Document:

Exhibit 10.4

 

EXECUTION COPY

 

REGISTRATION AGREEMENT

 

THIS REGISTRATION
AGREEMENT (this “Agreement”) is made as of February 2, 2006, by and
among Indalex Holdings Finance, Inc., a Delaware corporation (the “Company”),
Sun Indalex, LLC, a Delaware limited liability company (“Sun”), and each
Person whose name appears on the signature pages attached hereto or who
otherwise hereafter becomes a party to this Agreement (collectively, the “Other
Investors”).  Otherwise undefined
capitalized terms used herein are defined in Section 9 hereof.

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties to this Agreement hereby agree as follows:

1.             Demand
Registrations.

(a)           Requests for Registration.  At any time, the holders of at least a
majority of the Sun Registrable Securities may request registration under the
Securities Act of all or any portion of such Sun Registrable Securities on Form
S-1 or any similar long-form registration statement (“Long-Form
Registrations”) or, if available, on Form S-2 or S-3 or any similar
short-form registration statement (“Short-Form Registrations”). All
registrations requested pursuant to this Section 1(a) are referred
to herein as “Demand Registrations.” 
Each request for a Demand Registration shall specify the approximate
number of Registrable Securities requested to be registered and the anticipated
per share price range for such offering. 
Within ten days after receipt of any such request, the Company shall
give written notice of such requested registration to all other holders of
Registrable Securities and, subject to Section 1(d) below, will include
in such registration, in addition to the Sun Registrable Securities that are
requested to be registered pursuant hereto, all Other Registrable Securities
with respect to which the Company has received written requests for inclusion
therein within 15 days after the sending by the Company of the Company’s notice.

(b)           Long-Form Registrations.  The holders of a majority of the Sun
Registrable Securities shall be entitled to request unlimited Long-Form
Registrations in which the Company will pay all Registration Expenses (as
defined below in Section 5).  All
Long-Form Registrations shall be underwritten registrations.

(c)           Short-Form Registrations.  In addition to the Long-Form Registrations
provided pursuant to Section 1(b), the holders of a majority of the Sun
Registrable Securities shall be entitled to request an unlimited number of
Short-Form Registrations in which the Company will pay all Registration
Expenses.  Demand Registrations will be
Short-Form Registrations whenever the Company is permitted to use any
applicable short form.  After the Company
has become subject to the reporting requirements of the Exchange Act, the
Company shall use its best efforts to make Short-Form Registrations on Form S-3
available for the sale of Registrable Securities.  All Short-Form Registrations shall be
underwritten registrations, unless otherwise agreed to by the Company.

 

(d)           Priority on Demand Registrations.
The Company will not include in any Demand Registration any securities which
are not Registrable Securities without the prior written consent of the holders
of a majority of the Registrable Securities included in such registration.  If a Demand Registration is an underwritten
offering and the managing underwriters advise the Company in writing that, in
their opinion, the number of Registrable Securities and, if permitted hereunder,
other securities requested to be included in such offering, exceeds the number
of Registrable Securities and other securities, if any, which can be sold
therein without adversely affecting the marketability of the offering, the
Company will include in such registration  (i) first, the number of
Registrable Securities requested to be included in such registration which in
the opinion of such underwriters can be sold without adverse effect, pro rata
among the respective holders thereof on the basis of the number of Registrable
Securities owned by each such holder, and (ii) second, other securities
requested to be included in such Demand Registration, pro rata among the
holders of such securities on the basis of the number of such securities owned by
each such holder.

(e)           Restrictions on Demand
Registrations.  The Company will not
be obligated to effect any Demand Registration within six months after the
effective date of a previous Long-Form Registration with respect to the
Company.  The Company may postpone, for
up to six months (from the date of the request), the filing or the
effectiveness of a registration statement for a Demand Registration if (i) the
Company’s board of directors believes, in good faith, that such Demand
Registration would reasonably be expected to have an adverse effect on any
proposal or plan by the Company or any Subsidiary thereof to engage in any
acquisition of assets (other than in the ordinary course of business) or any
stock purchase, merger, consolidation, tender offer, reorganization, or similar
transaction or (ii) the Company is in possession of material non-public
information concerning it or its business and affairs and the Company’s board
of directors determines in good faith that the prompt public disclosure of such
information in a registration statement would reasonably be expected to have an
adverse effect on the Company; provided, however, that in any
such event, the holders of Registrable Securities initially requesting such
Demand Registration will be entitled to withdraw such request and, if such
request is withdrawn, such Demand Registration shall be treated as if it had
never been made in the first instance, and the Company will pay all
Registration Expenses in connection with such registration.  The Company may delay a Demand Registration
hereunder only once in any 12-month period.

(f)            Selection of Underwriters.  The holders of a majority of the Registrable
Securities initially requesting registration hereunder will have the right to
select the investment banker(s) and manager(s) to administer the offering under
such Demand Registration, subject to the Company’s approval, which will not be
unreasonably withheld.

(g)           Other Registration Rights.  Except as provided in this Agreement, the
Company will not grant to any Persons the right to request that the Company
register any equity securities of the Company, or any securities convertible
into or exchangeable or exercisable for any such securities, without the prior
written consent of the holders of at least a majority of the  Registrable Securities.

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2.             Piggyback Registrations.

(a)           Right to Piggyback.  Whenever the Company proposes to register any
of its equity securities under the Securities Act (other than pursuant to a
Demand Registration or a registration on Form S-4 or S-8 or any successor or
similar forms) and the registration form to be used may be used for the
registration of Registrable Securities (a “Piggyback Registration”),
whether or not for sale for its own account, the Company will give prompt
written notice to all holders of Registrable Securities of its intention to
effect such a registration and, subject to Sections 2(c) and 2(d) below,
will include in such registration all Registrable Securities with respect to
which the Company has received written requests for inclusion therein within 10
days after the sending by the Company of the Company’s notice.

(b)           Piggyback Expenses.  In all Piggyback Registrations, the
Registration Expenses of the holders of Registrable Securities will be paid by
the Company.

(c)           Priority on Primary Registrations.
If a Piggyback Registration is an underwritten primary registration on behalf
of the Company, and the managing underwriters advise the Company in writing
(with a copy to each party hereto requesting registration of Registrable
Securities) that, in their opinion, the number of securities requested to be
included in such registration exceeds the number which can be sold in such
offering without adversely affecting the marketability, proposed offering
price, timing, distribution method or probability of success of such offering,
then the Company will include in such registration (i) first, the
securities that the Company proposes to sell, (ii) second, the Registrable
Securities requested to be included in such registration, pro rata among the
holders thereof on the basis of the number of Registrable Securities owned by
each such holder, and (iii) third, other securities requested to be included in
such registration pro rata among the holders of such securities on the basis of
the number of such other securities owned by each such holder.

