Document:

Exhibit 4.3

 

Anacor Pharmaceuticals, Inc.

 

2.00% Convertible Senior Notes due 2021

 

Registration Rights Agreement

 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is dated as of October 16, 2014 by and between (A) Anacor Pharmaceuticals, Inc., a Delaware corporation (together with its successors, the “Company”), and (B) Venrock Healthcare Capital Partners, L.P., a limited partnership organized under the laws of the State of Delaware, VHCP Co-Investment Holdings, LLC, a limited liability company organized under the laws of the State of Delaware, Venrock Healthcare Capital Partners II, L.P., a limited partnership organized under the laws of the State of Delaware, and VHCP Co-Investment Holdings II, LLC, a limited liability company organized under the laws of the State of Delaware (each, a “Venrock Fund,” and together, the “Venrock Funds”).

 

RECITALS

 

WHEREAS, this Agreement is being entered into in connection with the offer and sale by the Company to the Venrock Funds, and the purchase from the Company by the Venrock Funds, of the Company’s 2.00% Convertible Senior Notes due 2021 (the “Convertible Notes”) pursuant to the Purchase Agreement by and between the Company and each of the Venrock Funds dated as of October 9, 2014;

 

WHEREAS, in connection with such sale and purchase of the Convertible Notes and entry into the Purchase Agreement by the Venrock Funds, the Company has agreed to provide certain registration rights to the Venrock Funds with respect to the Convertible Notes and the shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), that may be issuable upon conversion of the Convertible Notes;

 

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

 

SECTION 1

 

DEFINITIONS

 

1.1.                            Certain Definitions.  As used in this Agreement, the following terms shall have the meanings set forth below:

 

“Adverse Disclosure” means public disclosure of material non-public information that, in the reasonable good faith judgment of the Company’s Board of Directors:  (i) would be required to be made in a registration statement filed

 

 

with the Commission (as defined below) by the Company so that such registration statement would not be materially misleading; (ii) would not be required to be made at such time but for the filing, effectiveness or continued use of such registration statement; and (iii) would (A) materially impair the Company’s ability to effect a proposed acquisition, disposition, financing, reorganization, recapitalization or other transaction involving the Company or (B) not be in the best interests of the Company and its stockholders.

 

“Agreement” shall have the meaning set forth in the Preamble.

 

“Automatic Shelf Registration Statement” shall have the meaning set forth in Section 2.4(b)2.4(b).

 

“Business Day” means each day other than a Saturday, Sunday or any other day on which national banking institutions in New York, New York are authorized or required by law to close.

 

“Commission” means the U.S. Securities and Exchange Commission or any other federal agency at the time administering the Securities Act.

 

“Common Stock” shall have the meaning set forth in the Recitals.

 

“Company” shall have the meaning set forth in the Preamble.

 

“Convertible Notes” shall have the meaning set forth in the Recitals.

 

“Electronic Delivery” shall have the meaning set forth in Section 3.9.

 

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

 

“Indemnified Party” shall have the meaning set forth in Section 2.6(c).

 

“Indemnifying Party” shall have the meaning set forth in Section 2.6(c).

 

“Prospectus” means the prospectus included in any Shelf Registration Statement, any amendments and supplements to such prospectus, including pre- and post-effective amendments to such registration statement, and all other material incorporated by reference in such prospectus.

 

“Registrable Securities” means (i) any Convertible Notes acquired by any of the Venrock Funds pursuant to the Purchase Agreement, (ii) any shares of Common Stock issuable to any of the Venrock Funds upon conversion of such Convertible Notes and (iii) any other securities that may be issued or distributed in respect of any such securities described in clause (i) or (ii) above by way of conversion, dividend, stock split or other distribution, merger, consolidation, exchange, recapitalization, reclassification or similar transaction; provided, however, that Registrable Securities shall not include any securities described in clauses (i), (ii) or (iii) above that (A) have previously been sold to the public either pursuant to

 

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an effective registration statement or Rule 144, (B) are able to be sold without volume limitations pursuant to Rule 144 or (C) have been sold in a private transaction in which the transferor’s rights pursuant to this Agreement are not validly transferred or assigned in accordance with this Agreement.

 

The terms “register,” “registered” and “registration” shall refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration statement.

 

“Registration Expenses” means all out-of-pocket expenses of the Company incurred in effecting any registration pursuant to this Agreement, including: all registration, qualification and filing fees; printing, duplication, messenger and delivery expenses; escrow fees; fees and disbursements of counsel for the Company; all fees, expenses and disbursements of the independent certified public accountants of the Company (including the expenses of any special audit or review and “comfort” letters required by or incident to such performance) incurred in connection with effecting any registration pursuant to this Agreement; all fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange or quotation of the Registrable Securities on any inter-dealer quotation system; and all Blue Sky fees and expenses.

 

“Reimbursement Cap” shall have the meaning set forth in Section 2.3.

 

“Rule 144” means Rule 144 as promulgated by the Commission pursuant to the Securities Act.

 

“Rule 415” means Rule 415 as promulgated by the Commission pursuant to the Securities Act.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Selling Expenses” means all selling commissions and stock transfer taxes applicable to the sale of Registrable Securities.

 

“Shelf Registration Statement” means a registration statement of the Company filed with the Commission on Form S-3 (or any successor form or other appropriate form promulgated under the Securities Act) for an offering to be made on a continuous basis pursuant to Rule 415 covering the Registrable Securities, as applicable.

