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Exhibit 10.20  

        [*****] = Certain
confidential information contained in this document, marked with brackets, has been omitted and filed separately with the
Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

 
 

WINDING-UP OF
  ALLIANCE, PRODUCTION AND MARKETING
  FRAMEWORK    
    

        This Agreement is entered into effective November 15, 1999 (the "Effective Date") by and between Displaytech, Inc., a Colorado corporation ("DT")
with principal executive offices at 2602 Clover Basin Drive, Longmont, Colorado 80503, and Hewlett-Packard Company, a Delaware corporation ("HP"), acting through the Semiconductor Products Group of
Agilent Technologies, Inc., an HP subsidiary with an office at 350 W. Trimble Avenue, San Jose, California 95131. DT and HP are sometimes hereafter referred to as the "Parties." This Agreement
completely amends, supersedes and replaces each of the following instruments: 

	1.
	That
certain instrument entitled "Alliance, Production and Marketing Framework Agreement" entered into effective January 31, 1999 between the Parties (the "APMF Agreement"); and

	2.
	That
certain instrument entitled "Second Side Letter Agreement" entered into effective February 2, 1999 between the Parties (the "Letter Agreement"). 

RECITALS  

        WHEREAS, the parties entered into the APMF Agreement and the Letter Agreement (collectively, the "APMF and Letter
Agreements") to jointly develop, manufacture, market and sell microdisplay products; 

        WHEREAS, HP has created a subsidiary known as Agilent Technologies, Inc. ("Agilent") and has transferred its Microdisplay Products
Operation business to Agilent and intends in the fullness of time to divest itself of its ownership of Agilent; and 

        WHEREAS, the Parties now desire amicably to wind up the relationships created pursuant to the APMF and Letter
Agreements and go their separate ways; 

AGREEMENT  

        NOW, THEREFORE, in consideration of the mutual promises here and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 

	1.
	DEFINITIONS.    Each of the following terms shall have the meaning ascribed to it below for purposes of this Agreement.

	1.1.
	"Alliance Microdisplay Product" means any product that is designated as such in the APMF Agreement.

	1.2.
	"DT Alliance IP" means any Intellectual Property owned or controlled by DT, excluding Jointly Created IP, DT LC IP and Jointly Funded
IP, that was created during the life of the APMF Agreement, utilized in a Microdisplay Device, and embodied in an Alliance Microdisplay Product.

	1.3.
	"DT LC IP" means any Intellectual Property owned or controlled, now or hereafter, by DT related to the manufacture, formulation or
design of liquid crystal material, utilized in a Microdisplay Device, and embodied in either a "Wink" or a "Zebra" product.

	1.4.
	"DT Pre-Existing IP" means any Intellectual Property owned or controlled by DT prior to the effective date of the APMF
Agreement, excluding DT LC IP, utilized in a Microdisplay Device and embodied in an Alliance Microdisplay Product. 

 

	1.5.
	"Employees" includes persons employed by HP, Agilent and DT, including consultants and contractors that have executed agreements with
the respective Parties to maintain the confidentiality of Confidential Information.

	1.6.
	"HP Alliance IP" means any Intellectual Property owned or controlled by HP, excluding Jointly Created IP and Jointly Funded IP, that
was created during the life of the APMF Agreement, utilized in a Microdisplay Device, and embodied in an Alliance Microdisplay Product.

	1.7.
	"HP Pre-Existing IP" means any Intellectual Property owned or controlled by HP prior to the effective date of the APMF
Agreement, utilized in a Microdisplay Device and embodied in an Alliance Microdisplay Product.

	1.8.
	"Intellectual Property" means any patent (except a design patent related to appearance), copyright, trade secret of a technical nature
as documented in a writing delivered to the receiving party, invention as documented in a written invention disclosure of the kind customarily used by HP and DT, respectively, work of authorship, or
mask work.

	1.9.
	"Jointly Created IP" means Intellectual Property that was Jointly Created IP under the APMF Agreement.

	1.10.
	"Jointly Funded IP" means Intellectual Property that was Jointly Funded IP under the APMF Agreement.

	1.11.
	"Microdisplay Device" means a device consisting exclusively of (a) a silicon backplane and liquid crystal material and/or
(b) a formatter and/or (c) packaging and assembly for the purpose of operating said silicon backplane and liquid crystal material or said formatter. A "formatter" is that part of control
electronics that accepts a digital representation of a gray-scale and/or color image in pixel format and puts out digital signals controlling: (1) the temporal switching sequence of
corresponding binary output pixels in a silicon backplane and liquid crystal material and/or (2) the temporal modulation of light by components of a display system other than the silicon
backplane and liquid crystal material for the purpose of displaying the corresponding pixel intensity.

	1.12.
	"Microdisplay-Based Product" means a product that includes a Microdisplay Device.

	1.13.
	"Subsidiary":    For the purposes of this Agreement, a business entity will be deemed to be a Subsidiary of a Party if that
Party now or hereafter owns or controls, directly or indirectly, a majority of the entity's stock entitled to vote for election of directors, or has an equivalent majority control in the case of a
non-corporate entity such as a partnership. Such a business entity will be deemed to be a Subsidiary of the Party for only so long as such ownership or control actually exists.

	2.
	INTELLECTUAL PROPERTY OWNERSHIP

	2.1.
	HP Ownership.    As between HP and DT, HP owns all right, title, and interest in and to Intellectual Property and design
patents that were conceived, discovered, authored or developed solely by HP or HP employees at any time, if and to the extent that HP or HP employees are or would be considered to be the sole
author(s), inventor(s) or developer(s) thereof under U.S. law.

	2.2.
	DT Ownership.    As between HP and DT, DT owns all right, title, and interest in Property and design patents that were
conceived, discovered, authored or developed solely by DT or DT employees at any time, if and to the extent that DT or DT employees are or would be considered to be the sole author(s), inventor(s) or
developer(s) thereof under U.S. law.

	2.3.
	Joint Ownership.    DT and HP jointly own all right, title and interest in and to Jointly Created
IP. IP any patentable invention arises out of IP, DT and HP will promptly disclose such Jointly 

2

 

Created
IP to the other Party and will mutually agree on whether and how to pursue patent protection of the invention in the U.S. and elsewhere. Neither party has any duty to an account to the other
for profits or royalties earned under any patents on Jointly Created IP; either party may sell or sublicense such to Agilent; and neither party may sublicense or transfer such patents to any person
other than Agilent without the consent of the other. 

	2.4.
	Pre-Existing Intellectual Property.    HP and DT will each retain all pre-existing ownership rights
in HP Pre-Existing IP and DT Pre-Existing IP, respectively, and neither Party shall have any right or license to the other Party's Pre-Existing Intellectual
Property unless specifically licensed in this Agreement, or in prior agreements between the Parties.

	2.5.
	Alliance IP.    HP and DT will each retain all ownership rights in HP Alliance IP and DT Alliance IP, respectively, and
neither Party shall have any right or license to the other Party's Alliance IP except as expressly stated in this Agreement.

	3.
	LICENSE GRANTS

	3.1.
	HP
hereby grants DT a non-exclusive, world-wide, non-transferable license, without the right to sublicense, under HP Alliance IP and HP
Pre-Existing IP to make, have made, use, sell, offer for sale, import, reproduce, distribute, prepare derivative works and otherwise dispose of Microdisplay-Based Products. As to HP
Alliance IP, this license does not expire and is royalty-free. As to HP PreExisting IP, this license will remain in effect for a period of five years from the Effective Date, with
royalties to be paid as set forth in Section 5.1 below

	3.2.
	DT
hereby grants HP a non-exclusive, world-wide, non-transferable, and, except as stated in Section 5, royalty-free,
paid-up, irrevocable license, without the right to sublicense (except to Agilent, as provided herein), under DT Alliance IP and DT Pre-Existing IP to make, have made, use,
sell, offer for sale, import, reproduce, distribute, prepare derivative products and otherwise dispose of Microdisplay-Based Products. As to DT Alliance IP, this license does not expire. As to DT
Pre-Existing IP, this license will remain in effect for a period of five years from the Effective Date. DT hereby grants HP a non-exclusive, world-wide,
non-transferable, royalty-free, paid-up, irrevocable, perpetual license, without the right of sublicense (except to Agilent, as provided herein), under any DT
patent covering the invention known as "Curved Beam Splitter" IP to make have made, use, sell, offer for sale and import Microdisplay-Based Products. As to DT LC IP, DT shall elect, at its sole
discretion, either to (a) supply the appropriate liquid crystal material that contains DT LC IP to HP during the five years that commence with effective date of this agreement, which liquid
crystal material shall be sold to HP at Market Price; or (b) grant to HP a non-exclusive, world-wide, non-transferable, royalty free license, without the
right to sublicense (except to Agilent, as provided herein), under DT LC IP, together with all reasonable technical and other assistance, to make, have made, use, sell, offer for sale, import,
reproduce, distribute, prepare derivative products and otherwise dispose of Microdisplay-Based Product(s). If DT elects option (a) but during the five-year period fails to supply
the liquid crystal materials to HP at Market Price in sufficient quantities to meet HP's needs, then DT shall grant the license described in option (b) to the extent necessary for HP to meet
its needs during the five-year period. DT's grant of this license to HP, and its assignment to Agilent, and Agilent's subsequent spinoff into an independent company shall not constitute or
be considered a grant of a manufacturing license by DT to a third party under the License Agreement between HP and DT dated January 26, 1998.

	3.3
	HP
hereby grants DT a non-exclusive, world-wide, non-transferable, royalty-free, paid up irrevocable, perpetual license, without the
right of sublicense, under HP Pre-Existing IP and HP Alliance IP embodied in the Q-Rainbow illuminator, to have made, use, sell, offer for sale and import Microdisplay-Based
Products. 

3

 

	4.
	RESPONSIBILITY FOR PRODUCT MANUFACTURE

	4.1.
	HP
will provide not to exceed 50 engineer-months of engineering and development effort to assist DT with assuming a supporting role respecting manufacture of those certain
Microdisplay-Based Products code-named "Wink" and "Zebra." DT will pay for this engineering and development effort at the rate of [*****]. DT will be billed for
these engineering costs on a monthly basis, with payment due within 30 days of the date of each invoice. Additional charges may apply to certain efforts and will be identified by HP and agreed
to by DT before such work commences. The Parties acknowledge that HP actually commenced providing this engineering and development effort on November 15, 1999. However, HP's obligation to
provide this engineering and development effort is contingent on HP having sufficient engineering personnel reasonably available. HP's obligation to provide engineering personnel and development
effort will terminate March 31, 2000, regardless of how many engineer-months have actually been provided by that date.

	4.2.
	At
DT's request, HP will sell its existing stock of parts on hand for manufacture of the Zebra & Wink products to DT at cost.

	4.3.
	Notwithstanding
paragraph 5 of the Letter Agreement, DT is not obligated to share gross margins with HP for those products shipped after the Effective Date of this Agreement.

	5.
	ROYALTIES

	5.1.
	DT
will pay HP a royalty of [*****], or any derivatives thereof, containing any HP Pre-Existing IP. DT will tender the royalty payments to HP
within 45 days after the end of each calendar quarter for all shipments during that quarter.

	5.2.
	DT
will keep accurate and sufficient records to determine amounts owed to HP and will make a quarterly written report to HP detailing the basis for any computations, which report DT
will timely provide to Jim Leising at the address set forth in Section 9.1 If no royalty is due, the report will so state. If no royalty payments are due for four consecutive quarters, DT's
reporting obligation will cease. However, if royalty payments subsequently become due, DT's reporting obligation will be reinstated under the terms set forth herein.

	5.3.
	DT
will maintain records necessary for the computation of amounts payable under this Agreement for three years following each accounting report. Such records will be open to
inspection by an auditor selected by HP to which DT has no reasonable objection during regular business hours of DT. HP or its auditor will use such records only to determine the accuracy of the
royalties paid and reports submitted. HP will bear the expenses of the auditor it selects, except DT will reimburse HP for such expenses if the total underpayment of royalties identified during the
audit exceeds the costs of the audit.

	5.4.
	HP
will reimburse DT, up to a maximum [*****], for those royalties that DT is obligated to pay on all post-Effective Date shipments by HP of any
product utilizing the surface stabilized ferroelectric liquid crystal ("SSFLC") patents owned by Noel Clark and Sven Lagerwall, as listed in the Clark Lagerwall Sub-License Agreement
between DT and HP dated as of January 26, 1998 that are included in the DT Pre-Existing IP licensed to HP hereunder.

	5.5.
	HP
will keep accurate and sufficient records to determine amounts owed to DT and will make a quarterly written report to DT detailing the basis for any computations, which report HP
will timely provide to Haviland Wright at the address set forth in Section 9.1 If no royalty is due, the report will so state. If no royalty payments are due for four consecutive quarters, HP's
reporting obligation will cease. However, if royalty payments subsequently become due, HP's reporting obligation will be reinstated under the terms set forth herein. 

4

 

	5.6.
	HP
will maintain records necessary for the computation of amounts payable under this Agreement for three years following each accounting report. Such records will be open to
inspection by an auditor selected by DT to which HP has no reasonable objection during regular business hours of HP. DT or its auditor will use such records only to determine the accuracy of the
royalties paid and reports submitted. DT will bear the expenses of the auditor it selects, except HP will reimburse DT for such expenses if the total underpayment of royalties identified during the
audit exceeds the costs of the audit.

	6.
	TERM AND TERMINATION

DT
may terminate its obligation to pay royalties under this Agreement at any time by ceasing further manufacture and sale of products containing any HP Pre-Existing IP or derivatives
thereof. All licenses and other rights granted herein will remain in effect according to their terms. 

	7.
	RIGHT OF ASSIGNMENT

This
Agreement and any rights and licenses granted herein are personal to each Party and are binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns.
Neither Party may assign any of its rights, privileges or obligations hereunder without the prior written consent of the other Party, which consent shall not be unreasonably withheld. Furthermore, HP
hereby assigns its rights and obligations under this Agreement to Agilent, to which assignment DT hereby consents. 

	8.
	LIMITATION OF LIABILITY

In
no event will either party be liable for any indirect, consequential, special or incidental damages (including without limitation loss of profits or data), whether based on contract, tort, or any
other legal theory. Furthermore, direct damages are limited to one million dollars regardless of the cause of action. This limitation of liability applies only to any cause of action arising out of
the APMF and Letter Agreements. This limitation of liability does not apply if any Product provided hereunder is determined to have directly caused bodily injury or death. This limitation of liability
does not apply to breaches of confidentiality, IP violations, IP indemnification responsibilities, or payments due. 

5

 
	9.
	NOTICES.

	9.1.
	Notices
shall be delivered to the following persons. 

	 	Party:	 	Hewlett-Packard	 	Displaytech
	 	Name:	 	Jim Leising	 	Haviland Wright
	 	Title:	 	Strategic Alliance Mgr.	 	CEO
	 	Address:	 	Agilent Technologies, Inc.	 	Displaytech, Inc.
	 	 	 	350 W. Trimble Road	 	2602 Clover Basin Drive
	 	 	 	San Jose CA 95131	 	Longmont, CO 80503
	 	Phone:	 	408-435-6681	 	303-772-2191
	 	Fax:	 	408-435-4288	 	303-772-2193
	 	e-mail:	 	jim_leising@agilent.com	 	haviland@displaytech.com
	 	and:	 	 	 	 
	 	Party:	 	Hewlett-Packard	 	Displaytech
	 	Name:	 	Dick Schulze	 	George E. Clough
	 	Title:	 	Corporate Counsel	 	General Counsel
	 	Address:	 	Agilent Technologies, Inc.	 	Displaytech, Inc.
	 	 	 	1501 Page Mill Road	 	2602 Clover Basin Drive
	 	 	 	M/S 4U-10	 	Longmont, CO 80503
	 	Phone:	 	(650) 857-4377	 	(303) 772-2191
	 	Fax:	 	(650) 852-8063	 	(303) 772-2193
	 	e-mail:	 	dick_schulze@agilent.com	 	gclough@displaytech.com

	9.2.
	Written Notices.    All notices required or permitted to be given under this Agreement will be in writing.

	9.3.
	When Effective.    Notices shall be deemed validly given upon the earlier of (a) confirmed receipt by the Recipient
or (b) five business days after dispatch by registered airmail, postage prepaid, in any post office in the United States addressed to the other Party at the address specified herein.

