender and Borrower agree that any
provision in this Agreement that relies on cross-references to the Williams Companies Credit
Agreement shall be interpreted as if the Williams Companies Credit Agreement was not in default and
was in full force and effect, the intention of the parties to this Agreement being that Borrower
shall, following such default and/or termination, have the right to continue to make revolving
borrowings under this Agreement at the interest rates and upon the other terms and conditions so
cross-referenced as if such default and/or termination had not occurred with respect to the
Williams Companies Credit Agreement. The parties hereto agree and acknowledge that the reduction
in, or termination of, the commitments under the Williams Companies Credit Agreement or the failure
or refusal of the lenders under the Williams Companies Credit Agreement to make loans thereunder
for any reason, including, without limitation, due to a default thereunder and/or the termination
thereof, shall not affect Lender’s obligations to make loans under this Agreement.

12. Binding Effect. This Agreement shall be binding on the respective successors and assigns of
Lender and Borrower and shall inure to the benefit of Lender’s successors and assigns.

 

 

13. Loan Expenses. Except as expressly set forth herein, Borrower shall not be required to pay any
fees or other expenses of Lender in connection with this Agreement or the Loans made hereunder.

14. Commitment Fee. The Borrower shall pay to the Lender a commitment fee on the daily average
unused amount of the revolving loans for the period from and including the Effective Date up to,
but excluding, the Maturity Date at a rate of 0.30% per annum. Accrued commitment fees shall be
payable quarterly in arrears on the last day of each fiscal quarter of Borrower and on the Maturity
Date. All commitment fees shall be computed on the basis of a year of 365 days (or 366 days in a
leap year) and shall be payable for the actual number of days elapsed (including the first day but
excluding the last day).

15. Non-Waiver. No delay or failure by Lender to exercise any right under this Agreement, and no
partial or single exercise of that right, shall constitute a waiver of that or any other right,
unless otherwise expressly provided herein.

16. Governing Law. This Agreement shall be construed in accordance with and governed by the laws
of the State of New York.

17. Headings. Headings in this Agreement are for convenience only and shall not be used to
interpret or construe its provisions.

18. 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.

19. Time of Essence. Time is expressly declared to be the essence of this Agreement.

20. Entire Agreement; Modification. This instrument and any other loan documents executed in
connection herewith constitute the entire Agreement between Lender and Borrower and may not be
contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.
There are no oral agreements between the parties. This Agreement may not be modified except in a
writing signed by both parties.

21. Notices. All notices under this Agreement shall be in writing and delivered to the respective
parties at their principal offices stated at the beginning hereof.

22. No Third Party Beneficiaries. The agreement of the Lender to make the loan to the Borrower for
the account of the Borrower on the terms and conditions set forth in this Agreement, is solely for
the benefit of the Borrower and no other person has any rights hereunder against the Lender or with
respect to the extension of credit contemplated hereby.

23. Special Exculpation. No claim may be made by the Borrower or any other person against the
Lender, directors, officers, employees, attorneys or agents of any of them for any special,
indirect, consequential or punitive damages in respect of any claim for breach of contract or any

 

 

other theory of liability arising out of or relating to this Agreement or any other financing
document or the transactions contemplated hereby or thereby, or any act, omission or event
occurring in connection therewith and the Borrower hereby waives, releases and agrees not to sue
upon any claim for any such damages, whether or not accrued and whether or not known or suspected
to exist in its favor.

24. Waiver of Jury Trial. Each of the Borrower and the Lender hereby irrevocably waives, to the
fullest extent permitted by law, any and all right to trial by jury in any legal proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby.

25. Indemnification. Borrower agrees to pay on demand all reasonable costs and expenses incurred
by Lender in connection with enforcement of this Agreement. Borrower agrees to the fullest extent
permitted by law, to indemnify and hold harmless the Lender and each of its directors, officers,
employees and agents (each an “Indemnified Party”) from and against any and all claims, damages,
liabilities and expenses (including without limitation fees and disbursements of counsel) arising
out of or in connection with any investigation, litigation or proceeding (whether or not any
Indemnified Party is a party) arising out of, related to or in connection with this Agreement, the
loans made hereunder or any transaction in which any proceeds of all or any part of the loans made
hereunder are applied.

26. Severability. If any term or provision of this Agreement shall be determined to be illegal or
unenforceable, all other terms and provisions of this Agreement shall nevertheless remain effective
and shall be enforced to the fullest extent permitted by applicable law.

27. Further Assurances. The parties agree (a) to furnish upon request to each other such further
information, (b) to execute and deliver to each other such other documents, and (c) to do such
other acts and things, all as the other party may reasonably request for the purpose of carrying
out the intent of this Agreement.

28. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the
interest rate applicable to any amounts outstanding hereunder, together with all fees, charges and
other amounts which are treated as interest on such amounts under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by Lender in accordance with applicable law,
the rate of interest payable in respect of such amounts outstanding hereunder, together with all
Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful,
the interest and Charges that would have been payable in respect of such amounts outstanding but
were not payable as a result of the operation of this Section 28 shall be cumulated and the
interest and Charges payable to Lender in respect of other amounts outstanding hereunder or periods
shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been
received by such Lender. “Federal Funds Effective Rate” as used herein means, for any day, the
weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged by Federal funds
brokers, as published on the next succeeding

 

 

business day by the Federal Reserve Bank of New York, or, if such rate is not so published for any
day that is a business day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of
the quotations for such day for such transactions received by Lender from three Federal funds
brokers of recognized standing selected by it.

 

 

     In witness whereof the parties have caused this Agreement to be executed by their proper
officers on the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	The Williams Companies, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Donald R. Chappel	 	 
	 	 	 	 	 	 	 
	 	 	Name: Donald R. Chappel	 	 
	 	 	Title: Senior Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Williams Partners L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Williams Partners GP LLC,	 	 
	 	 	 	 	it general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Alan S. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Name: Alan S. Armstrong	 	 
	 	 	 	 	Title: Chief Operating Officer<PAGE>
                                                                     Exhibit 4.1

                 STOCKHOLDERS AND REGISTRATION RIGHTS AGREEMENT

     THIS STOCKHOLDERS AND REGISTRATION RIGHTS AGREEMENT, dated the 17th day of
September, 1998, is by and among Dover Saddlery, Inc., a Delaware corporation
(the "Holding Company"), Stephen L. Day and Citizens Ventures, Inc. Certain
terms used herein are defined in section 1.

                                   WITNESSETH:

     WHEREAS, on the date hereof, the Purchaser is purchasing certain securities
from the Holding Company pursuant to the Securities Purchase Agreements;

     WHEREAS, it is a condition to such purchase that the parties hereto enter
into this Agreement; and

     WHEREAS, the Restricted Securityholders agree that the purchase of such
securities by the Purchaser is of value to them.

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

     1. Certain Definitions. Capitalized terms used in this Agreement without
definition have the respective meanings ascribed thereto in the Securities
Purchase Agreements. In addition, the following terms have the following
respective meanings:

          "Controlling Shareholders" shall have the meaning specified in section
     3.2.

          "Institutional Investor" shall mean the Purchaser and its successors
     and assigns, including successor holders of the Purchased Shares and
     Conversion Shares.

          "Purchaser" shall mean Citizens Ventures, Inc.

          "qualification" or "compliance" shall mean the qualification or
     compliance of all Registrable Shares included in any registration
     contemplated by section 5 under all applicable blue sky or other state
     securities laws.

          "Qualifying Public Offering" shall mean an underwritten public
     offering pursuant to an effective registration statement under the
     Securities Act covering the offer and sale of Common Stock and in which the
     aggregate net proceeds to the Holding Company are not less than
     $15,000,000.
<PAGE>
          "register", "registered" and "registration" as used in section 5 refer
     to a registration effected by filing a registration statement in compliance
     with the Securities Act to permit the sale and disposition of the
     Registrable Shares and any amendment filed or required to be filed to
     permit any such disposition.

          "Registrable Shares" shall mean any Conversion Shares, except that, as
     to any particular Registrable Shares, such securities, once issued, will
     cease to be Registrable Shares when (i) a registration statement covering
     such securities has been declared effective and such securities have been
     disposed of pursuant to an effective registration statement or (ii) such
     securities are sold to the public in accordance with Rule 144 (or any
     similar provision then in force) under the Securities Act. A Person shall
     be deemed a "holder" of Registrable Shares for purposes of section 5 if
     such Person is the holder of any Purchased Shares and/or Conversion Shares.

          "Registration Expenses" shall mean all fees, expenses and
     disbursements related to any registration, qualification or compliance
     pursuant to section 5, including, without limitation, all registration,
     filing, rating and listing fees, blue sky fees and expenses, printing
     expenses, fees and disbursements of counsel (including, without limitation,
     the reasonable fees, expenses and disbursements of counsel for the holder
     or holders of the Registrable Shares), and expenses of any special audits
     incident to or required by any registration, qualification or compliance,
     except that Registration Expenses shall not include any underwriters'
     discounts or commissions attributable to any Registrable Shares registered
     and sold pursuant to any such registration.

          "Restricted Securityholder" shall mean Stephen L. Day and his heirs,
     executors, successors and assigns, including any Person (other than an
     Institutional Investor) who shall acquire any Restricted Securities from
     any of them.

          "Restricted Securities" shall mean all Shares of the Holding Company
     and all securities convertible into or exercisable or exchangeable,
     directly or indirectly, for Shares of the Holding Company, which are owned
     by a Restricted Securityholder.

          "Sale to the Public" shall mean a sale either (a) pursuant to an
     effective registration statement under the Securities Act, or (b) in
     accordance with Rule 144 (or any similar provision then in force) under the
     Securities Act.

          "Securities Purchase Agreements" shall mean the Securities Purchase
     Agreements dated the date hereof by and among the Holding Company, Dover
     Saddlery, Inc., a Massachusetts corporation, and the institutional
     investors named therein, as amended, modified or supplemented from time to
     time.

