Document:

Exhibit 10.21

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT (the “Agreement”), dated as of [·], 2017, by and among WideOpenWest, Inc., a Delaware corporation (together with its successors and assigns, the “Company”), the Avista Investor Group (as hereinafter defined), the Crestview Investor Group (as hereinafter defined, and together with the Avista Investor Group, the “Investors”) and the other signatories hereto who execute an agreement to bound to this Agreement in the form of Exhibit A hereto and any other Person who becomes a party hereto.

 

WHEREAS, the Holders (as defined below) own Registrable Securities (as defined below); and

 

WHEREAS, the parties desire to set forth certain registration rights applicable to the Registrable Securities.

 

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

 

ARTICLE I
 DEFINITIONS

 

Section 1.01                             Definitions. As used in this Agreement, the following terms shall have the following meanings:

 

“Affiliate” means, with respect to any Person, any other Person who, directly or indirectly, controls such first Person or is controlled by said Person or is under common control with said Person, where “control” means the power and ability to direct, directly or indirectly, or share equally in or cause the direction of, the management and/or policies of a Person, whether through ownership of voting shares or other equivalent interests of the controlled Person, by contract (including proxy) or otherwise; provided, that no Holder shall be deemed an Affiliate of any other Holder by reason of an investment in, or holding Shares of, the Company.

 

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

 

“Avista Holder” means any holder of Registrable Securities that is a member of the Avista Investor Group.

 

“Avista Investor Group” means, collectively, Avista Capital Partners, L.P., Avista Capital Partners (Offshore), L.P., Avista Capital Partners III, L.P., Avista Capital Partners (Offshore) III, L.P., Avista Capital Partners (Offshore) III-A, L.P., ACP Racecar Co-Invest, LLC and ACP Racecar Co-Invest II, LLC and any of their respective Affiliates who beneficially own Common Stock from time to time.

 

“Board” means the Board of Directors of the Company.

 

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“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in New York City, New York are authorized or required by applicable law to close.

 

“Commission” means the United States Securities and Exchange Commission.

 

“Common Stock” means common stock, par value $0.01 per share, of the Company, and any securities into which such shares of common stock shall have been changed or any securities resulting from any reclassification or recapitalization of such shares of common stock.

 

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

 

“Crestview Holder” means any holder of Registrable Securities that is a member of the Crestview Investor Group.

 

“Crestview Investor Group” means, collectively, Crestview W1 Co Investors, LLC, Crestview W1 TE Holdings, LLC, and Crestview W1 Holdings, L.P. and any of their respective Affiliates who beneficially own Common Stock from time to time.

 

“Damages” has the meaning set forth in Section 3.01(a).

 

“Demand Maximum Offering Size” has the meaning set forth in Section 2.01(d).

 

“Demand Registration” has the meaning set forth in Section 2.01(a).

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

 

“FINRA” means the Financial Industry Regulatory Authority, Inc.

 

“Governmental Authority” means any federal, state, local or foreign governmental authority, department, commission, board, bureau, agency, court, instrumentality or judicial or regulatory body or entity.

 

“Holder” means any Avista Holder, any Crestview Holder or any other holder of Registrable Securities who is a party hereto and their Permitted Transferees.

 

“Initial Public Offering” means any initial underwritten sale of Common Stock of the Company, any of its Subsidiaries or any Person that holds, directly or indirectly, all of the Common Stock or Share Equivalents or assets of the Company, pursuant to an effective Registration Statement under the Securities Act filed with the Commission on Form S-1 (or a successor form) after which sale such Common Stock is (a) listed on a national securities exchange or authorized to be quoted on an inter-dealer quotation system of a registered national securities association and (b) registered under the Exchange Act.

 

“Indemnified Party” shall mean (i) each officer and director of the Company and (ii) each Holder and their respective Affiliates, officers, managers, directors, employees, shareholders, partners, members, advisors or sub-advisors.

 

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“Indemnifying Party” has the meaning set forth in Section 3.01(c).

 

“Inspectors” has the meaning set forth in Section 2.05(g).

 

“Investors” has the meaning set forth in the Preamble.  For purposes of clarity, there are two Investors: the Avista Investor Group, which shall collectively be deemed an “Investor,” and the Crestview Investor Group, which shall collectively be deemed an “Investor.” Any determination, demand, consent or approval to be made, given or withheld by the Avista Investor Group (or its successor) in its capacity as an Investor under this Agreement shall be made, given or withheld by the Person or Persons holding a majority of the shares of Common Stock that are then deemed to be held by the Avista Investor Group (or its successor) and any determination, demand, consent or approval to be made, given or withheld by the Crestview Investor Group (or its successor) under this Agreement shall be made, given or withheld by the Person or Persons holding a majority of the shares of Common Stock that are then deemed to be held by the Crestview Investor Group (or its successor).

 

“IPO Indemnified Parties” has the meaning set forth in Section 3.01(a).

 

“Participating Holders” has the meaning set forth in Section 2.01(a).

 

“Permitted Transferee” means, (i) with respect to any Investor, (x) any Affiliate of such Investor or (y) any passive Person, vehicle, account or fund that is managed, sponsored or advised by, such Investor or any Affiliate thereof, so long as the decision-making control with respect to such interests after such Transfer to such passive Person, vehicle, account or fund remains with such Investor or any Affiliate thereof and (ii) with respect to any Holder who is an individual, (A) in the event of such Holder’s death, such Holder’s heirs, executors, administrators, testamentary trustees, legatees or beneficiaries, (B) a trust, the beneficiaries of which include only such Holder and the spouse and lineal descendants of such Holder and pursuant to which the Holder retains all of the voting interest in the Company, (C) a charitable trust pursuant to which the Holder retains all of the voting interests in the Company, or (D) a closely held company with respect to which the Holder together with the Holder’s immediate family holds 100% of the beneficial interests.

 

“Person” means any individual, corporation, limited liability company, partnership, association, trust or other entity or organization, including a Governmental Authority and, where the context so permits, the legal representatives, successors in interest and permitted assigns of such Person.

 

“Piggyback Maximum Offering Size” has the meaning set forth in Section 2.02(b).

 

“Piggyback Registration” has the meaning set forth in Section 2.02(a).

 

“Public Offering” means a public offering and sale of Common Stock for cash pursuant to an effective Registration Statement under the Securities Act.

 

“Records” has the meaning set forth in Section 2.05(g).

 

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“Registrable Securities” shall mean, at any time, any Common Stock or Share Equivalents (other than non-participating, non-convertible preferred stock) of the Company held by any Investor (including any Crestview Holder and any Avista Holder) or any of their respective Permitted Transferees; provided, that Registrable Securities shall not include any shares (i) the sale of which has been registered pursuant to the Securities Act and which shares have been sold pursuant to such registration, (ii) which have been sold or distributed pursuant to Rule 144 or (iii) which have been registered for resale pursuant to an effective Registration Statement on a Form S-8 (or any successor or similar form).

 

“Registration Expenses” means any and all expenses incident to the performance of or compliance with any registration or marketing of securities, including all (i) registration and filing fees, FINRA fees and all other fees and expenses payable in connection with the listing of securities on any securities exchange or automated interdealer quotation system, (ii) fees and expenses of compliance with any securities or “blue sky” laws (including reasonable fees and disbursements of counsel in connection with “blue sky” qualifications of the securities registered), (iii) expenses in connection with the preparation, printing, mailing and delivery of any Registration Statements, prospectuses and other documents in connection therewith and any amendments or supplements thereto, (iv) security engraving and printing expenses, (v) internal expenses of the Company (including all salaries and expenses of its officers and employees performing legal or accounting duties), (vi) fees and disbursements of all counsel for the Company and customary fees and expenses for independent certified public accountants retained by the Company (including the expenses relating to any comfort letters or costs associated with the delivery by independent certified public accountants of any comfort letters to be provided pursuant to Section 2.05(h) hereof), (vii) fees and expenses of any special experts retained by the Company in connection with such registration, (viii) reasonable fees and expenses of all counsel to the Investors, (ix) fees and expenses in connection with any review of the underwriting arrangements or other terms of the offering, and all fees and expenses of any “qualified independent underwriter” or other independent appraiser participating in any offering, including the fees and expenses of any counsel thereto, (x) fees and disbursements of underwriters customarily paid by issuers or sellers of securities, but excluding any underwriting fees, discounts and commissions attributable to the sale of Registrable Securities, (xi) costs of printing and producing any agreements among underwriters, underwriting agreements, any “blue sky” or legal investment memoranda and any selling agreements and other documents in connection with the offering, sale or delivery of the Registrable Securities, (xii) transfer agents’ and registrars’ fees and expenses and the fees and expenses of any other agent or trustee appointed in connection with such offering, (xiii) expenses relating to any analyst or investor presentations or any “road shows” undertaken in connection with the registration, marketing or selling of the Registrable Securities, (xiv) fees and expenses payable in connection with any ratings of the Registrable Securities, including expenses relating to any presentations to rating agencies, and (xv) all other costs and expenses incurred by the Company or its officers in connection with their compliance with Articles II, III and Sections 4.08 and 4.09.

 

“Registration Statement” shall mean any registration statement of the Company, under the Securities Act which permits the Public Offering of any of the Registrable Securities pursuant to the provisions of this Agreement, including the prospectus, amendments and supplements to such registration statement, including post-effective amendments, all exhibits and

 

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all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

“Requesting Investor” has the meaning set forth in Section 2.01(a).

 

“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder.

 

“Share Equivalents” means (i) shares of Common Stock, stock or other equity interests (including other classes or series thereof having such relative rights, powers and/or obligations as may from time to time be established by the Board, including rights, powers and/or duties different from, senior to or more favorable than existing classes and series of shares, stock and other equity interests, and including any profits interests), (ii) obligations, evidences of indebtedness or other securities or interests convertible or exchangeable into shares, stock or other equity interests, and (iii) warrants, options or other rights to purchase or otherwise acquire shares, stock or other equity interests. Unless the context otherwise indicates, the term “Share Equivalents” refers to Share Equivalents of the Company.

 

“Shelf Registration” has the meaning set forth in Section 2.03(a).

 

“Shelf Request” has the meaning set forth in Section 2.03(a).

 

“Stockholders’ Agreement” means the Stockholders’ Agreement, dated as of the date hereof, among the Company and the Investors, as the same may be amended from time to time in accordance with the terms thereof.

 

“Subsidiary” means, with respect to any specified Person, any other Person in which such specified Person, directly or indirectly through one or more Affiliates or otherwise, beneficially owns at least fifty percent (50%) of the ownership interest (determined by equity or economic interests) in, or the voting control of, such other Person.

 

“Transfer” means, with respect to any Common Stock or Share Equivalents, every absolute or conditional method of transferring a legal or equitable, record or beneficial, direct or indirect ownership (including the granting of an option or other right, or through the transfer of capital stock of any Person that holds, or controls any Person that holds an interest) of a Holder’s interest in the Company, or a part thereof, whether voluntarily, involuntarily, or by operation of law (including a change in beneficiaries or trustees of a trust) and including directly or indirectly (including through one or more transfers) selling, exchanging, assigning, transferring, conveying, giving away, pledging, mortgaging, or otherwise create, incur or assume any encumbrance with respect to, such interest; provided, however, that a Transfer shall not include any direct or indirect transfer (including through one or more transfers), sale, exchange, assignment, conveyance, gift, pledge, mortgage or other disposition of an interest in the Avista Investor Group or the Crestview Investor Group, including the grant of an option or other right, whether voluntarily, involuntarily or by operation of law.

 

“Underwritten Shelf Take-Down” has the meaning set forth in Section 2.03(a).

 

“Withdrawing Holders” has the meaning set forth in Section 2.04(c).

 

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Section 1.02                             General Interpretive Principles. The name assigned to this Agreement and the section captions used herein are for convenience of reference only and shall not be construed to affect the meaning, construction or effect hereof. Unless otherwise specified, the terms “hereof,” “herein” and similar terms refer to this Agreement as a whole, and references herein to Articles or Sections refer to Articles or Sections of this Agreement. For purposes of this Agreement, the words, “include,” “includes” and “including,” when used herein, shall be deemed in each case to be followed by the words “without limitation.” The terms “dollars” and “$” shall mean United States dollars. Except as otherwise set forth herein, Shares underlying unexercised options that have been issued by the Company shall not be deemed “outstanding” for any purposes in this Agreement. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties and no presumption or burden of proof will arise favoring or disfavoring any party because of the authorship of any provision of this Agreement.

 

ARTICLE II

 

REGISTRATION RIGHTS

 

Section 2.01                             Demand Registration.

 

(a)                                 Registration Request. At any time following the Initial Public Offering, each Investor may request (the “Requesting Investor”) in writing that the Company effect the registration under the Securities Act of all or any portion of their Registrable Securities, specifying the intended method of disposition thereof (each such request, a “Demand Registration”) and the Company shall then provide prompt notice to the other Investor and any other Holders and shall thereupon use its reasonable best efforts to effect, as expeditiously as possible, the registration under the Securities Act of all Registrable Securities for which such Investor has requested registration under this Section 2.01(a); provided that the Company shall not be obligated to effect a Demand Registration unless the aggregate gross proceeds expected to be received from the sale of the Registrable Securities requested to be included by such Investor in such Demand Registration are at least $20,000,000.  Subject to the restrictions set forth in Section 2.01(d), all other Registrable Securities that any other Investor (all such Investors, together with the Requesting Stockholders and any other Person participating in the registration, the “Participating Holders”) have requested the Company to register by request received by the Company within 10 days after such Investor receives the Company’s notice of the Demand Registration, all to the extent necessary to permit the disposition (in accordance with the intended methods thereof as aforesaid) of the Registrable Securities so to be registered; provided that if the Demand Registration involves an underwritten Public Offering, no Person may participate in any Registration Statement pursuant to this Section 2.01(a) unless such Person agrees to sell their Registrable Securities to the underwriters selected as provided in Section 2.05(f) on the same terms and conditions as apply to the Requesting Investor and no such Person shall be required to make any representations or warranties, or provide any indemnity, in connection with any such registration other than representations and warranties (or indemnities with respect thereto) as to (i) such Person’s ownership of his, her or its Registrable Securities to be transferred free and clear of all liens, claims, and encumbrances, (ii) such Person’s power and authority to effect such transfer, (iii) such matters pertaining to compliance with securities laws

 

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by such Person as may be reasonably requested and (iv) such information furnished in writing to the Company by such Person or on behalf of such Person expressly for use in the Registration Statement; provided, further, however, that the obligation of such Person to indemnify pursuant to any such underwriting arrangements shall be several, not joint and several, among such Persons selling Registrable Securities, and the liability of each such Person will be in proportion thereto; and provided, further, that such liability will be limited to the net proceeds received by such Person from the sale of his, her or its Registrable Securities pursuant to such registration.