	10.
	CONFIDENTIALITY.    Each Party ("Recipient") receiving Confidential Information under this Agreement from the other Party
("Discloser") shall protect the disclosed Confidential Information by using the same degree of care, but no less than a reasonable degree of care, to prevent the unauthorized use, dissemination, or
publication of the Confidential Information as Recipient uses to protect its own confidential information of a like nature. Recipient shall only allow Employees to have access to Confidential
Information.

	10.1.
	Confidential
Information disclosed under the APMF and Letter Agreements will continue to be governed by the terms of such agreement.

	10.2.
	Confidential Information.    "Confidential Information" includes only information that is either (a) marked as
confidential at the time of disclosure; or that is (1)) unmarked (e.g. orally disclosed) but treated as confidential at the time of disclosure, and is designated as confidential in a written
memorandum sent to Recipient's primary representative within 30 days of disclosure, summarizing the Confidential Information sufficiently for identification.

	10.3.
	Use.    The Recipient may use Confidential Information received under this Agreement only for the purposes this Agreement.

	10.4.
	Exclusions.    This Agreement imposes no obligation upon Recipient with respect to information that (but only to the extent
that): (a) was in Recipient's possession before receipt from Discloser; (b) is or becomes a matter of public knowledge through no fault of Recipient; (c) is rightfully received by
Recipient from a third party, (d) is disclosed by Discloser to a 

6

 

third
party without a duty of confidentially on the part of the third party; (e) is independently developed by Recipient; (f) is disclosed pursuant to operation of law; or (g) is
disclosed by Recipient with Discloser's prior written approval. 

	10.5.
	Term.    The Recipient's obligation of confidentiality hereunder shall expire three years after the date on which the
information was disclosed.

	11.
	DISPUTE RESOLUTION.

	11.1.
	Condition Precedent.    In the event of any dispute under this Agreement, and as a condition precedent to either Party
filing suit, instituting a proceeding or seeking other governmental resolution (except in the matter of bankruptcy) in connection therewith, the Parties will attempt to resolve such dispute in the
following manner.

	11.2.
	Good Faith Negotiation.    The Parties will negotiate in good faith to resolve any dispute between them regarding this
Agreement at the lowest feasible level of management.

	11.3.
	Senior Management.    If such negotiations do not resolve the dispute within five days, then either Party may bring the
issue to the attention of the SPG Alliance Manager, and DT CEO. If they are unable to resolve the dispute, the Alliance Manager and CEO will take the issue to Agilent's Semiconductor Products Group
VP/General Manager who will attempt to find a resolution satisfactory to each Party. If resolution is still not reached then the GM and CEO will take the issue to DT's Chairman of the Board who will
attempt to find a resolution satisfactory to each Party.

	11.4.
	Legal Action.    The foregoing negotiations and meetings shall be a condition precedent to either Party commencing any
legal or equitable action, instituting a proceeding or seeking other governmental resolution of any dispute in connection with this Agreement. The Parties may agree to pursue any other additional
mutually acceptable dispute resolution method but such pursuit shall not modify the above-stated condition. The Parties acknowledge and agree that any such legal or equitable action, proceeding or
other governmental resolution commenced by a Party (a) must be instituted under the substantive law (and not the conflicts law) of the State of California and (b) may be instituted only
after receipt by the other Party of not less than 15 days prior written notice from the complaining Party of intent to commence same.

	11.5.
	Equitable Relief.    Notwithstanding any other statement herein, either Party may seek immediate injunctive or other relief
related to the breach of the confidentiality obligation or violation of the intellectual property rights set forth in this Agreement.

	12.
	RELEASE OF CLAIMS

The
Parties intend this Agreement to be a full, final and complete release of any and all claims that either of them may have against the other as of the Effective Date that arise out of or are
related to the APMF And Letter Agreements. Each Party fully and finally releases, discharges, and settles all claims or causes of action, known or unknown, arising out of or relating to the APMF and
Letter Agreements. The Parties intend to waive, release, and promise never to assert any such claims even if they do not presently believe that they have such a claim. The Parties therefore waive
their rights under Section 1542 of the California Civil Code, which reads as follows: 

A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must
have materially affected his settlement with the debtor.  

7

 

	13.
	OTHER AGREEMENTS

	13.1.
	The Sub-Alliance Framework Agreement.    That certain instrument entitled "Sub-Alliance Framework
Agreement, dated January 31, 1999, remains in effect pursuant to the terms stated therein, except that HP hereby assigns its rights and obligations under that agreement to Agilent, and to which
assignment DT hereby consents.

	13.2.
	The Distributor Agreement.    That certain instrument entitled "Distributor Agreement" by and between DT, HP and Nissho
Electronics Corporation, dated September 20, 1999, is terminated pursuant to Section 14(d) thereof, which provides that the Distributor Agreement will automatically terminate in the
event, and on the date, the alliance between DT and HP terminates.

	13.3.
	The Miyota Agreement.    As between HP and DT, with respect to those certain instruments dated July 28, 1999, and
September 22, 1999, by and between DT, HP and Miyota Co., Ltd. (collectively the "Miyota Agreement"), DT, individually, shall undertake to perform non-recurring engineering
to develop an FLC camcorder viewfinder product, all as more fully set forth in the Miyota Agreement. As set forth more fully in Section 4.1, HP will provide engineering and development effort
to DT to assist DT in this undertaking. DT shall provide all necessary assurances that Miyota may require as a condition to consenting to the assignment of HP's obligations under the Miyota Agreement
from HP to DT. HP disclaims any future non-recurring engineering costs collectable from Miyota as a result of completion of agreed development milestones.

	14.
	GENERAL TERMS.

	14.1.
	Entire Agreement.    Except as otherwise provided herein, this Agreement sets forth the entire Agreement and understanding
between the Parties as to the subject matter set forth herein and merges all prior discussions between them related thereto. No conditions, definitions, warranties, understanding or other
representations with respect to such subject matter other than as expressly provided herein shall bind either of the Parties.

	14.2
	Modifications.    This Agreement may only be modified by a written instrument signed by the Parties.

	14.3.
	Export Restrictions.    The Parties agree not to export or re-export any software products or technology or any
derivatives thereof in violations of the U.S. export administrative regulations or other regulations.

	14.4
	Force Majeure.    Neither Party will be liable in damages or have the right to cancel or terminate this Agreement, in whole
or in part, for any delay or default in performance thereunder if such delay or default is caused by conditions beyond the control of the delaying or defaulting Party (including, but not limited to,
acts of God, government restrictions, continuing domestic or international events such as wars or insurrection, strikes, fires, floods, work stoppages and embargoes). Each Party will give the other
prompt written notice of any condition likely to cause any such delay or default and shall use all reasonable efforts to minimize the period and impact of the delay or default.

	14.5.
	Subsidiaries.    Except as otherwise specifically provided in this Agreement, the Parties agree that this Agreement will
apply to a Party's Subsidiaries so long as such Subsidiaries agree to comply fully with the obligations imposed on the Party by the Agreement. Each Party will remain fully responsible for actions and
omissions of its Subsidiaries relative to rights granted under this Agreement. Further, the Parties agree that any agreement signed by any Subsidiary under this Agreement shall be binding on the Party
that is the parent company of such Subsidiary. 

8

 

	14.6.
	Waiver.    The waiver of any term, condition, or provision of this Agreement or Sub-Alliance Framework
Agreement by either Party must be in writing. No such waiver will be construed as a waiver of any other term, condition, or provision except as provided in writing, nor as a waiver of any subsequent
breach of the same term, condition, or provision.

	14.7.
	Severability.    If any provision of this Agreement is held invalid or unenforceable by a body of competent jurisdiction,
such provision will be construed, limited or, if necessary, severed to the extent necessary to eliminate such invalidity or unenforceability. The Parties agree to negotiate in good faith a valid,
enforceable substitute provision that most nearly effects the Parties' original intent in entering into this Agreement or to provide an equitable adjustment in the event no such provision can be
added. The other provisions of this Agreement will remain in full force and effect.

	14.8.
	Governing Law.    This Agreement will be governed in all respects by the laws of the state of California without reference
to any choice of laws provisions. 

9

 

        IN
WITNESS WHEREOF, each Party has executed this Agreement by signature of its authorized representative. 

	DISPLAYTECH, INC.	 	SPG, A DIVISION OF AGILENT

TECHNOLOGIES, SUBSIDIARY OF THE

HEWLETT-PACKARD COMPANY
	

By	
 	

/s/  HAVILAND WRIGHT      
	
 	

By:	
 	

/s/  JAMES L. LEISING      

	Haviland Wright	 	James L. Leising
	Chief Executive Officer	 	Strategic Alliance Manager
	

Date of Signature: 11 Jan, 2000	
 	

Date of Signature: Jan 13, 2000

10

 
 

AMENDMENT    
    

        This Amendment to that certain agreement effective November 15, 1999, entitled Winding-Up of Alliance, Production and Marketing Framework ("the Winding-Up
Agreement") is entered into as of April 26, 2002, 2002 by and between Displaytech, Inc., a Colorado corporation ("Displaytech") with principal executive offices at 2602 Clover Basin Drive,
Longmont, Colorado 80503, and Agilent Technologies, Inc. ("Agilent"), a Delaware corporation with an office at 350 W. Trimble Avenue, San Jose, California 95131. This amendment amends the Winding-Up
Agreement to the following extent: 

	1.
	Displaytech
shall deliver royalty reports to Agilent within 45 days after the end of each Displaytech fiscal quarters. The parties reaffirm the audit rights granted to Agilent
in the Winding Up Agreement.

	2.
	Within
30 days of the Effective Date of this Amendment, Displaytech shall remit to Agilent no less than 50% of the royalties past due.

	3.
	Contemporaneously
with the quarterly royalty reports, Displaytech shall remit to Agilent no less than 33% of the amounts owed as indicated in the reports.

	4.
	Any
balance outstanding after the payment of past due royalties referred to in number 2, above, shall be subject to an annual interest of 16%, compounded quarterly.

	5.
	Displaytech
may make payments for any outstanding balance at any time.

	6.
	All
amounts due to Agilent by Dispalytech shall be paid in full no later than April 30, 2004.

	7.
	In
the event that Displaytech is acquired, sold or dissolved, any outstanding balance shall become immediately due and payable. 

        IN
WITNESS WHEREOF, each Party has executed this Agreement by signature of its authorized representative. 

	DISPLAYTECH, INC.	 	SPG, A DIVISION OF AGILENT TECHNOLOGIES
	

By	
 	

/s/ RICHARD BARTON
	
 	

By	
 	

/s/ JAMES L. LEISING

	Richard Barton
 Chief Executive Officer	 	James L. Leising
 Strategic Alliance Manager
	

Date of Signature: 30 April, 2002	
 	

Date of Signature: 25 April, 2002

 
 

AMENDMENT    
    

        This Amendment to that certain agreement effective November 15, 1999, entitled Winding-Up of Alliance, Production and Marketing Framework ("the Winding-Up
Agreement") is effective as of April 26, 2002 (the "Effective Date"), by and between Displaytech, Inc., a Colorado corporation ("Displaytech") with principal executive offices at 2602 Clover
Basin Drive, Longmont, Colorado 80503, and Agilent Technologies, Inc. ("Agilent"), a Delaware corporation with an office at 350 W. Trimble Avenue, San Jose, California 95131. This amendment amends the
Winding-Up Agreement to the following extent: 

	1.
	Displaytech
shall deliver royalty reports to Agilent within 45 days after the end of each Displaytech fiscal quarter. The parties reaffirm the audit rights granted to Agilent in
the Winding Up Agreement.

	2.
	The
parties acknowledge that within 30 days of the Effective Date of this Amendment, Displaytech paid Agilent no less than 50% of the royalties past due.

	3.
	Contemporaneously
with the quarterly royalty reports, Displaytech shall remit to Agilent no less than 33% of the amounts owed as indicated in the reports.

	4.
	Any
deferred balance outstanding after the payment of past due royalties referred to in number 2, above, shall be subject to an annual interest of 16%, compounded quarterly.

	5.
	Displaytech
may make payments for any outstanding balance at any time.

	6.
	All
outstanding amounts owed to Agilent by Displaytech shall be paid in full no later than January 30, 2005.

	7.
	In
the event that Displaytech is acquired, sold or dissolved, any outstanding balance shall become immediately due and payable. 

        IN
WITNESS WHEREOF, each Party has executed this Agreement by signature of its authorized representative. 

	DISPLAYTECH, INC.	 	SPG, A DIVISION OF AGILENT TECHNOLOGIES
	

By	
 	

/s/ RICHARD BARTON
	
 	

By	
 	

/s/ JAMES L. LEISING

	Richard Barton
 Chief Executive Officer	 	James L. Leising
 Strategic Alliance Manager
	

Date of Signature: May 7, 2004	
 	

Date of Signature: 7 May, 2004

 
 

AMENDMENT    
    

        This is the third Amendment to that certain agreement effective November 15, 1999, entitled Winding-Up of Alliance, Production and Marketing
Framework ("the Winding-Up Agreement"), by and between Displaytech, Inc., a Delaware corporation ("Displaytech") with principal executive offices at 2602 Clover Basin Drive,
Longmont, Colorado 80503, and Agilent Technologies, Inc. ("Agilent"), a Delaware corporation with an office at 350 W. Trimble Avenue, San Jose, California 95131. This amendment is effective as
of July 1, 2004. This amendment amends the Winding-Up Agreement to the following extent: 

        1.     In
addition to the licenses granted in the Winding-Up Agreement, Agilent grants Displaytech a non-exclusive, world-wide,
non-transferable license, without the right to sublicense, under all Agilent-owned IP and Agilent-controlled IP that qualifies as "HP Pre-Existing IP" under
paragraph 1.7 of the Winding-Up Agreement, to make, have made, use, sell, offer for sale, import, reproduce, distribute, prepare derivative works and otherwise dispose of
Microdisplay-Based Products, with royalties to be paid as set forth in Section 5.1 below. This license expires November 14, 2006. 

        2.     The
second sentence of Section 3.2 is hereby deleted and replaced with the following: "As to the DT Pre-Existing IP, this license will remain in effect
for a period of seven years from the Effective Date." 

        3.     The
following new paragraph 10.5 is added to Article 10, "Confidentiality": 

        10.5 The
existence and terms of the Winding-Up Agreement and its amendments are confidential. Neither party will disclose the existence or terms thereof without
the advance written consent of the other. If any such disclosure is required by law, the disclosing party will give the other party as much advance notice as is practical under the circumstances, and
will provide reasonable assistance to the other party, in order that the other party may protect its interests. 

        In
all other respects the Winding-Up Agreement, as previously amended, remains in full force and effect. 

        IN
WITNESS WHEREOF, each Party has executed this Agreement by signature of its authorized representative. 

	

DISPLAYTECH, INC.	
 	

AGILENT TECHNOLOGIES
	

By	
 	

/s/  RICHARD D. BARTON      
 Richard D. Barton

Chief Executive Officer	
 	

By	
 	

/s/  JAMES L. LEISING      
 James L. Leising

Strategic Alliance Manager
	

Date of Signature: July 20, 2004	
 	

Date of Signature: July 20, 2004

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WINDING-UP OF ALLIANCE, PRODUCTION AND MARKETING FRAMEWORK

AMENDMENT

AMENDMENT

AMENDMENTExhibit
4.2

 

2004 SECURITYHOLDER
AGREEMENT dated as of July 26, 2004, among ENERSYS, a Delaware corporation
(the “Company”), and each of the other parties signatory hereto.