          "transfer" shall mean any sale, pledge, gift, assignment or other
     transfer.

                                       -2-
<PAGE>
     2. Restriction on Transfers of Restricted Securities by Restricted
Securityholders.

          (a) The Holding Company shall not register the transfer of, or
     otherwise permit the transfer of, any Restricted Securities by any
     Restricted Securityholder (other than pursuant to a Sale to the Public)
     unless (i) such transfer has been consummated in accordance with the terms
     hereof and (ii) the new holder thereof shall first have become a party to
     this Agreement and shall have agreed in writing to be bound by all of the
     terms and conditions hereof applicable to the Restricted Securityholder
     from whom such new holder shall have acquired such Restricted Securities.
     Any transfer of Restricted Securities by any Restricted Securityholder
     which is not consummated in accordance with this Agreement shall be void.

          (b) Notwithstanding anything to the contrary set forth herein, the
     Restricted Securityholder may pledge any Restricted Securities held by him
     to any holder of Senior Debt (as defined in the Subordination Agreement)
     and, if such holder of Senior Debt becomes the transferee of any such
     pledged securities, such pledged securities shall not be subject to, and
     such holder of Senior Debt and any transferee thereof shall not be bound by
     or enjoy the benefits of, this Agreement.

     3. Co-Sale Rights of Institutional Investors; Drag-Along Rights of Stephen
L. Day.

     3.1. Co-Sale Rights of Institutional Investors. No Restricted
Securityholder shall transfer any Restricted Securities owned by such Restricted
Securityholder, directly or indirectly, to any other Person except in accordance
with this Agreement.

          (a) If any Restricted Securityholder at any time proposes to transfer
     any Restricted Securities, then, as a condition precedent thereto, such
     Restricted Securityholder shall afford each Institutional Investor the
     right to participate in such transfer in accordance with this section 3.1.

          (b) Any Restricted Securityholder wishing to transfer any Restricted
     Securities shall give written notice thereof to each Institutional Investor
     (a "Notice of Transfer") not less than 30 nor more than 45 days prior to
     any proposed transfer of any such Restricted Securities. Each such Notice
     of Transfer shall:

               (i) specify in reasonable detail (A) the number and kind of
          Restricted Securities which such Restricted Securityholder proposes to
          transfer, (B) the identity of the proposed transferee or transferees
          of such Restricted Securities, (C) the time within which, the price
          per share at which and all other terms and conditions upon which such
          Restricted Securityholder proposes to transfer such Restricted
          Securities and (D) the percentage of the Restricted

                                       -3-
<PAGE>
          Securities then owned by such Restricted Securityholder which such
          Restricted Securityholder proposes to transfer to such proposed
          transferee or transferees;

               (ii) make explicit reference to this section and state that the
          right of each Institutional Investor to participate in such transfer
          under this section 3.1 shall expire unless exercised within 30 days
          after receipt of such Notice of Transfer; and

               (iii) contain an irrevocable offer by the selling Restricted
          Securityholder to such Institutional Investor to participate in the
          proposed transfer to the extent provided in section 3.1(c).

          (c) Each Institutional Investor shall have the right to transfer to
     the proposed transferee or transferees up to that number of shares of
     Common Stock owned by (or issuable to) such Institutional Investor which is
     equal to the Applicable Percentage (as hereinafter defined) (or, if such
     Institutional Investor shall elect, any lesser percentage) of the
     Restricted Securities proposed to be transferred by the selling Restricted
     Securityholder, at the same price per share and on the same terms and
     conditions as are applicable to the proposed transfer by such selling
     Restricted Securityholder (and, if and to the extent any Institutional
     Investor shall exercise such right, then the Restricted Securities to be
     transferred by the selling Restricted Securityholder shall be
     correspondingly reduced), provided that (i) the consideration to be paid to
     any Institutional Investor so electing to participate shall be paid in cash
     (unless such Institutional Investor shall elect otherwise) and (ii) no
     Institutional Investor shall be required in connection with any such
     transaction to make any representation, warranty or covenant other than a
     representation as to such Institutional Investor's power and authority to
     effect such transfer and as to such Institutional Investor's title to the
     shares of Common Stock to be transferred by it, provided further that,
     notwithstanding clause (ii) of the foregoing proviso, each Institutional
     Investor electing to participate in such proposed transfer shall be
     obligated to indemnify the proposed transferee or transferees upon the same
     terms and conditions as are applicable to the indemnification given by the
     selling Restricted Securityholder in connection with such proposed
     transfer, so long as all indemnification obligations are shared among all
     transferors in proportion to the consideration paid to each transferor, but
     in no event shall the liability of any Institutional Investor under all
     such indemnification provisions exceed the aggregate proceeds actually paid
     to it in connection with such transfer. As used herein, the term
     "Applicable Percentage" as applied to any Institutional Investor on any
     date shall mean a fraction (expressed as a percentage), the numerator of
     which is the number of shares of Common Stock proposed to be transferred by
     such Institutional Investor on such date and the denominator of which is
     the sum of (x) the aggregate number of shares of Common Stock proposed to
     be transferred by such Institutional Investor and each other Institutional
     Investor who shall, have timely elected to participate in such proposed
     transfer and (y) the aggregate