 

(b)                                 Effective Registration. At any time prior to the effective date of the Registration Statement relating to such Demand Registration, the Requesting Investor may revoke their registration request without liability to such Investor, by providing a notice to the Company revoking such request.

 

(c)                                  Registration Expenses. The Company shall be liable for and pay all Registration Expenses in connection with each Demand Registration, regardless of whether such registration is effected; provided, that the Participating Holders holding Registrable Securities shall each pay their pro rata portion (based on the number of shares each Participating Holder is selling) of all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities.

 

(d)                                 Reduction of Public Offering. The Company shall not include in any Demand Registration any securities which are not Registrable Securities without the prior written consent of the Investors.  If a Demand Registration involves a Public Offering and the managing underwriter advises the Company and the Investors that, in its view, the number of Registrable Securities that the Investors, the Holders (pursuant to Section 2.02) and the Company propose to include in such registration exceeds the largest number of Registrable Securities that can be sold without having an adverse effect on such offering, including the price at which such Registrable Securities can be sold (the “Demand Maximum Offering Size”), the Company shall only include in such registration Registrable Securities of the Investors and the Holders up to the Demand Maximum Offering Size (with the number of Registrable Securities of the Investors and the Holders included in such registration reduced pro rata based on their relative number of Registrable Securities beneficially owned by the Investors as of the date thereof).

 

(e)                                  Deferral or Suspension of Registration Statement. The Company may defer the filing (but not the preparation) of a Registration Statement, or suspend the continued use of a Registration Statement, required by this Section 2.01 for a period of up to 30 days after the request to file a Registration Statement if at the time the Company receives the request to register Registrable Securities, the Company or any of its Subsidiaries are engaged in confidential negotiations or other confidential business activities, disclosure of which would be required in such Registration Statement (but would not be required if such Registration Statement were not filed), and the Board determines in good faith, after consultation with external legal counsel, that such disclosure would have a material adverse effect on the Company or its business or on the Company’s ability to effect a proposed material acquisition, disposition, financing, reorganization, recapitalization or similar transaction.

 

(i)                                     A deferral of the filing of a Registration Statement, or the suspension of the continued use of a Registration Statement, pursuant to this Section 2.01(e), shall be

 

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promptly lifted, and the requested Registration Statement shall be filed as expeditiously as possible, in the case of a deferral, if the negotiations or other activities are disclosed or terminated.

 

(ii)                                  In order to defer the filing of a Registration Statement, or suspend the continued use of a Registration Statement, pursuant to this Section 2.01(e), the Company shall promptly (but in any event within five days), upon determining to seek such deferral or suspension, deliver to the Investors a certificate signed by the Board stating that the Company is deferring such filing, or suspending the continued use of a Registration Statement, pursuant to this Section 2.01(e) and a general statement of the reason for such deferral or suspension, as the case may be, and an approximation of the anticipated delay.

 

(iii)                               The Company may defer the filing, or suspend the continued use of, a particular Registration Statement pursuant to this Section 2.01(e) no more than twice in any 12 month period; provided, that there must be an interim period of at least 90 days between the end of one deferral or suspension period and the beginning of a subsequent deferral or suspension period.

 

(iv)                              In the event the Company exercises its rights under this Section 2.01(e), the Company will, within 10 days following receipt by the Investors of the notice of deferral or suspension, as the case may be, update the deferred or suspended Registration Statement as may be necessary to permit the Investors to resume use thereof in connection with the offer and sale of its Registrable Securities in accordance with applicable law.

 

Section 2.02                             Piggyback Registration.

 

(a)                                 Participation. If the Company proposes to register any Common Stock or Share Equivalents under the Securities Act (whether for itself or otherwise in connection with a sale of securities by another Person (including a Shelf Registration or a Demand Registration by an Investor), but other than (i) a registration on a Form S-4 (or any successor or similar form) in connection with a direct or indirect acquisition by the Company of another Person, (ii) a registration on a Form S-8 (or any successor or similar form), or (iii) an Initial Public Offering unless Registrable Securities of an Investor are registered, the Company shall at each such time give prompt written notice at least three days prior to the anticipated filing date of the Registration Statement relating to such registration to each Investor and any other Holder holding Registrable Securities hereunder, which notice shall set forth such Investor’s rights under this Section 2.02 and shall offer such Investor the opportunity to include in such Registration Statement all or any portion of the Registrable Securities held by such Investor (a “Piggyback Registration”), subject to the restrictions set forth herein.

 

(i)                                     Upon any such request of any such Investor made within three days after the receipt of notice from the Company (which request shall specify the number of Registrable Securities intended to be registered by such Investor), the Company shall use its reasonable best efforts to effect the registration under the Securities Act of all such Registrable Securities that the Company has been so requested to register by all such Investors; provided, that if such registration involves a Public Offering, all such Investors

 

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requesting to be included in the Company’s registration must sell their Registrable Securities to the underwriters selected as provided in Section 2.05(f) on the same terms and conditions as apply to the Company or any other selling equity holders; provided, however, that no such Person shall be required to make any representations or warranties, or provide any indemnity, in connection with any such registration other than representations and warranties (or indemnities with respect thereto) as to (i) such Person’s ownership of his, her or its Registrable Securities to be transferred free and clear of all liens, claims, and encumbrances, (ii) such Person’s power and authority to effect such transfer, (iii) such matters pertaining to compliance with securities laws by such Person as may be reasonably requested and (iv) such information furnished in writing to the Company by such Person or on behalf of such Person expressly for use in the Registration Statement; provided, further, however, that the obligation of such Person to indemnify pursuant to any such underwriting arrangements shall be several, not joint and several, among such Persons selling Registrable Securities, and the liability of each such Person will be in proportion thereto; and provided, further, that such liability will be limited to the net proceeds received by such Person from the sale of his, her or its Registrable Securities pursuant to such registration.

 

(ii)                                  If, at any time after giving notice of its intention to register any Registrable Securities pursuant to this Section 2.02(a) and prior to the effective date of the Registration Statement filed in connection with such registration, the initiating Investors shall decide for any reason not to register such securities, the Company shall give notice to all such Investors and, thereupon, shall be relieved of its obligation to register any Registrable Securities in connection with such registration. No registration effected under this Section 2.02 shall relieve the Company of its obligations to effect a Demand Registration to the extent required by Section 2.01. The Company shall be liable for and pay all Registration Expenses in connection with each Piggyback Registration, regardless of whether such registration is effected.

 

(b)                                 Reduction of Piggyback Offering. If a Piggyback Registration involves a Public Offering and the managing underwriter advises the Company that, in its view, the number of shares of Common Stock or Share Equivalents that the Company and all selling Holders propose to include in such registration exceeds the largest number of shares of Common Stock or Share Equivalents that can be sold without having an adverse effect on such offering, including the price at which such shares of Common Stock or Share Equivalents can be sold (the “Piggyback Maximum Offering Size”), the Company shall include in such registration, in the following priority, up to the Piggyback Maximum Offering Size:

 

(i)                                     first, such number of shares of Common Stock or Share Equivalents proposed to be registered for the account of the Company, if any, as would not cause the offering to exceed the Piggyback Maximum Offering Size;

 

(ii)                                  second, all Registrable Securities requested to be included in such registration by the Investors or any other Holder pursuant to Section 2.01 and this Section 2.02 (the Registrable Securities in this clause (ii) allocated, if necessary for the offering not to exceed the Piggyback Maximum Offering Size, pro rata among such Holders

 

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based on their relative number of Registrable Securities beneficially owned by the Investor as of the date thereof.

 

Section 2.03                             Shelf Registration.

 

(a)                                 Shelf Registration Request.

 

(i)                                     As soon as reasonably practicable after the Initial Public Offering, the Company will use its reasonable best efforts, consistent with the terms of this Agreement, to qualify for and remain eligible to use Form S-3 registration or a similar short-form registration. At any time after the Company becomes eligible to use Form S-3 registration or a similar short-form registration, upon receipt of a written request (the “Shelf Request”) from either of the Investors that the Company file a “shelf” Registration Statement pursuant to Rule 415 under the Securities Act (the “Shelf Registration”) on Form S-3 (or any successor form to Form S-3, or any similar short form Registration Statement), covering the resale of Registrable Securities, the Company shall (i) consistent with the terms of this Agreement, cause the Shelf Registration to be filed with the Commission as soon as practicable (but in no event later than 20 days following its receipt of the Shelf Request) and (ii) use its reasonable best efforts, consistent with the terms of this Agreement, to cause such Shelf Registration to be declared effective by the Commission as soon as possible.

 

(ii)                                  In connection with any proposed firmly underwritten resale of Registrable Securities which is not pursuant to a Demand Registration under Section 2.01 and with respect to which such Shelf Registration is expressly being utilized to effect such resale (an “Underwritten Shelf Take-Down”) pursuant to a Shelf Registration, each Investor agrees, in an effort to conduct any such Underwritten Shelf Take-Down in the most efficient and organized manner, to coordinate with the other Investor prior to initiating any sales efforts and cooperate with the other Investor as to the terms of such Underwritten Shelf Take-Down, including the aggregate amount of securities to be sold and the number of Registrable Securities to be sold by each Investor.  In furtherance of the foregoing, the Company shall give prompt notice to the non-initiating Investor (if such Investor’s Registrable Securities are included in the Shelf Registration) of the receipt of a request from the initiating Investor (whose Registrable Securities are included in the Shelf Registration) of a proposed Underwritten Shelf Take-Down under and pursuant to the Shelf Registration and, notwithstanding anything to the contrary contained herein, will provide such non-initiating Investor a period of one Business Day to participate in such Underwritten Shelf Take-Down, subject to the terms negotiated by and applicable to the initiating Investor and subject to “cutback” limitations set forth in Section 2.01(d) as if the subject Underwritten Shelf Take-Down was being effected pursuant to a Demand Registration.  All such Investors electing to be included in an Underwritten Shelf Take-Down must sell their Registrable Securities to the underwriters selected as provided in Section 2.05(f) on the same terms and conditions as apply to any other selling stockholders; provided, however, that no such Person shall be required to make any representations or warranties, or provide any indemnity, in connection with any such registration other than representations and warranties (or indemnities with respect thereto) as to (i) such Person’s ownership of his, her or its Registrable Securities to be

 

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transferred free and clear of all liens, claims, and encumbrances, (ii) such Person’s power and authority to effect such transfer, and (iii) such matters pertaining to compliance with securities laws by such Person as may be reasonably requested; provided, further, however, that the obligation of such Person to indemnify pursuant to any such underwriting arrangements shall be several, not joint and several, among such Persons selling Registrable Securities, and the liability of each such Person will be in proportion thereto, and provided, further, that such liability will be limited to, the net proceeds received by such Person from the sale of his, her or its Registrable Securities pursuant to such registration.

 

(iii)                               At any time that an Investor holds 5% or less of the outstanding Common Stock and does not have an Investor Director Designee (as defined in the Stockholders’ Agreement) on the Board, such Investor may, at its option, unilaterally engage in an Underwritten Shelf Take-Down without any requirement to coordinate with the other Investor pursuant to Section 2.03(a)(ii) by providing notice of such intention to the Company and the Company shall not provide the other Investor any advance notice of the Underwritten Shelf-Take-Down or provide the other Investor or any other Person (including the Company) an opportunity to participate in such Underwritten Shelf Take-Down.  For the avoidance of doubt, the other provisions herein applicable to any Underwritten Shelf Take-Down, including Section 2.03(d) and Section 2.05 shall apply to any offering conducted pursuant to this paragraph.

 

(b)                                 Effectiveness. The Company shall use reasonable best efforts to maintain in effect, supplement and amend, if necessary the Shelf Registration, as required by the instructions applicable to such registration form or by the Securities Act or as reasonably requested by the Investors and will furnish to the holders of Registrable Securities copies of any supplement or amendment to such Shelf Registration.

 

(i)                                     If at any time the Shelf Registration ceases to be effective, then the Company shall use its reasonable best efforts to file and cause to become effective a new “shelf” Registration Statement as promptly as practicable. If, after the Shelf Registration has become effective, any stop order, injunction or other order or requirement of the Commission or other Governmental Authority or other Person with regulatory authority over the Company is threatened, then the Company shall use its reasonable best efforts to prevent the issuance of any order suspending the effectiveness of the Shelf Registration or any order preventing or suspending the use of any preliminary prospectus and, if any such order is issued, to obtain the withdrawal of any such order as soon as reasonably practicable.

 

(c)                                  Limitation. The provisions of this Section 2.03 shall be applicable to each take-down from a Shelf Registration initiated under this Section 2.03 and any subsequent resale of Registrable Securities pursuant thereto; provided, that the reasonably anticipated gross proceeds from any such take-down from a shelf registration initiated under this Section 2.03 shall equal at least $10,000,000.

 

(d)                                 Shelf Registration Expenses. The Company shall be liable for and pay all Registration Expenses in connection with each Shelf Registration, regardless of whether such

 

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Shelf Registration is effected, and any underwritten resale of Registrable Securities which is not pursuant to a Demand Registration under Section 2.01 and with respect to an Underwritten Shelf Take-Down; provided, that the Participating Holders holding Registrable Securities shall each pay their pro rata portion (based on the number of shares each Participating Holder is selling) of all underwriting discounts, selling commissions and stock transfer taxes applicable to such resale of Registrable Securities.

 

Section 2.04                             Lock-Up Agreements.