 

WHEREAS, the Company, the
MSCP Securityholders and certain members of management of the Company entered
into a Shareholder Agreement dated as of November 9, 2000 (the “2000
Shareholder Agreement”), with respect to certain matters related to the
Company and its equityholders, and the 2000 Shareholder Agreement was amended
and restated as of March 22, 2002 (the “2002 Securityholder Agreement”);
and, the parties hereto desire to amend and restate the 2002 Securityholder
Agreement with respect to certain matters related to the Company and certain of
its equityholders;

 

NOW, THEREFORE, in consideration
of the foregoing and the mutual agreements herein contained, the parties hereto
agree to amend and restate the 2002 Securityholder Agreement in its entirety as
follows:

 

ARTICLE I

CERTAIN DEFINITIONS

 

SECTION 1.1.  Definitions.  For the purposes of this Agreement, the
following terms have the following meanings:

 

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

 

“beneficial
owner” or “beneficially own” has the meaning given such term in Rule
13d-3 under the 1934 Act; provided, however, that for purposes of
this Agreement, all Securities owned by a MSCP Securityholder that are
beneficially owned by Metalmark shall also be deemed to be beneficially owned
by such MSCP Securityholder.

 

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

 

“Business Day”
means any day other than a Saturday, Sunday or other day on which commercial
banks are authorized or obligated to be closed in New York City.

 

“Capital”
means EnerSys Capital Inc., a Delaware corporation.

 

“Cashless
Exercise” means an exercise of vested Options outstanding under the MEP
through (a) the delivery of irrevocable instructions to a broker to make a Sale
of a number of Shares issuable upon the partial exercise of such Options that
results in proceeds thereon in an amount required to pay the aggregate exercise
price for all the

 

 

Shares underlying such
vested Options being so exercised (and any required withholding tax) and to
deliver such proceeds to the Company in satisfaction of such aggregate exercise
price or (b) any other surrender to the Company of Shares issuable upon the
partial exercise of such Options or vested Options outstanding under the MEP to
satisfy the applicable aggregate exercise price (and any withholding tax)
required to be paid upon such exercise.

 

“CEO Employment
Agreement” means the Employment Agreement dated as of November 9,
2000, between Yuasa Inc., a Pennsylvania corporation, and John D. Craig.

 

“Chief
Executive Officer” means the Chief Executive Officer of the Company.

 

“Co-Investor”
means a “Purchaser” as defined in the 2002 Co-Investor Stock Purchase
Agreement.

 

“Commission”
means the Securities and Exchange Commission, and any successor commission or
agency having similar powers.

 

“Common Stock”
means any of the Common Stock of the Company.

 

“Company”
means EnerSys, a Delaware corporation, and any successor thereto, whether by
merger or otherwise.

 

“Encumbrance”
means any lien, security interest, pledge, claim, option, right of first
refusal, marital right or other encumbrance with respect to any Share.

 

“EnerSys
Delaware” means EnerSys Delaware, Inc., a Delaware corporation.

 

“First
Anniversary” means the first anniversary of the 2004 Closing.

 

“Independent
Counsel” means legal counsel of national reputation that has had no
material client relationship with the Company or any MSCP Securityholder or
MSGEM Securityholder or any employee of the Company within the three-year
period prior to any date of determination.

 

“Initial
Management Securityholder” means any of John D. Craig, Charles K. McManus,
John A. Shea, Richard W. Zuidema or Michael T. Philion.

 

“Management
Securityholder” means any of John D. Craig, Michael T. Philion, Richard W.
Zuidema, Charles K. McManus, John A. Shea, Raymond Kubis and Cheryl Diuguid,
and such other Persons as are designated as “Management Securityholders” by the
compensation committee of the Board of Directors in consultation with the Chief
Executive Officer from time to time, whether or not any such Securityholder is
then employed by the Company (and excluding any such Person as is designated
from time to time by such committee in consultation with the Chief Executive
Officer).

 

“MEP” means
the Management Equity Plan of the Company, as amended, from time to time.

 

2

 

“Metalmark”
means Metalmark Capital LLC, a Delaware limited liability company.

 

“MSCP IV”
means Morgan Stanley Dean Witter Capital Partners IV, L.P., a Delaware limited
partnership.

 

“MSCP
Securityholder” means MSCP IV, MSDW IV 892 Investors, L.P., a Delaware
limited partnership, or Morgan Stanley Dean Witter Capital Investors IV, L.P.,
a Delaware limited partnership.

 

“MSGEM
Securityholder” means Morgan Stanley Global Emerging Markets Private
Investment Fund, L.P., a Delaware limited partnership, or Morgan Stanley Global
Emerging Markets Private Investors, L.P., a Delaware limited partnership.

 

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

 

“1934 Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.

 

“Option”
means a Rollover Option, Service Option or Performance Option.

 

“Option Value”
means, as of any date of determination and with respect to any Security that is
an Option, an amount equal to (a) the 20-Day Average Price, as of such date of
determination, minus (b) the
applicable exercise price of such Option.

 

“outstanding”,
with respect to any Securities, means, as of any date of determination, all
Securities that have been issued on or prior to such date, other than
Securities repurchased or otherwise reacquired by the Company, or any
controlled Affiliate thereof, on or prior to such date.

 

“Owned Equity
and Rollover Shares” means, with respect to a Management Securityholder,
the number of Shares equal to (a) the total number of Shares owned by such
Management Securityholder and issued to such Person pursuant to any
reclassification, stock split or conversion of capital stock of the Company in
connection with the 2004 IPO that were owned by such Person on November 9,
2000, plus (b) the total number
of Shares issuable to such Person upon the exercise of Rollover Options owned
by such Person immediately prior to the 2004 Closing.  The number of such Shares and Rollover
Options owned by each Management Securityholder immediately prior to the 2004
Closing is as set forth on the 2004 Effective Date Award Summary approved by
the compensation committee.

 

“Owned Service
and Performance Shares” means, with respect to a Management Securityholder,
the total number of Shares issued to a Management Securityholder upon the
exercise of Service Options and Performance Options owned by such Person
immediately prior to the 2004 Closing. 
The number of such Service Options and Performance Options owned by each
Management Securityholder immediately prior to

 

3

 

the 2004 Closing is as
set forth on the 2004 Effective Date Award Summary approved by the compensation
committee.

 

“Permitted
Transferee” means any Person with respect to which the Board of Directors
shall have adopted a resolution (which shall have been approved by at least one
director who is an employee of any of the MSCP Securityholders or Metalmark or
any Affiliate thereof, or, if there are no such directors, a MSCP Designee if
there is any such director) stating that the Board of Directors has no
objection if a Sale of Securities is made to such Person.

 

“Person”
means an individual, a partnership, a joint venture, a corporation, an
association, a trust, an individual retirement account or any other entity or
organization, including a government or any department or agency thereof.

 

“Public
Offering” means an underwritten public offering of equity securities of the
Company pursuant to an effective registration statement on a Form S-1, S-2 or
S-3 (or comparable successor forms) under the 1933 Act.

 

“Realized Value”
means, as of any date of determination and with respect to any Management
Securityholder, the sum of (a) the aggregate gross proceeds realized upon all
Sales of Securities that are Shares prior to such date of determination
(including, without limitation, and for the avoidance of doubt, the gross
proceeds delivered to the Company in connection with clause (a) of the
definition of Cashless Exercise) and (b) the aggregate gross proceeds that
would have been realized by such Management Securityholder upon a Sale for cash
of any Shares surrendered pursuant to clause (b) of the definition of Cashless
Exercise prior to such date of determination and (c) the product of (i) the
aggregate number of Securities that are Shares with respect to which such
Management Securityholder has granted a consensual Encumbrance prior to such
date of determination and (ii) the 20-Day Average Price, as of such date of
encumbrance.

 

“Registrable
Shares” means, with respect to each Securityholder, (a) Shares held by such
Securityholder that are outstanding at the 2004 Closing (other than Shares
acquired in the 2004 IPO); (b) Shares issued to such Management Securityholder
pursuant to the MEP; and (c) any Shares issued or issuable in respect of Shares
referred to in clauses (a) or (b) above by way of a stock dividend or a stock
split or in connection with a combination or subdivision of shares,
reclassification, recapitalization, merger, consolidation or other
reorganization of the Company.  As to any
particular Registrable Shares that have been issued, such securities shall
cease to be Registrable Shares when (i) a registration statement with respect to
the sale of such securities shall have become effective under the 1933 Act and
such securities shall have been disposed of under such registration statement,
(ii) they shall have been distributed to the public pursuant to Rule 144, (iii)
they shall have been otherwise transferred or disposed of, and new certificates
therefor not bearing a legend to the effect set forth in the first paragraph of
the form of legend required by Section 3.2(a) restricting further transfer
shall have been delivered by the Company, and subsequent transfer or disposition
of them shall not require their registration or qualification under the 1933
Act or any similar state law then in force or (iv) they shall have ceased to be
outstanding.

 

4

 

“Registration
Expenses” means all out-of-pocket expenses incident to the Company’s
performance of or compliance with Article IV, including, without
limitation, all registration and filing fees (including filing fees with
respect to the National Association of Securities Dealers, Inc.), all fees and
expenses of complying with state securities or “blue sky” laws (including
reasonable fees and disbursements of underwriters’ counsel in connection with
any “blue sky” memorandum or survey), all printing expenses, all listing fees,
all registrars’ and transfer agents’ fees, all “road show” expenses of the
Company and the underwriters, the fees and disbursements of counsel for the
Company and of its independent public accountants, including the expenses of
any special audits and/or “cold comfort” letters required by or incident to
such performance and compliance, the reasonable fees and disbursements of one
outside counsel retained by the holders of Registrable Shares being registered
(which counsel shall be satisfactory to the holders of a majority of the shares
of Registrable Shares being registered), but excluding underwriting discounts
and commissions and applicable transfer taxes, if any, which shall be borne by
the sellers of the Registrable Shares being registered in all cases.

 

“Restricted
Shares” means all Shares other than (a) Shares that have been registered
under a registration statement pursuant to the 1933 Act, (b) Shares with
respect to which a Sale has been made in reliance on and in accordance with
Rule 144 or other applicable exemption from registration under the 1933 Act or
(c) Shares with respect to which the holder thereof shall have delivered to the
Company either (i) an opinion, in form and substance satisfactory to the
Company, of counsel, who shall be satisfactory to the Company, or (ii) a “no
action” letter from the Commission, to the effect that subsequent transfers of
such Shares may be effected without registration under the 1933 Act.

 

“Rule 144”
means Rule 144 (or any successor provision) under the 1933 Act.

 

“Sale” means
(including with correlative meanings, the terms “Sell” or “Sold”)
any sale, assignment, transfer, distribution (whether by a partnership to any
of its partners or otherwise) or other disposition of Securities or of a
participation therein (including entering into any derivative transaction with
respect thereto).

 

“Second
Anniversary” means the second anniversary of the 2004 Closing.

 

“Securities”
means Shares, or options issued pursuant to the MEP, that, in either case, are
held by a Securityholder at the 2004 Closing, and any Shares issued after the
2004 Closing pursuant to such options; provided, however, that
Shares acquired by any Person in the 2004 IPO shall not be deemed to be
Securities for purposes of this Agreement.

 

“Share”
means any share of Common Stock.

 

“Securityholder”
means each Person (other than the Company) holding Securities of the Company
that is a party to this Agreement, so long as such Person shall beneficially
own any Securities (whether or not any such Person owns any Securities on

 

5

 

the date hereof) and
shall not have disposed of any such Securities in contravention of any
provision hereof or, to the extent applicable to such Securityholder, of the
MEP.

 

“Third
Anniversary” means the third anniversary of the 2004 Closing.

 

“Third Party”
means, with respect to any Securityholder, any other Person, other than the
Company and its subsidiaries or any Affiliate of such Securityholder.

 

“2002
Co-Investor Closing” means the purchase of securities of the Company by the
Co-Investors on May 3, 2002.

 

“2002
Co-Investor Stock Purchase Agreement” means the Stock Purchase Agreement
dated as of May 3, 2002, among the Company and the other parties signatory
thereto relating to, and providing for, the 2002 Co-Investor Closing.

 

“2004 Closing”
means the closing of the 2004 IPO.

 

“2004 IPO”
means the initial public offering of Shares.

 

“Unrealized
Value” means, as of any date of determination and with respect to any
Management Securityholder, the sum of (a) the product of (i) the 20-Day Average
Price, as of such date of determination, and (ii) the number of Securities that
are Shares that such Management Securityholder owns and has not granted a
consensual Encumbrance with respect to, as of such date of determination, and
(b) the aggregate Option Value of all Securities that are Options that such
Management Securityholder owns, as of such date of determination.

 

The following terms have
the meanings assigned thereto in the MEP: 
“Rollover Options”, “Service Options”, “Performance
Options”, “Cause”, “Good Reason”, “Permanent Disability”
and “Retirement”.

 

ARTICLE II

GOVERNANCE AND SECURITYHOLDER MATTERS

 

SECTION 2.1.  Board of
Directors; Committees.  (a) (i) The
Board of Directors shall initially consist of seven members, which may be
increased, at the discretion of the Board of Directors, from time to time, to
not more than nine members; provided, however, that, as required
by applicable federal or state securities laws or the rules of any stock
exchange on which the Shares are traded (“Applicable Governance Rules”),
the Board of Directors shall, if necessary, be expanded to include such
additional independent directors as may be required by such Applicable
Governance Rules, with such independent directors to be selected by the Board
of Directors.

 

(ii)           The Company shall take,
or cause to be taken, such actions as may be required from time to time to
establish and maintain audit, compensation and nominating/governance committees
of the Board of Directors, as well as such other committees of the board of
directors of the Company as the Board of Directors shall determine, having such
duties and 

 

6

 

responsibilities as are
customary for such committees.  Each such
committee shall be comprised of at least three members.

 

(iii)          The Company shall take
all actions necessary to cause the board of directors of EnerSys Delaware and
Capital to be comprised, at all times, solely of the same individuals as, from
time to time, comprise the Board of Directors.

 

(b)           (i)  MSCP IV shall, from time to time, be entitled
to designate a number of nominees (other than the CEO Designee) for election to
the Board of Directors (such nominees designated by MSCP IV, the “MSCP
Designees”), such that, if elected, such MSCP Designees and all other
directors who are MSCP Designees will constitute a majority (or, at its
election, any number less than a majority) of the members of the Board of
Directors.

 

(ii)           A majority (or, at its
election, any number less than a majority) of the members of the compensation
and nominating/governance committees shall be directors designated by MSCP IV; provided,
however, that such number of members as may be required by Applicable
Governance Rules shall meet the independence requirements of such Rules.

 

(iii)          Each
Securityholder holding Shares shall vote its Shares, and take or cause to be
taken such other actions, as may be required from time to time to elect to the
Board of Directors (A) the MSCP Designees, and (B) the CEO Designee.  Without limiting the generality of the
foregoing, at each annual meeting of the stockholders of the Company, and at
each special meeting of the stockholders of the Company called for the purpose
of electing directors of the Company, and at any time at which the stockholders
of the Company have the right to elect directors of the Company, in each such
event, the Securityholders shall vote all Shares owned by them, or take such
other actions as shall be necessary, to elect persons as directors of the
Company in accordance with the preceding provisions of this
Section 2.1(b).

 

(iv)          Each
Securityholder shall take all action necessary to remove forthwith any director
when such removal is requested for any reason, with or without cause, by the
Securityholders or other Person designating the nominee for election as such
director pursuant to Section 2.1(b). 
In the case of the death, resignation or removal as herein provided of
any director, each Securityholder shall vote all Shares held by it to elect
another person designated by the applicable Securityholders or other Person
designating the nominee for election as such director pursuant to
Section 2.1(b).

 

(v)           Each
Securityholder hereby agrees that it will not vote any of its Shares in favor of
the removal of any director that shall have been designated by any other
Securityholders or other Person, unless such removal shall be for cause or such
other Securityholders or other Person shall have consented to such removal in
writing.