                                       -4-
<PAGE>
     number of Restricted Securities proposed to be transferred by the selling
     Restricted Securityholder, provided that in no event shall any
     Institutional Investor be entitled to sell to the proposed transferee or
     transferees a greater percentage of the shares of Common Stock then owned
     by (or issuable to) such Institutional Investor than the percentage of the
     shares of Common Stock then owned by the Restricted Securityholder which
     are to be sold by the Restricted Securityholder to the proposed transferee
     or transferees. All calculations pursuant to this section 3.1 shall be on a
     fully-diluted basis (assuming the conversion, exercise and exchange of all
     securities convertible into or exercisable or exchangeable for Common
     Stock) and shall be carried out to a tenth of a share and then rounded to
     the nearest share.

          (d) Each Institutional Investor must notify such selling Restricted
     Securityholder, within 30 days after receipt of the Notice of Transfer, if
     such Institutional Investor desires to accept such offer and to transfer
     any shares of Common Stock owned by (or issuable to) such Institutional
     Investor in accordance with this section 3.1. The failure of any
     Institutional Investor to provide such notice within such 30-day period
     shall, for the purposes of this section 3.1, be deemed to constitute a
     waiver by such Institutional Investor of its right to sell any of its
     shares of Common Stock in connection with the proposed transfer described
     in such Notice of Transfer. The selling Restricted Securityholder will use
     commercially reasonable efforts to obtain the agreement of the prospective
     transferee or transferees to the participation of the Institutional
     Investors in such proposed transfer and will not consummate any such
     proposed transfer unless each Institutional Investor electing to
     participate therein is permitted to participate in accordance with the
     provisions of this section 3.1. No Institutional Investor shall be
     obligated to sell any shares of Common Stock pursuant to this section 3.1.
     Any and all sales of shares of Common Stock by any Institutional Investor
     pursuant to this section 3.1 shall be made either concurrently with or
     prior to the sale of Restricted Securities by the selling Restricted
     Securityholder.

          (e) Notwithstanding anything to the contrary contained in this section
     3.1, no Institutional Investor shall have any rights pursuant to this
     section 3.1 to participate in any transfer by any Restricted Securityholder
     (i) to (A) any member of his family (or to trusts the sole beneficiaries
     and trustees of which are such Restricted Securityholder and members of his
     family), (B) the estate of such Restricted Securityholder upon his death or
     (C) any entity wholly-owned by such Restricted Securityholder, provided
     that, in the case of this clause (i), any such transferee shall have become
     a party to this Agreement, as required under section 2 or (ii) in any Sale
     to the Public.

                                       -5-
<PAGE>
     3.2. Drag Along Rights of Controlling Shareholders.

          (a) If at any time following the date hereof, the holders of a
     majority of the outstanding Shares of the Holding Company (calculated on a
     fully-diluted basis) but in any event including Stephen L. Day (the
     "Controlling Shareholders") shall enter into an agreement to sell in an
     arms-length transaction approved by the board of directors of the Holding
     Company all of the Restricted Securities owned by the Controlling
     Shareholders to any Person or group of Persons who are not affiliated with
     the Controlling Shareholders, and each of the other shareholders of the
     Holding Company (other than the Institutional Investors) sell their Shares
     in the Holding Company in such transaction, then the Controlling
     Shareholders may require that each Institutional Investor sell all of the
     Shares (and all securities convertible into or exchangeable or exercisable
     for Shares) of the Holding Company owned by such Institutional Investor to
     such Person or group of Persons at the same price per share and on the same
     terms and conditions as are applicable to the proposed sale by the
     Controlling Shareholders, provided that (i) the consideration to be paid to
     any Institutional Investor in such transaction shall be paid in cash or
     cash equivalents (unless such Institutional Investor shall elect otherwise)
     and (ii) no Institutional Investor shall be required in connection with any
     such transaction to make any representation, warranty or covenant other
     than a representation as to such Institutional Investor's power and
     authority to effect such sale and as to such Institutional Investor's title
     to the securities to be sold by it, provided further that, notwithstanding
     clause (ii) of the foregoing proviso, each Institutional Investor shall be
     obligated to indemnify the proposed transferee or transferees upon the same
     terms and conditions as are applicable to the indemnification given by the
     Controlling Shareholders connection with such proposed transfer, so long as
     all indemnification obligations are shared among all transferors in
     proportion to the consideration paid to each transferor, but in no event
     shall the liability of any Institutional Investor under all such
     indemnification provisions exceed the aggregate proceeds actually paid to
     it in connection with such transfer.