 

(a)                                 Lock-up. In connection with each underwritten Public Offering including any Demand Registration, any Piggyback Registration or Underwritten Shelf Take-Down, and if requested by the managing underwriter, the Holders agree not to effect any public sale or private offer or distribution (other than a distribution-in-kind pro rata to all stockholders, limited partners or members, as the case may be, or to immediate family members, of such Holder) of any Registrable Securities during the 10 days prior to the consummation of such Public Offering and during such time period after the consummation of such Public Offering, not to exceed 90 days as may be requested by the managing underwriter.  Notwithstanding the foregoing, this Section 2.04 shall not apply to any sale by a Holder or a director or officer of a Holder of Common Stock acquired in open market transactions or block purchases by such Holder or its Affiliates. Any discretionary waiver or reduction of the requirements under the foregoing provisions made by the Company or the applicable lead managing underwriters shall apply to each Holder on a pro rata basis except as otherwise agreed in any lock-up agreement delivered by a Holder to the underwriter(s) in connection with any underwritten Public Offering.  The provisions of this Section 2.04(a) shall not apply to any Investor that holds 5% or less of the outstanding Common Stock and does not have an Investor Director Designee (as defined in the Stockholders’ Agreement) on the Board unless such Investor actually participates in the underwritten Public Offering.  Moreover, the provisions of this Section 2.04(a) shall not apply to any unilateral Underwritten Shelf Take-Down effectuated pursuant to Section 2.03(a)(iii).

 

(b)                                 Notwithstanding anything herein to the contrary, if the Company shall, at any time, register under the Securities Act an offering and sale of Registrable Securities held by the Holders for sale to the public pursuant to an underwritten Public Offering including any Demand Registration, any Piggyback Registration or Underwritten Shelf Take-Down, the Company shall not, without the prior written consent of the lead underwriters for such offering, effect any public sale or distribution of securities similar to those being registered, or any securities convertible into or exercisable or exchangeable for such securities, for such period, not to exceed 90 days, as shall be determined by the lead underwriters and that is for the same period and on substantially similar terms as agreed to by the Investors participating in such offering.

 

(c)                                  At any time following the Initial Public Offering, any Investor that holds less than five percent of the outstanding Common Stock may elect (the “Withdrawing Holders”), by written notice to the Company, to withdraw from the provisions of Articles II, III and Sections 4.07, 4.08 and 4.09 and as a result of such withdrawal, such Withdrawing Holders shall no longer be entitled to the rights, nor be subject to the obligations, of Articles II, III and Sections 4.07, 4.08 and 4.09 and the Common Stock and Share Equivalents held by the Withdrawing Holders shall conclusively be deemed thereafter not to be “Registrable Securities” under this Agreement. No withdrawal pursuant to this Section 2.04(c) shall release any

 

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Withdrawing Holder from its indemnification and contribution rights and obligations, if any, pursuant to Article III.

 

Section 2.05                             Registration Procedures. Whenever any Investors request that any Registrable Securities be registered pursuant to, and in accordance with, Section 2.01, Section 2.02, or Section 2.03 hereof, subject to the provisions of such Sections, the Company shall use its reasonable best efforts to effect the registration and the sale of such Registrable Securities in accordance with the intended method of disposition thereof as quickly as practicable, and, in connection with any such request:

 

(a)                                 The Company shall, as expeditiously as possible, subject to Section 2.01 and 2.03 hereof, upon receipt by the Company of the written request, prepare and file with the Commission a Registration Statement on any form for which the Company then qualifies and the managing underwriter, if any, and the Investors shall deem appropriate and which form shall be available for the sale of the Registrable Securities to be registered thereunder in accordance with the intended method of distribution thereof, and use its reasonable best efforts to cause such filed Registration Statement to become and remain effective for a period of not less than 180 days or in the case of a Shelf Registration, not less than two years (or such shorter period in which all of the Registrable Securities of the Investors included in such Registration Statement shall have actually been sold thereunder); provided, however, that such 180 day period or two year period, as applicable, shall be extended for a period of time equal to the period any Holder refrains from selling any securities included in such registration at the request of an underwriter and, in the case of any Shelf Registration, subject to compliance with applicable Commission rules, such two year period shall be extended, if necessary, to keep the Registration Statement effective until all such Registrable Securities are sold.

 

(b)                                 Prior to filing a Registration Statement or prospectus or any amendment or supplement thereto, the Company shall furnish to each Holder covered by such Registration Statement and each underwriter, if any, of the Registrable Securities covered by such Registration Statement, copies of such Registration Statement as proposed to be filed, and thereafter the Company shall furnish to such Investor and underwriter, if any, such number of copies of such Registration Statement, each amendment and supplement thereto (in each case including all exhibits thereto and documents incorporated by reference therein), the prospectus included in such Registration Statement (including each preliminary prospectus and any summary prospectus) and any other prospectus filed under Rule 424 or Rule 430A under the Securities Act and such other documents as such Investor or underwriter may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Investor.

 

(c)                                  After the filing of the Registration Statement, the Company shall (i) promptly notify each Investor holding Registrable Securities covered by such Registration Statement of the time when such Registration Statement has been declared effective or a supplement or amendment to any prospectus forming a part of such Registration Statement has been filed, (ii) cause the related prospectus to be supplemented by any required prospectus supplement, and, as so supplemented, to be filed pursuant to Rule 424 under the Securities Act and shall incorporate such information as the managing underwriter or underwriters and the Investors agree should be included therein relating to the plan of distribution, (iii) comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities

 

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covered by such Registration Statement during the applicable period in accordance with the intended methods of disposition thereof by the Investors set forth in such Registration Statement or supplement to such prospectus, and (iv) promptly notify each Investor holding Registrable Securities covered by such Registration Statement of any stop order issued or threatened by the Commission or any state securities commission and take all reasonable actions required to prevent the entry of such stop order or to remove it if entered.

 

(d)                                 The Company shall use its reasonable best efforts to (i) register or qualify the Registrable Securities covered by such Registration Statement under such other securities or “blue sky” laws of such jurisdictions in the United States as any Investor holding such Registrable Securities reasonably (in light of such Investor’s intended plan of distribution) requests and (ii) cause such Registrable Securities to be registered with or approved by such other Governmental Authorities as may be necessary by virtue of the business and operations of the Company and do any and all other acts and things that may be reasonably necessary or advisable to enable Investors to consummate the disposition of the Registrable Securities owned by them; provided, that the Company shall not be required to (A) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 2.05(d), (B) subject itself to taxation in any such jurisdiction, or (C) consent to general service of process in any such jurisdiction.

 

(e)                                  The Company shall immediately notify each Holder holding Registrable Securities covered by such Registration Statement, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading and promptly prepare and make available to each such Holder and file with the Commission any such supplement or amendment.

 

(f)                                   The Board shall have the right to select the underwriter or underwriters in connection with any Public Offering, provided that the holders of a majority of the Registrable Securities included in any Demand Registration or Underwritten Shelf Take-Down shall have the right to select the underwriter or underwriters in connection with such Public Offering. In connection with any Public Offering, the Company shall enter into customary agreements (including an underwriting agreement in customary form, provided that the scope of the indemnity contained in such underwriting agreement on the part of the selling Holders is not more extensive than the indemnity described in Section 3.01(b) hereof), provided that such agreements are consistent with this Agreement, and take all such other actions as are reasonably required in order to expedite or facilitate the disposition of such Registrable Securities in any such Public Offering, including the engagement of a “qualified independent underwriter” in connection with the qualification of the underwriting arrangements with FINRA. The Company shall make such representations and warranties to the holders of Registrable Securities being registered, and the underwriters or agents, if any, in form, substance and scope as are customarily made by issuers in secondary underwritten public offerings and take any other actions as the Investors or the managing underwriter or underwriters, if any, reasonably request in order to expedite or facilitate the registration and disposition of such Registrable Securities. Each Holder

 

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participating in such underwriting shall also enter into such agreement, provided that the terms of any such agreement are consistent with this Agreement.

 

(g)                                  Upon execution of confidentiality agreements in form and substance reasonably satisfactory to the Company, the Company shall make available for inspection by the Investors and any underwriter participating in any disposition pursuant to a Registration Statement being filed by the Company pursuant to this Section 2.05 and any attorney, accountant or other professional retained by the Investors or any such underwriter (collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties of the Company (collectively, the “Records”) as shall be reasonably necessary or desirable to enable them to exercise their due diligence responsibility, and cause the Company’s officers, managers, directors and employees to supply all information reasonably requested by any Inspectors in connection with such Registration Statement. Records that the Company determines, in good faith, to be confidential and that it notifies the Inspectors are confidential shall not be disclosed by the Inspectors unless (i) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in such Registration Statement or (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction or is otherwise required by law. Each Holder agrees that at the time that such Holder is a Participating Holder, information obtained by it as a result of such inspections shall be deemed confidential and shall not be used by it or its Affiliates as the basis for any market transactions in Common Stock unless and until such information is made generally available to the public, and further agrees that, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, it shall give notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of the Records deemed confidential.

 

(h)                                 The Company shall cause to be furnished to each such underwriter, if any, a signed counterpart, addressed to such underwriter, of (i) an opinion or opinions of counsel to the Company and (ii) a comfort letter or comfort letters from the Company’s independent public accountants, each in customary form and covering such matters of the kind customarily covered by opinions or comfort letters, as the case may be, as such managing underwriter therefor reasonably requests.

 

(i)                                     The Company shall otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as reasonably practicable, an earnings statement or such other document that shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder. The Company shall cooperate with each seller of Registrable Securities and each underwriter, if any, participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings to be made with FINRA.

 

(j)                                    The Company may require each Participating Holder, by written notice given to each such Participating Holder to promptly furnish in writing to the Company such information regarding the distribution of the Registrable Securities as the Company may from time to time reasonably request and such other information as may be legally required in connection with such registration. Each holder of Registrable Securities agrees to furnish such information to the Company and cooperate with the Company as reasonably necessary to enable the Company to comply with the provisions of this Agreement.

 

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(k)                                 Each Holder agrees that at the time that such Holder is a Participating Holder, upon receipt of any written notice from the Company of the occurrence of any event requiring the preparation of a supplement or amendment of a prospectus relating to the Registrable Securities covered by a Registration Statement that is required to be delivered under the Securities Act so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or to make the statements therein not misleading, such Holder shall forthwith discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such Holder’s receipt of the copies of a supplemented or amended prospectus, and, if so directed by the Company, such Holder shall deliver to the Company all copies, other than any permanent file copies then in such Holder’s possession, of the most recent prospectus covering such Registrable Securities at the time of receipt of such notice. If the Company shall give such notice, the Company shall extend the period during which such Registration Statement shall be maintained effective (including the period referred to in Section 2.05(a)) by the number of days during the period from and including the date of the giving of notice pursuant to Section 2.05(e) to the date when the Company shall make available to such Holder a prospectus supplemented or amended to conform with the requirements of Section 2.05(e).

 

(l)                                     The Company shall use its reasonable best efforts to list all Registrable Securities covered by such Registration Statement on the New York Stock Exchange or any other securities exchange (including NASDAQ) on which any of the Registrable Securities are then listed or traded and if none of the Registrable Securities are so listed, on any securities exchange (including NASDAQ) on which similar securities issued by the Company are then listed, and if no such similar securities are listed, on any national securities exchange.

 

(m)                             The Company shall have appropriate officers of the Company (i) prepare and make presentations at any “road shows” and before analysts and rating agencies, as the case may be, (ii) take other reasonable actions to obtain ratings for any Registrable Securities, and (iii) otherwise use their reasonable best efforts to cooperate as requested by the underwriters in the offering, marketing or selling of the Registrable Securities.

 

(n)                                 If any Registration Statement refers to any Holder by name or otherwise as the holder of any Common Stock, and if, based on the reasonable advice of such Holder’s counsel, such Holder is or would be deemed to be an underwriter or a controlling person of the Company, then such Holder shall have the right to require (i) the insertion of language in the Registration Statement, in form and substance satisfactory to such Holder and presented to the Company in writing, to the effect that the holding by such Holder of such Common Stock is not to be construed as a recommendation by such Holder of the investment quality of the Company’s equity securities covered thereby and that such holding does not imply that such Holder shall assist in meeting any future financial requirements of the Company, or (ii) in the event that such reference to such Holder by name or otherwise is not required by the Securities Act or any similar federal statute then in force, the deletion of the reference to such Holder.

 

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ARTICLE III

 

INDEMNIFICATION AND CONTRIBUTION

 

Section 3.01                             Indemnification.

 

(a)                                 Indemnification by the Company. The Company shall indemnify and hold harmless each Holder, its officers, directors, employees, managers, members, stockholders, partners, agents and Affiliates, and each Person, if any, who controls any such Persons within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (the “IPO Indemnified Parties”) from and against any and all losses, claims, actions, damages, liabilities and expenses (including reasonable expenses of investigation and reasonable attorneys’ fees and expenses), joint or several, (“Damages”) caused by, arising out of or relating to any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or prospectus relating to the Registrable Securities or any preliminary prospectus or free writing prospectus (as defined in Rule 405 promulgated under the Securities Act) (each, as amended or supplemented if the Company shall have furnished any amendments or supplements thereto), or caused by or relating to 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 caused by or related to any violation or alleged violation of the Securities Act or Exchange Act, except insofar as such Damages are caused by or related to any such untrue statement or omission or alleged untrue statement or omission so made in reliance upon and in conformity with information furnished in writing to the Company by such Holder or on such Holder’s behalf expressly for use therein. The indemnification provided for under this Section 3.01 shall remain in full force and effect regardless of any investigation made by or on behalf of an IPO Indemnified Party or a subsequent Transfer by an IPO Indemnified Party of its equity securities in the Company. No Holder shall be liable under this Section 3.01 for any Damages in excess of the net proceeds realized by such Holder in the sale of Registrable Securities of such Holder to which such Damages relate.

 

(b)                                 Indemnification by the Participating Holders. Each Holder, at the time that such Holder is a Participating Holder, agrees, severally but not jointly, to indemnify and hold harmless from and against all Damages the Company, its officers, managers, directors and agents and each Person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act with respect to information furnished in writing to the Company by such Holder or on such Holder’s behalf expressly for use in any Registration Statement or prospectus relating to the Registrable Securities, or any amendment or supplement thereto, or any preliminary prospectus. As a condition to including Registrable Securities in any Registration Statement filed in accordance with Articles II, III and Sections 4.08, 4.09 and 4.10, the Company may require that it shall have received an undertaking reasonably satisfactory to it from any underwriter to indemnify and hold it harmless to the extent customarily provided by underwriters with respect to similar securities. No Holder shall be liable under this Section 3.01(b) for any Damages in excess of the net proceeds realized by such Holder in the sale of Registrable Securities of such Holder to which such Damages relate.