 

(vi)          In the event that any
Securityholder shall fail to vote the Shares held by it in accordance with
Section 2.1(b), such Securityholder shall, upon such failure to so vote,
be deemed immediately to have granted to the Person entitled to designate the
nominee for election as the director for which such Securityholder shall have
failed to vote for such person’s election or removal, a proxy to vote its
Shares solely for the election of such nominee or the removal of such director,
as the case may be.  Such Securityholder
acknowledges that each such proxy

 

7

 

granted hereby, including
any successive proxy, if necessary, is being given to secure the performance of
an obligation hereunder, is coupled with an interest, and shall be irrevocable
until such obligation is performed.

 

(vii)         The Company shall take
advantage of the exemptions provided by Section 303A of the New York Stock
Exchange Listed Company Manual (the “Controlled Company Exemption”),
unless and to the extent MSCP IV shall otherwise request.

 

(c)           In
the event that Section 2.1(b) shall have terminated, and so long as the
MSCP Securityholders, the MSGEM Securityholders and the Co-Investors shall own
at least 15% of the outstanding Shares, MSCP IV shall be entitled to designate
a number of nominees (rounded to the nearest whole number, but not less than
one) for election to the Board of Directors, which when taken together with
sitting directors who were designated by MSCP IV, is proportionate to the
aggregate percentage of the outstanding Shares held by such MSCP
Securityholders, MSGEM Securityholders and the Co-Investors at the time of
election of such nominees.

 

(d)           The
Company shall designate the Chief Executive Officer as a nominee for election
to the Board of Directors (the “CEO Designee”).

 

(e)           The
Company shall take, or cause to be taken, such actions as may be required from
time to time, to elect, or cause the respective boards of directors of each of
the Company, Capital and EnerSys Delaware to elect, the Chief Executive Officer
as Chairman of the Board of each thereof; provided, however, that
the Company shall not be required to do any thereof to the extent any thereof
would, in the opinion of the Board (other than the CEO Designee and the MSCP
Designees), based on advice of Independent Counsel who shall be selected by the
Board (other than the CEO Designee and the MSCP Designees), be in violation of
any Applicable Governance Rules, other laws or the fiduciary duties of the
directors of any thereof.  Nothing in this
Section 2.1(e) shall have any affect on the rights or obligations of the
parties under the CEO Employment Agreement.

 

(f)            No
Securityholder shall grant any proxy or enter into or agree to be bound by any
voting trust with respect to the Shares held by such Securityholder, or enter
into any stockholder agreement or arrangement of any kind with any Person with
respect to the Shares held by such Person that is, in either case, inconsistent
with the terms of this Agreement (whether or not such agreement and arrangement
is with other stockholders of the Company that are not parties to this
Agreement).

 

SECTION 2.2.  Observer
Rights.  (a) MSCP IV may, at its
election and upon written notice to the Company, appoint one nonvoting
“observer”, who shall (i) be provided by the Company with all notices of
meeting, consents, minutes and other written materials that are provided to the
Board of Directors of the Company at the same time as such materials are
provided to such Board of Directors and (ii) be entitled to attend all meetings
of such Board of Directors.  The Company
shall reimburse MSCP IV (and any subadvisor thereof, including Metalmark) for
all travel and lodging expenses in connection with attending any Board of Directors
meeting of the Company on the same terms, and subject to the same policies, as
shall apply to other directors of the Company. 
Anything herein to the contrary notwithstanding, neither the Company nor
any of its subsidiaries shall be required to disclose any information to

 

8

 

MSCP IV, any subadvisor
of MSCP IV, or any “observer” appointed pursuant to this Section 2.2(a),
or permit any such “observer” to attend any board of directors meeting pursuant
to this Section 2.2(a), if, in the reasonable judgment of the Board of
Directors, such disclosure or attendance would be inconsistent with the
obligations of the Company or any subsidiary thereof under any applicable laws
or regulations.

 

(b)           First
Plaza Group Trust and GM Capital Partners I, L.P. may appoint and the MSGEM
Securityholders may appoint, at their election and upon written notice to the
Company, one nonvoting “observer”, who shall (i) be provided by the Company
with all notices of meeting, consents, minutes and other written materials that
are provided to the Board of Directors of the Company at the same time as such
materials are provided to such Board of Directors and (ii) be entitled to
attend all meetings of such Board of Directors. 
The Company shall reimburse each such Co-Investor and the MSGEM
Securityholders for all travel and lodging expenses in connection with
attending any Board of Directors meeting of the Company on the same terms, and
subject to the same policies, as shall apply to other directors of the Company.  Anything herein to the contrary
notwithstanding, neither the Company nor any of its subsidiaries shall be
required to disclose any information to any Co-Investor or MSGEM Securityholder
or any “observer” appointed pursuant to this Section 2.3(b), or permit any
such “observer” to attend any board of directors meeting pursuant to this
Section 2.3(b), if, in the reasonable judgment of the Board of Directors,
such disclosure or attendance would be inconsistent with the obligations of the
Company or any subsidiary thereof under any antitrust or other laws or
regulations regulating competition or the conduct of business.

 

(c)           Unless
the Company shall otherwise consent thereto in writing, each Securityholder
entitled to appoint an “observer” agrees that it will, and will cause its
“observer” to, keep all the Observer Material confidential; provided, however,
that nothing in this Section 2.2(b) shall limit the ability of such
Securityholder (or “observer”) to disclose any of such Observer Material (i) to
its limited partners or members to the extent required by its limited
partnership or operating agreement, (ii) to its employees, agents,
advisors or representatives who need to know such information with respect to
any matters relating hereto, (iii) to the extent required to permit such
Securityholder (or “observer”) to comply with any regulatory requirements of
any governmental authority or (iv) as may be required in connection with the
prosecution or defense by such Securityholder (or “observer”) of any claim,
demand, action, suit or proceeding with respect to the Company or any matters
related hereto.  If any such
Securityholder proposes to disclose any Observer Material (other than periodic
summary financial information about the Company) to any third party as
contemplated by the proviso to the next preceding sentence, it shall give the
Company at least five Business Days (or, if not legally possible, the maximum
lesser amount of notice legally possible) prior written notice thereof
specifying in reasonable detail the Observer Material to be disclosed, the
identity of the parties to receive such Observer Material and the reasons for
such disclosure.  For purposes of this
Agreement, “Observer Material” means all documents and information
concerning the Company and its subsidiaries and their respective affairs
provided to such Securityholder or any “observer” appointed by such
Securityholder pursuant to this Section 2.2 in connection with any board
of directors or committee meeting or consent in lieu thereof, or any information
otherwise acquired by such Securityholder or such “observer” in connection
therewith; provided, however, that the term “Observer Material”
does not include information that (i) is or becomes generally available to the
public other than as a result of a disclosure by such Securityholder, or such

 

9

 

“observer”, (ii) was
within the possession of such Securityholder, or such “observer”, prior to its
being furnished to such Securityholder, or such “observer”, by or on behalf of
the Company pursuant hereto, provided that the source of such information was
not known by such Securityholder, or such “observer”, to be bound by a
confidentiality agreement with or other contractual, legal or fiduciary
obligation of confidentiality to the Company or any other party with respect to
such information or (iii) becomes available to such Securityholder, or such
“observer”, on a non-confidential basis from a source other than the Company or
any of its representatives, provided that such source is not known to such
Securityholder, or such “observer”, to be bound by a confidentiality agreement
with or other contractual, legal or fiduciary obligation of confidentiality to
the Company or any other party with respect to such information.

 

SECTION 2.3.  Rule 144.  So long as the Company is subject to the
requirements of Section 13 or 15(d) of the 1934 Act, the Company will file
any reports required to be filed by it under the 1934 Act in accordance with
the requirements of the 1934 Act, and it will take such further action as any
Securityholder may reasonably request, so as to enable such Securityholder, to
the extent permitted by this Agreement, to sell Registrable Shares without
registration under the 1933 Act, within the limitation of the exemptions
provided by Rule 144 or any similar rule or regulation hereafter adopted by the
Commission.  Upon the request of any such
Securityholder, the Company will deliver to such Securityholder a written
statement as to whether it has complied with such requirements.

 

ARTICLE III

RESTRICTIONS ON TRANSFER

 

SECTION 3.1.  General
Restriction.  Each Securityholder
agrees that it will not, directly or indirectly, offer, sell, assign, transfer,
grant or sell a participation in, create any Encumbrance on or otherwise
dispose of any Securities (or solicit any offers to buy or otherwise acquire,
or take a pledge of, any Securities), in any manner that would conflict with or
violate the 1933 Act, this Agreement or, to the extent applicable to such
Securityholder, the MEP.

 

SECTION 3.2.  Legends.  (a) To the extent required by, or advisable
to comply with, the 1933 Act or other applicable law, the Company shall affix
to each certificate evidencing outstanding Securities that are Shares that is
issued to any Securityholder a legend in substantially the following form:

 

“THE SECURITIES
EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED.  NO REGISTRATION OF
TRANSFER OF SUCH SECURITIES WILL BE MADE ON THE BOOKS OF THE ISSUER UNLESS SUCH
TRANSFER IS MADE IN CONNECTION WITH AN EFFECTIVE REGISTRATION STATEMENT UNDER
SUCH ACT OR PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH
ACT OR SUCH ACT DOES NOT APPLY.

 

THE SECURITIES
EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER
AS SET FORTH IN THE 2004 SECURITYHOLDER AGREEMENT DATED AS OF JULY 26,
2004, A COPY OF

 

10

 

WHICH IS ON FILE AT THE
PRINCIPAL EXECUTIVE OFFICES OF THE ISSUER. 
NO REGISTRATION OF TRANSFER OF SUCH SECURITIES WILL BE MADE ON THE BOOKS
OF THE ISSUER UNLESS AND UNTIL SUCH RESTRICTIONS SHALL HAVE BEEN COMPLIED
WITH.”

 

(b)           In
the event that any Securities that are Shares shall cease to be Restricted
Shares, the Company shall, upon the written request of the holder thereof,
promptly issue to such holder a new certificate evidencing such Securities
without the first paragraph of the legend required by Section 3.2(a)
endorsed thereon.  In the event that any
Securities that are Shares shall cease to be subject to the restrictions on
transfer set forth in this Agreement, the Company shall, upon the written
request of the holder thereof, promptly issue to such holder a new certificate
evidencing such Securities without the second paragraph of the legend required
by Section 3.2(a).

 

SECTION 3.3.  Certain
Restrictions on Transfer by Management Securityholders.  (a) Each Management Securityholder agrees
that such Person will not, directly or indirectly, make any Sale or create,
incur or assume any consensual Encumbrance with respect to any Securities held
by such Person, other than (i) any transfer of Shares to a person from a
Securityholder by will or the laws of descent and distribution, (ii) any Sale
that is made in compliance with the procedures, and subject to the limitations,
set forth in Section 3.5, (iii) any Sale of Shares pursuant to a Public
Offering in accordance with Article IV, (iv) any Sale of Shares to or
consensual Encumbrance of Shares in favor of a Permitted Transferee, (v) any
Sale or Encumbrance of Shares following the termination of such Person’s
employment with the Company or any of its subsidiaries (A) as a result of such
Person’s death, Permanent Disability or Retirement, (B) by the Company or such
subsidiaries without Cause, or (C) by such Securityholder for Good Reason, (vi)
any Sale or Encumbrance of Shares permitted by Section 3.3(b) or (d), and
(vii) any Sale of Shares constituting a Cashless Exercise.  Notwithstanding the foregoing, except as
otherwise expressly provided herein, all Sales and Encumbrances permitted by
the foregoing clauses (i) through (vii) shall be subject to, and shall not be
made other than in compliance with, the provisions of Sections 3.1, 3.2, 3.6
and 4.9.  All Sales and Encumbrances of
Securities by Management Securityholders shall be subject to, and shall not be
permitted otherwise than as expressly permitted by, this Section 3.3(a).

 

(b)           Each
Management Securityholder may make any Sale of, or create, incur or assume any
consensual Encumbrance with respect to, any Securities that are Shares owned by
such Person as follows:

 

(i)            During the period from the First
Anniversary to the Second Anniversary, each Management Securityholder (other
than Raymond Kubis and Cheryl Diuguid) may make a Sale of, or grant a
consensual Encumbrance with respect to, a number of such Securities that are
Owned Equity and Rollover Shares equal to (A) 30.00% of the aggregate number of
Owned Equity and Rollover Shares beneficially owned by such Management Securityholder
at the 2004 Closing (other than any thereof that have expired or been forfeited
as of any date of determination), minus (B)
the aggregate number of Securities that are Shares that such Management
Securityholder has made a Sale of, or granted a consensual Encumbrance with
respect to, during the period from and including the 2004 Closing to and
including any date of determination hereunder; provided, however,
that no Management Securityholder, during the period from the First

 

11

 

Anniversary to the 18-month anniversary of the 2004 Closing, may make a
Sale of, or grant a consensual Encumbrance with respect to, an aggregate number
of Securities that are Owned Equity and Rollover Shares in excess of 10.00% of
the aggregate number of Owned Equity and Rollover Shares beneficially owned by
such Management Securityholder at the 2004 Closing (it being understood that in
the event that, as of any date of determination and with respect to any
Management Securityholder, the amount calculated pursuant to this first
sentence of this Section 3.3(b)(i) is a negative number, then such
Management Securityholder shall not be permitted to make a Sale of, or grant a
consensual Encumbrance with respect to, any Shares pursuant to this
Section 3.3(b)(i) on such date of determination).  During the period from the First
Anniversary to the Second Anniversary, each of Raymond Kubis and Cheryl Diuguid
may make a Sale of, or grant a consensual Encumbrance with respect to, a number
of such Securities that are Owned Service and Performance Shares with a value
equal to (A) 10.00% (or 3.33% in the event that such date of determination is
prior to the 18-month anniversary of the 2004 Closing) of the aggregate
Unrealized Value of such person’s Securities, as of such date of determination, minus (B) 90.00% (or 30.00% in the event
that such date of determination is prior to the 18-month anniversary of the
2004 Closing) of the aggregate Realized Value of such person’s Securities,
as of such date of determination (it
being understood that in the event that, as of any date of determination, such
net amount is a negative number, then such person shall not be permitted to
make a Sale of, or grant a consensual Encumbrance with respect to, any Securities
that are Shares pursuant to this Section 3.3(b)(i) on such date of
determination).

 

(ii)           During the period from the Second
Anniversary to the Third Anniversary, each Management Securityholder may make a
Sale of, or grant a consensual Encumbrance with respect to, a number of such
Securities that are Owned Equity and Rollover Shares and Owned Service and
Performance Shares with a value equal to (A) 40% of the aggregate Unrealized
Value of such Management Securityholder’s Securities, as of such date of determination,
minus (B) 60% of the aggregate Realized
Value of such Management Securityholder’s Securities, as of such date of
determination (it being understood that in the event that, as of any date of
determination such net amount is a negative number, then such Management
Securityholder shall not be permitted to make a Sale of, or grant a consensual
Encumbrance with respect to, any Securities that are Shares pursuant to this
Section 3.3(b)(ii) on such date of determination).

 

(iii)          After the Third Anniversary, each Management
Securityholder may make a Sale of, or grant a consensual Encumbrance with
respect to, a number of such Securities that are Owned Equity and Rollover
Shares and Owned Service and Performance Shares with a value equal to (A) 75%
of the aggregate Unrealized Value of such Management Securityholder’s
Securities, as of such date of determination, minus
(B) 25% of the aggregate Realized Value of such Management Securityholder’s
Securities, as of such date of determination (it being understood that in the
event that, as of any date of determination, such net amount is a negative
number, then such Management Securityholder shall not be permitted to make a
Sale of, or grant a consensual Encumbrance with respect to, any Securities that
are Shares pursuant to this Section 3.3(b)(iii) on such date of
determination).