 

“Shelf Period” shall have the meaning set forth in Section 2.1(b).

 

“Shelf Request” shall have the meaning set forth in Section 2.1(a).

 

“Suspension” shall have the meaning set forth in Section 2.2(a).

 

“Venrock Funds” has the meaning set forth in the Preamble.

 

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“WKSI” shall have the meaning set forth in Section 2.4(b).

 

SECTION 2

 

REGISTRATION RIGHTS

 

2.1.                            Shelf Registration.

 

(a)                        Filing and Initial Effectiveness.  From and after the one-year anniversary of the last date of original issuance of the Convertible Notes, the Venrock Funds may deliver, on up to three (3) separate occasions in the aggregate, a written request to the Company (a “Shelf Request”) and, within 45 days following the receipt of such Shelf Request, the Company shall file with the Commission a Shelf Registration Statement relating to the offer and sale of the Registrable Securities by the Venrock Funds in accordance with the methods of sale and distribution elected by the Venrock Funds and set forth in the Shelf Registration Statement and thereafter shall use commercially reasonable efforts to cause such Shelf Registration Statement to be declared effective pursuant to the Securities Act within 60 days of the initial filing of such Shelf Registration Statement with the Commission; provided that, notwithstanding anything herein to the contrary, the Company shall have no obligation to file such registration statement if the Company has a registration statement that is then effective and pursuant to which the Registrable Securities may be sold by the Venrock Funds; and provided further that, notwithstanding anything to herein to the contrary, the Company shall have no obligation to file such registration statement if such filing would contravene the Amended and Restated Investors’ Rights Agreement among the Company and certain of its security holders, dated as of December 24, 2008 and amended as of July 22, 2010 and March 18, 2011.

 

(b)                        Continued Effectiveness.  The Company shall use commercially reasonable efforts to keep such Shelf Registration Statement continuously effective pursuant to the Securities Act in order to permit the Prospectus forming a part thereof to be usable by the Venrock Funds until the earlier of the date that is one (1) year from the date the Shelf Registration Statement is deemed effective or such shorter period ending when no securities covered by such Shelf Registration Statement constitute Registrable Securities.

 

2.2.                            Additional Provisions Applicable to Sales Pursuant to Shelf Registration Statement.

 

(a)                        Suspension of Registration.  Notwithstanding the provisions of Section 2.1, if at any time the filing, initial effectiveness or continued use of a Shelf Registration Statement would require the Company to make an Adverse Disclosure, the Company may, upon delivery to the Venrock Funds of a certificate signed by an executive officer of the Company attesting to such Adverse Disclosure, delay the filing or initial effectiveness of, or suspend the use of, such registration statement (a “Suspension”), provided that the Company shall not be permitted to exercise a Suspension for a period exceeding 60 days; provided, further, that the Company may not invoke a Suspension more than twice in any 12-month period.  In the case of a Suspension, each of the Venrock Funds agrees to suspend use of the applicable Prospectus in connection with any sale or purchase of, or

 

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offer to sell or purchase, Registrable Securities promptly upon receipt of the notice referred to above until it is advised in writing by the Company that the Prospectus may be used.  Upon termination of any Suspension, the Company shall promptly (A) notify the Venrock Funds, (B) amend or supplement the Prospectus, if necessary, so that it does not contain any untrue statement of a material fact or any omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and (C) furnish to the Venrock Funds such number of copies of the Prospectus so amended or supplemented as the Venrock Funds may reasonably request.

 

(b)                        Other Shares.  A Shelf Registration Statement may include securities of the Company being sold for the account of the Company and/or other selling security holders.

 

(c)                         No Underwriting.  Notwithstanding anything to the contrary herein, the Company shall have no obligation to permit or facilitate the sale or distribution of any Registrable Securities in an underwritten offering, and no sales or distributions of any Registrable Securities shall be made by any of the Venrock Funds in any underwritten offering without the Company’s prior written consent.

 

2.3.                            Expenses of Registration.  All Registration Expenses incurred in connection with any registration effected pursuant to this Section 2, up to $30,000 in the aggregate (the “Reimbursement Cap”), and all Selling Expenses, shall be borne by the Venrock Funds.  Any Registration Expenses in excess of the Reimbursement Cap shall be borne by the Company.

 

2.4.                            Registration Procedures.  In the case of each registration effected by the Company pursuant to this Section 2, the Company will use commercially reasonable efforts to:

 

(a)                        prepare the Shelf Registration Statement, including all exhibits and financial statements required pursuant to the Securities Act to be filed therewith, and before filing such Shelf Registration Statement, or any amendments or supplements thereto, or Prospectus, (i) furnish to the Venrock Funds copies of all documents prepared to be filed, which documents shall be subject to the review of the Venrock Funds and their counsel, and (ii) not file any Shelf Registration Statement, or amendments or supplements thereto (other than reports filed by the Company pursuant to the Exchange Act and incorporated by reference therein), or Prospectus to which the Venrock Funds shall reasonably object;

 

(b)                        to the extent that the Company is a well-known seasoned issuer (as defined in Rule 405 promulgated under the Securities Act) (a “WKSI”) at the time that any request for registration is submitted to the Company in accordance with Section 2.1 and the Registrable Securities are eligible to be registered thereon, file an automatic shelf registration statement (as defined in Rule 405 promulgated under the Securities Act) (an “Automatic Shelf Registration Statement”);

 

(c)                         prepare and file with the Commission such amendments and supplements to the Shelf Registration Statement and the Prospectus used in connection with such