 

(c)                                  Conduct of Indemnification Proceedings. If any proceeding (including any governmental investigation) shall be instituted involving any Indemnified Party in respect of

 

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which indemnity may be sought pursuant to Articles II, III and Sections 4.08, 4.09 and 4.10, such Indemnified Party shall promptly notify the Person against whom such indemnity may be sought (the “Indemnifying Party”) in writing and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Party, and shall assume the payment of all fees and expenses, provided that the failure of any Indemnified Party so to notify the Indemnifying Party shall not relieve the Indemnifying Party of its obligations hereunder except to the extent that the Indemnifying Party is materially prejudiced by such failure to notify. In any such proceeding, any Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of such counsel or (ii) in the reasonable judgment of such Indemnified Party, representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that, in connection with any proceeding or related proceedings in the same jurisdiction, the Indemnifying Party shall not be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnified Parties, and that all such fees and expenses shall be reimbursed as they are incurred. In the case of any such separate firm for the Indemnified Parties, such firm shall be designated in writing by the Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, but if settled with such consent, or if there be a final judgment for the plaintiff, the Indemnifying Party shall indemnify and hold harmless such Indemnified Parties from and against any Damages (to the extent stated above) by reason of such settlement or judgment. Without the prior written consent of the Indemnified Party, no Indemnifying Party shall effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement (a) includes an unconditional release of such Indemnified Party from all liability arising out of such proceeding, (b) does not contain a statement about or an admission of fault, culpability or failure to act by or on behalf of such Indemnified Party and (c) does not commit such Indemnified Party to take, or hold back from taking, any action.

 

Section 3.02                             Contribution.

 

(a)                                 If the indemnification provided for in Section 3.01 is unavailable to the Indemnified Parties or insufficient in respect of any Damages (other than by reason of the exceptions provided herein), then each such Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Damages, as between the Company on the one hand and each such Holder on the other, in such proportion as is appropriate to reflect the relative fault of the Company and of each such Holder in connection with such statements or omissions, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of each such Holder on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by such party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

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(b)                                 The Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Section 3.02(b) were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an Indemnified Party as a result of the Damages referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 3.02(b), no Holder shall be required to contribute any amount in excess of the amount by which the net proceeds realized by such Holder in the sale of Registrable Securities of such Holder to which such Damages relate exceeds the amount of any Damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Subject to the foregoing and as among the Holders, each Holder’s obligation to contribute pursuant to this Section 3.02(b) is several in the proportion that the proceeds of the offering received by such Holder bears to the total proceeds of the offering received by all such Participating Holders and not joint.

 

ARTICLE IV

 

MISCELLANEOUS

 

Section 4.01                             Term. This Agreement shall terminate upon the time as there are no Registrable Securities, except for the all the provisions of Articles III and IV, which shall survive any, such termination.

 

Section 4.02                             Existing Registration Statements. Notwithstanding anything herein to the contrary and subject to applicable law and regulation, the Company may satisfy any obligation hereunder to file a Registration Statement or to have a Registration Statement become effective by a specified date by designating, by notice to the Holders, a Registration Statement that previously has been filed with the Commission or become effective, as the case may be, as the relevant Registration Statement for purposes of satisfying such obligation, and all references to any such obligation shall be construed accordingly; provided, that such previously filed Registration Statement may be amended to add the number of Registrable Securities, and, to the extent necessary, to identify as selling stockholders those Holders demanding the filing of a Registration Statement pursuant to the terms of this Agreement. To the extent this Agreement refers to the filing or effectiveness of other Registration Statements by or at a specified time and the Company has, in lieu of then filing such Registration Statements or having such Registration Statements become effective, designated a previously filed or effective Registration Statement as the relevant Registration Statement for such purposes in accordance with the preceding sentence, such references shall be construed to refer to such designated Registration Statement.

 

Section 4.03                             Specific Performance, Cumulative Remedies. The parties hereto acknowledge that money damages may not be an adequate remedy for violations of this Agreement and that any party, in addition to any other rights and remedies which the parties may have hereunder or at law or in equity, may, in his or its sole discretion, apply to a court of

 

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competent jurisdiction for specific performance or injunction or such other relief as such court may deem just and proper in order to enforce this Agreement or prevent any violation hereof and, to the extent permitted by applicable law, each party waives any objection to the imposition of such relief. All rights, powers and remedies provided under this Agreement or otherwise available in respect hereof at law or in equity shall be cumulative and not alternative, and the exercise or beginning of the exercise of any thereof by any party shall not preclude the simultaneous or later exercise of any other such rights, powers or remedies by such party.

 

Section 4.04                             Attorneys’ Fees. In any action or proceeding brought to enforce any provision of this Agreement or where any provision hereof is validly asserted as a defense, the successful party shall, to the extent permitted by applicable law, be entitled to recover reasonable attorneys’ fees in addition to any other available remedy.

 

Section 4.05                             Notices. In the event a notice or other document is required to be sent hereunder to the Company or any Holder or legal representative of a Holder, such notice or other document shall be made in writing by hand-delivery, registered or certified first class mail, fax, email or courier guaranteeing overnight delivery to such party at the following addresses (or at such other address as shall be given in writing by any party to the others):

 

if to the Company, to:

 

WideOpenWest, Inc.

7887 East Belleview Avenue, Suite 1000

Englewood, Colorado 80111

Attn: Craig Martin, General Counsel

Facsimile: (269) 567-4193

 

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

 

Kirkland & Ellis LLP

601 Lexington Avenue

New York, New York 10022

Attention: Joshua N. Korff, P.C. and Brian Hecht

Facsimile: (212) 446-4900

 

if to the Avista Investor Group, to:

 

Avista Capital Partners

65 East 55th Street, 18th Floor

New York, New York 10022

Attention: David Burgstahler, Joshua Tamaroff and Ben Silbert

Facsimile: (212) 593-6901

 

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

 

Kirkland & Ellis LLP

601 Lexington Avenue

New York, New York 10022

Attention: Joshua N. Korff, P.C. and Brian Hecht

Facsimile: (212) 446-4900

 

if to the Crestview Investor Group, to:

 

c/o Crestview Partners III, L.P.

667 Madison Avenue, 10th Floor

New York, New York 10065

Attention: Brian Cassidy, Daniel Kilpatrick and Jeff Marcus

Facsimile: (212) 906-0780

 

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

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, NY 10019-6064

Attention: Kenneth M. Schneider and Neil Goldman

Facsimile: (212) 757-3990

If to any other Holder, to the address or email address set forth on the books of the Company or any other address or email address as a party may hereafter specify for such purpose to the Company. Any notice sent to one of the Investors shall also be sent to the other Investor.

 

The Company or any Holder or their respective legal representatives may effect a change of address for purposes of this Agreement by giving notice of such change to the Company, and the Company shall, upon the request of any such Person, notify the other parties hereto of such change in the manner provided herein. Until such notice of change of address is properly given, the addresses set forth herein shall be effective for all purposes.

 

All such notices shall be deemed to have been duly given: (a) when delivered personally by hand, (b) when sent by email or facsimile, (c) when received or rejected by the addressee if sent by registered or certified mail, postage prepaid, return receipt requested, or (d) when received or rejected if sent by overnight courier.

 

Section 4.06                             Amendment; Wavier. Any provision of this Agreement may be amended or waived if, and only if such amendment or waiver is in writing and signed, in the case of an amendment, by the Company and the Investors or, in the case of a waiver, by any of the following parties against whom such waiver is to be effective with respect to the Company or

 

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Holders, as applicable: (i) the Company and (ii) the Investors and (b) this Section 4.06 may not be amended without the prior written consent of all of the Holders.

 

Section 4.07                             Restriction on Company/Company Grants of Subsequent Registration Rights. So long as the Investors hold any Registrable Securities in respect of which registration rights provided for in Section 2.01 of this Agreement remain in effect, the Company will not, directly or indirectly, without the prior written consent of each of the Investors, grant to any Person or agree to otherwise become obligated in respect of (i) the rights of registration in the nature or substantially in the nature of those set forth in Section 2.01 of this Agreement that would have priority over or parity with the Registrable Securities with respect to the inclusion of such securities in any registration or (ii) demand registration rights exercisable prior to such time as the Investors can first exercise its rights under Section 2.01.

 

Section 4.08                             Cooperation by the Company. With a view to making available to the Holders the benefits of certain rules and regulations of the Commission that may at any time permit the sale of securities to the public without registration, the Board agrees to use, and to cause the Company to use, its reasonable best efforts to:

 

(a)                                 make and keep public information available, as those terms are defined in Rule 144, at all times after the effective date that the Company becomes subject to the reporting requirements of the Securities Act or the Exchange Act;

 

(b)                                 file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements);

 

(c)                                  furnish to any Holder, so long as such Holder owns any Registrable Securities, (i) upon request by such Holder, a written statement by the Company that it has complied with the reporting requirements of Rule 144 (at any time after 90 days after the effective date of the first Registration Statement filed by the Company for a Public Offering), and of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements) or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) upon request by such Holder, a copy of the most recent annual or quarterly report of the Company and (iii) such other reports and documents of the Company and other information in the possession of, or reasonably obtainable by, the Company as such Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing a Holder to sell any such securities without registration; and

 

(d)                                 upon the request of any Holder, instruct the transfer agent in writing that it shall rely on the written legal opinion of such Holder’s counsel, and shall act in accordance with the written instructions of such Holder’s counsel, with respect to any transfer of Common Stock.

 

Section 4.09                             Successors, Assigns and Transferees.

 

(a)                                 Following an Initial Public Offering, the registration rights granted pursuant to this Agreement shall not be assignable or Transferred except to a Permitted Transferee in accordance with this Section 4.09.

 

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(b)                                 If any Permitted Transferee shall acquire Common Stock or Share Equivalents from any Holder in compliance with the terms of this Agreement, such transferring Holder shall promptly notify the Company and, except to the extent limited by such Holder transferring such Common Stock or Share Equivalents, such Common Stock or Share Equivalents acquired from such Holder shall be subject to all of the terms of this Agreement, and any transferee thereof shall execute and deliver to the Company a joinder agreement in the form of Exhibit A, whereupon such transferee shall be entitled to receive the benefits of, and be conclusively deemed to have agreed to be bound by and to perform, all of the terms and provisions of this Agreement that are applicable to the Holder transferring such Common Stock Common Stock or Share Equivalents.

 

Section 4.10                             Binding Effect. Except as otherwise provided in this Agreement, the terms and provisions of this Agreement shall be binding on and inure to the benefit of each of the parties hereto and their respective successors.

 

Section 4.11                             Third Parties. It is understood and agreed among the parties that this Agreement and the covenants made herein are made expressly and solely for the benefit of the parties hereto, and that no other Person, other than an Indemnified Party pursuant to Article III shall be entitled or be deemed to be entitled to any benefits or rights hereunder, nor be authorized or entitled to enforce any rights, claims or remedies hereunder or by reason hereof.

 

Section 4.12                             Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)                                 This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts entered into and performed entirely within such State.

 

(b)                                 Any claim, action, suit or proceeding (whether in contract or tort) seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be heard and determined in the Chancery Court of the State of Delaware and any state appellate court therefrom within the State of Delaware (or, if the Chancery Court of the State of Delaware declines to accept jurisdiction over a particular matter, any state or federal court within the State of Delaware), and each of the parties hereto hereby consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom in any such claim, action, suit or proceeding) and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of venue of any such claim, action, suit or proceeding in any such court or that any such claim, action, suit or proceeding that is brought in any such court has been brought in an inconvenient forum.

 

(c)                                  Subject to applicable Law, process in any such claim, action, suit or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing and subject to applicable Law, each party agrees that service of process on such party as provided in Section 4.05 shall be deemed effective service of process on such party. Nothing herein shall affect the right of any party to serve legal process in any other manner permitted by Law or at equity. WITH RESPECT TO ANY SUCH CLAIM, ACTION, SUIT OR PROCEEDING IN ANY SUCH COURT, TO

 

23

 

THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH OF THE PARTIES IRREVOCABLY WAIVES AND RELEASES TO THE OTHER ITS RIGHT TO A TRIAL BY JURY, AND AGREES THAT IT WILL NOT SEEK A TRIAL BY JURY IN ANY SUCH PROCEEDING. EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS SECTION 4.12 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY ARE RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT. ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 4.12 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

 

Section 4.13                             Severability. If any portion of this Agreement shall be declared void or unenforceable by any court or administrative body of competent jurisdiction, then, so long as no party is deprived of the benefits of this Agreement in any material respect, such portion shall be deemed severable from the remainder of this Agreement, which shall continue in all respects valid and enforceable.

 

Section 4.14                             Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute a single instrument. Copies of executed counterparts transmitted by telecopy or other electronic transmission service shall be considered original executed counterparts for purposes of this Section 4.14.

 

Section 4.15                             Headings. The headings and subheadings in this Agreement are included for convenience and identification only and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any provision hereto.

 

[REMAINDER INTENTIONALLY LEFT BLANK]

 

24

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above.

 

 

	
 
    	
WIDEOPENWEST, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Registration Rights Agreement]

 

 

	
 
    	
AVISTA   CAPITAL PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Avista   Capital Partners GP, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AVISTA   CAPITAL PARTNERS (OFFSHORE), L.P.
    
	
 
    	
By:
    	
Avista   Capital Partners GP, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AVISTA   CAPITAL PARTNERS III, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Avista   Capital Partners III GP, L.P.
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Avista   Capital Managing Member, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Registration Rights Agreement]

 

 

	
 
    	
AVISTA   CAPITAL PARTNERS (OFFSHORE) III, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Avista   Capital Partners III GP, L.P.
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Avista   Capital Managing Member, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AVISTA   CAPITAL PARTNERS (OFFSHORE) III-A, L.P.
    
	
 
    	
By:
    	
Avista   Capital Partners III GP, L.P.
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Avista   Capital Managing Member, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ACP   RACECAR CO-INVEST, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Avista   Capital Partners III GP, L.P.
    
	
 
    	
Its:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Avista   Capital Managing Member, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Registration Rights Agreement]

 

 

	
 
    	
ACP   RACECAR CO-INVEST II, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Avista   Capital Partners III GP, L.P.
    