 

12

 

Amounts permitted to be
Sold or Encumbered, as of any date of determination, by a Management
Securityholder pursuant to Section 3.3(b) shall be reduced by the
Unrealized Value of any Shares permitted to be sold or encumbered by such
person pursuant to Section 3.3(d) or 3.5 (but not otherwise pursuant to
Section 3.3(b)) as of such date of determination.

 

(c)           Anything
in Section 3.3(a) to the contrary notwithstanding, no Management
Securityholder may make any Sale of, or create, incur or assume any consensual
Encumbrance with respect to, any Securities that are Shares permitted by
Section 3.3(a)(iv) or (vi), (i) (other than Sales or Encumbrances pursuant
to Section 3.3(d)(i) or Sales or Encumbrances of Owned Equity or Rollover
Shares pursuant to Section 3.3(b)(iii)), if the simple average daily
closing price of Shares on the principal securities exchange on which such
Shares are traded for the 20-trading day period immediately preceding such
proposed Sale or Encumbrance (the “20-Day Average Price”) is equal to or
less than the per Share price to public in the 2004 IPO, or (ii) during the
period commencing on the date that a MSCP Securityholder delivers to the
Company a written notice of its intention to effect a registered offering of
any of its Shares (an “Offering Notice”) pursuant to Section 4.1 or
4.2 and ending on the earlier of (A) the date upon which the offering of such
Shares is consummated by such MSCP Securityholder and (B) six months following
the date upon which such offering of Shares is Abandoned by such MSCP
Securityholder or (iii) during the periods set forth in Section 4.3(d); provided,
however, that nothing set forth in this Section 3.3(c) shall
prohibit any Management Securityholder from participating in any such offering
of registered Shares in accordance with Section 3.3(a) and
Article IV.  All Sales of Shares
permitted by Sections 3.3 shall be subject to, and shall not be made other than
in compliance with, the provisions of Sections 3.1, 3.2 and 3.6.

 

For purposes of
Section 3.3(c), a proposed offering of Shares will be deemed to have been
“Abandoned” by a MSCP Securityholder on the first to occur of (a) the
date that such MSCP Securityholder provides to the Company a written notice of
its decision not to proceed with any such proposed offering of Shares, which
notice will be delivered by such MSCP Securityholder promptly following any
such determination by it, and (b) three months following the delivery of the
Offering Notice with respect to such proposed offering.

 

(d)           (i)
In connection with any exercise initiated by the MSCP Securityholders of any
registration rights with respect to any Registrable Shares owned by such Securityholders
pursuant to Section 4.1 or 4.2, if (A) such MSCP Securityholders sell
Registrable Shares in an offering pursuant to Section 4.1 or 4.2, (B) any
Management Securityholder shall exercise his rights under Section 4.1 or
4.2 to seek to sell Registrable Shares held by such Management Securityholder
in such offering, and (C) such Management Securityholder shall be limited in
the number of Registrable Shares that may be sold in such offering by the
application of Section 4.2(a)(iii) or 4.3(c), then, thereafter, nothing in
this Section 3.3 shall limit the right of such Management Securityholder
to sell any Unallocated Shares determined with respect to such offering, but
not earlier than 30 days after such sale by the MSCP Securityholders.

 

(ii)           With
respect to (A) any sale of Securities for cash by any MSCP Securityholder or
MSGEM Securityholder to any Affiliate of any thereof or (B) any distribution in
kind of Securities by any MSCP Securityholder or MSGEM Securityholder to any
partner thereof, in either case pursuant to clause (ii) of the second sentence
of Section 3.5(a)(vi), nothing in this Section 3.3 shall limit the
right of any Management Securityholder to sell a Pro Rata Amount of

 

13

 

Securities that are
Shares determined with respect to such sale or distribution in kind, but not
earlier than 30 days after such sale or distribution by the MSCP
Securityholders or MSGEM Securityholders.

 

(iii)          For
purposes of this Agreement:

 

(A)          “Unallocated Shares” means, with
respect to a Management Securityholder and an offering pursuant to
Section 4.1 and 4.2, a number of Registrable Shares equal to the
difference between (1) the lesser of (y) the Pro Rata Amount of Registrable
Shares owned (or issuable upon a Cashless Exercise (pursuant to clause (a) of
the definition thereof) of Options owned based on a Share price equal to the
per Share price at which the MSCP Securityholders sold Shares in such offering)
by such Management Securityholder at the 2004 Closing and (z) the number of
Registrable Shares such Management Securityholder requested to include, and had
a bona fide intent to sell, in such offering pursuant to Section 4.1 or
4.2 and (2) the number of Registrable Shares actually sold by such Management Securityholder
in such offering, and

 

(B)           “Pro Rata Amount” means a number
equal to (1) with respect to Section 3.3(d)(i), the product of (y) the
total number of Shares owned (or issuable upon a Cashless Exercise (pursuant to
clause (a) of the definition thereof) of Options owned (other than any Options
that have expired or been forfeited as of any date of determination) based on a
Share price equal to the per Share price at which the MSCP Securityholders sold
Shares in such offering) by such Management Securityholder at the 2004 Closing,
times (z) a fraction, the numerator of which shall be the total number of
Registrable Shares sold by the MSCP Securityholders and the MSGEM
Securityholders in such offering, and the denominator of which shall be the
total number of Shares owned by the MSCP Securityholders and the MSGEM
Securityholders at the 2004 Closing, and (2) with respect to
Section 3.3(d)(ii), the product of (y) the total number of Shares owned
(or issuable upon a Cashless Exercise (pursuant to clause (a) of the definition
thereof) of Options owned (other than any Options that have expired or been
forfeited as of any date of determination) based on a Share price equal to the
per Share price at which the MSCP Securityholders or MSGEM Securityholders sold
Shares in such sale or the fair market value thereof in such distribution in
kind, as the case may be) by such Management Securityholder at the 2004
Closing, times (z) a fraction, the numerator of which shall be the total number
of Shares sold or distributed in kind, as the case may be, by the MSCP
Securityholders and the MSGEM Securityholders, and the denominator of which
shall be the total number of Shares owned by the MSCP Securityholders and the
MSGEM Securityholders at the 2004 Closing.

 

SECTION 3.4.  Certain Restrictions
on Other Securityholders.  (a) Each
Co-Investor agrees that it will not, and will not permit any controlled
Affiliate of such Co-Investor to, directly or indirectly, make any Sale to any
Person (other than a controlled Affiliate or successor trust of such
Co-Investor), or create, incur or assume any consensual Encumbrance in favor of
any Person (other than a controlled Affiliate of such Co-Investor), with
respect to any Securities

 

14

 

owned by such
Co-Investor, other than (i) any Sale pursuant to a Public Offering that is
made in compliance with the procedures, and subject to the limitations, set
forth in Section 3.5 or Article IV, (ii) any sale, or any
distribution in kind to the general and limited partners or members of such
Co-Investor (in accordance with the distribution priorities set forth in such
Co-Investor’s limited partnership or operating agreement), if after such sale,
or distribution in kind, is consummated the number of Shares beneficially owned
by such Co-Investor would be at least such Co-Investor’s Minimum Amount
(provided that such Co-Investor may not make any such sale until the earlier of
(A) the second Business Day after the distribution in kind by the MSCP
Securityholders permitting such Co-Investor to make such sale and (B) the
receipt of notice by such Co-Investor from MSCP IV, given in good faith, that
limited partners of the MSCP Securityholders (other than Affiliates of MSCP IV)
are then legally able to freely sell the Securities so distributed), or (iii)
any Sale to or consensual Encumbrance in favor of a Permitted Transferee.  Notwithstanding the foregoing, except as
otherwise expressly provided herein, all transactions permitted by the
foregoing clauses (i) through (iii) shall be subject to, and shall not be made
other than in compliance with, the provisions of Sections 3.1, 3.2, 3.6
and applicable law.  Each Co-Investor
shall give the Company prompt written notice of any transactions in the
Securities in reliance upon any of the foregoing clauses (i) through (iii). For
purposes of this Section 3.4(a), “Minimum Amount” means, as of any
date of determination, a number equal to the product of (i) the total
number of Shares beneficially owned by such Co-Investor immediately following
the 2002 Co-Investor Closing (adjusted to give effect to any applicable
anti-dilution adjustments), times (ii) a fraction, the numerator of which shall
be the total number of Shares beneficially owned by the MSCP Securityholders
(assuming conversion of all the Series A Convertible Preferred Stock of the
Company outstanding) immediately following the 2002 Co-Investor Closing, less
the total number of Shares theretofore distributed in kind to the general and
limited partners of the MSCP Securityholders by the MSCP Securityholders, and
the denominator of which shall be the total number of Shares beneficially owned
by the MSCP Securityholders (assuming conversion of all the Series A
Convertible Preferred Stock of the Company outstanding) immediately following
the 2002 Co-Investor Closing (adjusted in the case of both the numerator and
the denominator for any stock splits, stock dividends or similar transactions).

 

(b)           Each
MSGEM Securityholder agrees that it will not, and will not permit any
controlled Affiliate of such MSGEM Securityholder to, directly or indirectly,
make any Sale to any Person (other than a controlled Affiliate of such MSGEM
Securityholder), or create, incur or assume any consensual Encumbrance in favor
of any Person (other than a controlled Affiliate of such MSGEM Securityholder),
with respect to any Securities owned by such MSGEM Securityholder, other than
(i) any Sale that is made in compliance with the procedures, and subject
to the limitations, set forth in Section 3.5 or Article IV, or (ii)
any Sale to or consensual Encumbrance in favor of a Permitted Transferee.  Notwithstanding the foregoing, except as
otherwise expressly provided herein, all transactions permitted by the
foregoing clauses (i) through (ii) shall be subject to, and shall not be made
other than in compliance with, the provisions of Sections 3.1, 3.2, 3.6
and applicable law.  Each MSGEM
Securityholder shall give the Company prompt written notice of any transactions
in the Securities in reliance upon any of the foregoing clauses (i) through
(ii).

 

SECTION 3.5.  Right to
Participate in Certain Dispositions. 
(a) (i) So long as the MSCP Securityholders and the MSGEM
Securityholders shall own, in the aggregate, at least 15% of the

 

15

 

Shares outstanding, no
MSCP Securityholder or MSGEM Securityholder shall in any transaction or series
of related transactions, directly or indirectly, sell or otherwise dispose of
for value (including in connection with a share for share exchange) any Shares
held by it to any Third Party or Parties, unless the terms and conditions of
such sale or other disposition shall include an offer to include, at the option
of each of the other Securityholders (for purposes of this Section 3.5,
the “Other Securityholders”), in such sale or other disposition to the
Third Party or Third Parties, the Pro Rata Portion of each such Other
Securityholder’s Shares.

 

(ii)           If,
so long as the MSCP Securityholders and the MSGEM Securityholders shall own, in
the aggregate, at least 15% of the Shares outstanding, any MSCP Securityholder
or MSGEM Securityholder receives from a Third Party or Parties a bona fide
offer or offers to purchase or otherwise acquire (for purposes of this
Section 3.5, an “Offer”) any Shares held by such MSCP
Securityholder or MSGEM Securityholder (for purposes of this Section 3.5,
the “Offered Shares”), and such MSCP Securityholder or MSGEM
Securityholder intends to pursue a sale of such Shares to such Third Party or
Parties, such MSCP Securityholder or MSGEM Securityholder (for purposes of this
Section 3.5, the “Prospective Sellers”) shall provide written
notice (for purposes of this Section 3.5, the “Offer Notice”) of
such Offer to each of the Other Securityholders not later than the twentieth
Business Day prior to the consummation of the sale or other disposition
contemplated by the Offer.  The Offer
Notice shall identify the Offered Shares, the price offered for such Offered
Shares, all other material terms and conditions of the Offer and, in the case
of an Offer in which the consideration payable for Shares consists in whole or
in part of consideration other than cash, such information relating to such
other consideration as the Company may reasonably determine.  The Other Securityholders shall have the
right and option, for a period of 20 Business Days after the date the Offer
Notice is given to such Other Securityholders (for purposes of this
Section 3.5, the “Notice Period”), to notify the Prospective
Sellers of such Other Securityholder’s interest in selling or otherwise
disposing of up to the Pro Rata Portion of such Other Securityholder’s Shares
pursuant to the Offer.  Each Other
Securityholder desiring to exercise such option shall, prior to the expiration
of the Notice Period, provide the Prospective Sellers with a written notice
specifying the number of Shares as to which such Other Securityholder has an
interest in selling or otherwise disposing of pursuant to the Offer (for
purposes of this Section 3.5, a “Notice of Interest”), and shall deliver
to the Prospective Sellers (A) the certificate or certificates evidencing the
Shares to be sold or otherwise disposed of pursuant to such Offer by such Other
Securityholder duly endorsed in blank or accompanied by written instruments of
transfer in form satisfactory to the Prospective Sellers executed by such Other
Securityholder, (B) an instrument of assignment reasonably satisfactory to the
Prospective Sellers assigning, as of the consummation of the sale or other
disposition to the Third Party or Parties, all such Other Securityholder’s
rights hereunder with respect to the Shares to be sold or otherwise disposed
of, and (C) a special irrevocable power-of-attorney authorizing the Prospective
Sellers to sell or otherwise dispose of such Shares pursuant to the terms of
the Offer and to take all such actions as shall be necessary or appropriate in
order to consummate such sale or other disposition.  Delivery of such certificate or certificates
evidencing the Shares to be sold, the instrument of assignment and the special
irrevocable power-of-attorney authorizing the Prospective Sellers to sell or
otherwise dispose of such Shares shall constitute an irrevocable election by
such Other Securityholder to authorize and permit the Prospective Sellers to
sell such Shares pursuant to the Offer.

 

16

 

(iii)          Promptly after the consummation of the sale or other disposition of the
Shares of the Prospective Sellers and the Other Securityholders to the Third
Party or Parties pursuant to the Offer, the Prospective Sellers shall remit to
each of the Other Securityholders the total sales price of the Shares of such
Other Securityholders sold or otherwise disposed of pursuant thereto.

 

(iv)          If at the end of the Notice Period any Other Securityholder shall not
have given a Notice of Interest (and delivered all other required documents)
with respect to some or all of the Pro Rata Portion of such Other
Securityholder’s Shares, such Other Securityholder will be deemed to have waived
all its rights under this Section 3.5 with respect to the sale or other
disposition pursuant to the Offer of the portion of the Pro Rata Portion of
such Other Securityholder’s Shares with respect to which a Notice of Interest
shall not have been given.  If, at the
end of the 120-day period following the giving of the Offer Notice, the
Prospective Sellers have not completed the sale of all the Offered Shares and
the Shares with respect to which Other Securityholders shall have given Notices
of Interest pursuant to this Section 3.5, the Prospective Sellers shall
return to such Other Securityholders all certificates evidencing the unsold
Shares that such Other Securityholders delivered for sale or other disposition
pursuant to this Section 3.5 and such Other Securityholders’ related
instruments of assignment and powers-of-attorney.

 

(v)           Except as expressly provided in this Section 3.5, the Prospective
Sellers shall have no obligation to any Other Securityholder with respect to
the sale or other disposition of any of such Other Securityholder’s Shares in
connection with this Section 3.5. 
Anything herein to the contrary notwithstanding and irrespective of
whether any Notice of Interest shall have been given, the Prospective Sellers
shall have no obligation to any Other Securityholder to sell or otherwise
dispose of any Offered Shares pursuant to this Section 3.5 or as a result
of any decision by the Prospective Sellers not to accept or consummate any
Offer or sale or other disposition with respect to the Offered Shares (it being
understood that any and all such decisions shall be made by the Prospective
Sellers in their sole discretion).  No
Other Securityholder shall be entitled to sell or otherwise dispose of Shares
directly to any Third Party or Parties pursuant to an Offer (it being
understood that all such sales and other dispositions shall be made only on the
terms and pursuant to the procedures set forth in this Section 3.5).