 

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registration statement as may be (i) reasonably requested by the Venrock Funds or (ii) necessary to comply with the provisions of the Securities Act;

 

(d)                        furnish to the Venrock Funds as many conformed copies as the Venrock Funds may reasonably request of the Shelf Registration Statement and any amendment or post-effective amendment thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits (including those incorporated by reference);

 

(e)                         furnish such number of Prospectuses, including any preliminary prospectuses, and other documents incident thereto, including any amendment of or supplement to such Prospectuses, as the Venrock Funds may from time to time reasonably request;

 

(f)                          on or prior to the date on which the Shelf Registration Statement is declared effective, to the extent required by applicable law, register and qualify the securities covered by such registration statement pursuant to the securities or Blue Sky laws of each jurisdiction as shall be reasonably requested by the Venrock Funds; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions where it is not then so subject;

 

(g)                         notify the Venrock Funds and (if requested) confirm such advice in writing and provide copies of the relevant documents as soon as reasonably practicable after notice thereof is received by the Company (i) when the Shelf Registration Statement, or any amendment or supplement thereto, has been filed or becomes effective and when the applicable Prospectus has been filed; and (ii) of any written comments by the Commission on such registration statement or Prospectus or any request by the Commission or any other federal or state governmental authority or regulatory authority for amendments or supplements to such registration statement or such Prospectus or for additional information;

 

(h)                        subject to Section 2.2(a), promptly notify the Venrock Funds: (i) of the issuance by the Commission of any stop order suspending the effectiveness of the Shelf Registration Statement or any order by the Commission or any other federal or state governmental authority or regulatory authority preventing or suspending the use of any preliminary or final Prospectus or the initiation, or written threatened initiation, of any proceedings for such purposes; (ii) of the receipt by the Company of any notification with respect to the suspension of the qualification of the securities so registered for offering or sale in any jurisdiction or the initiation, or written threatened initiation, of any proceeding for such purpose; and (iii) at any time when a Prospectus relating to such registration statement is required to be delivered pursuant to the Securities Act, of the occurrence 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 a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances under which they were made, not misleading, and following such notification promptly prepare and furnish to the Venrock Funds a reasonable number of copies of a supplement to, or an amendment of, such Prospectus as may be necessary so

 

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that, as thereafter delivered to the purchasers of such securities, such Prospectus shall not contain any 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 in light of the circumstances under which they were made not misleading;

 

(i)                            prevent or obtain the withdrawal of any stop order or other order suspending the use of any preliminary or final Prospectus;

 

(j)                           promptly incorporate in a Prospectus supplement or post-effective amendment such information as the Venrock Funds agree should be included therein relating to the plan of distribution with respect to such securities, and make all required filings of such Prospectus supplement or post-effective amendment as soon as reasonably practicable after being notified of the matters to be incorporated in such Prospectus supplement or post-effective amendment;

 

(k)                        if at any time when the Company is required to re-evaluate its WKSI status for purposes of an Automatic Shelf Registration Statement used to effect a request for registration in accordance with Section 2.1, (i) the Company determines that it is not a WKSI, (ii) the registration statement is required to be kept effective in accordance with this Agreement, and (iii) the registration rights of the Venrock Funds pursuant to this Agreement have not terminated, promptly amend the registration statement onto a form that the Company is then eligible to use or file a new registration statement on such form, and keep such registration statement effective in accordance with the requirements otherwise applicable pursuant to this Agreement;

 

(l)                            cooperate with the Venrock Funds to facilitate the timely preparation and delivery of certificates representing securities to be sold that are in a form eligible for deposit with The Depository Trust Company and that do not bear any restrictive legends;

 

(m)                    provide a transfer agent and registrar all Common Stock registered pursuant to the Shelf Registration Statement and a CUSIP number for all such Common Stock, in each case not later than the effective date of such registration;

 

(n)                        cause all Common Stock registered hereunder to be listed on each securities exchange on which the same securities issued by the Company are then listed, if any;

 

(o)                        make available to the Venrock Funds, as soon as reasonably practicable, an earnings statement satisfying the provisions of Section 11(a) of the Securities Act; and

 

(p)                        make available upon reasonable notice at reasonable times and for reasonable periods for inspection by a representative appointed by the Venrock Funds or by any attorney, accountant or other agent retained by the Venrock Funds, all pertinent financial and other records, corporate documents and properties of the Company, and cause all of the Company’s officers, directors and employees and the independent public accountants who have certified the Company’s financial statements to make themselves available to discuss the business of the Company and to supply all information reasonably requested by any such person in connection with the Shelf Registration Statement as shall be necessary to enable them to exercise their due diligence responsibility, provided that any such person

 

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gaining access to information regarding the Company pursuant to this Section 2.4(p) shall agree to hold such information in strict confidence and shall not make any disclosure or use any such information that the Company determines in good faith to be confidential, and of which determination such person is notified, unless (i) the release of such information is required by law; (ii) such information is or becomes publicly known other than through a breach of this or any other agreement; (iii) such information is or becomes available to such person on a non-confidential basis from a source other than the Company, which source had no contractual or other duty of confidentiality to the Company with respect to such information of which any of the Venrock Funds is aware; or (iv) such information is independently developed by such person.