	
 
    	
Its:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Avista   Capital Managing Member, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Registration Rights Agreement]

 

 

	
 
    	
CRESTVIEW W1 CO-INVESTORS, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CRESTVIEW W1 TE HOLDINGS, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CRESTVIEW W1 HOLDINGS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Crestview   W1 GP, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Registration Rights Agreement]

 

 

EXHIBIT A

JOINDER TO THE REGISTRATION RIGHTS AGREEMENT

 

[·], 20[·]

 

This Joinder Agreement (the “Joinder Agreement”) is made as of the date written above by the undersigned (the “Joining Party”) in accordance with the Registration Rights Agreement dated as of [·], 2017 (as amended and restated or otherwise modified from time to time, the “Registration Rights Agreement”) among WideOpenWest, Inc. and the other persons listed on the signature pages thereto. Capitalized terms used, but not defined, herein shall have the respective meanings of ascribed to such terms in the Registration Rights Agreement.

 

The Joining Party hereby acknowledges, agrees and confirms that, by its execution of this Joinder Agreement, the Joining Party shall be deemed to be a party to the Registration Rights Agreement as of the date hereof and shall have all of the rights and obligations of a “Holder” thereunder as if it had executed the Registration Rights Agreement. The Joining Party hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Registration Rights Agreement.

 

 

	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Address:
    
	
 
    	
Telephone:
    
	
 
    	
Facsimile:
    

 

AGREED ON THIS [ ] day of [ ], 20 :

 

WIDEOPENWEST, INC.

 

 

	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:Exhibit 4.3

 

Execution Version

 

* Certain confidential information contained in this document, marked by asterisks, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 promulgated under the Securities Exchange Act of 1934, as amended.

 

 

30 December 2016

 

 

NATIONAL BANK OF GREECE S.A.

 

 

KBC BANK NV

 

 

	
 
    	
 
    	
 
    
	
 
    	
SHARE SALE AND PURCHASE
   AGREEMENT
    	
 
    
	
 
    	
 
    	
 
    

 

 

 

Contents

 

	
Clause
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
Sale and Purchase
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
Purchase Price
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Subordinated Debt
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
Bulgarian Assets
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
Discharge of   Intra-Group Funding
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
No Leakage Undertaking
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
Pre-Closing Seller   Undertakings
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
Conditions to Closing
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
Closing
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
[*]
    	
 
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
Seller Warranties and   Indemnities
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
Warranties,   Undertakings and Other Covenants
    	
 
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
Conduct of Purchaser   Claims
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
14.
    	
Guarantees and other Third   Party Assurances
    	
 
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
15.
    	
Information, Records   and Assistance Post-Closing
    	
 
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
16.
    	
Post-Closing Protective   Covenant
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
17.
    	
De-Branding
    	
 
    	
24
    
	
 
    	
 
    	
 
    	
 
    
	
18.
    	
Payments
    	
 
    	
25
    
	
 
    	
 
    	
 
    	
 
    
	
19.
    	
Costs
    	
 
    	
26
    
	
 
    	
 
    	
 
    	
 
    
	
20.
    	
Announcements
    	
 
    	
27
    
	
 
    	
 
    	
 
    	
 
    
	
21.
    	
Confidentiality
    	
 
    	
27
    
	
 
    	
 
    	
 
    	
 
    
	
22.
    	
Assignment
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    
	
23.
    	
Further Assurances
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    
	
24.
    	
Notices
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    
	
25.
    	
Conflict with other   Agreements
    	
 
    	
31
    
	
 
    	
 
    	
 
    	
 
    
	
26.
    	
Whole Agreement
    	
 
    	
31
    
	
 
    	
 
    	
 
    	
 
    
	
27.
    	
Waivers, Rights and   Remedies
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
28.
    	
Counterparts
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
29.
    	
Variations
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
30.
    	
Invalidity
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
31.
    	
Third Party Enforcement   Rights
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
32.
    	
Governing Law and   Jurisdiction
    	
 
    	
33
    

 

i

 

	
Schedule   1 Permitted Leakage
    	
 
    	
34
    
	
 
    	
 
    	
 
    
	
Schedule   2 Conduct of the Target Companies Pre-Closing
    	
 
    	
35
    
	
 
    	
 
    	
 
    
	
Schedule   3 Closing Arrangements
    	
 
    	
42
    
	
 
    	
 
    	
 
    
	
Schedule   4 Seller Warranties
    	
 
    	
47
    
	
 
    	
 
    	
 
    
	
Schedule   5 Limitations On Liability
    	
 
    	
63
    
	
 
    	
 
    	
 
    
	
Schedule   6 Purchaser Warranties
    	
 
    	
68
    
	
 
    	
 
    	
 
    
	
Schedule   7 Target Company Information
    	
 
    	
70
    
	
 
    	
 
    	
 
    
	
Schedule   8 Key Managers
    	
 
    	
74
    
	
 
    	
 
    	
 
    
	
Schedule   9 Subordinated Debt Assignment Agreement
    	
 
    	
76
    
	
 
    	
 
    	
 
    
	
Schedule   10 Bulgarian Assets
    	
 
    	
79
    
	
 
    	
 
    	
 
    
	
Schedule   11 FPA Termination Agreement
    	
 
    	
83
    
	
 
    	
 
    	
 
    
	
Schedule   12 Allocation of Purchase Price
    	
 
    	
94
    
	
 
    	
 
    	
 
    
	
Schedule   13 Third Party Assurances
    	
 
    	
95
    
	
 
    	
 
    	
 
    
	
Schedule   14 Share Transfer Agreements
    	
 
    	
97
    
	
 
    	
 
    	
 
    
	
Schedule   15 Master Transitional Services Agreement
    	
 
    	
109
    
	
 
    	
 
    	
 
    
	
Schedule   16 Master Termination Agreement
    	
 
    	
145
    
	
 
    	
 
    	
 
    
	
Schedule   17 Definitions and Interpretation
    	
 
    	
159
    

 

ii

 

This Agreement dated 30 December 2016

 

Parties

 

(1)                                 National Bank of Greece S.A., a société anonyme organised and existing under the laws of the Republic of Greece, with its corporate headquarters at Aiolou 86, Athens 10232, Greece, registered with the Companies Register of the Republic of Greece (the Seller); and

 

(2)                                 KBC Bank NV, a company incorporated in Belgium (registration number BE 0462.920.226) and whose registered office is at Havenlaan 2, 1080 Brussels, Belgium (the Purchaser),

 

(each a Party in this Agreement and together, the Parties).

 

Words and expressions used in this Agreement shall be interpreted in accordance with Schedule 17 (Definitions and Interpretation).

 

It is agreed:

 

Preamble

 

(A)                               The Seller is the sole legal and beneficial shareholder and owner of the Seller Shares.

 

(B)                               NBG Asset Management is the sole legal and beneficial shareholder and owner of the NBG Asset Management Shares.

 

(C)                               The Target Companies are engaged in the business of providing banking, lease, asset management, factoring, insurance brokerage and ancillary services.

 

(D)                               The Seller intends to sell the Seller Shares and to procure that NBG Asset Management sells the NBG Asset Management Shares and the Purchaser intends to purchase the Shares.

 

(E)                                The Parties intend that the FPA shall be terminated at Closing.

 

(F)                                 The Purchaser intends to procure the repayment (i) by the Bank to the Seller of the Subordinated Debt, and (ii) by Interlease and Interlease Auto to NBG Malta of the Intra-Group Funding.

 

(G)                               Ethniki intends to sell and the Bank intends to purchase the Ethniki Shares in the Pre-Closing Period.

 

1.                                      Sale and Purchase

 

1.1                               The Seller shall sell the Seller Shares and shall procure that NBG Asset Management shall sell the NBG Asset Management Shares and the Purchaser shall purchase the Shares free from Third Party Rights with effect from Closing and with all rights attaching to them including the right to receive all distributions and dividends declared, paid or made in respect of the Shares after Closing.  The sale and purchase of the Shares shall be on the terms set out in this Agreement.

 

 

2.                                      Purchase Price

 

2.1                               The price for the Shares shall be EUR 610,000,000 (the Purchase Price) being the sum of the Seller Shares Price and the NBG Asset Management Shares Price, which shall, as adjusted in accordance with Clauses 2.3 to 2.6 below (the Adjusted Purchase Price), be payable on Closing.

 

2.2                               The Purchase Price shall be allocated between the Seller and NBG Asset Management in the proportions set out in Schedule 12 (Allocation of Purchase Price).

 

2.3                               [*]

 

(a)                                 [*]

 

(b)                                 [*]

 

2.4                               During the Pre-Closing Period, the Seller shall  procure, subject to applicable law, including with respect to the obtaining of any mandatory approval of the BNB, that the Bank pays the Target Dividend Extraction Amount to the Seller by way of dividend, [*]:

 

(a)                                 [*]

 

(b)                                 [*]

 

2.5                               The FPA shall be terminated at Closing substantially in the form of the FPA Termination Agreement [*].

 

2.6                               [*].

 

2.7                               Following reasonable consultation with the Purchaser (including sharing drafts of the proposed Adjusted Purchase Price components and calculations, and providing such explanations as the Purchaser may reasonably request), the Seller shall determine in good faith (taking into account the Purchaser’s reasonable comments provided in advance), and shall notify the Purchaser no later than five Business Days before Closing of the Adjusted Purchase Price calculated on the basis set out above, including reasonable details of the calculation of and constituent elements comprising such amount (including any Leakage, the Bulgarian Termination Settlement Amount, the Non-Life Termination Cost Amount and the Ethniki Shares Consideration).

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

2.8                               Any payment made in satisfaction of a liability arising under a Seller Obligation or a Purchaser Obligation shall adjust the Purchase Price to the extent of such payment.

 

3.                                      Subordinated Debt

 

3.1                               The Seller shall notify the Purchaser and the Bank no later than five Business Days before Closing of the Subordinated Debt Amount.

 

3.2                               At the sole discretion of the Purchaser (notice of which shall be delivered by the Purchaser to the Seller not less than five Business Days prior to Closing), either:

 

(a)                                 the Purchaser shall procure that the Bank pays the Subordinated Debt Amount to the Seller immediately after Closing in accordance with paragraph 2(a) of Part B of Schedule 3 (Closing Arrangements). Payment by the Bank of the Subordinated Debt Amount to the Seller at no break-up or similar cost shall constitute full and final discharge by the Bank of its obligations under the Subordinated Loan Agreements; or

 

(b)                                 the Seller shall assign the Subordinated Debt to the Purchaser or another member of the Purchaser’s Group (designated in writing to the Seller at least five Business Days prior to the Closing Date) free from Third Party Rights with effect from Closing with all rights attaching to it. The assignment of the Subordinated Debt shall be on the terms set out in this Agreement and in the Subordinated Debt Assignment Agreement set out in Schedule 9 (Subordinated Debt Assignment Agreement).  The assignment of the Subordinated Debt shall be in consideration of the payment to the Seller of the Subordinated Debt Amount.

 

4.                                      Bulgarian Assets

 

4.1                               The Seller shall procure the transfer of the Bulgarian Assets to the Bank, the Purchaser or a Purchaser Affiliate (designated in writing to the Seller at least five Business Days prior to the Closing Date) free from Third Party Rights by NBG Management Services with effect from Closing together with all rights and outstanding obligations attaching to them. [*]

 

4.2                               [*]

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

5.                                      Discharge of Intra-Group Funding

 

5.1                               The Seller shall notify the Purchaser no later than five Business Days before Closing of the amounts of the Interlease Intra-Group Funding and the Interlease Auto Intra-Group Funding.

 

5.2                               The Purchaser shall procure that:

 

(a)                                 Interlease repays the Interlease Intra-Group Funding at no break-up or similar cost; and

 

(b)                                 Interlease Auto repays the Interlease Auto Intra-Group Funding at no break-up or similar cost,

 

in each case, to NBG Malta immediately after Closing [*]

 

6.                                      No Leakage Undertaking

 

6.1                               The Seller undertakes to the Purchaser that since the Locked Box Accounts Date:

 

(a)                                 there has not been any Leakage and there will not be any Leakage in the Pre-Closing Period, other than Permitted Leakage; and

 

(b)                                 no arrangement or agreement has been made or will in the Pre-Closing Period be made that will result in any Leakage, other than Permitted Leakage.

 

6.2                               The Seller undertakes to notify and procure that each Target Company notifies the Purchaser as soon as possible after any of the Seller or any Target Company (as applicable) becomes aware of any Leakage or Permitted Leakage, including the amount and details of such Leakage and Permitted Leakage.

 

6.3                               The Seller undertakes to the Purchaser that if there is a breach of any of the undertakings set out in Clause 6.1 prior to Closing, the Seller shall notify the Purchaser of such breach in accordance with Clauses 2.7 and 6.2 and the Purchase Price shall be reduced by an amount equal to the amount of such Leakage.

 

6.4                               Subject to Clause 6.5, the Seller undertakes to the Purchaser that if there is a breach of any of the undertakings set out in Clause 6.1 and such breach has not already resulted in a reduction of the Purchase Price in accordance with Clause 6.3, it shall, following Closing, pay or procure payment in cash to the Purchaser of a sum equal to the amount of such Leakage.

 

6.5                               The liability of the Seller pursuant to this Clause 6 shall terminate on the date falling six months after Closing unless before that date the Purchaser has notified the Seller of a breach of the undertakings set out in Clause 6.1, in which case, in relation to any relevant breaches notified, the Seller shall remain liable until any relevant Claim has been satisfied, settled or withdrawn.

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

7.                                      Pre-Closing Seller Undertakings

 

7.1                               To the extent permissible under applicable law, during the Pre-Closing Period, the Seller shall (except as may be approved by the Purchaser) ensure that the business of each Target Company and UBB-Metlife (in the case of UBB-Metlife, only to the extent the Seller and each other member of the Seller Group is reasonably able to do so by the exercise of its respective voting rights, powers and controls) is carried on in the ordinary course of business and consistent with past practice and shall comply with the obligations set out in Schedule 2 (Conduct of the Target Companies Pre-Closing).  The Seller undertakes to notify the Purchaser as soon as possible after it becomes aware of any facts or circumstances which give rise to or could reasonably be expected to give rise to a breach of this Clause 7.1.

 

7.2                               If the exercise by the Purchaser of any of its rights pursuant to Schedule 2 (Conduct of the Target Companies Pre-Closing) (including the right to refuse to approve any particular transaction or action) could reasonably be expected to cause any breach of any applicable provisions of the Competition Act, the Parties shall consult in good faith and use reasonable endeavours to find a way of enabling the Purchaser to exercise such rights without breaching the relevant provisions of the Competition Act.