 

(vi)          For
purposes of this Section 3.5, “Pro Rata Portion” means, with
respect to each Other Securityholder, a number equal to the product of (a) the
total number of Shares owned by such Other Securityholder (or issuable upon a
Cashless Exercise (pursuant to clause (a) of the definition thereof) of Options
owned based on a Share price equal to the per Share price at which the
Prospective Sellers propose to sell Offered Shares) at the 2004 Closing, times
(b) a fraction, the numerator of which shall be the total number of Shares
proposed to be sold by the Prospective Sellers, and the denominator of which
shall be the total number of Shares outstanding and owned by the Prospective
Sellers at the 2004 Closing.  Anything in
this Section 3.5 to the contrary notwithstanding, the provisions of this
Section 3.5 will not be applicable to any Sale of Shares (i) pursuant
to and in accordance with Article IV, (ii) between MSCP
Securityholders or MSGEM Securityholders or to any of their employees, partners
or Affiliates, or (iii) to up to 10 Persons (and their Affiliates) in one or
more transactions involving the Sale of up to an aggregate of 5% of the
outstanding Shares; provided, however, that the exception set
forth in this clause (iii) shall not apply to, or limit, the rights of the
Co-Investors under Section 3.5. 
Nothing in this Section 3.5 shall affect any of the obligations of
any of the Securityholders under any other provision of this Agreement.

 

17

 

SECTION 3.6.  Improper
Transfer.  Any attempt to sell,
assign, transfer, grant or sell a participation in, pledge or otherwise dispose
of any Securities not in compliance with this Agreement shall be null and void
and neither the Company nor any transfer agent shall give any effect in the
Company’s stock records to such attempted sale, assignment, transfer, grant or
sale of a participation, pledge or other disposition.

 

SECTION 3.7.  Required
Management Securityholder Notices. 
In connection with any Sale or Encumbrance of Securities proposed to be
made by any Management Securityholder, such Management Securityholder shall
give the compensation committee of the Board not less than five, nor more than
20, Business Days’ prior written notice of his or her intention to make any
such Sale or create any such Encumbrance, specifying, in reasonable detail, the
number of such Securities proposed to sold or encumbered, whether such
Securities are Owned Equity, Rollover Options or Shares, Performance Options or
Shares (and the applicable tranche) or Service Options or Shares, when such
Securities were acquired by such person, and an explanation (and applicable
calculations) supporting such person’s right to make such Sale or create such
Encumbrance pursuant to the applicable provisions of Section 3.3.

 

ARTICLE IV

REGISTRATION RIGHTS

 

SECTION 4.1.  Registration
Upon Request.  (a) Upon the written
request of the holder or holders of Registrable Shares that are MSCP
Securityholders or Co-Investors requesting that the Company effect the
registration under the 1933 Act of all or part of the Registrable Shares held
by such holder or holders and specifying the intended method or methods of
disposition of such Registrable Shares (including pursuant to Rule 415 under
the 1933 Act), the Company will promptly give written notice of such requested
registration to all holders of Registrable Shares and thereupon will use its
best efforts to effect the registration under the 1933 Act, as expeditiously as
is reasonable, of:

 

(i)            the
Registrable Shares that the Company has been so requested to register by such
holder or holders, for disposition in accordance with the intended method or
methods of disposition stated in such request; and

 

(ii)           all
other Registrable Shares that the Company has been requested to register by the
holders of Registrable Shares by written request delivered to the Company
within 20 Business Days after the giving of such written notice by the Company (which request shall specify
the intended method or methods of disposition of such Registrable Shares), all
to the extent requisite to permit the disposition (in accordance with the
intended method or methods thereof as aforesaid) of the Registrable Shares so
to be registered; provided, however, that:

 

(A)          the
Company shall not at any time be required to effect any registration pursuant
to this Section 4.1 unless the requests from holders of Registrable Shares
for such registration cover an aggregate number of Registrable Shares with an
aggregate market value on the date of the initial request for such registration
of at least (1) $50 million, in the case of a request involving a Public
Offering, or (2) $15 million in the case of any other public offering;

 

18

 

(B)           the
Company shall not be required to effect a registration pursuant to this
Section 4.1, other than with a registration statement on Form S-3 or a
similar short-form registration statement, within a period of 12 months after
the effective date of any other registration statement relating to any
registration request under this Section 4.1 or to any registration of
which prior notice shall have been given to all holders of outstanding
Registrable Shares pursuant to Section 4.2 that was not effected with a
registration statement on Form S-3 or a similar short-form registration
statement;

 

(C)           if
the Company shall have previously effected a registration pursuant to this
Section 4.1 or shall have previously effected a registration of which
prior notice shall have been given to all holders of outstanding Registrable Shares
pursuant to Section 4.2, the Company shall not be required to
effect a registration pursuant to this Section 4.1 until a period of six
months shall have elapsed from the effective date of the most recent such
registration; and

 

(D)          with
respect to any registration statement filed, or to be filed, pursuant to this
Section 4.1, if the Board of Directors determines that, in its judgment,
it would (because of the existence of plans or negotiations regarding any
material acquisition involving, or the sale or recapitalization of, the Company
or any of its subsidiaries or any material financing activity, or the existence
of material non-public information about the Company, or the unavailability of
any required financial statements, or any other event or condition of similar
significance to the Company and its subsidiaries, taken as a whole) be
significantly disadvantageous (a “Disadvantageous Condition”) to the
Company and its Affiliates, taken as a whole, for such a registration statement
to become effective, or to be maintained effective, the Company shall, notwithstanding
any other provision of this Article IV, be entitled, upon the giving of a
written notice (a “Delay Notice”) to such effect to each holder of
Registrable Shares included or to be included in such registration statement,
to cause such registration statement to be withdrawn and the effectiveness of
such registration statement terminated, or, in the event no registration
statement has yet been filed, shall be entitled not to file any such
registration statement, until, in the judgment of the Board of Directors, such
Disadvantageous Condition no longer exists (notice of which the Company shall
promptly deliver to the holders of Registrable Shares with respect to which any
such registration statement has been filed, or was to have been filed), but in
no event for longer than 180 days after the date of the Delay Notice.  Upon receipt of any notice of the existence
of a Disadvantageous Condition, such holders of Registrable Shares selling
securities pursuant to an effective registration statement will forthwith
discontinue use of the prospectus contained in such registration statement and,
if so directed by the Company, each such holder of Registrable Shares will
deliver to the Company all copies, other than permanent file copies then in
such holder’s possession, of the prospectus then covering such Registrable
Shares current at the time of receipt of such notice, and, in the event no
registration statement has yet been filed, all drafts of the prospectus
covering such Registrable Shares. 
Notwithstanding the foregoing provisions of this subparagraph (D), no
registration statement filed and

 

19

 

subsequently withdrawn by reason of any existing or anticipated
Disadvantageous Condition as hereinabove provided shall count as one of the six
registration statements referred to in Section 4.1(b), or count against
the limitation in Section 4.1(a)(ii)(B) or 4.1(a)(ii)(C).  The Company may not give a Delay Notice more than
once in any period of 12 consecutive months.

 

(b)           Anything
herein to the contrary notwithstanding, the Company shall not be obligated to
file more than four registration statements pursuant to this Section 4.1
that are initiated by the MSCP Securityholders, and two registration statements
pursuant to this Section 4.1 that is initiated by the Co-Investors; provided,
however, no registration statement filed pursuant to this
Article IV shall count as one of the registration statements referred to
in this Section 4.1(b) unless sales of Registrable Shares registered
thereunder shall have been consummated.

 

(c)           The
Company shall pay all Registration Expenses in connection with each of the
registrations of Registrable Shares effected by it pursuant to this
Section 4.1.

 

(d)           In
connection with any firm commitment underwriting pursuant to this
Section 4.1, the Company will not register securities for sale for the
account of any Persons other than the Company and holders of Registrable
Shares.

 

(e)           In
connection with any underwritten offering with respect to which holders of
Registrable Shares shall have requested registration pursuant to this
Section 4.1, the holders of a majority of the Registrable Shares
participating in such offering shall have the right to select the managing
underwriter with respect to such offering.

 

SECTION 4.2.  Incidental
Registration.  (a) If the Company
proposes to register (other than pursuant to Section 4.1 or 4.10 or the
2004 IPO) any of its authorized but unissued Shares under the 1933 Act on a
form and in a manner that would permit registration of Registrable Shares for
sale to the public under the 1933 Act, it will each such time give prompt
written notice to all holders of Registrable Shares of its intention to do so,
describing such securities and specifying the form and manner and the other
relevant facts involved in such proposed registration (including, without
limitation, whether or not such registration will be in connection with an
underwritten offering of its Common Stock and, if so, the identity of the
managing underwriter and whether such offering will be pursuant to a “best
efforts” or “firm commitment” underwriting). 
Upon the written request of any such holder of Registrable Shares
delivered to the Company within 20 Business Days after such notice shall have
been given to such holder (which request shall specify the Registrable Shares
intended to be disposed of by such holder and the intended method of
disposition thereof), the Company will use its best efforts to effect the
registration under the 1933 Act, as expeditiously as is reasonable, of all
Registrable Shares that the Company has been so requested to register by the
holders of Registrable Shares, to the extent requisite to permit the
disposition (in accordance with the intended methods thereof as aforesaid) of the
Registrable Shares so to be registered; provided, however, that:

 

(i)            if,
at any time after giving such written notice of its intention to register any
of such securities and prior to the effective date of the registration
statement filed in connection with such registration, the Company shall
determine for any reason not to

 

20

 

register such securities, the Company may, at its election, give
written notice of such determination to each holder of Registrable Shares that
has requested to register Registrable Shares and thereupon the Company shall be
relieved of its obligation to register any Registrable Shares in connection
with such registration (but not from its obligation to pay the Registration
Expenses in connection therewith to the extent provided in
Section 4.2(b)), without prejudice, however, to the rights of any one or
more holders to request such registration be effected as a registration under
Section 4.1 or 4.10;

 

(ii)           if
(A) the registration so proposed by the Company involves an underwritten
offering of the securities so to be registered, to be distributed by or through
one or more underwriters of recognized standing under underwriting terms
appropriate for such a transaction, and (B) the managing underwriter of such
underwritten offering selected by the Company shall advise the Company that, in
its judgment, the number of securities proposed to be included in such offering
by the Company (for purposes of this Section 4.2(a), “Company
Securities”) and the number of Registrable Shares held by all
Securityholders proposed to be included in such offering by the holder or
holders thereof should be limited due to market conditions, then the Company
will promptly advise each such holder of Registrable Shares thereof and the
number of Shares proposed to be included in such registration shall be included
in the following order of priority:

 

(i)            first, the Company
Securities;

 

(ii)           second, the Registrable
Shares requested to be included in such registration that are held by the MSCP
Securityholders, the MSGEM Securityholders, the Co-Investors and the Management
Securityholders (or, if necessary, such Registrable Shares pro rata among the
holders thereof based upon the number of Registrable Shares owned by each such
holder);

 

(iii)          third, any other
Registrable Shares.

 

(iii)          if
(A) the registration so proposed by the Company involves an underwritten
offering of the securities so to be registered, to be distributed by or through
one or more underwriters of recognized standing under underwriting terms
appropriate for such a transaction, and (B) the managing underwriter of such
underwritten offering selected by the Company shall advise the Company that, in
its judgment, the number of Registrable Shares held by the Management
Securityholders proposed to be included in such offering by the holder or
holders thereof should be limited, then the Company will promptly advise each
such holder of Registrable Shares thereof and the number of Shares proposed to
be included in such registration shall be included in the following order of
priority:

 

(i)            first, the Company
Securities;

 

(ii)           second, the Registrable
Shares requested to be included in such registration that are held by the MSCP
Securityholders, the MSGEM Securityholders and the Co-Investors (or, if
necessary, such Registrable Shares

 

21

 

pro rata among the
holders thereof based upon the number of Registrable Shares requested to be
registered by each such holder);

 

(iii)          third, the Registrable
Shares requested to be included in such registration that are held by the
Management Securityholders (or, if necessary, such Registrable Shares pro rata
among the holders thereof based upon the number of Registrable Shares requested
to be registered by each such holder); and

 

(iv)          fourth, any other
Registrable Shares.

 

(iv)          the
Company shall not be obligated to effect any registration of Registrable Shares
under this Section 4.2 that is incidental to the registration of any of
its securities in connection with any merger, acquisition, exchange offer,
dividend reinvestment plan or stock option or other employee benefit plan,
including with a Form S-8 registration statement and any reoffering prospectus
included therein.

 

No registration of
Registrable Shares effected under this Section 4.2 shall relieve the
Company of its obligation to effect registrations of Registrable Shares upon
the request of one or more holders pursuant to Section 4.1 or 4.10.

 

(b)           The
Company will pay all Registration Expenses in connection with each registration
of Registrable Shares effected by it pursuant to this Section 4.2.

 

SECTION 4.3.  Registration
Procedures.  (a) If and whenever the
Company is required to use its best efforts to effect the registration of any
Registrable Shares under the 1933 Act as provided in Section 4.1, 4.2 or
4.10, the Company will as expeditiously as is reasonable:

 

(i)            prepare
and file with the Commission on any appropriate form a registration statement
with respect to such Registrable Shares and use its best efforts to cause such
registration statement to become effective as soon as practicable after filing;

 

(ii)           prepare
and file with the Commission such amendments (including post- effective
amendments) and supplements to such registration statement and the prospectus
used in connection therewith (including, without limitation, to reflect any
specific plan of distribution or method or methods of sale) as may be necessary
to keep such registration statement effective and to comply with the provisions
of the 1933 Act with respect to the disposition of all Registrable Shares and
other securities covered by such registration statement until the earlier of
(A) such time as all such Registrable Shares and other securities have been
disposed of in accordance with the intended method or methods of disposition by
the seller or sellers thereof set forth in such registration statement and (B)
the expiration of 20 Business Days (two years in the case of a registration
pursuant to Rule 415 under the 1933 Act) from the date such registration
statement first becomes effective, as may be determined by the holders of
Registrable Shares covered by such registration statement by notice to the
Company prior to the date such registration statement becomes effective, and
use its best efforts to cause such amendments to become effective as soon as
practicable after filing;

 

22

 

(iii)          furnish
to each seller of such Registrable Shares such number of conformed copies of
such registration statement and of each such amendment and supplement thereto
(in each case including all exhibits), such number of copies of the prospectus
included in such registration statement (including each preliminary prospectus
and any summary prospectus), in conformity with the requirements of the 1933
Act, such documents incorporated by reference in such registration statement or
prospectus, and such other documents, as such seller may reasonably request in
order to facilitate the sale or disposition of such Registrable Shares;

 

(iv)          use
its best efforts to register or qualify all Registrable Shares and other
securities covered by such registration statement under such other securities
or “blue sky” laws of such jurisdictions as each seller shall reasonably
request, and do any and all other acts and things that may be necessary to
enable such seller to consummate the disposition in such jurisdictions of its
Registrable Shares covered by such registration statement, except that the
Company shall not for any such purpose be required to qualify generally to do
business as a foreign corporation in any jurisdiction wherein it is not so
qualified, or to subject itself to taxation in respect of doing business in any
such jurisdiction, or to consent to general service of process in any such
jurisdiction;

 

(v)           in
connection with any underwritten offering of Registrable Shares, enter into
such customary agreements and take all such other actions in connection
therewith (including those requested by the holders of a majority of the
Registrable Shares being sold in such underwritten offering) in order to
expedite or facilitate the disposition of such Registrable Shares, and in such
connection, (A) to the extent possible make such representations and warranties
to the underwriters of such Registrable Shares with respect to the business of
the Company and its subsidiaries, the registration statement, prospectus and
documents incorporated by reference or deemed incorporated by reference, if
any, with respect to such underwritten offering, in each case, in form,
substance and scope as are customarily made by issuers to underwriters in
similar underwritten offerings and confirm the same if and when requested, (B)
provide indemnities to the effect and to the extent provided in
Section 4.5, (C) obtain opinions of counsel to the Company (which
counsel and opinions, in form, scope and substance, shall be reasonably
satisfactory to the underwriters and their counsel) addressed to each
underwriter of Registrable Shares, covering the matters customarily covered in
opinions requested in similar underwritten offerings, (D) obtain “cold comfort”
letters from the independent certified public accountants of the Company (and,
if necessary, any other certified public accountant of any subsidiary of the
Company, or of any business acquired by the Company for which financial
statements and financial data are or are required to be included in the
Registration Statement) addressed to each underwriter of Registrable Shares,
such letters to be in customary form and covering matters of the type
customarily covered in “cold comfort” letters in connection with similar
underwritten offerings, and (E) deliver such documents and certificates as may
be reasonably requested by the underwriters, and which are customarily
delivered in similar underwritten offerings, to evidence the continued validity
of the representations and warranties of the Company made pursuant to clause
(A) above and to evidence compliance with any customary conditions contained in
an underwriting agreement;

 

23

 

(vi)          immediately
notify each seller of Registrable Shares covered by such registration statement
at any time when a prospectus relating thereto is required to be delivered
under the 1933 Act, of the happening of any event as a result of which the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing or if it is
necessary to amend or supplement such prospectus to comply with law, and at the
request of any such seller prepare and furnish to such seller a reasonable
number of copies of a supplement to or an amendment of such prospectus as may
be necessary so that, as thereafter delivered to the purchasers of such
Registrable Shares, such prospectus shall not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in the light of the
circumstances then existing and shall otherwise comply in all material respects
with law and so that such prospectus, as amended or supplemented, will comply
with law;

 

(vii)         otherwise
use its best efforts to comply with all applicable rules and regulations of the
Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least 12 months,
beginning with the first month of the first fiscal quarter after the effective
date of such registration statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the 1933 Act;

 

(viii)        use
its best efforts to list such securities on each securities exchange on which
shares of Common Stock are then listed, if such securities are not already so
listed and if such listing is then permitted under the rules of such exchange,
and provide a transfer agent and registrar for such Registrable Shares not
later than the effective date of such registration statement; and

 

(ix)           issue
to any underwriter to which any holder of Registrable Shares may sell such
Registrable Shares in connection with any such registration (and to any direct
or indirect transferee of any such underwriter) certificates evidencing shares
of Common Stock without the legends described in Section 3.2(a).