 

2.5.                            Venrock’s Obligations.

 

(a)                        Suspension of Sales.  Upon any notification by the Company pursuant to Section 2.2(a) or 2.4(h), no Venrock Fund shall offer or sell Registrable Securities unless and until, as applicable (i) the Company has notified the Venrock Funds that it has prepared a supplement or amendment to such Prospectus and delivered copies of such supplement or amendment to the Venrock Funds, or (ii) the Company has advised the Venrock Funds in writing that the use of the applicable Prospectus may be resumed.  It is acknowledged and agreed that this Section 2.5 shall in no way diminish or otherwise impair the Company’s obligations pursuant to Section 2.4(h) or Section 2.4(i).

 

(b)                        Venrock Funds’ Information; Prospectus Delivery.  Each of the Venrock Funds agrees to notify the Company as promptly as practicable of any inaccuracy or change in information previously furnished by the Venrock Funds to the Company or of the occurrence of any event in either case as a result of which any Prospectus relating to such registration contains or would contain an untrue statement of a material fact regarding any of the Venrock Funds or their intended method of disposition of such Registrable Securities or omits to state any material fact regarding any of the Venrock Funds or their intended method of disposition of such Registrable Securities necessary to make the statements therein, in light of circumstances in which they were made, not misleading, and promptly to furnish to the Company (i) any additional information required to correct and update any previously furnished information or required so that such Prospectus shall not contain, with respect to any of the Venrock Funds or the disposition of such Registrable Securities, any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances in which they were made, not misleading and (ii) any other information regarding the Venrock Funds and the distribution of such Registrable Securities as may be required to be disclosed in the Shelf Registration Statement under applicable law or pursuant to Commission comments.  Each of the Venrock Funds further agrees not to sell any Registrable Securities pursuant to a Shelf Registration Statement without delivering, causing to be delivered, or, if permitted by applicable law, making available, a Prospectus to the purchaser thereof and to notify the Company, within ten (10) Business Days of a request by the Company, of the amount of Registrable Securities sold pursuant to a Shelf Registration Statement and, in the absence of a response, the Company may assume that all of such Venrock Fund’s Registrable Securities were so sold in compliance with applicable law and this Agreement unless and until the Company is notified otherwise.

 

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(c)                         Free Writing Prospectus.  No Venrock Fund shall make any offer relating to the Registrable Securities that would constitute an “issuer free writing prospectus” (as defined in Rule 433) or that would otherwise constitute a “free writing prospectus” (as defined in Rule 405) required to be filed by the Company with the Commission or retained by the Company under Rule 433 of the Securities Act, unless it has obtained the prior written consent of the Company.

 

2.6.                            Indemnification.

 

(a)                        To the fullest extent permitted by law, the Company will indemnify and hold harmless each of the Venrock Funds, each of their officers, directors and stockholders and each person controlling such persons within the meaning of Section 15 of the Securities Act against any and all expenses, claims, losses, damages and liabilities, joint or several, or actions, proceedings or settlements in respect thereof (each, a “Loss” and collectively “Losses”) arising out of or based on (i) any untrue statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any final, preliminary or summary Prospectus, any registration statement, any issuer free writing prospectus (as defined in Rule 433 of the Securities Act), or any issuer information (as defined in Rule 433 of the Securities Act) filed or required to be filed by the Company pursuant to Rule 433(d) promulgated under the Securities Act; 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 (in the case of a Prospectus or preliminary Prospectus, in light of the circumstances under which they were made) not misleading, and will reimburse such Venrock Fund and such indemnified persons for any legal and any other expenses reasonably incurred in connection with investigating and defending or settling any such Loss; provided, however, that the Company will not be liable in any such case to the extent that any such Loss arises out of or is based on any untrue statement or omission based upon written information furnished to the Company by such indemnified person; and provided further, however, that the obligations of the Company hereunder shall not apply to amounts paid in settlement of any such Losses if such settlement is effected without the consent of the Company.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any of the Venrock Funds or any other indemnified party under this Section 2.6(a) and shall survive the transfer of any Registrable Securities.

 

(b)                        To the fullest extent permitted by law, each of the Venrock Funds will indemnify and hold harmless the Company, each of its directors, officers and shareholders and each person controlling such persons within the meaning of Section 15 of the Securities Act against all Losses (or actions in respect thereof) arising out of or based on (i) any untrue statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any final, preliminary or summary Prospectus, any registration statement, any free writing prospectus (as defined in Rule 433 of the Securities Act) prepared or used by or on behalf of any of the Venrock Funds, or any information filed or required to be filed by any Venrock Fund pursuant to Rule 433(d) promulgated under the Securities Act 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 (in the case of a Prospectus or preliminary Prospectus, in light of the circumstances under which they were made) not misleading, and will reimburse the Company and such indemnified persons for

 

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any legal or any other expenses reasonably incurred in connection with investigating or defending any such Loss, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in reliance upon and in conformity with written information furnished to the Company by a Venrock Fund or an affiliate (as such term is defined in Rule 405 under the Securities Act) of a Venrock Fund; provided, however, that the obligations of the Venrock Funds hereunder shall not apply to amounts paid in settlement of any such Losses if such settlement is effected without the consent of the Venrock Funds.

 

(c)                         Each party entitled to indemnification pursuant to this Section 2.6 (each, an “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at such party’s expense; provided further, that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations pursuant to this Section 2.6 except to the extent that the Indemnifying Party is materially prejudiced thereby.  No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of the Indemnified Party, consent to the entry of any judgment or enter into any settlement that does not include as an unconditional term thereof a full and unconditional release of the Indemnified Party from all liability in respect of such claim or litigation.  Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with defense of such claim and litigation resulting therefrom.  No Indemnifying Party shall be liable for any settlement of any pending or threatened action or any claim whatsoever that is effected without its written consent (which consent shall not be unreasonably withheld or delayed).