 

7.3                               From the date of this Agreement until the earlier of the Closing Date and  termination of this Agreement in accordance with its terms:

 

(a)                                 the Seller shall not and shall ensure that (i) none of the Target Companies and (ii) none of the Representatives of the Target Companies or the Seller (collectively, Restricted Persons)  shall, directly or indirectly make any initial or further approach to, provide any non-public data to, entertain any approach from, enter into or continue negotiations with, or enter into any agreements or arrangements (whether or not legally binding) with, any person (other than the Purchaser), in each case, with a view to a transaction taking place which involves the sale of the Shares or a sale of all or a substantial part of the assets of the Target Group or otherwise sell, tender or transfer any of the Shares (any such transaction, a Potential Competing Transaction); and

 

(b)                                 the Seller shall and shall cause each Restricted Person to immediately cease and cause to be terminated any existing activities, discussions, processes or negotiations with any third party conducted prior to the date of this Agreement with respect to any Potential Competing Transaction.

 

7.4                               During the Pre-Closing Period:

 

(a)                                 [*]

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

(b)                                 the Seller shall procure that, with effect from Closing:

 

(i)                                     Ethniki sells and the Bank purchases [*] shares comprising 20 per cent of the issued share capital of UBB Insurance Broker AD; and

 

(ii)                                  Ethniki sells and the Bank purchases from Ethniki its [*] shares in UBB-Metlife representing 30 per cent of the issued share capital of UBB-Metlife, [*]

 

as consideration for the Ethniki Shares Consideration;

 

(c)                                  [*]

 

(d)                                 the Parties shall use their respective reasonable endeavours, as soon as possible after the date of this Agreement and in any event prior to Closing, to finalise and complete the missing information (if any) in the Master Transitional Services Agreement set out in Schedule 15 (Master Transitional Services Agreement) and to establish the relevant transitional services agreements and the migration plan;

 

(e)                                  the Parties shall use their respective reasonable endeavours, as soon as possible after the date of this Agreement and in any event prior to Closing, to complete the missing information (if any) in the master termination agreement set out in Schedule 16 (Master Termination Agreement), such master termination agreement providing for the termination, with effect from Closing, of all agreements between the Seller Group and the Target Group (including, for the avoidance of doubt, the Bankteco Agreement), in each case, at no cost to any member of the Target Group and for full and final discharge of the relevant Target Company (the Master Termination Agreement);

 

(f)                                   [*]

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

(g)                                  [*]

 

(i)                                     [*]

 

(ii)                                  [*]

 

(iii)                               [*]

 

(iv)                              [*]

 

(v)                                 [*]

 

(vi)                              [*]

 

(h)                                 the Seller shall procure that all lease agreements, which are not notarised and registered with the Bulgarian Real Estate Registry as at the date of this Agreement (the Unregistered Lease Agreements), shall be notarised and duly registered with the Bulgarian Real Estate Registry at the cost of the respective Target Company, and such costs shall be deemed Leakage.

 

8.                                      Conditions to Closing

 

8.1                               Closing shall be conditional on the following Conditions having been fulfilled or waived in writing in accordance with the terms of this Agreement:

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

(a)                                 Insofar as all or any part of the Proposed Transaction constitutes a concentration subject to appraisal by the European Commission under Council Regulation (EC) No 139/2004 (the EU Merger Regulation):

 

(i)                                     the European Commission having adopted a decision under Article 6(1)(b), Article 6(2) or under Article 8(1) or Article 8(2) of the EU Merger Regulation in relation to all or any part of the Proposed Transaction, or being deemed to have adopted any such decision by virtue of Article 10(6) of the EU Merger Regulation; or

 

(ii)                                  in the event that all or any part of the Proposed Transaction has been referred, or is deemed to have been referred, by the European Commission to the competent authorities of one or more EU Member State in accordance with Article 9 of the EU Merger Regulation, merger control clearance having been received from all such competent authorities and, to the extent permitted by local Laws, preliminary enforcement of the merger control clearance having been admitted or any appropriate waiting periods (including any extensions) having expired, lapsed or been terminated (as appropriate);

 

(b)                                 Or, insofar as all or any part of the Proposed Transaction lacks a Community dimension within the meaning of Article 1 of the EU Merger Regulation:

 

(i)                                     merger control clearance pursuant to the Competition Act having been received from the Bulgarian Commission for Protection of Competition and preliminary enforcement of the merger control clearance having been admitted in respect of all or any part of the Proposed Transaction, or any appropriate waiting periods (including any extensions) having expired, lapsed or been terminated (as appropriate); or

 

(ii)                                  in the event of request for referral to the European Commission in accordance with Article 22(1) of the EU Merger Regulation to review all or any part of the Proposed Transaction and such a request having been accepted or in the event of a reasoned submission for a referral to the European Commission in accordance with Article 4(5) of the EU Merger Regulation (which shall be filed if agreed upon between the Parties) and no competent EU Member State having expressed its disagreement with such submission in accordance with Article 4(5) third subparagraph of the EU Merger Regulation and either:

 

(A)                               the European Commission having declared the Proposed Transaction to be compatible with the common market under Article 6(1)(b), Article 6(2), Article 8(1) or Article 8(2) of the EU Merger Regulation applied directly or under Article 22(4) first subparagraph of the EU Merger Regulation in respect of all parts of the transaction which were the subject of such request; or

 

 

(B)                               all parts of the Proposed Transaction which were the subject of the request having been deemed compatible with the common market under Article 10(6) of the EU Merger Regulation applied directly or under Article 22(4) first subparagraph of the EU Merger Regulation;

 

(c)                                  the approval by the National Bank of Belgium or the ECB within the period provided in the Belgian law of 25 April 2014 relating to the status and the control of credit institutions or any other similar Laws of the Proposed Transaction following the notification thereof by the relevant company or companies of the Purchaser Group to the National Bank of Belgium and/or to the ECB;

 

(d)                                 the Purchaser having obtained the approval of the Financial Supervision Commission for the indirect acquisition and ownership of shares in UBB-Metlife and the NBG Asset Management Shares, as contemplated by this Agreement;

 

(e)                                  the Purchaser having obtained the approval of the BNB for the acquisition and ownership of the Seller’s Bank Shares and for the appointment of any members to the Board of Directors of the Bank provided such members have been nominated by the Purchaser in accordance with Clause 12.3; and

 

(f)                                   the Bank and the Purchaser having made a joint notification to the BNB and the BNB having provided a non-objection letter for the repayment or assignment of the Subordinated Debt as contemplated by Clause 3.

 

8.2                               On the terms of, and subject to the Seller’s compliance with its obligations in this Clause 8, the Purchaser shall, at its own cost, use reasonable endeavours, to ensure that the Conditions set out in Clauses 8.1 (a) through (e) are fulfilled as soon as reasonably practicable after the date of this Agreement.  The Purchaser shall have primary responsibility for obtaining all consents, approvals or actions of any Governmental Entity which are required in order to satisfy any relevant Condition set out in Clauses 8.1 (a) through (e) and shall prepare and submit a first draft of appropriate submissions, notifications and filings, in consultation with the Seller, as soon as reasonably possible and in any case within 30 Business Days after the date of this Agreement.  The Purchaser shall for this purpose:

 

(a)                                 promptly notify the Seller of all material communications with any such Governmental Entity relating to any such consent, approval or action;

 

(b)                                 to the extent reasonably practicable keep the Seller updated on the progress and status of the filings; and

 

(c)                                  regularly review with the Seller the progress of any notifications or filings with a view to obtaining the relevant consent, approval or action from any Governmental Entity at the earliest reasonable opportunity.

 

8.3                               The Seller and the Purchaser shall use reasonable endeavours to ensure that the Condition set out in Clause 8.1(f) is fulfilled as soon as reasonably practicable after the date of this Agreement (the costs of which shall be borne by the Bank and treated as Permitted Leakage). The Seller and the Purchaser shall have the

 

 

joint responsibility for obtaining all consents, approvals or actions of any Governmental Entity, which are required in order to satisfy the Condition set out in Clauses 8.1(f).  The Purchaser and the Seller shall for this purpose:

 

(a)                                 promptly notify the other Party of all material communications with any such Governmental Entity relating to any such consent, approval or action;

 

(b)                                 to the extent reasonably practicable keep the other Party updated on the progress and status of the filings; and

 

(c)                                  regularly review with the other Party the progress of any notifications or filings with a view to obtaining the relevant consent, approval or action from any Governmental Entity at the earliest reasonable opportunity.

 

8.4                               The Seller shall promptly provide and procure that each Target Company provides the Purchaser and/or its professional advisors and any Governmental Entity with any information and documents reasonably required by the Purchaser and/or its professional advisors to ensure that the Conditions are fulfilled promptly after the date of this Agreement (and in particular, to meet any deadline under Clause 8.2).

 

8.5                               The Parties shall not, in the Pre-Closing Period, make any filing with any Governmental Entity in relation to the Proposed Transaction which is not required in order to fulfil a Condition without obtaining the prior written consent of the other Party to the making of it and to its form and content.

 

8.6                               If the Governmental Entity is prepared to grant its consent or approval only subject to compliance with specific conditions or obligations to be imposed upon the relevant Party and/or the Bank, the relevant Party and/or the Bank shall accept any such terms and conditions imposed by any such Governmental Entity.

 

8.7                               Each Party shall, to the extent legally permissible, provide the other party, its advisers and any Governmental Entity with any necessary information and documents (redacted, to the extent it contains any confidential or  commercially sensitive information regarding the Party or any of its Affiliates) reasonably required for the purpose of making any submissions, notifications and filings to any such Governmental Entity, provided that the provision is directly related to the fulfilment of any of the Conditions.

 

8.8                               No Conditions may be unilaterally waived by either Party, other than the Condition in Clause 8.1(f), which may be waived unilaterally by the Seller but only in respect of the letter of non-objection from the BNB. In the event that the Seller does unilaterally waive such Condition, then notwithstanding anything to the contrary in this Agreement, the Subordinated Debt shall not be repaid or assigned at Closing, but the Purchaser shall procure the repayment of the Subordinated Debt by the Bank to the Seller on the date falling due and otherwise on the terms set forth in the Subordinated Loan Agreements.

 

8.9                               The Seller and the Purchaser shall each notify the other promptly (but in any event within two Business Days) upon becoming aware that any of the Conditions have been fulfilled. The first Business Day on or by which all Conditions have been fulfilled is the Unconditional Date.

 

 

8.10                        If the Unconditional Date has not occurred on or before the date which is [*] following the date of this Agreement (the Longstop Date), either Party may terminate this Agreement by written notice to the other Party, provided that a Party may not terminate this Agreement if the Unconditional Date has not occurred as a result of a breach by it of the terms of this Agreement. If this Agreement is terminated in accordance with this Clause it shall terminate automatically with immediate effect (other than in respect of the Surviving Provisions).  In such event, neither Party (nor any of its Affiliates) shall have any claim under the Transaction Documents of any nature whatsoever against the other Party (or any of its Affiliates) except in respect of any rights and liabilities which have accrued before termination or under any of the Surviving Provisions.

 

9.                                      Closing

 

9.1                               Closing shall take place at the Bulgarian offices of the counsel to the Purchaser on [*] after the Unconditional Date [*].

 

9.2                               At Closing each of the Seller and the Purchaser shall deliver or perform (or ensure that there is delivered or performed) all those documents, items and actions respectively listed in relation to that Party or any of its Affiliates (as the case may be) in Schedule 3 (Closing Arrangements).

 

9.3                               If the Seller (on the one hand) or the Purchaser (on the other) fails to comply with any obligation in Schedule 3 (Closing Arrangements), then the other Party shall be entitled (in addition to and without prejudice to other rights and remedies available) by written notice to the Party in default on the date Closing would otherwise have taken place, to:

 

(a)                                 require Closing to take place so far as practicable having regard to the defaults which have occurred; or

 

(b)                                 notify the party in default of a new date for Closing (being not more than 10 Business Days after the original date for Closing) in which case the provisions of this Clause 9 (other than this Clause 9.3) and Schedule 3 (Closing Arrangements) shall apply to Closing as so deferred but on the basis that such deferral may only occur once.

 

9.4                               [*]

 

(a)                                 [*]

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

(b)                                 [*]

 

10.                               [*]

 

10.1                        [*]

 

10.2                        [*]

 

(a)                                 [*]

 

(b)                                 [*]

 

[*]

 

10.3                        [*]

 

11.                               Seller Warranties and Indemnities

 

11.1                        The Seller warrants to the Purchaser as at the date of this Agreement that the Warranties are true and accurate. The Warranties are given subject to the limitations set out in Schedule 5 (Limitations on Liability).

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

11.2                        Immediately before the time of Closing, the Seller shall be deemed to warrant to the Purchaser that each of the Fundamental Warranties is true and accurate as at Closing.

 

11.3                        None of the limitations in Schedule 5 (Limitations on Liability) shall apply to any Claim which arises as a consequence of fraud or fraudulent misrepresentation by any Representative of any member of the Seller Group or any of the Target Companies.

 

11.4                        Each of the Warranties shall be construed separately and independently.

 

11.5                        Except as set forth in Part G of Schedule 4 (Seller Warranties), the Seller does not make, and the Purchaser does not rely upon, any representation, warranty or condition (express or implied) with respect to, and the Seller shall have no liability or responsibility to the Purchaser for:

 

(a)                                 any non-performance by any party (other than a member of the Seller Group) to the Bulgarian Assets; or

 

(b)                                 the financial condition, creditworthiness, status or nature of any borrower under any of the Bulgarian Assets.

 

11.6                        The Purchaser acknowledges and agrees that, except as provided under the Warranties, no other statement, promise or forecast made by or on behalf of the Seller or any member of the Seller Group or the Target Companies may form the basis of any Claim by the Purchaser or any other member of the Purchaser Group under or in connection with this Agreement or any Transaction Document. In particular, the Seller does not make any representation or warranty as to the accuracy of any forecasts, estimates, projections, statements of intent or opinion provided to the Purchaser, its Affiliates or to its or their advisers on or prior to the date of this Agreement (including such forecasts, estimates, projections, statements of intent or opinion contained in any documents in the Data Room).

 

11.7                        Except in the case of and as against any individual or entity who has acted fraudulently, the Purchaser agrees and undertakes with the Seller that neither it nor any other member of the Purchaser Group has any rights against, and will waive and shall not make any claim against, any employee, director, officer, adviser or agent of: (i) any of the Target Companies; or (ii) any member of the Seller Group in relation to claims relating to statements on which the Purchaser may have relied before agreeing to any term of this Agreement or of any other Transaction Document.