(d)           Priority on Secondary
Registrations. If a Piggyback Registration is an underwritten secondary
registration on behalf of holders of the Company’s securities (it being
understood that secondary registrations on behalf of holders of Registrable
Securities are addressed in Section 1 above rather than in this Section
2(d)), and the managing underwriters advise the Company in writing that, in
their opinion, the number of securities requested to be included in such
registration exceeds the number which can be sold in such offering without
adversely affecting the marketability of the offering, the Company will include
in such registration (i) first, the securities requested to be included
therein by the holders requesting such registration, (ii) second, the
Registrable Securities requested to be included in such registration, pro rata
among the holders of such Registrable Securities on the basis of the number of
Registrable Securities owned by each such requesting holder, and (iii) third,
other securities requested to be included in such registration pro rata among
the holders of such other securities on the basis of the number of such
securities owned by each such holder.

(e)           Selection of Underwriters.  If any Piggyback Registration is an
underwritten offering, the selection of the investment banker(s) and manager(s)
for the offering shall be made by the Company in its sole discretion.

(f)            Withdrawal by Company.  If, at any time after giving notice of its
intention to register any of its securities as set forth in Section 2(a)
and before the effective date of such registration statement filed in
connection with such registration, the Company shall

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determine, for any reason, not to register
such securities, the Company may, at its sole discretion, give written notice
of such determination to each holder of Registrable Securities and thereupon
shall be relieved of its obligation to register any Registrable Securities in
connection with such registration (but not from its obligation to pay the
Registration Expenses in connection therewith as provided herein).

(g)           Other Registrations.  If the Company has previously filed a
registration statement with respect to Registrable Securities pursuant to Section
1 or pursuant to this Section 2, and if such previous
registration has not been withdrawn or abandoned, the Company will not file or
cause to be effected any other registration of any of its equity securities or
securities convertible into or exchangeable or exercisable for its equity
securities under the Securities Act (except on Form S-4 or S-8 or any successor
form), whether on its own behalf or at the request of any holder or holders of
such securities, until a period of at least six months has elapsed from the
effective date of such previous registration.

3.             Holdback
Agreements.

(a)           Each holder of Registrable Securities
agrees not to effect any public sale or distribution (including sales pursuant
to Rule 144) of equity securities of the Company, or any securities, options,
or rights convertible into or exchangeable or exercisable for such securities,
during the seven (7) days before and the 180-day period beginning on the
effective date of any underwritten public offering of the Company’s equity
securities (including Demand and Piggyback Registrations) (except as part of
such underwritten registration), unless the underwriters managing the
registered public offering otherwise agree.

(b)           The Company agrees (i) not to
effect any public sale or distribution of its equity securities, or any
securities convertible into or exchangeable or exercisable for such securities,
during the seven (7) days before and during the 180-day period beginning on the
effective date of any underwritten public offering of the Company’s equity
securities (including Demand and Piggyback Registrations) (except as part of
such underwritten registration or pursuant to registrations on Form S-4 or S-8
or any successor form), unless the underwriters managing the registered public
offering otherwise agree, and (ii) to cause each holder of its Common Stock, or
any securities convertible into or exchangeable or exercisable for Common
Stock, purchased or otherwise acquired from the Company at any time after the
date of this Agreement (other than in a registered public offering) to agree
not to effect any public sale or distribution (including sales pursuant to Rule
144) of any such securities during any such period (except as part of such
underwritten registration, if otherwise permitted), unless the underwriters
managing the registered public offering otherwise agree.

4.             Registration
Procedures.  Whenever the holders of
Registrable Securities have requested that any Registrable Securities be
registered pursuant to this Agreement, the Company will use its best efforts to
effect the registration and the sale of such Registrable Securities in
accordance with the intended method of disposition thereof and, pursuant
thereto, the Company will as expeditiously as possible:

(a)           prepare and (within 60 days after
receiving a request for registration) file with the Securities and Exchange
Commission a registration statement with respect to such

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Registrable Securities and thereafter use its
best efforts to cause such registration statement to become effective (provided
that, before filing a registration statement or prospectus or any amendments or
supplements thereto, the Company will furnish to the counsel selected by the
holders of a majority of the Registrable Securities covered by such
registration statement copies of all such documents proposed to be filed, which
documents will be subject to review of such counsel);

(b)           prepare and file with the Securities
and Exchange Commission such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary
to keep such registration statement effective for a period of either (i) not
less than six months (subject to extension pursuant to Section 7(b)) or,
if such registration statement relates to an underwritten offering, such longer
period as in the opinion of counsel for the underwriters a prospectus is
required by law to be delivered in connection with sales of Registrable
Securities by an underwriter or dealer, or (ii) such shorter period as will
terminate when all of the securities covered by such registration statement
during such period have been disposed of in accordance with the intended
methods of disposition by the seller or sellers thereof set forth in such
registration statement (but, in any event, not before the expiration of any
longer period required under the Securities Act), and to comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement until such time as all of
such securities have been disposed of in accordance with the intended methods
of disposition by the seller or sellers thereof set forth in such registration
statement;

(c)           furnish to each seller of Registrable
Securities such number of copies of such registration statement, each amendment
and supplement thereto, the prospectus included in such registration statement
(including each preliminary prospectus), and such other documents as such
seller may reasonably request in order to facilitate the disposition of the
Registrable Securities owned by such seller;

(d)           use its best efforts to register or
qualify such Registrable Securities under such other securities or blue sky
laws of such jurisdictions as any seller reasonably requests and do any and all
other acts and things which may be reasonably necessary or advisable to enable
such seller to consummate the disposition in such jurisdictions of the
Registrable Securities owned by such seller (provided that the Company
will not be required to (i) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
subsection, (ii) subject itself to taxation in any such jurisdiction, or (iii)
consent to general service of process in any such jurisdiction);

(e)           notify each seller of such
Registrable Securities, at any time when a prospectus relating thereto is
required to be delivered under the Securities Act, upon discovery that, or upon
the discovery of the happening of any event as a result of which, the prospectus
included in such registration statement contains an untrue statement of a
material fact or omits any fact necessary to make the statements therein not
misleading in the light of the circumstances under which they were made, and,
at the request of any such seller, the Company will prepare and furnish to such
seller a reasonable number of copies of a supplement or amendment to such
prospectus so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus will not contain an untrue statement of
a material fact or omit to state any fact

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necessary to make the statements therein not
misleading in the light of the circumstances under which they were made;