 

(d)                        If the indemnification provided for in this Section 2.6 is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any Loss, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Loss in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party, on the one hand, and of the Indemnified Party, on the other hand, in connection with the statements or omissions that resulted in such Loss as well as any other relevant equitable considerations.  The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 2.6(d) were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in this Section 2.6(d).  No person or entity guilty of fraudulent

 

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misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person or entity who was not guilty of fraudulent misrepresentation.

 

2.7.                            Information from the Venrock Funds.  As a condition to the Company’s obligations to register securities for the account of any of the Venrock Funds hereunder, such Venrock Fund shall furnish to the Company such information regarding it and the sale and distribution proposed by it as the Company may reasonably request and as shall be reasonably required in connection with any registration, qualification or compliance referred to in this Section 2.

 

2.8.                            Termination of Registration Rights.  The Venrock Funds’ rights pursuant to Section 2 (other than Section 2.6) shall terminate on the first date on which (i) the Venrock Funds no longer hold Registrable Securities, (ii) such Registrable Securities may immediately be resold by the Venrock Funds without volume limitations pursuant to Rule 144 or (iii) the Company ceases to be subject to the periodic reporting requirements pursuant to Section 13 or 15(d) of the Exchange Act.  From and after the termination of such rights, the Company shall be entitled to withdraw any Shelf Registration Statement, and the Venrock Funds shall have no further right to offer or sell any of the Registrable Securities pursuant to any Shelf Registration Statement (or any Prospectus relating thereto).

 

2.9.                            Transfer or Assignment of Registration Rights.  Each of the Venrock Fund’s rights pursuant to this Agreement may be transferred or assigned without the consent of the Company to any transferee or assignee that is an affiliate (as such term is defined in Rule 405 under the Securities Act) of such Venrock Fund.  Upon such transfer or assignment, such transferee shall become entitled to all of such Venrock Fund’s rights, and subject to all of such Venrock Fund’s obligations, pursuant to this Agreement as if originally a party hereto.  Subject to the preceding sentence, this Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned, transferred or delegated by either party hereto without the prior written consent of the other party.

 

SECTION 3

 

MISCELLANEOUS

 

3.1.                            Amendment.  Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument referencing this Agreement and signed by the party against whom enforcement of any such amendment, waiver, discharge or termination is sought.

 

3.2.                            Notices.  All notices and other communications hereunder shall be in writing and shall be deemed to have been duly delivered and received hereunder (i) four Business Days after being sent by registered or certified mail, return receipt requested, postage prepaid, (ii) one Business Day after being sent for next Business Day delivery, fees prepaid, via a reputable nationwide overnight courier service, (iii) if sent by facsimile transmission before 5:00 p.m. in the time zone of the receiving party, when transmitted and

 

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receipt is confirmed, (iv) if sent by facsimile transmission after 5:00 p.m. in the time zone of the receiving party and receipt is confirmed, on the following Business Day, and (v) if otherwise actually personally delivered by hand, when delivered, in each case to the intended recipient, at the following addresses or fax numbers (or at such other address or fax numbers for a party as shall be specified by similar notice):

 

(a)                                 if to any or all of the Venrock Funds, to:

 

Venrock Healthcare Capital Partners

3340 Hillview Avenue

Palo Alto, CA 94304

Attn: David Stepp
 Facsimile:  (650) 332-1512

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

 

Hogan Lovells US LLP

4085 Campbell Ave., Suite 100

Menlo Park, CA 94043

Attn: Laura Berezin
 Facsimile:  (650) 463-4199

 

(b)                                 if to the Company, to:

 

Anacor Pharmaceuticals, Inc.
 1020 East Meadow Circle
 Palo Alto, California 94303-4230
 Attn:  General Counsel
 Facsimile:  (650) 543-7660

 

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

 

Davis Polk & Wardwell LLP
 450 Lexington Avenue
 New York, New York 10017-3982
 Attn:  Michael Kaplan
 Facsimile:  (212) 450-5704

 

3.3.                            Applicable Law; Jurisdiction; Etc.

 

(a)                        This Agreement shall be governed by and construed in accordance with the laws of the State of New York, regardless of the laws that might otherwise govern pursuant to applicable principles of conflicts of law thereof.

 

(b)                        Each of the parties hereto irrevocably consents to the exclusive jurisdiction of and venue in the U.S. District Court for the Southern District of New York or, if that court does not have subject matter jurisdiction, in any state court located in The City and County of New York in connection with any matter based upon or arising out of this Agreement, and agrees that process may be served upon such party in any manner authorized by the

 

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laws of the State of New York or in such other manner as may be lawful, and that service in such manner shall constitute valid and sufficient service of process.  Each party hereto waives and covenants not to assert or plead any objection that such party might otherwise have to such jurisdiction, venue and process.  Each party hereto hereby agrees not to commence any legal proceedings relating to or arising out of this Agreement or the transactions contemplated hereby in any jurisdiction or courts other than as provided herein.

 

(c)                         EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF A PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF

 

3.4.                            Successors and Assigns.  Subject to Section 2.9, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, permited assigns, heirs, executors and administrators of the parties hereto.

 

3.5.                            Entire Agreement.  This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subject matter hereof.  No party hereto shall be liable or bound to any other party in any manner with regard to the subject matter hereof by any warranties, representations or covenants except as specifically set forth herein.