          (b) In order to exercise the rights under section 3.2(a), the
     Controlling Shareholders must give notice to each Institutional Investor
     not less than 30 days prior to the proposed date upon which the
     contemplated sale is to be effected. In addition, the Controlling
     Shareholders shall furnish to each Institutional Investor all material
     agreements, documents and instruments to be executed in connection with
     such transaction and shall afford each Institutional Investor a reasonable
     period of time within which to review such agreements, documents and
     instruments.

          (c) Nothing in this section 3.2 shall modify any of the rights of any
     Institutional Investor under any of the Operative Documents, including,
     without limitation, any rights such Institutional Investor may have on
     account of any transaction referred to in this section 3.2(a) under section
     12 of the Securities Purchase Agreements.

                                       -6-
<PAGE>
     4. Limitation on Transactions with Affiliates. From and after the date of
this Agreement, and thereafter as long as any of the Preferred Shares or
Conversion Shares remain outstanding, the Holding Company will not, and will not
permit any of its Subsidiaries to, engage in any transaction (including, without
limitation, the purchase, sale or exchange of any properties and assets or the
rendering of any services) with an Affiliate of the Holding Company or of any of
its Subsidiaries on terms less favorable to the Holding Company or any such
Subsidiary in any material respect than would be obtainable at the time in
comparable transactions with a Person not such an Affiliate.

     5. Registration, etc.

     5.1. Registration on Request.

          (a) In case the Holding Company shall receive from one or more holders
     of any Registrable Shares a written request or requests that the Holding
     Company effect any registration, qualification and/or compliance of any
     Registrable Shares held by (or issuable to) such holder or holders, and
     specifying the intended method of offering, sale and distribution, the
     Holding Company will:

               (i) promptly give written notice of the proposed registration,
          qualification and/or compliance to each holder of any Registrable
          Shares; and

               (ii) as soon as practicable, effect such registration,
          qualification and/or compliance (including, without limitation, the
          execution of an undertaking for post-effective amendments, appropriate
          qualification under applicable blue sky or other state securities laws
          and appropriate compliance with exemptive regulations issued under the
          Securities Act and any other governmental requirements or regulations)
          as may be so requested and as would permit or facilitate the sale and
          distribution of such amount of Registrable Shares as is specified in a
          written request or requests, made within 30 days after receipt of such
          written notice from the Holding Company, by any holder or holders of
          any Registrable Shares.

          (b) The obligations of the Holding Company under this section 5.1 to
     effect any such registration, qualification and/or compliance are subject
     to the following qualifications:

               (i) the Holding Company shall only be obligated to effect three
          registrations pursuant to this section 5.1, provided that if, in
          connection with any registration of Registrable Shares effected
          pursuant to this section 5.1, the holders of Registrable Shares
          requesting registration are unable for any reason to include in such
          registration all of the Registrable Shares for which registration has
          been requested, then the holder or holders of the Registrable

                                       -7-
<PAGE>
          Shares shall be entitled to an additional registration of Registrable
          Shares pursuant to this section 5.1;

               (ii) the Holding Company shall not be obligated to effect any
          registration requested pursuant to this section 5.1 prior to the
          expiration of 120 days after the consummation of the Holding Company's
          initial public offering;

               (iii) the Holding Company shall not be obligated to effect any
          registration requested pursuant to this section 5.1 unless it shall
          have been requested to do so by the holder or holders of a majority of
          the Registrable Shares at the time outstanding;

               (iv) the Holding Company shall not include in any registration,
          qualification or compliance requested pursuant to this section 5.1 any
          other securities (including, without limitation, those to be issued
          and sold by the Holding Company), if as a result of including any such
          other securities there is any reduction in the number of Registrable
          Shares to be included therein or in the estimated price to the public
          of such Registrable Shares, without the prior written consent of
          holders of a majority of the Registrable Shares to be included in such
          registration, qualification or compliance; and

               (v) the Holding Company shall pay all Registration Expenses
          related to any registration, qualification and compliance effected
          pursuant to this section 5.1.

     5.2. Incidental Registration.

          (a) If the Holding Company at any time or from time to time shall
     determine to effect the registration, qualification and/or compliance of
     any of its equity securities (whether in connection with an offering by the
     Holding Company or others) (otherwise than pursuant to a registration on a
     form inappropriate for an underwritten public offering or relating solely
     to securities to be issued in a merger, acquisition of the stock or assets
     of another entity or in a similar transaction), then, in each such case
     (including the Holding Company's initial public offering), the Holding
     Company will:

               (i) promptly give written notice of the proposed registration,
          qualification and/or compliance (which shall include a list of the
          jurisdictions in which the Holding Company intends to register or
          qualify such securities under the applicable blue sky or other state
          securities laws) to each holder of any Registrable Shares; and

               (ii) include among the securities which it then registers or
          qualifies all Registrable Shares specified by any holder thereof in a
          written request or

                                       -8-
<PAGE>
          requests, made within 30 days after receipt of such written notice
          from the Holding Company.