(f)            use best efforts to cause all such
Registrable Securities to be listed on each securities exchange on which
similar securities issued by the Company are then listed and, if not so listed,
to be listed on a securities exchange or the National Association of Securities
Dealers (“NASD”) automated quotation system and, if listed on the NASD
automated quotation system, use its best efforts to secure designation of all
such Registrable Securities covered by such registration statement as a “national
market system security” of The Nasdaq Stock Market within the meaning of Rule 11Aa2-1
of the Exchange Act or, failing that, to secure The Nasdaq Stock Market’s
authorization for such Registrable Securities and, without limiting the
generality of the foregoing, to arrange for at least two market makers to
register as such with respect to such Registrable Securities with the NASD;

(g)           use best efforts to provide a
transfer agent and registrar for all such Registrable Securities not later than
the effective date of such registration statement;

(h)           enter into such customary agreements
(including underwriting agreements in customary form) and take all such other
actions as the holders of a majority of the Registrable Securities being sold
or the underwriters, if any, reasonably request in order to expedite or
facilitate the disposition of such Registrable Securities (including, without
limitation, effecting a stock split, combination of shares, recapitalization,
or reorganization);

(i)            make available for inspection by any
seller of Registrable Securities, any underwriter participating in any
disposition pursuant to such registration statement, and any attorney,
accountant, or other agent retained by any such seller or underwriter, all
financial and other records, pertinent corporate and business documents and
properties of the Company as shall be necessary to enable them to exercise
their due diligence responsibility, and cause the Company’s officers,
directors, employees, agents, representatives, and independent accountants to
supply all such information reasonably requested by any such seller,
underwriter, attorney, accountant, or agent in connection with such
registration statement;

(j)            otherwise use its best efforts to
comply with all applicable rules and regulations of the Securities and Exchange
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 day of the Company’s first full calendar quarter after
the effective date of the registration statement, which earnings statement
shall satisfy the provisions of Section 11(a) of the Securities Act and Rule
158 thereunder;

(k)           permit any holder of Registrable
Securities which holder, in its sole and exclusive judgment, might be deemed to
be an underwriter or a controlling person of the Company to participate in the
preparation of such registration or comparable statement and to require the
insertion therein of material, furnished to the Company in writing, which in
the reasonable judgment of such holder and its counsel should be included;

(l)            in the event of the issuance of any
stop order suspending the effectiveness of a registration statement, or of any
order suspending or preventing the use of any related

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prospectus or suspending the qualification of
any securities included in such registration statement for sale in any
jurisdiction, the Company will use its reasonable best efforts promptly to
obtain the withdrawal of such order;

(m)          use its reasonable best efforts to
cause such Registrable Securities covered by such registration statement to be
registered with or approved by such other governmental agencies or authorities
as may be necessary to enable the sellers thereof to consummate the disposition
of such Registrable Securities;

(n)           use best efforts to obtain a cold comfort
letter from the Company’s independent public accountants in customary form and
covering such matters of the type customarily covered by cold comfort letters,
which letter shall be addressed to the underwriters, and the Company shall use
its reasonable best efforts to cause such cold comfort letter to also be
addressed to the holders of such Registrable Securities;

(o)           use best efforts to obtain an opinion
from the Company’s outside counsel in customary form and covering such matters
of the type customarily covered by such opinions, which opinion shall be
addressed to the underwriters and the holders of such Registrable Securities;

(p)           cooperate with the holders of Registrable
Securities covered by the registration statement and the managing underwriter
or agent, if any, to facilitate the timely preparation and delivery of
certificates (not bearing any restrictive legends) representing securities to
be sold under the registration statement, and enable such securities to be in
such denominations and registered in such names as the managing underwriter, or
agent, if any, or such holders may request;

(q)           cooperate with each holder of Registrable
Securities covered by the registration statement and each underwriter or agent
participating in the disposition of such Registrable Securities and their
respective counsel in connection with any filings required to be made with the
NASD; and

(r)            use its best efforts to make available the
executive officers of the Company to participate with the holders of Registrable
Securities and any underwriters in any “road shows” or other selling efforts
that may be reasonably requested by the holders in connection with the methods
of distribution for the Registrable Securities.

If any such
registration or comparable statement refers to any holder by name or otherwise
as the holder of any securities of the Company and if such holder, in its sole
and exclusive judgment, is or might be deemed to be an underwriter or a
controlling person of the Company, such holder shall have the right to require
(i) the insertion therein of language, in form and substance satisfactory to
such holder and presented to the Company in writing, to the effect that the
holding by such holder of such securities is not to be construed as a
recommendation by such holder of the investment quality of the Company’s
securities covered thereby, and that such holding does not imply that such
holder shall assist in meeting any future financial requirements of the
Company, or (ii) in the event that such reference to such holder by name or
otherwise is not required by the Securities Act or any similar federal or state
statute then in force, the deletion of

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the reference to
such holder; provided that, with respect to this clause (ii), such
holder shall furnish to the Company an opinion of counsel to such effect, which
opinion and counsel shall be reasonably satisfactory to the Company.  The Company may require each seller of
Registrable Securities 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.

5.             Registration
Expenses.

(a)           All expenses incident to the Company’s
performance of or compliance with this Agreement, including, without
limitation, all registration and filing fees, fees and expenses of compliance
with securities or blue sky laws, printing expenses, messenger and delivery
expenses, fees and disbursements of custodians, fees and disbursements of
counsel for the Company, and all independent certified public accountants,
underwriters (excluding discounts and commissions), and other Persons retained
by the Company (all such expenses being herein called “Registration Expenses”),
will be borne as provided in this Agreement, except that the Company will, in
any event, pay its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit or quarterly review, the
expense of any liability insurance, and the expenses and fees for listing the
securities to be registered on each securities exchange on which similar
securities issued by the Company are then listed or, if none are so listed, on a
securities exchange or the NASD automated quotation system.  The Company shall have no obligation to pay
any underwriting discounts or selling commissions attributable to the
Registrable Securities being sold by the holders thereof, which underwriting
discounts or selling commissions shall be borne by such holders.

(b)           In connection with each Demand
Registration and each Piggyback Registration, the Company shall reimburse the
holders of Registrable Securities included in such registration for the
reasonable fees and disbursements of one counsel chosen by the holders of a
majority of the Registrable Securities included in such registration.

(c)           To the extent Registration Expenses
are not required to be paid by the Company pursuant to this Agreement, each
holder of securities included in any registration hereunder will pay those
Registration Expenses allocable to the registration of such holder’s securities
so included, and any Registration Expenses not so allocable will be borne by
all sellers of securities included in such registration in proportion to the
aggregate selling price of each seller’s securities to be so registered.