 

3.6.                            Delays or Omissions.  Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to any party to this Agreement upon any breach or default of any other party pursuant to this Agreement shall impair any such right, power or remedy of such non-defaulting party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default pursuant to this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.  All remedies, either pursuant to this Agreement or by law or otherwise afforded to any party to this Agreement shall be cumulative and not alternative.

 

3.7.                            Severability.  If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Agreement shall be enforceable in accordance with its terms.

 

13

 

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

 

3.9.                            Counterparts.  This Agreement may be executed in separate counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts will together constitute the same agreement. Any such counterpart, to the extent delivered by means of a fax machine or by .pdf, .tif, .gif, .jpeg or similar attachment to electronic mail (any such delivery, an “Electronic Delivery”) shall be treated in all manner and respects as an original executed counterpart and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  No party hereto shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such party forever waives any such defense, except to the extent that such defense relates to lack of authenticity.

 

3.10.                     Further Assurances.  Each party hereto agrees to execute and deliver, by the proper exercise of its corporate, limited liability company, partnership or other powers, all such reasonable other and additional instruments and documents and do all such other reasonable acts and things as may be necessary to more fully effectuate this Agreement.

 

3.11.                     Interpretation.  This Agreement shall be construed reasonably to carry out its intent without presumption against or in favor of either party.  The parties have participated jointly in negotiating and drafting this Agreement.

 

3.12.                     Certain References.  Whenever the context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The terms “herein,” “hereof” or “hereunder” or similar terms as used in this Agreement refer to this entire Agreement and not to the particular provision in which the term is used.  Unless the context otherwise requires, “neither,” “nor,” “any,” “either” and “or” shall not be exclusive.  All references herein to “days” in this Agreement (excluding references to Business Days) are references to calendar days.  Any reference to any statute or regulation refers to the statute or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, includes any rules and regulations promulgated pursuant to the statue) and any reference to any section of any statute or regulation includes any successor to the section.

 

3.13.                     Specific Performance.  The parties hereto acknowledge and agree that the failure of any party to perform its agreements and covenants hereunder, including its failure to take all actions as are necessary on its part to the consummation of the transactions contemplated hereby, will cause irreparable injury to the other party for which damages, even if available, will not be an adequate remedy. Accordingly, each party hereby consents to the issuance of injunctive relief by any court of competent jurisdiction

 

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to compel performance of such party’s obligations, to prevent breaches of this Agreement by such party and to the granting by any court of the remedy of specific performance of such party’s obligations hereunder, without bond or other security being required, in addition to any other remedy to which any party is entitled at law or in equity.  Each party irrevocably waives any defenses based on adequacy of any other remedy, whether at law or in equity, that might be asserted as a bar to the remedy of specific performance of any of the terms or provisions hereof or injunctive relief in any action brought therefor by any party.

 

3.14.                     Effectiveness.  The terms of this Agreement shall commence and become effective upon issuance of the Convertible Notes, and prior to such time this Agreement shall be of no force or effect.

 

[Execution page follows.]

 

15

 

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

 

 

	
 
    	
ANACOR PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Geoffrey M. Parker
    
	
 
    	
 
    	
Name:
    	
Geoffrey M. Parker
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    

 

[Signature Page to Registration Rights Agreement]

 

 

	
 
    	
VENROCK HEALTHCARE CAPITAL PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By its General Partner, VHCP Management, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Stepp
    
	
 
    	
 
    	
Name: David Stepp
    
	
 
    	
 
    	
Title: Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
VHCP CO-INVESTMENT HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By its Manager, VHCP Management, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Stepp
    
	
 
    	
 
    	
Name: David Stepp
    
	
 
    	
 
    	
Title: Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
VENROCK HEALTHCARE CAPITAL PARTNERS II, L.P.  
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By its General Partner, VHCP Management II, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Stepp
    
	
 
    	
 
    	
Name: David Stepp
    
	
 
    	
 
    	
Title: Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
VHCP CO-INVESTMENT HOLDINGS II, LLC  
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By its Manager, VHCP Management II, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Stepp
    
	
 
    	
 
    	
Name: David Stepp
    
	
 
    	
 
    	
Title: Partner
    

 

[Signature Page to Registration Rights Agreement]EX-10.1

 Exhibit 10.1 

Execution Version 

GUARANTY AGREEMENT 
 This
Guaranty Agreement (the “Guaranty”) is made as of October 1, 2014, jointly and severally by and between each of the undersigned (each, a “Guarantor,” and collectively, together with any additional parties that from time to
time may become a Guarantor pursuant to the terms of the Financing Agreement described below, the “Guarantors”), as guarantors, and U.S. BANK NATIONAL ASSOCIATION, as trustee under the Indenture (defined below) (in such capacity,
together with any successor or successors in such capacity, herein called the “Trustee”): 
 W I T N E S S E T H: 

The Business Finance Authority of the State of New Hampshire (the “Authority”) previously issued its Solid Waste Disposal Revenue
Bonds (Casella Waste Systems, Inc. Project) Series 2013, in the aggregate principal amount of up to $11,000,000 (the “Bonds”) under and pursuant to an Indenture dated as of March 1, 2013 (as supplemented and amended, the
“Indenture”) between the Authority and the Trustee. Proceeds of the Bonds in the amount of $5,500,000 (the “Initial Bonds”) were drawn down on April 4, 2013 and loaned by the Authority to Casella Waste Systems, Inc. (the
“Company”) pursuant to the terms of a Financing Agreement dated as of March 1, 2013 (as supplemented and amended, the “Financing Agreement”) between the Authority and the Company. Each Guarantor is a subsidiary of the
Company. On October 16, 2014, the Company intends to (i) cause a conversion of the Initial Bonds from the Weekly Rate to a Term Interest Rate and cancel the Letter of Credit in effect with respect thereto, and (ii) draw down the
remaining $5,500,000 authorized amount of the Bonds (the “Additional Bonds”) pursuant to the terms of the Financing Agreement and the Indenture, which Additional Bonds shall also initially bear interest at a Term Interest Rate. 