          (b) The obligations of the Holding Company under this section 5.2 are
     subject to the following qualifications:

               (i) the Holding Company shall pay all Registration Expenses
          related to any registration, qualification or compliance effected
          pursuant to this section 5.2; and

               (ii) if, in connection with any underwritten offering pursuant to
          this section 5.2, the managing underwriter shall impose a limitation
          on the number or kind of securities which may be included in any such
          registration for sale by any Person other than the Holding Company
          because, in its reasonable judgment, such limitation is necessary to
          effect an orderly public distribution, then the Holding Company shall
          be obligated to include in such registration statement only such
          limited portion of the Registrable Shares (which may be none) as is
          determined in good faith by such managing underwriter, provided that,
          if any securities are being offered for the account of any Person
          other than the Holding Company and the holders of the Registrable
          Shares, the reduction in the number of Registrable Shares included in
          such registration shall not represent a greater percentage of the
          amount of Registrable Shares originally requested to be registered and
          sold in such registration than the lowest such percentage reduction
          imposed upon any other Person.

     5.3. Permitted Registration. If and to the extent that any holder or
holders of any Registrable Shares shall have, at the time of delivery of the
written request referred to in section 5.2, no present intention of selling or
distributing such securities, the Holding Company shall be obligated to effect
the registration, qualification and compliance of such securities of such holder
or holders only if and to the extent, in each case, that such registration,
qualification and compliance are at the time permitted by the applicable
statutes or rules and regulations thereunder or the practices of the
governmental authority concerned.

     5.4. Registration Procedures. In the case of each registration,
qualification and/or compliance contemplated by this section 5, the Holding
Company will keep the holder or holders of Registrable Shares advised in writing
as to the initiation of proceedings for such registration, qualification and
compliance and as to the completion thereof, and will advise each such holder,
upon request, of the progress of such proceedings. In addition, the Holding
Company will follow procedures customarily observed by issuers in registered
public offerings, and accord to the holder or holders of Registrable Shares all
rights (including, without limitation, the right to perform appropriate "due
diligence") customarily accorded to selling stockholders in secondary
distributions and to managing underwriters if the transaction in question is or
were an underwritten public offering. At the expense of the Holding

                                       -9-
<PAGE>
Company or of the party or parties bearing the expenses of such registration,
qualification and compliance, the Holding Company will (a) keep such
registration, qualification and compliance current and effective by such action
as may be necessary or appropriate, including, without limitation, the filing of
post-effective amendments and supplements to any registration statement or
prospectus, for such period as is necessary to permit the sale and distribution
of the Registrable Shares pursuant thereto, but in no event longer than six
months, (b) take all necessary action under any applicable blue sky or other
state securities law to permit such sale and/or distribution, all as requested
by the holder or holders of Registrable Shares included therein, (c) comply with
applicable requirements of all regulatory entities, including, without
limitation, the National Association of Securities Dealers, Inc., (d) furnish
each holder of Registrable Shares included therein such number of registration
statements, prospectuses, supplements, amendments, offering circulars and other
documents incidental thereto as such holder from time to time may reasonably
request, (e) list all Registrable Shares on each securities exchange on which
securities of the same class are then listed and (f) furnish (or cause to be
furnished) to each holder of Registrable Shares, all undertakings, agreements,
certificates, opinions, financial statements and "comfort letters" of the sort
customarily provided to selling stockholders in secondary distributions and to
the managing underwriters, if the transaction in question is or were an
underwritten public offering.

     5.5. Indemnification. Without limiting the generality of any other
indemnification provision contained in any of the Operative Documents, the
Holding Company will indemnify, defend and hold harmless each holder of
Registrable Shares included in any registration, qualification and/or compliance
contemplated by this section 5 and each underwriter of such securities, and each
Person, if any, who controls each such holder and underwriter within the meaning
of the Securities Act, and their respective directors, officers, employees,
agents, advisors and Affiliates (each, an "Indemnified Person"), to the fullest
extent enforceable under applicable law against all claims, losses, damages and
liabilities (or actions in respect thereof) arising out of or based on any
untrue statement (or alleged untrue statement) of a material fact contained in
any registration statement, prospectus, supplement, amendment, offering circular
or other document related to any registration, qualification or compliance or
any omission (or alleged omission) to state therein a material fact required to
be stated therein or necessary to make the statements therein not misleading, or
any violation (or alleged violation) of the Securities Act or other securities
laws in connection with any such registration, qualification or compliance, and
will reimburse each such Indemnified Person for any legal or any other expenses
reasonably incurred in connection with investigating and/or defending (and/or
preparing for any investigation or defense of) any such claim, loss, damage,
liability, action or violation; provided that the Holding Company will not be
liable in any such case to any such Indemnified Person if, but only to the
extent that, any such claim, loss, damage, liability, action, violation or
expense is finally determined to arise out of or result from any untrue
statement in or omission from written information furnished to the Holding
Company by an instrument duly executed by such Indemnified Person and stated to
be specifically for use therein. Each holder of Registrable Shares will, if
securities held by such holder are included in a registration effected pursuant
to this section 5,