6.             Indemnification.

(a)           The Company agrees to indemnify and
hold harmless, to the full extent permitted by law, each holder of Registrable
Securities, its officers, directors, members, agents, and employees and each
Person who controls such holder (within the meaning of the Securities Act)
against any and all losses, claims, damages, liabilities, joint or several,
together with reasonable costs and expenses (including reasonable attorney’s
fees), to which such indemnified party may become subject under the Securities
Act or otherwise, insofar as such losses, claims, damages, or liabilities (or
actions or proceedings, whether commenced or threatened, in respect

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thereof) arise out of, are based upon, are
caused by, or result from (i) any untrue or alleged untrue statement of
material fact contained (A) in any registration statement, prospectus, or
preliminary prospectus or any amendment thereof or supplement thereto, or
(B) in any application or other document or communication (in this Section
6 collectively called an “application”) executed by or on behalf of
the Company or based upon written information furnished by or on behalf of the
Company filed in any jurisdiction in order to qualify any securities covered by
such registration statement under the “blue sky” or securities laws thereof, or
(ii) any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
the Company will reimburse such holder and each such director, officer, member,
agent and employee for any legal or any other expenses 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, is based upon, is caused by, or results from an untrue statement or alleged
untrue statement, or omission or alleged omission, made in such registration
statement, any such prospectus or preliminary prospectus or any amendment or
supplement thereto, or in any application, in reliance upon, and in conformity
with, written information prepared and furnished to the Company by such holder
or other indemnified party expressly for use therein or by such holder’s
failure to deliver a copy of the registration statement or prospectus or any
amendments or supplements thereto after the Company has furnished such holder
with a sufficient number of copies of the same. 
In connection with any underwritten offering, the Company will indemnify
such underwriters, their officers and directors, and each Person who controls
such underwriters (within the meaning of the Securities Act) to the same extent
as provided above with respect to the indemnification of the holders of
Registrable Securities.

(b)           In connection with any registration
statement in which a holder of Registrable Securities is participating, each
such holder will furnish to the Company in writing such information and
affidavits as the Company reasonably requests for use in connection with any
such registration statement or prospectus and, to the full extent permitted by
law, will indemnify and hold harmless the other holders of Registrable
Securities and the Company, and their respective directors, officers, members,
agents, and employees and each other Person who controls the Company (within
the meaning of the Securities Act) against any losses, claims, damages,
liabilities, joint or several, together with reasonable costs and expenses
(including reasonable attorney’s fees), to which such indemnified party may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages, or liabilities (or actions or proceedings, whether commenced
or threatened, in respect thereof) arise out of, are based upon, are caused by,
or result from (i) any untrue or alleged untrue statement of material fact
contained in the registration statement, prospectus or preliminary prospectus
or any amendment thereof or supplement thereto or in any application, or
(ii) any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading, but
only to the extent that such untrue statement or omission is made in such
registration statement, any such prospectus or preliminary prospectus or any
amendment or supplement thereto, or in any application, in reliance upon and in
conformity with written information prepared and furnished to the Company by
such holder expressly for use therein; provided, however, that
the obligation to indemnify will be individual to each holder and will be
limited to the net amount of

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proceeds received by such holder from the
sale of Registrable Securities pursuant to such registration statement.

(c)           Any Person entitled to
indemnification hereunder will (i) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification
(provided that the failure to give prompt notice shall not impair any
Person’s right to indemnification hereunder to the extent such failure has not
prejudiced the indemnifying party), and (ii) unless in such indemnified
party’s reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist with respect to such claim, permit such
indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party. 
If such defense is assumed, the indemnifying party will not be subject
to any liability for any settlement made by the indemnified party without its
consent (but such consent will not be unreasonably withheld).  An indemnifying party who is not entitled to,
or elects not to, assume the defense of a claim will not be obligated to pay
the fees and expenses of more than one counsel for all parties indemnified by
such indemnifying party with respect to such claim, unless in the reasonable
judgment of any indemnified party a conflict of interest may exist between such
indemnified party and any other of such indemnified parties with respect to
such claim.

(d)           The indemnifying party shall not, except
with the approval of each indemnified party, consent to entry of any judgment
or enter into any settlement which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to each indemnified party of a
release from all liability in respect to such claim or litigation without any
payment or consideration provided by such indemnified party.

(e)           If the indemnification provided for
in this Section 6 is unavailable to, or is insufficient to hold
harmless, an indemnified party under the provisions above in respect to any
losses, claims, damages, or liabilities referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages, or liabilities
(i) in such proportion as is appropriate to reflect the relative benefits
received by the Company on the one hand and the sellers of Registrable
Securities and any other sellers participating in the registration statement on
the other hand from the sale of Registrable Securities pursuant to the
registered offering of securities as to which indemnity is sought, or (ii) if
the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of
the Company on the one hand and of the sellers of Registrable Securities and
any other sellers participating in the registration statement on the other hand
in connection with the registration statement on the other in connection with
the statement or omissions which resulted in such losses, claims, damages, or
liabilities, as well as any other relevant equitable considerations.  The relative benefits received by the Company
on the one hand and the sellers of Registrable Securities and any other sellers
participating in the registration statement on the other hand shall be deemed
to be in the same proportion as the total net proceeds from the offering
(before deducting expenses) to the Company bear to the total net proceeds from
the offering (before deducting expenses) to the sellers of Registrable
Securities and any other sellers participating in the registration
statement.  The relative fault of the
Company on the one hand and of the sellers of Registrable Securities and any
other sellers participating in the registration statement on the other hand
shall be determined by reference to,

 10

 

among other things, whether the untrue or alleged omission to state a
material fact relates to information supplied by the Company or by the sellers
of Registrable Securities or other sellers participating in the registration
statement and the parties’ relative intent, knowledge, access to information,
and opportunity to correct or prevent such statement or omission.

(f)            The
Company and the sellers of Registrable Securities agree that it would not be
just and equitable if contribution pursuant to this Section 6 were
determined by pro rata allocation (even if the sellers of Registrable
Securities were treated as one entity for such purpose) or by any other method
of allocation which does not take account of the equitable considerations
referred to in the immediately preceding paragraph.  The amount paid or payable by an indemnified
party as a result of the losses, claims, damages, and liabilities referred to
in the immediately preceding paragraph shall be deemed to include, subject to
the limitations set forth above, any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or
defending any such action or claim. 
Notwithstanding the provisions of this Section 6, no seller of
Registrable Securities shall be required to contribute any amount in excess of
the net proceeds received by such seller from the sale of Registrable
Securities covered by the registration statement filed pursuant hereto.  No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

(g)           The
indemnification and contribution by any such party provided for under this
Agreement shall be in addition to any other rights to indemnification or
contribution which any indemnified party may have pursuant to law or contract
and will remain in full force and effect regardless of any investigation made
or omitted by or on behalf of the indemnified party or any officer, director,
employee or controlling Person of such indemnified party and will survive the
transfer of securities.