As used herein, the following capitalized terms have the meanings set forth below: 

“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. 
 “Capital Stock” means: (1) in the case of a corporation, corporate
stock; (2) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; (3) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited); and (iv) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing
Person. 
 “Person” means an individual, partnership, corporation, limited liability company, firm, association, joint stock
company, unincorporated organization, trust, bank, trust company, land trust, business trust or other enterprise or joint venture, or a governmental agency or political subdivision thereof or other entity. 

“Subsidiary” means, with respect to any Person: 

 (a)        any corporation, association
or other business entity of which more than 50% of the total voting power of shares of Capital 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 that Person (or a combination thereof); and 

(b)        any partnership (i) the sole general partner or the managing general
partner of which is such Person or a Subsidiary of such Person or (ii) the only general partners of which are such Person or of one or more Subsidiaries of such Person (or any combination thereof). All other capitalized terms not otherwise
defined herein shall have the same meanings as set forth in the Indenture and the Financing Agreement. 
 NOW, THEREFORE, in
consideration of the foregoing and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the Guarantors agrees as follows: 

Section 1.        Unconditional Guarantee. 

Subject to the provisions of this Section 1, each of the Guarantors hereby unconditionally and irrevocably guarantees to the Trustee for
the benefit of the Holders, irrespective of the validity and enforceability of the Financing Agreement or the obligations of the Company or any other Guarantors to the Trustee hereunder or thereunder: (a) the principal of and redemption
premium, if any, on the Bonds when and as the same shall become due (whether at maturity, by acceleration, call for redemption or otherwise); (b) the interest on the Bonds when and as the same shall become due; (c) the purchase price of
Bonds tendered or deemed tendered for purchase pursuant to Sections 4.6, 4.8 or 4.9 of the Indenture; and (d) all amounts allocable to the Bonds due or to become due from the Company under Sections 4.2(a) and 4.2(b) of the Financing Agreement
(collectively, the “Guaranteed Obligations”). Failing payment when due of any amount so guaranteed, or failing performance of any other obligation of the Company under the Bonds, each Guarantor shall be obligated to pay, or to perform or
cause the performance of, the same immediately. An Event of Default under the Financing Agreement with respect to the Bonds shall constitute an event of default under this Guaranty, and shall entitle the Trustee to accelerate the obligations of the
Guarantors hereunder in the same manner and to the same extent as the obligations of the Company under the Financing Agreement. 
 Each of
the Guarantors hereby agrees that its obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Financing Agreement, the absence of any action to enforce the same, any release of any other
Guarantor, the recovery of any judgment against the Company, any action to enforce the same, whether or not this Guaranty is affixed to the Financing Agreement or the Bonds, or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of such Guarantor. Each Guarantor hereby waives the benefit of diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands whatsoever and covenants that this Guaranty shall not be discharged except by complete performance of the Guaranteed Obligations. This Guaranty is a guarantee of payment and not
of collection. If the Trustee is required by any court or otherwise to return to the Company or to a Guarantor, or any 

  
 -2- 

 
custodian, trustee, liquidator or other similar official acting in relation to the Company or a Guarantor, any amount paid by the Company or a Guarantor to the Trustee, this Guaranty, to the
extent theretofore discharged, shall be reinstated in full force and effect, subject to Section 7 hereof. Each Guarantor further agrees that, as between it, on the one hand, and the Trustee, on the other hand, (a) subject to the other
provisions of this Guaranty, the maturity of the Bonds may be accelerated as provided in Section 7.2 of the Financing Agreement for the purposes of this Guaranty, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Bonds, and (b) in the event of any acceleration of the Bonds as provided in Section 7.2 of the Financing Agreement, such obligations (whether or not due and payable) shall forthwith become due and payable by
the Guarantor for the purpose of this Guaranty. 
 Each Guarantor agrees to make immediate payment to the Trustee of all Guaranteed
Obligations owing or payable to the Trustee upon receipt of a demand for payment therefor by the Trustee to the Guarantor in writing. 

Section 2.        Guaranteed Obligations Absolute and Continuing. 

Subject to Section 7 hereof, the obligations of each Guarantor hereunder are and shall be absolute and unconditional and any monies or
amounts expressed to be owing or payable by each Guarantor hereunder which may not be recoverable from such Guarantor on the basis of this Guaranty shall be recoverable from such Guarantor as a primary obligor and principal debtor in respect
thereof. Subject to Section 7 hereof, the obligations of each Guarantor hereunder shall be continuing and shall remain in full force and effect until the entire principal of, redemption premium, if any, and interest on or purchase price of the
Bonds shall have been paid or provided for according to the terms of the Indenture and all other Guaranteed Obligations have been paid and satisfied in full. Each Guarantor agrees with the Trustee that it will from time to time deliver to the
Trustee suitable acknowledgments of this continued liability hereunder in such form as counsel to the Trustee may advise and as will prevent any action brought against it in respect of any default hereunder being barred by any statute of limitations
now or hereafter in force and, in the event of the failure of such Guarantor so to do, it hereby irrevocably appoints the Trustee agent of such Guarantor to make, execute and deliver such written acknowledgment or acknowledgments or other
instruments as may from time to time become necessary or advisable, in the judgment of the Trustee on the advice of counsel, to fully maintain and keep in force the liability of such Guarantor hereunder. 