 

11.8                        Except in the case of and as against any individual or entity who has acted fraudulently, the Seller agrees and undertakes with the Purchaser that neither it nor any other member of the Seller Group has any rights against, and will waive and shall not make any claim against, any employee, director, officer, adviser or agent of: (i) any of the Target Companies: or (ii) any member of the Purchaser Group in relation to claims relating to statements on which the Seller may have relied before agreeing to any term of this Agreement or any other Transaction Document.

 

 

11.9                        [*]

 

(a)                                 [*]

 

(b)                                 [*]

 

(c)                                  [*]

 

11.10                 [*]

 

(a)                                 [*]

 

(b)                                 [*]

 

(c)                                  [*]

 

11.11                 [*]

 

(a)                                 [*]

 

(b)                                 [*]

 

(i)                         [*]

 

(ii)                      [*]

 

[*]

 

(A)                               [*]

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

(B)                               [*]

 

(C)                               [*]

 

(D)                               [*]

 

11.12                 [*]

 

11.13                 [*]

 

12.                               Warranties, Undertakings and Other Covenants

 

12.1                        The Purchaser warrants to the Seller as at the date of this Agreement in the terms of the warranties set out in Schedule 6 (Purchaser Warranties).

 

12.2                        The Purchaser undertakes not to initiate or permit to be initiated by any of the Target Companies any action, suit, claim or litigation against the directors of any of the Target Companies, as the case may be, who will have resigned from office pursuant to paragraph 1(b) of Part A of Schedule 3 (Closing Arrangements). The provisions of this Clause 12.2 shall not apply in respect of any action, suit, claim or litigation to the extent that it relates to any fraud on the part of the relevant director.

 

12.3                        The Purchaser undertakes to deliver to the Seller a list of the Purchaser’s nominated members of the board of directors, management board or supervisory board (which list shall include only those persons that could reasonably be expected to satisfy the applicable approval criteria of the BNB and FSC), as the case may be, of the Bank, UBB Insurance Broker AD, UBB Factoring, UBB Asset Management, Interlease, Interlease Auto and UBB-Metlife as soon as reasonably possible after the date of this Agreement. Subject to, and as soon as reasonably practicable after, receipt of the list of the Purchaser’s nominated members, the Seller shall procure that the Bank, UBB Insurance Broker AD, UBB Asset Management, Interlease, Interlease Auto and, to the extent the Seller is able to by exercise of its respective voting rights, powers and controls, UBB-Metlife make all necessary filings and notifications with the BNB and FSC in accordance with the Law and any secondary legislation, in respect of the nominees notified to it by the Purchaser. The Seller shall notify the Purchaser of any material correspondence or communications from the BNB or FSC of which it becomes aware (including a notification of approval or rejection of any of the Purchaser’s nominees), and the Purchaser shall promptly provide to the Seller any additional information or documents requested by the BNB or FSC in connection with the approvals contemplated by this Clause 12.3.

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

12.4                        Subject to the approval of the BNB to be delivered under paragraph 1(f) of Part B of Schedule 3 (Closing Arrangements) and the approval of FSC to be delivered under paragraph 1(g) of Part B of Schedule 3 (Closing Arrangements), the Seller undertakes to cause general meetings of shareholders of the Bank, UBB Insurance Broker AD, UBB Factoring, UBB Asset Management, Interlease, Interlease Auto and, to the extent the Seller is able to by exercise of its respective voting rights, powers and controls, UBB-Metlife to be validly convened and held on the Closing Date which approves (i) the resignations and the release of the members of the board of directors of the Bank who were in office immediately prior to the Closing Date, from any damages or liabilities arising from such roles and (ii) the election of new directors to replace the directors resigning from office, all in accordance with the Purchaser’s instructions to be communicated to the Seller in accordance with Clause 12.3 and (iii) introduction of a two-tier management system in the Bank.

 

12.5                        If the Purchaser fails to comply with its obligation under Clause 12.3, or for any other reason (other than a breach by the Seller of its obligations under this Agreement) a general meeting of shareholders of the Bank cannot be convened at Closing to ratify the resignation of directors of the Bank who will have resigned from office and to release such directors from liability pursuant to Clause 12.4, the Purchaser shall indemnify such directors against any such liability and shall procure the convening of such general meeting as soon as possible after the Closing Date.

 

12.6                        The undertakings of the Purchaser set out in Clause 12.5 shall remain in full force and effect until such time when any claim against such directors is barred by virtue of the expiration of the applicable statute of limitations.

 

12.7                        The Seller undertakes for itself and on behalf of each other member of the Seller Group and for benefit of each employee, director and officer of any member of the Target Group (each a Relevant Person) that, absent fraud, neither the Seller nor any other member of the Seller Group:

 

(a)                                 has any rights against (and waives any rights it may have against); and

 

(b)                                 may make a claim against (and waives any claim it may have against),

 

any Relevant Person (including, without limitation, in respect of any statement, information or documentation provided or made prior to the entry into this Agreement and not otherwise used in this Agreement or any other Transaction Document).

 

13.                               Conduct of Purchaser Claims

 

13.1                        If the Purchaser becomes aware of any claim or potential claim or of any other matter or circumstance that might result in a claim by a third party that might result in a Claim being made by the Purchaser (a Third Party Claim), the Purchaser shall:

 

 

(a)                                 promptly (and in any event within 20 Business Days of becoming aware of it) give notice of the Third Party Claim to the Seller and ensure that the Seller and its representatives are given all reasonable information and facilities available to the Purchaser to enable the Seller to investigate it in accordance with Clauses 13.1(c)(ii) and (iii);

 

(b)                                 not (and ensure that each member of the Purchaser Group shall not) admit liability or make any agreement or compromise in relation to the Third Party Claim without prior written approval of the Seller (not to be unreasonably withheld or delayed); and

 

(c)                                  (subject to the Purchaser or the relevant member of the Purchaser Group being indemnified by the Seller against all reasonable out-of-pocket costs and expenses incurred in respect of that Third Party Claim) ensure that it and each member of the Purchaser Group shall:

 

(i)                                     take such commercially reasonable action as the Seller may reasonably request to avoid, resist, dispute, appeal, compromise, settle or defend the Third Party Claim;

 

(ii)                                  subject to the Seller accepting responsibility for such Third Party Claim, allow the Seller (if it elects to do so) to take over the conduct of all proceedings and/or negotiations arising in connection with the Third Party Claim; and

 

(iii)                               in the event that the Seller has taken over conduct in accordance with Clause 13.1(c)(ii), provide such information and assistance as the Seller may reasonably require in connection with the preparation for and conduct of any proceedings and/or negotiations relating to the Third Party Claim.

 

provided that nothing in this Clause 13 shall require the Purchaser or any of its Affiliates to do or procure any matter or thing or to refrain from doing or procuring any matter or thing which is commercially unreasonable or could adversely affect the reputation or goodwill, legal privilege or confidentiality obligations of any member of the Purchaser Group or, in respect of Clause 13.1(c)(ii) only, relates to proceedings in respect of Taxation.

 

13.2                        [*]

 

14.                               Guarantees and other Third Party Assurances

 

14.1                        [*]

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

14.2                        [*]

 

15.                               Information, Records and Assistance Post-Closing

 

15.1                        For three years (or, in respect of Tax, six years) following the Closing Date, each member of the Purchaser Group shall to the extent permitted by law, provide the Seller (at the Seller’s cost) with reasonable access at reasonable times to (and the right to take copies of) the books, accounts, customer lists and all other records held by it after Closing to the extent that they relate to the Target Companies and to the period up to Closing (the Purchaser Records) but only to the extent necessary for the purposes of any litigation concerning a member of the Seller Group (other than in connection with the transactions contemplated by the Transaction Documents) or the preparation of accounts or any Tax return or regulatory filing, or for addressing any matter arising from such accounts, return or filing, by the Seller (or any member of the Seller Group).

 

15.2                        For six years following the Closing Date, no member of the Purchaser Group shall dispose of, or destroy any of, the Purchaser Records which it knows (or should reasonably be expected to know) is necessary for the preparation of any Tax return or regulatory filing, or for addressing any matter arising from such return or filing, by the Seller (or any member of the Seller Group) without first giving the Seller at least 20 Business Days’ notice of its intention to do so and giving the Seller a reasonable opportunity to remove and retain any of them (at the Seller’s expense).

 

15.3                        Following the Closing Date:

 

(a)                                 without prejudice to Clause 13, each member of the Purchaser Group shall (at the Seller’s expense) give such assistance to any member of the Seller Group as the Seller may reasonably request in relation to any third party proceedings by or against any member of the Seller Group so far as they relate to the Target Companies, including proceedings relating to employees’ claims or Taxation;

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

(b)                                 the Seller shall promptly give to the Purchaser all written notices, correspondence, information or enquiries received by it or the Seller Group in relation to the Target Companies; and

 

(c)                                  the Purchaser shall promptly give to the Seller all written notices, correspondence, information or enquiries received by any member of the Purchaser Group in relation to any business of the Seller Group not comprised within the Target Companies,

 

provided that nothing in this Clause 15 shall require the Purchaser or any of its Affiliates to do or procure any matter or thing or to refrain from doing or procuring any matter or thing which is commercially unreasonable or could adversely affect the reputation or goodwill, legal privilege or confidentiality obligations of any member of the Purchaser Group.

 

16.                               Post-Closing Protective Covenant

 

16.1                        The Seller undertakes that it shall not and shall procure that each member of the Seller Group shall not, either on its own account or in conjunction with or on behalf of any other person, directly or indirectly:

 

(a)                                 carry on or be engaged, concerned or interested, whether as a shareholder or partner or otherwise, in any Competing Business in the Protected Territory for a period of [*] after the Closing Date; or

 

(b)                                 for a period of [*] after the Closing Date, solicit or entice away or attempt to solicit or entice away from any member of the Purchaser Group, offer employment to or employ, or offer to conclude any contract of services with, any of the Key Managers (other than such individuals as may be agreed in writing between the Parties), or otherwise with multiple employees that could cause a disruption in the operations or business of any member of the Target Group; provided always that the Seller and each other member of the Seller Group shall not be in breach of this term in respect of any contact or employment made in the normal course of operations thereof as a result of a public recruitment advertisement or notice not designed to specifically target the employees of any member of the Purchaser Group.

 

16.2                        For the purpose of this Clause 16:

 

(a)                                 Competing Business means a [*]

 

(b)                                 Permitted Business means:

 

(i)                                     [*]

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

(ii)                                  [*]

 

(iii)                               [*] 

 

(c)                                  Protected Territory means [*].

 

16.3                        Nothing in this Clause 16 shall prevent, after Closing, the Seller or any of its Affiliates from:

 

(a)                                 owning securities, shares or similar interests in any company or partnership that do not exceed [*];

 

(b)                                 acquiring and subsequently carrying on or being engaged in any one or more companies and/or businesses (taken together, the Acquired Business) where [*];

 

(c)                                  performing its obligations under the Transaction Documents and/or under any other agreement which it may enter into with a member of the Purchaser Group;

 

(d)                                 acquiring or holding any interest in a company on behalf of any clients in the ordinary course of the business of the Seller Group carrying on any investment or asset management business, provided that no Confidential Information in relation to the Target Companies is disclosed or used in connection therewith; and/or

 

(e)                                  acquiring or holding any interest in a company or business as a result of taking or enforcing any security held by a member of the Seller Group where such security was entered into in good faith in the ordinary course of business.

 

17.                               De-Branding

 

17.1                        The Purchaser shall procure that, as soon as reasonably practicable after the Closing Date and no later than [*]:

 

(a)                                 each Target Company shall cease to use or display (including on any properties and assets of the Target Companies) any trade or service name or mark, business name, logo, design, symbol, get-up, trade dress or domain name that consists of or includes the word “NBG”, “NBG Group”, “National Bank of Greece” or any other words which are, similar (together, the Seller Group IPR); and

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

(b)                                 no members of the Purchaser Group shall hold themselves out as being part of, or otherwise connected or associated with, any member of the Seller Group and shall:

 

(i)                                     remove from all websites within their control any reference to the member of the Purchaser Group holding itself out as being part of, or otherwise connected or associated with, any member of the Seller Group; and

 

(ii)                                  delete any hypertext links which connect the websites referred to in paragraph (i) above with any websites of the Seller Group.

 

17.2                        The Seller hereby grants, and shall procure that its relevant Affiliates shall grant, to the Target Companies, a [*] licence to use the Seller Group IPR, including [*] solely for the purposes for which, in the manner in which, and to the extent to which, the Seller Group IPR was used by the Target Companies at the Closing Date for [*] from and including the Closing Date.  The Seller and its Affiliates shall provide the Purchaser and the Target Companies with such assistance and cooperation as may be reasonably requested, and if so requested by the Purchaser and at the Purchaser’s cost, the Seller shall make any necessary filing, for the purposes of registering the licence with the relevant authorities.

 

17.3                        On the expiry of the [*] referred to in Clause 17.2, the licence granted under that clause shall immediately cease and the Purchaser shall procure that the Target Companies shall

 

(a)                                 immediately cease to use or display the Seller Group IPR; and

 

(b)                                 destroy any goods, stock, products, product literature, product labels, packaging, signage, stationery or marketing, promotional, advertising or public relations materials in the possession or control of any Target Company bearing any Seller Group IPR licensed under Clause 17.2, and the Purchaser shall, upon the Seller’s request, certify in writing to the Seller that it has done so.

 

18.                               Payments

 

18.1                        Any payment to be made pursuant to this Agreement by the Purchaser or the Bank to the Seller shall be made to the Seller’s Bank Account.

 

18.2                        Any payment to be made pursuant to this Agreement by the Purchaser, Interlease or Interlease Auto to NBG Malta shall be made to NBG Malta’s Bank Account.

 

18.3                        Any payment to be made pursuant to this Agreement by the Purchaser Group or the Bank to NBG Management Services shall be made to NBG Management Services’ Bank Account.

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

18.4                        Any payment to be made by the Purchaser to NBG Asset Management for the NBG Asset Management Shares shall be made to NBG Asset Management’s Bank Account.

 

18.5                        Any payment to be made pursuant to this Agreement by the Seller (or any member of the Seller Group) shall be made to the Purchaser’s Bank Account.  The Purchaser agrees to pay each member of the Purchaser Group that part of each payment to which it is entitled.