7.             Participation
in Underwritten Registrations.

(a)           No
Person may participate in any registration hereunder which is underwritten unless
such Person (i) agrees to sell such Person’s securities on the basis
provided in any underwriting arrangements approved by the Person or Persons
entitled hereunder to approve such arrangements (including, without limitation,
pursuant to the terms of any over-allotment or “green shoe” option requested by
the managing underwriter(s); provided that no holder of Registrable
Securities will be required to sell more than the number of Registrable
Securities that such holder has requested the Company to include in any
registration), and (ii) completes and executes all questionnaires, powers
of attorney, indemnities, underwriting agreements, and other documents
reasonably required under the terms of such underwriting arrangements.

(b)           Each
Person that is participating in any registration hereunder agrees that, upon
receipt of any notice from the Company of the happening of any event of the
kind described in Section 4(e) above, such Person will forthwith
discontinue the disposition of its Registrable Securities pursuant to the
registration statement until such Person’s receipt of the copies of a
supplemented or amended prospectus as contemplated by such Section 4(e).  In the event that the Company shall give any
such notice, the applicable time period mentioned in Section 4(b) during
which a Registration Statement is to remain effective shall be extended by

 11
 

 

the number of days during the period from and including the date of the
giving of such notice pursuant to this Section 7 to and including the
date when each seller of a Registrable Security covered by such registration
statement shall have received the copies of the supplemented or amended
prospectus contemplated by Section 4(e).

8.             Current
Public Information.  At all times
after the Company has filed a registration statement with the Securities and
Exchange Commission pursuant to the requirements of either the Securities Act
or the Exchange Act, the Company will file all reports required to be filed by
it under the Securities Act and the Exchange Act and the rules and regulations
adopted by the Securities and Exchange Commission thereunder, and will take
such further action as any holder or holders of Registrable Securities may
reasonably request, all to the extent required to enable such holders to sell
Registrable Securities pursuant to Rule 144 adopted by the Securities and
Exchange Commission under the Securities Act (as such rule may be amended from
time to time) or any similar rule or regulation hereafter adopted by the
Securities and Exchange Commission.

9.             Definitions

“Common Stock”
means the Voting Common Stock and the Non-Voting Common Stock.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, or any successor federal
statute, and the rules and regulations promulgated thereunder, all as amended,
modified or supplemented from time to time.

“NASD”
shall have the meaning set forth in Section 3(f).

“Non-Voting
Common Stock” means the Non-Voting Common Stock, par value $0.001 per
share, of the Company as constituted on the date hereof and any stock into
which any such Non-Voting Common Stock shall have been changed or any stock
resulting from any reclassification of any such Non-Voting Common Stock.

“Other
Registrable Securities” means (i) all shares of Common Stock of the Company
originally issued, directly or indirectly, to any Other Investor, (ii) all
shares of Common Stock of the Company issued or issuable, directly or
indirectly, with respect to the securities referred to in clause (i) above upon
exercise, conversion, or exchange or by way of stock dividend or stock split or
in connection with a combination of shares, recapitalization, merger,
consolidation, or other reorganization, and (iii) any other shares of Common
Stock of the Company held by Persons holding securities described in clauses
(i) and (ii) above.  As to any particular
Other Registrable Securities, such securities shall cease to be Other
Registrable Securities when they have been (a) distributed to the public
pursuant to an offering registered under the Securities Act, (b) sold to the
public through a broker, dealer, or market maker in compliance with Rule 144
under the Securities Act (or any similar rule then in force), or (c)
repurchased by the Company or any Subsidiary thereof or purchased or otherwise
acquired by Sun, and, if such Other Registrable Securities are purchased or
otherwise acquired by Sun, then such Other Registrable Securities shall be
deemed Sun Registrable Securities.  For
purposes of this Agreement, a Person shall be deemed to be a holder of Other
Registrable Securities, and the

 12
 

 

Other Registrable Securities shall be deemed to be in
existence, whenever such Person has the right to acquire, directly or
indirectly, such Other Registrable Securities (upon conversion or exercise in
connection with a transfer of securities or otherwise, but disregarding any
restrictions or limitations upon the exercise of such right other than
vesting), whether or not such acquisition has actually been effected, and such
Person shall be entitled to exercise the rights of a holder of Other
Registrable Securities hereunder.

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

“Registrable
Securities” means, collectively, the Sun Registrable Securities and the
Other Registrable Securities.

“Securities Act”
means the Securities Act of 1933, as amended, or any successor federal statute,
and the rules and regulations promulgated thereunder, all as amended, modified
or supplemented from time to time.

“Securities and
Exchange Commission” includes any governmental body or agency succeeding to
the functions thereof.

“Subsidiary” or
“Subsidiaries” means, with respect to any Person, any corporation, limited
liability company, partnership, association, or other business entity of which
(i) if a corporation, a majority of the total voting power of shares of stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers, or trustees thereof is at the time owned or
controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries
of such Person or a combination thereof, or (ii) if a limited liability
company, partnership, association, or other business entity, a majority of the
partnership or other similar ownership interest thereof is at the time owned or
controlled, directly or indirectly, by any Person or one or more Subsidiaries
of such Person or a combination thereof. 
For purposes hereof, a Person or Persons shall be deemed to have a
majority ownership interest in a limited liability company, partnership,
association, or other business entity if such Person or Persons shall be
allocated a majority of limited liability company, partnership, association, or
other business entity gains or losses or shall be or control any managing
director or general partner of such limited liability company, partnership,
association, or other business entity.

“Sun
Registrable Securities” means (i) all shares of Common Stock of the
Company originally issued, directly or indirectly, to Sun, (ii) all shares
of Common Stock of the Company issued or issuable, directly or indirectly, with
respect to the securities referred to in clause (i) above upon exercise,
conversion, or exchange or by way of stock dividend or stock split or in
connection with a combination of shares, recapitalization, merger,
consolidation, or other reorganization, and (iii) any other shares of Common
Stock of the Company held by Persons holding securities described in clauses
(i) and (ii) above.  As to any particular
Sun Registrable Securities, such securities shall cease to be Sun Registrable
Securities when they have been (a) distributed to the public pursuant to an
offering registered under the Securities Act, (b) sold to the public through a
broker, dealer, or market maker in compliance with Rule 144

 13
 

 

under the Securities Act (or any similar rule then in
force), or (c) repurchased by the Company or any Subsidiary thereof or
purchased or otherwise acquired by any employee of the Company, and, if such
Sun Registrable Securities are purchased or otherwise acquired by any employee
of the Company, then such Sun Registrable Securities shall be deemed Other
Registrable Securities.  For purposes of
this Agreement, a Person shall be deemed to be a holder of Sun Registrable
Securities, and the Sun Registrable Securities shall be deemed to be in
existence, whenever such Person has the right to acquire directly or indirectly
such Sun Registrable Securities (upon conversion or exercise in connection with
a transfer of securities or otherwise, but disregarding any restrictions or limitations
upon the exercise of such right), whether or not such acquisition has actually
been effected, and such Person shall be entitled to exercise the rights of a
holder of Sun Registrable Securities hereunder.