                                      -10-
<PAGE>
indemnify, defend and hold harmless the Holding Company, each of its directors
and officers who signs the related registration statement, and each Person, if
any, who controls the Holding Company within the meaning of the Securities Act,
against all claims, losses, damages and liabilities (or actions in respect
thereof) arising out of or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any such registration statement,
prospectus, supplement, amendment, offering circular or other document or any
omission (or alleged omission) to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
will reimburse the Holding Company and such directors, officers or Persons for
any legal or any other expenses reasonably incurred in connection with
investigating or defending (and/or preparing for any investigation or defense
of) any such claim, loss, damage, liability or action, in each case to the
extent, but only to the extent, that such untrue statement (or alleged untrue
statement) or omission (or alleged omission) was made in (or omitted from) such
registration statement, prospectus, supplement, amendment, offering circular or
other document in reliance upon and in conformity with written information
furnished to the Holding Company by an instrument duly executed by such holder
and stated to be specifically for use therein; provided that the liability of
any such holder under this section 5.5 shall be limited to the net sales
proceeds actually received by such holder as a result of the sale by it of
securities in such registration.

     5.6. Restrictions on Other Agreements. The Holding Company will not grant
any right relating to the registration of its securities if the exercise thereof
interferes with or is inconsistent with or will delay (or could reasonably be
expected to interfere with or be inconsistent with or delay) the exercise and
enjoyment of any of the rights granted under this section 5, without the written
consent of the holder or holders of a majority of the Registrable Shares at the
time outstanding, which consent may be given or withheld in the sole discretion
of such holders. The Holding Company will not permit any of its Subsidiaries to
effect, or to grant any right relating to, the registration of its securities.

     6. Board Visitation Rights. Reference is hereby made to section 13 of the
Securities Purchase Agreements for certain provisions relating to "board
visitation rights" of the holders of the Securities, to which provisions each of
the Restricted Securityholders hereby consents.

     7. Voting Agreement With Respect to the Board of Directors of the Holding
Company, etc.

          (a) At the request of the Required Holders of the Purchased Shares,
     each Restricted Securityholder shall cause a special election of directors
     of the Holding Company to be held as promptly as practicable and shall
     vote, or cause to be voted, in such election and in each subsequent
     election of the directors of the Holding Company (whether at a meeting or
     by written consent in lieu of a meeting), all Restricted Securities
     entitled to vote in such election which are held by such Restricted
     Securityholder (or over which such Restricted Securityholder has voting
     control) so as

                                      -11-
<PAGE>
     to assure that (i) the board of directors of the Holding Company, following
     such election, shall have as a member thereof at least one individual
     designated by the Required Holders of the Purchased Shares and (ii) the
     board of directors of the Holding Company shall have not more than seven
     members.

          (b) The Required Holders of the Preferred Shares shall be entitled to
     remove from the Holding Company's board of directors the individual so
     designated by them with or without cause and to designate a replacement for
     any individual so removed.

          (c) Each Restricted Securityholder holding (or having voting control
     over) Restricted Securities entitled to vote in any election of directors
     of the Holding Company hereby grants to the Required Holders of the
     Purchased Shares an irrevocable proxy, coupled with an interest, to vote
     all such Restricted Securities to the extent necessary to carry out the
     provisions of this section 7 in the event of any breach by such Restricted
     Securityholder of such Person's obligations under this section 7 (in which
     event the Required Holders of the Purchased Shares shall vote such
     Restricted Securities so as to carry out the provisions of this section 7).

     8. Legends. So long as any Restricted Securities held by any Restricted
Securityholder are subject to the provisions of this Agreement, all certificates
or instruments representing such securities shall bear a legend in substantially
the following form:

          The securities represented hereby are subject to the terms of the
          Stockholders and Registration Rights Agreement dated September 17,
          1998 by and among Dover Saddlery, Inc., a Delaware corporation (the
          "Holding Company"), and certain other persons. A copy of such
          Stockholders and Registration Rights Agreement is on file at the
          Holding Company's principal offices and, upon written request to the
          Secretary of the Holding Company, a copy thereof will be mailed or
          otherwise provided without charge within five days of receipt of such
          request to appropriately interested persons.

     9. Termination of this Certain Provisions of this Agreement. The provisions
set forth in sections 2, 3 and 7 of this Agreement shall be of no further force
or effect following (a) the consummation of a Qualifying Public Offering, (b)
the registration of such securities under the Exchange Act and (c) the listing
of such securities on a national exchange or market system for trading. The
other provisions of this Agreement shall continue in force until such time as
there are no Purchased Shares and/or Conversion Shares outstanding.

     10. Notices. All communications provided for herein shall be in writing and
sent (a) by telecopy if the sender on the same day sends a confirming copy of
such communication by a recognized overnight delivery service (charges prepaid),
(b) by a recognized overnight

                                      -12-
<PAGE>
delivery service (charges prepaid), or (c) by messenger. The respective
addresses of the parties hereto for the purposes of this Agreement are set forth
on Exhibit A attached hereto. Any party may change its address (or telecopy
number) by notice to each of the other parties in accordance with this section
10. Communications under this Agreement shall be deemed given only when actually
received.