 

18.6                        Payments under Clauses 18.1 to 18.5 shall be made in immediately available funds by electronic transfer on the due date for payment. Receipt of the amount due shall be an effective discharge of the relevant payment obligation.

 

18.7                        If any sum due for payment in accordance with this Agreement is not paid on the due date for payment, the person in default shall pay Default Interest on that sum from, but excluding, the due date to, and including, the date of actual payment calculated on a daily basis.

 

18.8                        All sums payable under this Agreement shall be payable in euros and paid free and clear of all deductions or withholdings whatsoever, save only as provided in this Agreement or as required by law.

 

18.9                        If any deduction or withholding is required by law from any payment under this Agreement then (except in relation to interest and, in respect of Taxes imposed by any Tax Authority in Greece, the payment of the Purchase Price (or any adjustment thereto) or any repayment of debt) the payer shall pay such additional amount as will, after such deduction or withholding has been made, leave the payee with the full amount which would have been received by it had no such deduction or withholding been required to be made.

 

19.                               Costs

 

19.1                        Subject to Clause 19.2, and except as otherwise provided in this Agreement (or any other Transaction Document), the Seller and the Purchaser shall each be responsible for its own Costs and charges incurred in connection with the Proposed Transaction.

 

19.2                        The Purchaser shall bear all notarisation fees and filing fees relating to satisfying the Conditions in Clause 8.1(a) through (e) (including in each case any related interest or penalties) arising as a result of this Agreement or of any of the other Transaction Documents.

 

19.3                        Any registration duty or other transfer or transaction duty or tax payable in respect of the purchase of the Shares shall be borne by the Purchaser.

 

20.                               Announcements

 

20.1                        Notwithstanding Clause 21, neither the Seller nor the Purchaser (nor any of their respective Affiliates) shall make any public announcement or issue any communication to shareholders in connection with the existence or subject matter of this Agreement (or any other Transaction Document) without the prior written approval of the other (such approval not to be unreasonably withheld or delayed).  Press releases as agreed between the Parties will be issued by the Purchaser and

 

 

Seller upon the execution of this Agreement. The Purchaser and the Seller shall cooperate reasonably to prepare further mutually acceptable press releases to be issued (if any).

 

20.2                        The restriction in Clause 20.1 shall not apply to the extent that the announcement or communication to shareholders is required by law, any stock exchange or any regulatory or other supervisory body or authority of competent jurisdiction, whether or not the requirement has the force of law. If this exception applies, the Party making the announcement or issuing the communication to shareholders shall use its reasonable endeavours to consult with the other Party in advance as to its form, content and the timing of issue.

 

21.                               Confidentiality

 

21.1                        For the purposes of this Clause 21:

 

(a)                                 Confidential Information means:

 

(i)                                     information relating to the provisions of, and negotiations leading to, this Agreement and the other Transaction Documents;

 

(ii)                                  (in relation to the obligations of the Purchaser) any information received or held by the Purchaser (or any of its Representatives) relating to the Seller Group or, before Closing, any of the Target Companies; and

 

(iii)                               (in relation to the obligations of the Seller) any information received or held by the Seller (or any of its Representatives) relating to the Purchaser Group or, following Closing, any of the Target Companies,

 

and includes written information and information transferred or obtained orally, visually, electronically or by any other means and any information which the Party has determined from information it has received including any forecasts or projections.

 

(b)                                 Representatives means, in relation to a Party, its respective Affiliates and the directors, officers, employees, agents, advisers, accountants and consultants of that Party and/or of its respective Affiliates.

 

21.2                        Each of the Seller and the Purchaser shall (and shall ensure that each of its Representatives shall) maintain Confidential Information in confidence and not disclose Confidential Information to any person except: (i) as permitted by Clause 20 or this Clause 21; or (ii) as the other Party approves in writing. For the purpose of this Agreement, disclosing Confidential Information includes making it available in any way, whether deliberately or not.

 

21.3                        Clause 21.2 shall not prevent disclosure by a Party or any of its Representatives to the extent it can demonstrate that:

 

(a)                                 disclosure is required by law or by any stock exchange or any regulatory, governmental or antitrust body (other than a Tax Authority but (including, but without limitation, HFSF and DG Comp) having applicable

 

 

jurisdiction, provided that, as far as it is lawful to do so, the disclosing party shall:

 

(i)                                     first inform the other Party of its intention to disclose such information;

 

(ii)                                  take into account the reasonable comments of the other Party regarding the proposed form, timing, nature and extent of the disclosure;

 

(iii)                               limit the disclosure as is reasonably responsive to the requirement;

 

(iv)                              use its best efforts to preserve the confidential nature of the Confidential Information;

 

(b)                                 disclosure is of Confidential Information which was lawfully in the possession of that Party or any of its Representatives (in either case as evidenced by written records) without any obligation of secrecy before its being received or held;

 

(c)                                  disclosure is of Confidential Information which was already in the public domain when it was first made available or has subsequently become publicly available other than through that Party’s action or failure to act (or that of its Representatives);

 

(d)                                 disclosure is made in connection with the Tax affairs of the disclosing party or its Affiliates; or

 

(e)                                  disclosure is required for the purpose of any arbitral or judicial proceedings arising out of this Agreement (or any other Transaction Document).

 

21.4                        If this Agreement terminates, the Purchaser shall as soon as practicable on request by the Seller:

 

(a)                                 destroy all information or other documents derived from such Confidential Information; and

 

(b)                                 so far as it is practicable to do so, expunge such Confidential Information from any computer, word processor or other device,

 

provided in each case that the Purchaser shall be permitted to keep any Confidential Information requested or required to be retained to comply with bona fide internal audit, legal or compliance policies or procedures or any Laws or by order of any competent Governmental Entity or which has been created pursuant to electronic archiving procedures.

 

22.                               Assignment

 

22.1                        Unless the Seller and the Purchaser specifically agree in writing, no person shall assign, transfer, hold on trust or encumber all or any of its rights under this Agreement nor grant, declare, create or dispose of any right or interest in it. Any purported assignment in contravention of this Clause 22 shall be void.

 

 

23.                               Further Assurances

 

23.1                        Each of the Seller and the Purchaser shall, from the Closing Date, execute, or procure the execution of, such further documents as may be required by law or be necessary to implement and give effect to the Transaction Documents.

 

23.2                        Each of the Seller and the Purchaser shall procure that its Affiliates comply with all obligations under the Transaction Documents which are expressed to apply to any such Affiliates.

 

24.                               Notices

 

24.1                        Any notice in connection with this Agreement shall be in writing in English and delivered by hand, fax, e-mail or courier using an internationally recognised express courier company. A notice shall be effective upon receipt and shall be deemed to have been received: (i) at the time of delivery, if delivered by hand or courier; or (ii) at the time of transmission if delivered by fax or e-mail provided that in either case, where delivery occurs outside Working Hours, notice shall be deemed to have been received at the start of Working Hours on the next following Business Day.

 

24.2                        The addresses and fax numbers of the Parties for the purpose of Clause 24.1 are:

 

	
Seller
    	
Address: Aiolou 86, Athens 10232, Greece
    	
Fax: [*]
    
	
 
    	
 
    	
 
    
	
For the attention of:
    	
Paul Mylonas, Deputy Chief Executive Officer
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail:
    	
[*]
    	
 
    
	
 
    	
 
    	
 
    
	
And with a copy:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
For the attention of:
    	
Georgios Triantafyllakis, Head of Legal   Services
    	
Fax: [*]
    
	
 
    	
 
    	
 
    
	
Email:
    	
[*]
    	
 
    
	
 
    	
 
    	
 
    
	
Purchaser
    	
Address:

KBC   Bank NV

Corporate M&A - CHA

Havenlaan   2

B-1080   Brussels

Belgium
    	
Fax: [*]
    
	
 
    	
 
    	
 
    
	
For the attention of:
    	
Mr. Thomas Vandewalle, Head of Corporate   M&A
    	
 
    

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

	
E-mail:
    	
[*]
    	
 
    
	
 
    	
 
    	
 
    
	
And with a copy to:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Address:

KBC   Bank NV

Group Legal - LFC

Havenlaan   2

B-1080   Brussels

Belgium
    	
Fax: [*]
    
	
 
    	
 
    	
 
    
	
For the attention of:
    	
Mr. Jef Swinnen, Legal Adviser
    	
 
    
	
 
    	
 
    	
 
    
	
Email:
    	
[*]

 

AND

 

[*]
    	
 
    

 

25.                               Conflict with other Agreements

 

If there is any conflict between the terms of this Agreement and any other agreement, this Agreement shall prevail (as between the Parties to this Agreement and as between any members of the Seller Group and any members of the Purchaser Group) unless: (i) such other agreement expressly states that it overrides this Agreement in the relevant respect; and (ii) the Seller and the Purchaser are either also parties to that other agreement or otherwise expressly agree in writing that such other agreement shall override this Agreement in that respect.

 

26.                               Whole Agreement

 

This Agreement and the other Transaction Documents together set out the whole agreement between the Parties in respect of the sale and purchase of the Shares, the Subordinated Debt, the Bulgarian Assets and the Intra-Group Funding and supersede any prior agreement (whether oral or written) relating to the Proposed Transaction. It is agreed that:

 

*                 CONFIDENTIAL TREATMENT REQUESTED. OMITTED PORTIONS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

(a)                                 no Party has relied on or shall have any claim or remedy arising under or in connection with any statement, representation, warranty or undertaking made by or on behalf of the other Party (or any of its Connected Persons) in relation to the Proposed Transaction that is not expressly set out in this Agreement or any other Transaction Document;

 

(b)                                 any terms or conditions implied by law in any jurisdiction in relation to the Proposed Transaction are excluded to the fullest extent permitted by law or, if incapable of exclusion, any right or remedies in relation to them are irrevocably waived;

 

(c)                                  the only right or remedy of a Party in relation to any provision of this Agreement or any other Transaction Document shall be for breach of this Agreement or the relevant Transaction Document; and

 

(d)                                 except for any liability in respect of a breach of this Agreement or any other Transaction Document, no Party (or any of its Connected Persons) shall owe any duty of care or have any liability in tort or otherwise to the other Party (or its respective Connected Persons) in relation to the Proposed Transaction.

 

26.2                        Nothing in this Clause 26 shall limit any liability for (or remedy in respect of) fraud or fraudulent misrepresentation.

 

26.3                        ach Party agrees to the terms of this Clause 26 on its own behalf and as agent for each of its Connected Persons. For the purpose of this Clause 26, Connected Persons means (in relation to a Party) the officers, employees, agents and advisers of that Party or any of its Affiliates.

 

27.                               Waivers, Rights and Remedies

 

Except as expressly provided in this Agreement, no failure or delay by any Party in exercising any right or remedy relating to this Agreement or any of the Transaction Documents shall affect or operate as a waiver or variation of that right or remedy or preclude its exercise at any subsequent time.  No single or partial exercise of any such right or remedy shall preclude any further exercise of it or the exercise of any other remedy.

 

28.                               Counterparts

 

This Agreement may be executed in any number of counterparts, and by each Party on separate counterparts. Each counterpart is an original, but all counterparts shall together constitute one and the same instrument. Delivery of a counterpart of this Agreement by e-mail attachment or telecopy shall be an effective mode of delivery.

 

29.                               Variations

 

29.1                        No amendment of this Agreement (or of any other Transaction Document) shall be valid unless it is in writing and duly executed by or on behalf of all of the Parties to it.

 

 

29.2                        Notwithstanding Clause 29.1, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected or impaired and all other provisions of this Agreement shall remain valid and enforceable to the fullest extent permitted by law.

 

30.                               Invalidity

 

Each of the provisions of this Agreement and the other Transaction Documents is severable. If any such provision is held to be or becomes invalid or unenforceable under the law of any jurisdiction, the Parties shall use all reasonable efforts to replace it with a valid and enforceable substitute provision the effect of which is as close to its intended effect as possible.

 

31.                               Third Party Enforcement Rights

 

31.1                        The individuals and entities specified in Clauses 11.6 through 11.10 and the Connected Persons specified in Clause 26 shall each have the right to enforce the relevant terms of those respective Clauses by reason of the Contracts (Rights of Third Parties) Act 1999. This right is subject to: (i) the rights of the Parties to amend or vary this Agreement without the consent of any such persons; and (ii) the other terms and conditions of this Agreement.

 

31.2                        Except as provided in Clause 31.1, a person who is not a party to this Agreement shall have no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms.

 

32.                               Governing Law and Jurisdiction

 

32.1                        This Agreement and any non-contractual obligations arising out of or in connection with this Agreement shall be governed by, and interpreted in accordance with, English law.

 

32.2                        Any dispute, controversy or claim arising out of or in connection with this Agreement or any subsequent waiver or subsequent amendment and/or the non-contractual obligations arising out of or in connection with this Agreement, including any question regarding its conclusion, existence, validity, nullity, interpretation, performance, breach or termination, shall be referred to and finally resolved by arbitration under the then existing Rules of Arbitration of the International Chamber of Commerce (the Rules), which Rules are deemed to be incorporated by reference into this Clause 32.2.

 

32.3                        The place of arbitration shall be London, England. The language to be used in the arbitration shall be English. The arbitration agreement shall be governed by, and construed in accordance with, English law.

 

32.4                        The Parties agree that, in case the Tribunal consists of three arbitrators to be appointed pursuant to the said Rules, the third arbitrator who shall act as chairman of the Tribunal, shall be nominated jointly by the two Parties and that, if the third arbitrator is not so nominated within 40 calendar days of the date of nomination of the later of the two party-nominated arbitrators to be nominated, the third arbitrator shall be chosen in accordance with said Rules.

 

 

[Schedules Removed]

 

 

Signatures

 

This Agreement is signed by duly authorised representatives of the Parties:

 

 

	
Signed
    	
)
    	
Signature:
    	
/s/ Paul Mylonas
    
	
for and on behalf of
    	
)
    	
Name:
    	
Paul Mylonas
    
	
National Bank of Greece S.A.
    	
)
    	
 
    	
Deputy Chief Executive Officer
    

 

 

Signed
 for and on behalf of
  KBC Bank NV

 

 

	
Signature:
    	
/s/ Johan Thijs
    	
 
    	
Signature:
    	
/s/ Luc Gijsens
    
	
Name:
    	
Johan Thijs
    	
 
    	
Name:
    	
Luc Gijsens
    
	
Title:
    	
Executive Director
    	
 
    	
Title:
    	
Executive Director

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