“Voting Common
Stock” means the Voting Common Stock, par value $0.001 per share, of the
Company as constituted on the date hereof and any stock into which any such
Voting Common Stock shall have been changed or any stock resulting from any
reclassification of any such Voting Common Stock.

10.           Miscellaneous.

(a)           No
Inconsistent Agreements.  The Company
will not hereafter enter into any agreement with respect to the Company’s
securities which is inconsistent with or violates the rights granted to the
holders of Registrable Securities in this Agreement.

(b)           Adjustments
Affecting Registrable Securities. 
The Company will not take any action, or permit any change to occur,
with respect to the Company’s securities which would materially and adversely
affect the ability of the holders of Registrable Securities to include such
Registrable Securities in a registration undertaken pursuant to this Agreement
or which would adversely affect the marketability of such Registrable
Securities in any such registration (including, without limitation, effecting a
stock split, combination of shares, or other recapitalization).

(c)           Amendment
and Waiver.  Except as otherwise
provided herein, no modification, amendment, or waiver of any provision of this
Agreement will be effective against the Company or the holders of Registrable
Securities, unless such modification, amendment, or waiver is approved in
writing by the Company and the holders of at least a majority of the Sun
Registrable Securities; provided, that in the event that such amendment
or waiver would materially and adversely affect a holder or group of holders of
Registrable Securities in a manner substantially different than any other
holders of Registrable Securities, then such amendment or waiver will require
the consent of such holder of Registrable Securities or a majority of the
Registrable Securities held by such group of holders materially and adversely
affected.  The failure of any party to
enforce any of the provisions of this Agreement will in no way be construed as
a waiver of such provisions and will not affect the right of such party
thereafter to enforce each and every provision of this Agreement in accordance
with its terms.

(d)           Severability.  Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal, or unenforceable in any respect under

 14
 

 

any applicable law or rule in any jurisdiction, such invalidity,
illegality, or unenforceability will not affect any other provision or any
other jurisdiction, but this Agreement will be reformed, construed, and
enforced in such jurisdiction as if such invalid, illegal, or unenforceable
provision had never been contained herein.

(e)           Entire
Agreement. Except as otherwise expressly set forth herein, this Agreement,
those documents expressly referred to herein, and the other documents of even
date herewith embody the complete agreement and understanding among the parties
and supersede and preempt any prior understandings, agreements, or
representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way.

(f)            Successors
and Assigns.  This Agreement shall be
binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective heirs, executors, successors and assigns.  In addition, and whether or not any express
assignment shall have been made, the provisions of this Agreement which are for
the benefit of the holders of Registrable Securities (or any portion thereof)
as such shall be for the benefit of, and enforceable by, any subsequent holder
of any Registrable Securities (or of such portion thereof).

(g)           Counterparts.  This Agreement may be executed in separate
counterparts each of which will be an original and all of which taken together
shall constitute one and the same agreement.

(h)           Remedies.
Any Person having rights under any provision of this Agreement shall be
entitled to enforce their rights under this Agreement specifically to recover damages
by reason of any breach of any provision of this Agreement and to exercise all
other rights existing in their favor; provided, however the
parties hereto stipulate that the remedies at law of any party hereto in the
event of any default or threatened default by any other party hereto in the
performance of or compliance with the terms hereof are not and will not be
adequate and that, to the fullest extent permitted by law, such terms may be
specifically enforced (without posting a bond or other security) by a decree
for the specific performance thereof, whether by an injunction against
violation thereof or otherwise.

(i)            Notices.
All communications provided for herein shall be in writing and sent (a) by
facsimile if the sender on the same day sends a confirming copy of such
communication by a recognized overnight delivery service (charges prepaid), (b)
by a recognized overnight delivery service (charges prepaid), or (c) by
messenger.  The respective addresses of the
parties hereto for the purposes of this Agreement are set forth on Exhibit A
attached hereto.  Any party may change
its address (or facsimile number) by notice to each of the other parties in
accordance with this Section 10(i). 
Notice shall be deemed given (and received) on the date of service or
transmission if personally served or transmitted by telegram, telex or
facsimile (with confirmation of successful
transmission obtained); provided, that if such service or transmission
is not on a business day or is after normal business hours, then such notice
shall be deemed given (and received) on the next business day.  Notice otherwise sent as provided herein
shall be deemed given (and received) on the next business day following timely
delivery of such notice to a reputable overnight delivery service.

 15
 

 

(j)            Governing
Law; Jurisdiction; Waiver of Jury Trial. 
This Agreement shall be governed by and construed in accordance with the
domestic laws of the State of Delaware without giving effect to any choice or
conflict of law provision or rule (whether of the State of Delaware or any
other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Delaware. 
Each party hereto submits to the jurisdiction of any state or federal
court sitting in the State of Delaware, in any action or proceeding arising out
of or relating to this Agreement and agrees that all claims in respect of the
action or proceeding may be heard and determined in any such court.  Each party also agrees not to bring any
action or proceeding arising out of or relating to this Agreement in any other
court.  Each party hereto waives any
defense of inconvenient forum to the maintenance of any action or proceeding so
brought and waives any bond, surety, or other security that might be required
of any other party with respect thereto. 
Any party may make service on any other party by sending or delivering a
copy of the process to the party to be served at the address and in the manner
provided for the giving of notices in Section 10(i) above.  Nothing in this Section 10(j),
however, shall affect the right of any party to bring any action or proceeding
arising out of or relating to this Agreement in any other court or to serve
legal process in any other manner permitted by law or at equity.  Each party agrees that a final judgment in
any action or proceeding so brought shall be conclusive and may be enforced by
suit on the judgment or in any other manner provided by law or at equity.  EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION OR OTHER PROCEEDING INSTITUTED
BY OR AGAINST SUCH PARTY IN RESPECT OF ITS, HIS OR HER OBLIGATIONS HEREUNDER OR
THE TRANSACTIONS CONTEMPLATED HEREBY.

(k)           No
Strict Construction.  The language
used in this Agreement shall be deemed to be the language chosen by the parties
hereto to express their mutual intent, and no rule of strict construction shall
be applied against any party.

(l)            Business
Days.  If any time period for giving
notice or taking action hereunder expires on a day which is a Saturday, Sunday
or legal holiday in the state in which the Company’s chief executive office is
located, the time period shall automatically be extended to the business day
immediately following such Saturday, Sunday or legal holiday.