     11. Binding Effect. This Agreement shall inure to the benefit of and be
enforceable by and shall be binding upon each of the parties hereto and their
respective heirs, executors, successors, and assigns.

     12. Amendments and Waivers. This Agreement may not be amended except by a
written instrument signed by the Holding Company, each Restricted Securityholder
and each Institutional Investor. No course of dealing between any parties hereto
and no delay by any party in exercising its rights hereunder shall operate as a
waiver of any rights of any party. No waiver shall be deemed to be made by any
party of its rights hereunder unless the same shall be in writing signed on
behalf of such party, and each waiver, if any, shall be a waiver only with
respect to the specific instance involved and shall in no way impair the rights
or obligations of any other party in any other respect at any other time.

     13. Specific Performance. The parties hereto stipulate that the remedies at
law of any party hereto in the event of any default or threatened default by any
other party hereto in the performance of or compliance with the terms hereof are
not and will not be adequate and that, to the fullest extent permitted by law,
such terms may be specifically enforced by a decree for the specific performance
thereof, whether by an injunction against violation thereof or otherwise.

     14. Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement,
including the validity hereof and the rights and obligations of the parties
hereunder, and all amendments and supplements hereof and all waivers and
consents hereunder, shall be construed in accordance with and governed by the
domestic substantive laws of The Commonwealth of Massachusetts without giving
effect to any choice of law or conflicts of law provision or rule that would
cause the application of the domestic substantive laws of any other
jurisdiction. Each of the parties hereto, to the extent that it may lawfully do
so, hereby consents to service of process, and to be sued, in The Commonwealth
of Massachusetts and consents to the jurisdiction of the courts of The
Commonwealth of Massachusetts and the United States District Court for the
District of Massachusetts, as well as to the jurisdiction of all courts to which
an appeal may be taken from such courts, for the purpose of any suit, action or
other proceeding arising out of any of its obligations hereunder or with respect
to the transactions contemplated hereby, and expressly waives any and all
objections it may have as to venue in any such courts. Each of the parties
hereto further agrees that a summons and complaint commencing an action or
proceeding in any of such courts shall be properly served and shall confer
personal jurisdiction if served personally or by certified mail (return receipt
requested) in accordance with section 10 or as otherwise provided under the laws
of The Commonwealth

                                      -13-
<PAGE>
of Massachusetts. Notwithstanding the foregoing, each of the parties hereto
agrees that nothing contained in this section 14 shall preclude the institution
of any such suit, action or other proceeding in any jurisdiction other than The
Commonwealth of Massachusetts. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ALL
RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION OR OTHER PROCEEDING INSTITUTED BY
OR AGAINST IT IN RESPECT OF ITS OBLIGATIONS HEREUNDER OR THEREUNDER OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

     15. Miscellaneous. The headings in this Agreement are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof or
thereof. This Agreement embodies the entire agreement and understanding among
the parties hereto and supersedes all prior agreements and understandings
relating to the subject matter hereof. If any provision in this Agreement refers
to any action taken or to be taken by any Person, or which such Person is
prohibited from taking, such provision shall be applicable, whether such action
is taken directly or indirectly by such Person. In case any provision in this
Agreement shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby. This Agreement may be executed in any number of counterparts
and by the parties hereto, as the case may be, on separate counterparts but all
such counterparts shall together constitute but one and the same instrument.

           [The remainder of this page is intentionally left blank.]

                                      -14-
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have executed this Agreement under
seal as of the date first above written.

                                        DOVER SADDLERY, INC., a Delaware
                                        corporation

                                        By /s/ Stephen L. Day
                                           -------------------------------------
                                           Its President                 (Title)
                                           Stephen L. Day, President

                                        /s/ Stephen L. Day
                                        ----------------------------------------
                                        Stephen L. Day

                                        CITIZENS VENTURES, INC.

                                        By /s/ Gregory F. Mulligan
                                           -------------------------------------
                                           Managing Director             (Title)
                                           Gregory F. Mulligan,
                                           Managing Director

                                      -15-
<PAGE>
                                                                       Exhibit A

                              Addresses for Notices

(a)  If to the Holding Company or Stephen L. Day, to such Person at:

     c/o Dover Saddlery, Inc.
     41 Pope Road
     Holliston, Massachusetts 01746
     Attention: Stephen L. Day, President
     Telecopy No.: (508)429-8295

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

     Pepe & Hazard LLP
     Goodwin Square
     Hartford, Connecticut 06103-4302
     Attention: James C. Schulwolf, Esq.
     Telecopy No.: (860) 522-2796

(b)  If to Citizens Ventures, Inc., to it at:

     28 State Street, 15th floor
     Boston, Massachusetts 02109
     Attention: Gregory F. Mulligan
     Telecopy No.: (617) 725-5630

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

     Choate, Hall & Stewart
     Exchange Place
     53 State Street
     Boston, Massachusetts 02109
     Attention: W. Brewster Lee, Esq.
     Telecopy No.: (617)248-4000

                                      -16-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]