 

The Company may require
each seller of Registrable Shares as to which any registration is being
effected to furnish the Company with such information regarding such seller and
the distribution of such securities as the Company may from time to time
reasonably request in writing and as shall be required by law or by the
Commission in connection therewith.

 

(b)           Whenever
a registration requested by one or more holders pursuant to Section 4.1 is
for an underwritten offering, only shares constituting Registrable Shares that
are to be distributed by the underwriters and such unissued securities of the
Company as the Company may elect to include in such offering may be included in
such registration.  If (i) the
registration so requested by holders of Registrable Shares pursuant to
Section 4.1 involves an underwritten offering of such securities, to be
distributed (on a firm commitment basis) by or through one or more underwriters
of recognized standing under underwriting terms appropriate for such a
transaction, and (ii) the managing underwriter of such offering shall advise
the Company that, in

 

24

 

its judgment, the number
of shares of Registrable Shares held by all Securityholders proposed to be
included in such offering by the holder or holders thereof (for purposes of Section 4.3(b),
“Company Securities”) and any other securities held by any
Securityholder other than the MSCP Securityholders or the MSGEM Securityholders
should be limited due to market conditions, then the Company will promptly
advise each such holder of Registrable Shares thereof, and the number of Shares
proposed to be included in such registration shall be included in the following
order of priority:

 

(i)            first,
the Registrable Shares requested to be included in such registration that are
held by the MSCP Securityholders, the MSGEM Securityholders, the Co-Investors
and the Management Securityholders (or, if necessary, such Registrable Shares
pro rata among the holders thereof based upon the number of Registrable Shares
owned by each such holder);

 

(ii)           second,
the Company Securities; and

 

(iii)          third,
any other Registrable Shares.

 

(c)           Whenever
a registration requested by one or more holders pursuant to Section 4.1 is
for an underwritten offering, only shares constituting Registrable Shares that
are to be distributed by the underwriters and such unissued securities of the
Company as the Company may elect to include in such offering may be included in
such registration.  If (i) the
registration so requested by holders of Registrable Shares pursuant to Section 4.1
involves an underwritten offering of such securities, to be distributed (on a
firm commitment basis) by or through one or more underwriters of recognized
standing under underwriting terms appropriate for such a transaction, and (ii)
the managing underwriter of such offering shall advise the Company that, in its
judgment, the number of shares of Registrable Shares held by the Management
Securityholders proposed to be included in such offering by the holder or
holders thereof should be limited, then the Company will promptly advise each
such holder of Registrable Shares thereof, and the number of Shares proposed to
be included in such registration shall be included in the following order of
priority:

 

(i)            first,
the Registrable Shares requested to be included in such registration that are
held by the MSCP Securityholders, the MSGEM Securityholders and the
Co-Investors (or, if necessary, such Registrable Shares pro rata among the
holders thereof based upon the number of Registrable Shares requested to be
registered by each such holder);

 

(ii)           second,
the Registrable Shares requested to be included in such registration that are
held by the Management Securityholders (or, if necessary, such Registrable
Shares pro rata among the holders thereof based upon the number of Registrable
Shares requested to be registered by each such holder);

 

(iii)          third,
any securities proposed to be included in such offering by the Company; and

 

(iv)          fourth,
any other Registrable Shares.

 

25

 

(d)           If
any registration pursuant to Section 4.1 or 4.2 shall be in connection
with an underwritten public offering, each holder of Registrable Shares agrees
by acquisition of such Registrable Shares, if so required by the managing
underwriters, not to effect any public sale or distribution (including any sale
pursuant to Rule 144) of Registrable Shares (other than as part of such
underwritten public offering) for a period to be determined by the relevant
managing underwriter, which period shall begin not more than 7 days prior to
the effective date of the registration statement with respect to such
underwritten public offering and shall last not more than 120 days after the
date of the first use of the final prospectus with respect to such proposed
sale of Registrable Shares (which 120-day period shall be extended to 180 days
at the request of the managing underwriter selected by the Company).

 

(e)           The
Company agrees, if so required by the managing underwriters in connection with
an underwritten offering of Registrable Shares pursuant to Section 4.1 or
4.2, not to effect any public sale or distribution of any of its equity
securities or securities convertible into or exchangeable or exercisable for
any of such equity securities during the 7 days prior to and the 120 days after
the effective date of any registration statement with respect to such
underwritten public offering, except as part of such underwritten offering or
except in connection with a stock option plan, stock purchase plan, savings or
similar plan, or an acquisition, merger or exchange offer.

 

(f)            It
is understood that in any underwritten offering of Registrable Shares in
addition to the shares (the “initial shares”) the underwriters have
committed to purchase, the underwriting agreement may grant the underwriters an
option to purchase a number of additional shares (the “option shares”)
equal to up to 15% of the initial shares (or such other maximum amount as the
National Association of Securities Dealers, Inc. may then permit), solely to
cover over-allotments.  Shares proposed
to be sold by the Company and the holders shall be allocated between initial
shares and option shares as agreed or, in the absence of agreement, pursuant to
Section 4.2(a)(ii) or 4.3(b), as the case may be.  The number of initial shares and option
shares to be sold by requesting holders shall be allocated pro rata among all
such holders on the basis of the relative number of Registrable Shares each
such holder has requested to be included in such registration.

 

SECTION 4.4.  Preparation;
Reasonable Investigation.  In
connection with the preparation and filing of each registration statement
registering Registrable Shares under the 1933 Act, and any amendment,
post-effective amendment, prospectus and supplement with respect thereto, the
Company will give the holders of Registrable Shares on whose behalf such
Registrable Shares are to be so registered and their underwriters, if any, and
their respective counsel and accountants, the opportunity to participate in the
preparation thereof, and will give each of them such access to its books and
records and such opportunities to discuss the business of the Company with its
officers and the independent public accountants who have issued a report on its
financial statements as shall be necessary, in the opinion of such holders and
such underwriters or their respective counsel, to conduct a reasonable
investigation within the meaning of the 1933 Act.

 

SECTION 4.5.  Indemnification.  (a) In the event of any registration of any
equity securities of the Company under the 1933 Act, the Company will, and
hereby does, indemnify and hold harmless, in the case of any registration
statement filed pursuant to Section 4.1, 4.2 or

 

26

 

4.10, the seller of any
Registrable Shares covered by such registration statement, its directors and
officers, general and limited partners and any subadvisor of any such general
partner, including Metalmark (and directors and officers of any thereof and, if
such seller is a portfolio or investment fund, its investment advisors) each
other Person who participates as an underwriter in the offering or sale of such
securities, each officer and director of each such underwriter, and each other
Person, if any, who controls such seller or any such underwriter within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act,
against any losses, claims, damages, liabilities and expenses, joint or
several, to which such seller or any such director, officer, partner or
subadvisor or participating or controlling Person may become subject under the
1933 Act or otherwise, insofar as such losses, claims, damages, liabilities or
expenses (or actions or proceedings in respect thereof) arise out of or are
based upon (i) any untrue statement or alleged untrue statement of any material
fact contained in any registration statement under which such securities were
registered under the 1933 Act, any preliminary prospectus, final prospectus or
summary prospectus included therein, or any amendment or supplement thereto, or
any document incorporated by reference therein, or (ii) any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and the Company will
reimburse such seller, and each such director, officer, partner or subadvisor,
underwriter and controlling Person from time to time at such Person’s request
for any legal or any other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, liability, action or
proceeding; provided, however, that the Company shall not be
liable in any such case to the extent that any such loss, claim, damage,
liability (or action or proceeding in respect thereof) or expense arises out of
or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in such registration statement, any such preliminary
prospectus, final prospectus, summary prospectus, amendment or supplement in
reliance upon and in conformity with written information furnished to the
Company for use in the preparation thereof by such seller or underwriter, as
the case may be.  Such indemnity shall
remain in full force and effect regardless of any investigation made by or on
behalf of such seller or any such director, officer, partner or subadvisor,
underwriter or controlling Person and shall survive the transfer of such
securities by such seller.

 

(b)           The
Company may require, as a condition to including any Registrable Shares in any
registration statement filed pursuant to Section 4.1, 4.2 or 4.10, that
the Company shall have received an undertaking satisfactory to it from (i) the
prospective seller of such securities, to indemnify and hold harmless (in the
same manner and to the same extent as set forth in Section 4.5(a), except
that any such prospective seller shall not in any event be liable to the
Company pursuant thereto for an amount in excess of the net proceeds of sale of
such prospective seller’s Registrable Shares so to be sold) the Company, each
such underwriter of such securities, each officer and director of each such
underwriter and each other Person, if any, who controls the Company or any such
underwriter within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act, and (ii) each such underwriter of such
securities, to indemnify and hold harmless (in the same manner and to the same
extent as set forth in Section 4.5(a)) the Company, each officer and
director of the Company, each prospective seller, each officer and director of
each prospective seller and each other Person, if any, who controls the Company
or any such prospective seller within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act, with respect to any statement in
or omission from such registration statement, any preliminary prospectus, final
prospectus or summary prospectus included therein, or any

 

27

 

amendment or supplement
thereto, if such statement or omission was made in reliance upon and in
conformity with written information furnished by such prospective seller or
such underwriter, as the case may be, to the Company for use in the preparation
of such registration statement, preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement. 
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Company or any such director, officer
or controlling Person and shall survive the transfer of such securities by such
seller.

 

(c)           Promptly
after receipt by an indemnified party of notice of the commencement of any
action or proceeding (including any governmental investigation) involving a
claim referred to in Section 4.5(a) or (b), such indemnified party will,
if a claim in respect thereof is to be made against an indemnifying party, give
written notice to the latter of the commencement of such action; provided,
however, that the failure of any indemnified party to give notice as
provided herein shall not relieve the indemnifying party of its obligations
under the preceding provisions of this Section 4.5, except to the extent
that the indemnifying party is actually prejudiced by such failure to give
notice.  In case any such action is
brought against an indemnified party, unless in such indemnified party’s
reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist in respect of such claim (in which case, the
indemnifying party shall not be liable for the fees and expenses of more than
one counsel for all sellers of Registrable Shares, or more than one counsel for
the underwriters in connection with any one action or separate but similar or
related actions), the indemnifying party will be entitled to participate in and
to assume the defense thereof, jointly with any other indemnifying party
similarly notified, to the extent that it may wish with counsel reasonably
satisfactory to such indemnified party, and after notice from the indemnifying
party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party will not be liable to such indemnified party
for any legal or other expenses subsequently incurred by the latter in
connection with the defense thereof.

 

SECTION 4.6.  Contribution.  If the indemnification provided for in
Section 4.5 is unavailable to the indemnified party or parties in respect
of any losses, claims, damages or liabilities referred to therein, then each
such indemnified party and the Company shall contribute to the amount of such
losses, claims, damages or liabilities (a) as between the Company and the
holders of Registrable Shares covered by a registration statement, on the one
hand, and the underwriters, on the other, in such proportion as is appropriate
to reflect the relative benefits received by the Company and such holders, on
the one hand, and the underwriters, on the other, from the offering of the
Registrable Shares, or if such allocation is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits
but also the relative fault of the Company and such holders, on the one hand,
and of the underwriters, on the other, in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities, as well
as any other relevant equitable considerations, and (b) as between the Company,
on the one hand, and each holder of Registrable Shares covered by a
registration statement, 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 benefits
received by the Company and such holders, on the one hand, and the
underwriters, on the other, shall be deemed to be in the same proportion as the
total proceeds from the offering (net of underwriting discounts and commissions
but before deducting expenses) received by the Company and such holders bear to

 

28

 

the total underwriting
discounts and commissions received by the underwriters.  The relative fault of the Company and such
holders, on the one hand, and of the underwriters, 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 the Company and such
holders or by the underwriters.  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 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.

 

The Company and the
holders of Registrable Shares agree that it would not be just and equitable if
contribution pursuant to this Section 4.6 were determined by pro rata
allocation (even if the underwriters were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the
equitable considerations referred to in the next preceding paragraph.  The amount paid or payable by an indemnified
party as a result of the losses, claims, damages or liabilities referred to in
the next 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 4.6, no underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which
the Registrable Shares underwritten by it and distributed to the public were
offered to the public exceeds the amount of any damages that such underwriter
has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission, and no holder of Registrable Shares
shall be required to contribute any amount in excess of the amount by which the
total price at which the Registrable Shares of such holder were offered to the
public 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 1933 Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.  Each Securityholder’s obligation to
contribute pursuant to this Section 4.6 is several in the proportion that
the proceeds of the offering received by such Securityholder bears to the total
proceeds of the offering received by all the Securityholders and not joint.

 

SECTION 4.7.  Holdback
Agreement.  If the Company at any
time shall register Registrable Shares under the 1933 Act (including any
registration pursuant to Sections 4.1 or 4.2) for sale to the public, the
Securityholders shall not sell publicly or privately, make any short sale of,
grant any option for the purchase of, or otherwise dispose publicly of, any
Registrable Shares (other than those Registrable Shares included in such
registration pursuant to Sections 4.1 or 4.2) without the prior written consent
of the Company, for a period as shall be determined by the relevant managing
underwriter, which period shall begin not more than 10 days prior to the
initial filing of the registration statement pursuant to which such public
offering shall be made and shall not last more than 180 days after the date of
the first use of the final prospectus with respect to such proposed sale of
Registrable Shares; provided, however, that the officers and
directors of the Company who own capital stock of the Company and all other
holders of 5% or more of the capital stock of the Company shall each be subject
to similar restrictions.