(m)          Descriptive
Headings.  The descriptive headings
of this Agreement are inserted for convenience only and do not constitute a
part of this Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

*     *     *    
*     *

 16

 

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

	
  

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  INDALEX HOLDINGS FINANCE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Matthew
  Garff

  	
   

  
	
   

  	
   

  	
  Name: Matthew Garff

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUN:

  
	
   

  	
   

  
	
   

  	
  SUN INDALEX, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Matthew
  Garff

  	
   

  
	
   

  	
   

  	
  Name: Matthew Garff

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OTHER INVESTORS:

  
	
   

  	
   

  
	
   

  	
  H.I.G. SUN PARTNERS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Sami
  Mnaymnen

  	
   

  
	
   

  	
   

  	
  Name: Sami Mnaymnen

  	
   

  
	
   

  	
   

  	
  Title: Co-President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ Glenn
  Oken

  	
   

  
	
   

  	
  Glenn Oken

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ Gary
  Talarico

  	
   

  
	
   

  	
  Gary Talarico

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ Tim
  Stubbs

  	
   

  
	
   

  	
  Tim Stubbs

  
	
   

  	
   

  

 

Signature Page to Registration
Agreement

 

Exhibit A

Addresses for Notices

	
  (a)           If to the Company, to
  it at:

  
	
   

  
	
   

  	
  Indalex Holdings Finance, Inc.

  
	
   

  	
  c/o Sun Capital Advisors IV, LP

  
	
   

  	
  5200 Town Center Circle, Suite 470

  
	
   

  	
  Boca Raton, Florida 33486

  
	
   

  	
  Attention:

  	
  Marc J. Leder

  
	
   

  	
   

  	
  Rodger R. Krouse

  
	
   

  	
   

  	
  C. Deryl Couch

  
	
   

  	
  Telecopy No.: (561) 394-0540

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Kirkland & Ellis LLP

  
	
   

  	
  200 East Randolph Drive

  
	
   

  	
  Chicago, IL 60601

  
	
   

  	
  Attention: Douglas C. Gessner

  
	
   

  	
  Telecopy No.: (312) 861-2200

  
	
   

  	
   

  
	
  (b)           If
  to Sun Indalex, LLC, to it at:

  
	
   

  
	
   

  	
  Sun Indalex, LLC

  
	
   

  	
  c/o Sun Capital Advisors IV, LP

  
	
   

  	
  5200 Town Center Circle, Suite 470

  
	
   

  	
  Boca Raton, Florida 33486

  
	
   

  	
  Attention:

  	
  Marc J. Leder

  
	
   

  	
   

  	
  Rodger R. Krouse

  
	
   

  	
   

  	
  C. Deryl Couch

  
	
   

  	
  Telecopy No.: (561) 394-0540

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Kirkland & Ellis LLP

  
	
   

  	
  200 East Randolph Drive

  
	
   

  	
  Chicago, IL 60601

  
	
   

  	
  Attention:

  	
  Douglas C. Gessner

  
	
   

  	
  Telecopy No.:

  	
  (312) 861-2200

  

 

(c)           If
to an Other Investor, to such Other Investor at the last known address of such
Other Investor contained in the records of the Company.Exhibit
10.5

EXECUTION
COPY

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES
PURCHASE AGREEMENT (this “Agreement”) is made as of February 2, 2006, by
and between Indalex Holdings Finance, Inc., a Delaware corporation (the “Company”),
and Sun Indalex, LLC, a Delaware limited liability company (“Sun”).

In consideration
of the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

1.             Purchase
and Sale of Securities.

(a)           Upon
execution of this Agreement, (i) Sun will purchase, and the Company shall
issue and sell, (A) a Promissory Note (the “Note”) in the form
attached hereto as Exhibit A, in the principal amount of $1,450,000.00,
at a price equal to face value and (B) 983,929 shares of Voting Common Stock (the “Stock”), at a
price of $111.25 per share, and (ii) Sun will deliver to the Company
US $109,462,083.00 in immediately available funds.

(b)           In
connection with the purchase and sale of the Securities hereunder, Sun
represents and warrants to the Company that:

(i)            Sun
is an “accredited investor” within the meaning of the Securities Act;

(ii)           by
reason of its business and financial experience, and the business and financial
experience of those retained to advise it with respect to its investment in the
Securities being purchased hereunder, Sun, together with such advisors, has
such knowledge and experience in financial and business matters so as to be
capable of evaluating the merits and risks of an investment in the Company and
making an informed investment decision with respect thereto;

(iii)          Sun
is acquiring the Securities for investment only and not with a view to, or for
resale in connection with, any distribution to the public or public offering
thereof;

(iv)          Sun
is aware that there is no public market for the Securities and it is unlikely
that there will ever be such a public market;

(v)           Sun
has had an opportunity to ask questions and receive answers concerning the
terms and conditions of the offering of the Securities and has had full access
to such other information concerning the Company as it has requested; and

(vi)          this
Agreement constitutes the legal, valid and binding obligation of Sun,
enforceable in accordance with its terms, and the execution, delivery and
performance of this Agreement by Sun does not and will not conflict with,
violate or cause a breach of any agreement, contract or instrument to which Sun
is a party or any judgment, order or decree to which Sun is subject.

 

2.             Securities
Law Restrictions on Transfer of the Restricted Securities.

(a)           The
Securities are restricted securities transferable only pursuant to (i) public
offerings registered under the Securities Act, (ii) Rule 144 or Rule 144A of
the Securities and Exchange Commission (or any similar rule or rules then in
force) if such rule is available and (iii) subject to the conditions specified
in Section 2(b) below, any other legally available means of transfer.

(b)           In
connection with the transfer of any Restricted Securities (other than a
transfer described in clauses (i) or (ii) of Section 2(a) above), the
holder thereof shall deliver written notice to the Company describing in
reasonable detail the transfer or proposed transfer, together with an opinion
of counsel knowledgeable in securities law matters to the effect that such
transfer of Restricted Securities may be effected without registration of such
Restricted Securities under the Securities Act. 
In addition, if the holder of the Restricted Securities delivers to the
Company an opinion of counsel that no subsequent transfer of such Restricted
Securities shall require registration under the Securities Act and the
Restricted Securities are then in certificated form, the Company shall promptly
upon such contemplated transfer deliver new certificates for such Restricted
Securities which do not bear the Securities Act legend set forth in Section
2(d).  If the Company is not required
to deliver new certificates without such legend for such Restricted Securities,
the holder of such Restricted Securities shall not transfer the same until the
prospective transferee has confirmed to the Company in writing its agreement to
be bound by the conditions contained in this Section 2.

(c)           If
any Restricted Security becomes eligible for sale pursuant to Rule 144(k), the
Company shall, upon the request of the holder of such Restricted Securities,
remove the Securities Act legend set for in Section 2(d) below from the
certificates for such Restricted Securities provided that such holder has
previously delivered to the Company an opinion of counsel that Rule 144(k)
applies and that no subsequent transfer of such Restricted Securities shall
require registration under the Securities Act. 
Each opinion of counsel delivered to the Company under this Section 2
shall be in form and substance reasonably satisfactory to the Company.

(d)           Each
certificate or instrument representing the Stock shall be imprinted with a
legend in substantially the following form:

“THE SECURITIES
REPRESENTED HEREBY ARE SUBJECT TO THE TERMS OF THE STOCKHOLDERS’ AGREEMENT
DATED AS OF FEBRUARY 2, 2006 AMONG THE ISSUER HEREOF AND CERTAIN OTHER PERSONS,
A TRUE AND CORRECT COPY OF WHICH IS ON FILE AT THE ISSUER’S CHIEF EXECUTIVE
OFFICE.  UPON WRITTEN REQUEST TO THE
ISSUER, A COPY THEREOF WILL BE MAILED OR OTHERWISE PROVIDED WITHOUT CHARGE
WITHIN TEN (10) DAYS OF RECEIPT OF SUCH REQUEST TO APPROPRIATELY INTERESTED
PERSONS.

 2
 

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE
SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH
ACT AND SUCH LAWS.”

(e)           The
Note shall be imprinted with a legend in substantially the following form:

“THE SECURITY REPRESENTED
HEREBY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
REGISTERED OR QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAW AND MAY NOT
BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT IN
COMPLIANCE WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT AND THE REGISTRATION
OR QUALIFICATION REQUIREMENTS OF SUCH STATE SECURITIES LAWS OR PURSUANT TO AN
EXEMPTION FROM SUCH REGISTRATION AND QUALIFICATION.”

(f)            Notwithstanding
anything to the contrary contained herein, the Stock is also subject to the
restrictions on transfer set forth in the Stockholders’ Agreement and the
Registration Agreement, and nothing herein shall be interpreted to limit the
restrictions on transfer set forth therein.

3.             Definitions.

“Registration
Agreement” means the Registration Agreement, dated as of the date hereof,
by and among the Company, Sun and certain other stockholders of the Company.

“Restricted Securities”
means the Securities. As to any particular Restricted Securities, such
securities shall cease to be Restricted Securities when they have (a) been
effectively registered under the Securities Act and disposed of in accordance
with the registration statement covering them, (b) been distributed to the
public through a broker, dealer or market maker pursuant to Rule 144 (or any
similar provision then in force) under the Securities Act or become eligible
for sale pursuant to Rule 144(k) (or any similar provision then in force) under
the Securities Act or (c) been otherwise transferred and new certificates for
them not bearing the Securities Act legend set forth in Section 2(d)
have been delivered by the Company in accordance with Section 2.

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“Securities” means
the Note and the Stock of the Company acquired by Sun hereunder.  Securities will continue to be Securities in
the hands of any holder other than Sun, and except as otherwise provided
herein, each such other holder of Securities will succeed to all rights and
obligations attributable to Sun as a holder of Securities hereunder.  Securities
will also include shares of stock of the Company issued with respect to the
Securities by way of a stock split, stock dividend or other recapitalization.

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

“Stockholders’
Agreement” means the Stockholders’ Agreement, dated as of the date hereof,
by and among the Company, Sun, and the Minority Stockholders (as defined
therein).

“Voting Common
Stock” has the meaning set forth in the Stockholders’ Agreement.

4.             General
Provisions.

(a)           Survival
of Representations.  All representations
and warranties contained herein or made in writing by any party in connection
herewith shall survive the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby, regardless of any
investigation made by a party or on its behalf.

(b)           Notices.
Any notice provided for in this Agreement must be in writing and must be either
personally delivered, mailed by first class mail (postage prepaid and return
receipt requested) or sent by reputable overnight courier service (charges
prepaid) to the recipient at the address indicated for such person in the
Stockholders’ Agreement.

(c)           Transfers
in Violation of Agreement. Any transfer or attempted transfer of any
Securities in violation of any provision of this Agreement shall be void, and
the Company shall not record such transfer on its books or treat any purported
transferee of such Securities as the owner of such Securities for any purpose.

(d)           Complete
Agreement. This Agreement, those documents expressly referred to herein and
other documents of even date herewith embody the complete agreement and
understanding among the parties and supersede and preempt any prior
understandings, agreements or representations by or among the parties, written
or oral, which may have related to the subject matter hereof in any way.

(e)           Severability.
Whenever possible, each provision of this Agreement will be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision or any other
jurisdiction, but this Agreement will be reformed, construed and enforced in
such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.

(f)            Counterparts.
This Agreement may be executed in separate counterparts, each of which is
deemed to be an original and all of which taken together constitute one and the

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same agreement.  Any counterpart may be executed by facsimile
signature and such facsimile signature shall be deemed an original.

(g)           Successors
and Assigns. Except as otherwise provided herein, this Agreement shall bind
and inure to the benefit of and be enforceable by Sun, the Company and their
respective successors and assigns (including subsequent holders of the
Securities).

(h)           Choice
of Law; Waiver of Jury Trial. The corporate law of the State of Delaware
will govern all questions concerning the relative rights of the Company and it
stockholders.  All other questions
concerning the construction, validity and interpretation of this Agreement and
the exhibits hereto will be governed by and construed in accordance with the
internal laws of the State of Delaware, without
giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of
Delaware.  EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION OR OTHER
PROCEEDING INSTITUTED BY OR AGAINST SUCH PARTY IN RESPECT OF ITS OBLIGATIONS
HEREUNDER OR THE TRANSACTIONS CONTEMPLATED HEREBY.

(i)            Remedies.  Each of the parties to this Agreement will be
entitled to enforce its rights under this Agreement specifically, to recover
damages and costs (including attorneys’ fees) caused by any breach of any
provision of this Agreement and to exercise all other rights existing in its
favor.  The parties hereto agree and
acknowledge that money damages may not be an adequate remedy for any breach of
the provisions of this Agreement and that any party in its sole discretion may
apply to any court of competent jurisdiction (without posting any bond or
deposit) for specific performance and/or other injunctive relief in order to
enforce or prevent any violations of the provisions of this Agreement.

(j)            Amendment
and Waiver.  The provisions of this
Agreement may be amended and waived only with the prior written consent of the
Company and Sun.

*     *     *    
*     *

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

	
   

  	
   

  
	
  

  	
  INDALEX HOLDINGS FINANCE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Matthew
  Garff

  	
   

  
	
   

  	
  Name:

  	
  Matthew Garff

  
	
   

  	
  Its:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUN INDALEX, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Matthew
  Garff

  	
   

  
	
   

  	
  Name:

  	
  Matthew Garff

  
	
   

  	
  Its:

  	
  Vice President

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