 

29

 

If the Company shall at
any time pursuant to Sections 4.1 or 4.2 register under the 1933 Act
Registrable Shares for sale to the public pursuant to an underwritten offering,
the Company shall not effect any public sale or distribution of securities
similar to those being registered (excluding any registration statement on Form
S-4 or S-8), or any securities convertible into or exercisable or exchangeable
for such securities, for such period as shall be determined by the managing
underwriter, which period shall not extend for more than 90 days after the date
of the first use of the final prospectus with respect to such proposed sale of
Registrable Shares.

 

SECTION 4.8.  Nominees of
Beneficial Owners.  In the event that
any Registrable Shares are held by a nominee for the beneficial owner thereof,
the beneficial owner thereof may, at its election, be treated as the holder of
such Registrable Shares for purposes of any request or other action by any
holder or holders of Registrable Shares pursuant to this Agreement or any
determination of any number or percentage of shares of Registrable Shares held
by any holder or holders of Registrable Shares contemplated by this Agreement.  If the beneficial owner of any Registrable
Shares so elects, the Company may require assurances reasonably satisfactory to
it of such owner’s beneficial ownership of such Registrable Shares.

 

SECTION 4.9.  Certain
Limitations on Management Securityholders. 
Anything in this Article IV to the contrary notwithstanding, the
number of Registrable Shares that any Management Securityholder may request to
register or may sell in connection with any registration pursuant to
Article IV (other than Section 4.10), as of any date of
determination, may not result, as of such date of determination, in the
cumulative number of Securities that are Shares sold (or permitted to be sold)
by such Management Securityholder after the 2004 Closing and on or prior to
such date of determination exceeding the Saleable Portion of the Securities
that are Shares that are owned (or issuable upon a Cashless Exercise of any
vested or unvested Options owned (other than any Options that have expired or
been forfeited as of such date of determination)) by such Management
Securityholder at the 2004 Closing.  For
purposes of this Agreement, “Saleable Portion” means, with respect to a
Management Securityholder, as of any date of determination, a number equal to
the product of (a) the total number of Owned Equity and Rollover Shares and
Owned Service and Performance Shares owned (assuming a Cashless Exercise
pursuant to clause (a) of the definition thereof (and a share price equal to
the 20-Day Average Price as of such date of determination) of all vested and
unvested Options owned (other than any Options that have expired or been
forfeited as of such date of determination)) by such Management Securityholder
at the 2004 Closing, times (b) a fraction, the numerator of which shall be the
total number of Registrable Shares sold (or proposed to be sold in such
offering) by the MSCP Securityholders and the MSGEM Securityholders after the
2004 Closing and on or prior to such date of determination, and the denominator
of which shall be the total number of Securities that are Shares owned by the
MSCP Securityholders and the MSGEM Securityholders at the 2004 Closing.

 

SECTION 4.10.  Form S-8.  Upon the written request of the holder or
holders of Registrable Shares who are Management Securityholders requesting
that the Company effect the registration under the 1933 Act of all or part of
the Registrable Shares held by such holder or holders and specifying the
intended method or methods of disposition of such Registrable Shares, the
Company will promptly use its best efforts to effect the registration on Form
S-8 (or any comparable successor form) under the 1933 Act, as expeditiously as
is reasonable, of the Registrable Shares that the Company has been so requested
to register by such holder or holders,

 

30

 

for disposition in
accordance with the intended method or methods of disposition stated in such
request subject to the requirements of the 1933 Act applicable thereto.  The Company shall pay all Registration
Expenses in connection with each of the registrations of Registrable Shares
effected by it pursuant to this Section 4.10.

 

ARTICLE V

MISCELLANEOUS

 

SECTION 5.1.  Termination.  This Agreement shall terminate on
November 20, 2011; provided, however, that, notwithstanding
the foregoing, (a) Section 2.1(b) shall terminate on the first day after
the 2004 Closing that the Company shall no longer be entitled to take advantage
of the Controlled Company Exemption as a result of the beneficial ownership of
Securities by the MSCP Securityholders, the MSGEM Securityholders and the
Co-Investors, (b) Sections 3.3, 3.4 and 3.5 shall terminate at such time
as the MSCP Securityholders and the MSGEM Securityholders own less than 15% of
the Shares outstanding, and (c) Section 2.2 shall terminate as to MSCP IV
at such time as the MSCP Securityholders own less than 5% of the Shares
outstanding, (d) Section 2.2 shall terminate as to each Co-Investor at
such time as such Co-Investor owns less than 5% of the Shares outstanding, and
(e) Section 2.2 shall terminate as to the MSGEM Securityholders at such
time as the MSGEM Securityholders own less than 5% of the Shares outstanding.

 

SECTION 5.2.  Certain
Representations.  Each of the parties
hereto represents that this Agreement has been duly authorized, executed and
delivered by it and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms.  Such representation shall survive the
execution and delivery hereof, regardless of any investigation made by any
party hereto or on such party’s behalf.

 

SECTION 5.3.  Certain
Remedies.  Without intending to limit
the remedies available to any of the parties hereto, each of the parties hereto
agrees that damages at law will be an insufficient remedy in the event such
party violates the terms hereof and each of the parties hereto further agrees
that each of the other parties hereto may apply for and have injunctive or
other equitable relief in any court of competent jurisdiction to restrain the
breach or threatened breach of, or otherwise specifically to enforce, any of
such party’s agreements set forth herein.

 

SECTION 5.4.  Amendments
and Waivers.  Any term of this
Agreement may be amended and the observance of any such term may be waived
(either generally or in a particular instance and either retroactively or
prospectively) only with the written consent of (i) the Company and (ii) the
MSCP Securityholders.  None of the terms
of this Agreement may be amended nor may the observance of any of such terms be
waived (either generally or in a particular instance or either retroactively or
prospectively) in either case in any manner adverse to any Co-Investor, MSGEM
Securityholder, or Management Securityholder, without the prior written consent
of each Person so affected; provided, however, that in the case
of the Management Securityholders, the prior written consent, given in such
Person’s sole discretion, of John D. Craig (or if Mr. Craig is no longer Chief
Executive Officer, another Initial Management Securityholder) shall be
conclusively deemed to constitute the consent of all Management
Securityholders.  Each Securityholder
shall be bound by any amendment or waiver authorized by this Section 5.4,
whether or not such Securityholder shall have consented thereto.

 

31

 

SECTION 5.5.  Notices.  All notices and other communications provided
for herein shall be in writing and shall be delivered by hand or sent by
certified or registered mail, return receipt requested, postage prepaid,
addressed, if to any MSCP Securityholder, to such MSCP Securityholder in care
of Morgan Stanley Capital Partners, 1585 Broadway, New York, N.Y. 10036,
Attention: Howard I. Hoffen and Eric T. Fry; if to any Management
Securityholder or the Company, to him or it in care of EnerSys, Inc., P.O. Box
14145, 2366 Bernville Road, Reading, PA 19612, Attention: Chief Executive
Officer, (with a copy, in the case of any notice to the Company, to the MSCP
Securityholders); if to any MSGEM Securityholder, to such MSGEM Securityholder
at the address set forth below its name at the foot hereof; or if to any
Co-Investor, to such Co-Investor at the address set forth below its name at the
foot hereof (or, in the case of any of the foregoing, to such other address as
the Company or any such Securityholder shall have specified in writing to the
party giving any such notice or sending any such communication).  All such notices shall be conclusively deemed
to be received and shall be effective, if sent by hand delivery, upon receipt,
or if sent by registered or certified mail, on the fifth day after the day on
which such notice is mailed.

 

SECTION 5.6.  Benefit;
Successors and Assigns.  Except as
otherwise provided herein, this Agreement shall be binding upon and shall inure
to the benefit of the parties hereto and their respective successors and
permitted assigns.  No Securityholder may
assign any of its rights hereunder to any Person; provided, however,
that (a) the rights of the MSCP Securityholders hereunder may be assigned to
Metalmark; and (b) the rights of any Co-Investor hereunder may be assigned to
(i) any controlled Affiliate thereof or successor trust with respect thereto to
whom such Co-Investor transfers any Securities held by such Co-Investor and
(ii) any entity to which such Co-Investor transfers any Securities held by such
Co-Investor formed to continue the business of such Co-Investor pursuant to a
“spin-out” (or comparable transaction) of such Co-Investor from its controlling
Affiliate, so long as the senior management of such transferee entity is
substantially the same as the senior management of such Co-Investor before such
“spin-out” (or comparable transaction). 
Except as expressly provided in Sections 4.5 and 4.6, nothing in this
Agreement either express or implied is intended to confer on any person other
than the parties hereto and their respective successors and permitted assigns,
any rights, remedies or obligations under or by reason of this Agreement.

 

SECTION 5.7.  Miscellaneous.  This Agreement sets forth the entire
agreement and understanding among the parties hereto, and supersedes all prior
agreements and understandings, relating to the subject matter hereof.  Each agreement herein by or with any
Management Securityholder hereunder shall be deemed to be solely an agreement
between such Management Securityholder and the Company and not between such
Management Securityholder and any other Securityholder.  Upon the written request of the Chief
Executive Officer, the Company shall take, or cause to be taken, such actions
as shall be necessary to enforce compliance by the MSCP Securityholders and the
MSGEM Securityholders with the covenants herein of each thereof with the
Company.

 

This Agreement shall be governed by, and construed in accordance with,
the law of the State of New York.  The
headings in this Agreement are for purposes of reference only and shall not
limit or otherwise affect the meaning hereof. 
This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one instrument.  

 

32

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized signatories thereunto duly
authorized as of the day and year first above written.

 

	
   

  	
  ENERSYS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MORGAN STANLEY DEAN
  WITTER

  CAPITAL PARTNERS IV, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MSDW CAPITAL PARTNERS
  IV,

  LLC, as General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MSDW Capital Partners
  IV, Inc.,

  as Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MSDW IV 892 INVESTORS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MSDW CAPITAL PARTNERS
  IV,

  LLC, as General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MSDW Capital Partners
  IV, Inc.,

  as Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

33

 

	
   

  	
  MORGAN STANLEY DEAN
  WITTER CAPITAL INVESTORS IV, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MSDW CAPITAL PARTNERS
  IV,

  LLC, as General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MSDW Capital Partners
  IV, Inc.,

  as Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MORGAN STANLEY GLOBAL
  EMERGING MARKETS PRIVATE INVESTMENT FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MORGAN STANLEY GLOBAL
  EMERGING MARKETS, INC., as General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  MORGAN STANLEY GLOBAL
  EMERGING MARKETS PRIVATE INVESTORS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MORGAN STANLEY GLOBAL
  EMERGING MARKETS, INC., as General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  METALMARK CAPITAL LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

34

 

	
   

  	
  J.P. MORGAN DIRECT
  CORPORATE FINANCE INSTITUTIONAL INVESTORS LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  JPMorgan Chase Bank, as
  investment advisor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  J.P. Morgan Direct
  Corporate Finance

  
	
   

  	
  Institutional Investors
  LLC

  
	
   

  	
  c/o J.P. Morgan
  Investment Management Inc.

  
	
   

  	
  522 Fifth Avenue

  
	
   

  	
  New York, New York
  10036

  
	
   

  	
  Attention:  Eduard Beit

  
	
   

  	
  Telephone:  (212) 837-1867

  
	
   

  	
  Facsimile:  (212) 837-1377

  
	
   

  	
   

  
	
   

  	
  With copies to:

  
	
   

  	
   

  
	
   

  	
  Proskauer Rose LLP

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, New York
  10036

  
	
   

  	
  Attention:  Adam Kansler

  
	
   

  	
  Telephone:  (212) 969-3689

  
	
   

  	
  Facsimile:  (212) 969-2900

  
					

 

35

 

	
   

  	
  J.P. MORGAN DIRECT
  CORPORATE FINANCE PRIVATE INVESTORS LLC

  
	
   

  	
  By:

  	
  J.P. Morgan Investment
  Management Inc., as investment advisor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  J.P. Morgan Direct
  Corporate Finance

  
	
   

  	
  Private Investors LLC

  
	
   

  	
  c/o J.P. Morgan
  Investment Management Inc.

  
	
   

  	
  522 Fifth Avenue

  
	
   

  	
  New York, New York
  10036

  
	
   

  	
  Attention:  Eduard Beit

  
	
   

  	
  Telephone:  (212) 837-1867

  
	
   

  	
  Facsimile:  (212) 837-1377

  
	
   

  	
   

  
	
   

  	
  With copies to:

  
	
   

  	
   

  
	
   

  	
  Proskauer Rose LLP

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, New York
  10036

  
	
   

  	
  Attention:  Adam Kansler

  
	
   

  	
  Telephone:  (212) 969-3689

  
	
   

  	
  Facsimile:  (212) 969-2900

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  522 FIFTH AVENUE FUND,
  L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  J.P. Morgan Investment
  Management Inc., as investment advisor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

36

 

	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  522 Fifth Avenue Fund,
  L.P.

  
	
   

  	
  c/o J.P. Morgan
  Investment Management Inc.

  
	
   

  	
  522 Fifth Avenue

  
	
   

  	
  New York, New York
  10036

  
	
   

  	
  Attention:  Eduard Beit

  
	
   

  	
  Telephone:  (212) 837-1867

  
	
   

  	
  Facsimile:  (212) 837-1377

  
	
   

  	
   

  
	
   

  	
  With copies to:

  
	
   

  	
   

  
	
   

  	
  Proskauer Rose LLP

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, New York
  10036

  
	
   

  	
  Attention:  Adam Kansler

  
	
   

  	
  Telephone:  (212) 969-3689

  
	
   

  	
  Facsimile:  (212) 969-2900

  
	
   

  	
   

  
	
   

  	
  FIRST PLAZA GROUP TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
  JPMorgan Chase Bank,

  as Trustee for First Plaza Group Trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  First Plaza Group Trust

  
	
   

  	
  c/o General Motors Asset Management

  
	
   

  	
  767 Fifth Avenue

  
	
   

  	
  New York, NY 10153

  
	
   

  	
  Attention:

  	
  John Clark

  
	
   

  	
   

  	
  Jeffrey Reals

  
	
   

  	
  Telephone: 
  (212) 418-6100

  
	
   

  	
  Facsimile: 
  (212) 418-3644

  
					

 

37

 

	
   

  	
  With copies to:

  
	
   

  	
   

  
	
   

  	
  Kirkland & Ellis

  
	
   

  	
  Citigroup Center

  
	
   

  	
  153 East 53rd Street

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  Attention: 
  Michael Movsovich

  
	
   

  	
  Telephone:  (212)
  446-4888

  
	
   

  	
  Facsimile: 
  (212) 446-4900

  
	
   

  	
   

  
	
   

  	
  GM CAPITAL PARTNERS I, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GM Partners I, LLC,
  with respect to its series, GM Capital Partners I

  
	
   

  	
   

  
	
   

  	
  By:

  	
  General Motors
  Investment Management Corporation, as Managing Member of GM Partners I, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  GM Capital Partners I, L.P.

  
	
   

  	
  c/o General Motors Asset Management

  
	
   

  	
  767 Fifth Avenue

  
	
   

  	
  New York, NY 10153

  
	
   

  	
  Attention:

  	
  John Clark

  
	
   

  	
   

  	
  Jeffrey Reals

  
	
   

  	
  Telephone: 
  (212) 418-6100

  
	
   

  	
  Facsimile: 
  (212) 418-3644

  
	
   

  	
   

  
	
   

  	
  With copies to:

  
	
   

  	
   

  
	
   

  	
  Kirkland & Ellis

  
	
   

  	
  Citigroup Center

  
	
   

  	
  153 East 53rd Street

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  Attention: 
  Michael Movsovich

  
	
   

  	
  Telephone: 
  (212) 446-4888

  
	
   

  	
  Facsimile: 
  (212) 446-4900

  
					

 

38

 

	
   

  	
   

  
	
   

  	
  John D. Craig

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Michael T. Philion

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Charles K. McManus

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Richard W. Zuidema

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  John A. Shea

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Raymond Kubis

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Cheryl Diuguid

  

 

39

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