Section 3.        Limitation on Guarantor Liability. 

Each of the Guarantors and the Trustee hereby confirms that it is the intention of each such party that this Guaranty not constitute a
fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to this Guaranty. To effectuate the foregoing
intention, the Trustee and each Guarantor hereby irrevocably agree that the obligations of the Guarantors under this Guaranty shall be limited to the maximum amount as will, after giving effect to such maximum amount and all other contingent and
fixed liabilities of the Guarantors that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such
other Guarantor under this Guaranty, result in the obligations of the Guarantors under this Guaranty not constituting a fraudulent transfer or conveyance. 
  

  
 -3- 

 Section 4.        Execution and Delivery of
Guaranty. 
 This Guaranty shall be executed on behalf of each Guarantor by either manual or facsimile signature of one officer of the
Guarantor or other person duly authorized by all necessary corporate action of the Guarantor who shall have been duly authorized to so execute by all requisite corporate action. Each Guarantor hereby agrees that this Guaranty, as set forth in
Section 1, shall remain in full force and effect notwithstanding any lack of endorsement on the Financing Agreement or the Bonds of a notation of this Guaranty. 

Section 5.        Waiver. 

Without in any way limiting the provisions of Section 1, each Guarantor hereby waives notice of acceptance hereof, notice of any
liability of the Guarantor hereunder, notice or proof of reliance by the Holders upon the obligations of the Guarantor hereunder, and diligence, presentment, demand for payment on the Company, protest, notice of dishonor or nonpayment of any of the
Guaranteed Obligations, or other notice or formalities to the Company or the Guarantor of any kind whatsoever. 

Section 6.        No Set-Off. 

Each payment to be made by the Guarantors hereunder in respect of the Guaranteed Obligations shall be payable in the currency or currencies in
which such Guaranteed Obligations are denominated, and shall be made without set-off, counterclaim, reduction or diminution of any kind or nature. It is the intention of the parties that the Authority, its members, officers, officials, agents and
employees shall not incur pecuniary liability by reason of the terms of this Guaranty, the Financing Agreement or the Indenture, or by reason of the undertakings required of the Authority, its members, officers, officials, agents and employees in
connection with this Guaranty, the Financing Agreement or the Indenture, the performance of any act required or requested of the Authority, its members, officers, officials, agents and employees in connection with the issuance of the Bonds, this
Guaranty, the Financing Agreement or the Indenture, or in any way arising from the transaction which this Guaranty is a part or arising in any manner in connection with the Project, and each Guarantor hereby waives any rights or claims it may have
against the Authority in connection therewith. 
 Section 7.        Release of a
Guarantor. 
 This Guaranty will be released with respect to a Guarantor: 

(a)        upon the sale or other disposition (including by way of merger or consolidation), to any
Person that is not an Affiliate of the Company, of all of the Capital Stock of that Guarantor held by the Company or any of its Subsidiaries or of all or substantially all of the assets of that Guarantor; 

 

  
 -4- 

 (b)        upon the contemporaneous or substantially
contemporaneous release or discharge of such Guarantor (1) as a guarantor, borrower and/or issuer in respect of the Senior Credit Facility or the Senior Subordinated Note Indenture and (2) if the Senior Credit Facility and the Senior
Subordinated Note Indenture have been terminated, as a guarantor of any issue of any other indebtedness for borrowed money or Capital Lease of more than $5.0 million in aggregate principal amount (per issue) of the Company or any of its Subsidiaries
(other than any Subsidiaries of such Guarantor), except, in each case, as a result of payment by a guarantor in its capacity as a guarantor (and not as a borrower and/or issuer); 

(c)        at any time that a Letter of Credit is in effect with respect to the Bonds; or 

(d)        upon or substantially contemporaneously with the payment in full of the Guaranteed
Obligations. 
 The Trustee shall execute an appropriate instrument prepared by the Company evidencing the release of a Guarantor from its
obligations under this Guaranty upon receipt of a request by the Company or such Guarantor accompanied by (i) a Certificate of an Authorized Representative of the Company certifying as to the compliance with this Section 7, and
(ii) so long as the Senior Credit Facility is not in effect, in connection with a sale or disposition of assets or Capital Stock (or a series of related sales or dispositions) having a fair market value in excess of $5,000,000, as evidenced by
a Certificate of an Authorized Representative of the Company, an Opinion of Counsel as to the compliance with this Section 7, provided however, that the legal counsel delivering such Opinion of Counsel may rely as to matters of fact on one or
more Certificates of an Authorized Representative of the Company. 

Section 8.        Waiver of Subrogation. 

Until the payment in full of all Guaranteed Obligations, each Guarantor hereby irrevocably waives and agrees not to exercise any claim or
other rights which it may now or hereafter acquire against the Company that arise from the existence, payment, performance or enforcement of the Company’s obligations under the Financing Agreement and such Guarantor’s obligations under
this Guaranty, in any such instance including, without limitation, any right of subrogation, reimbursement, exoneration, contribution and indemnification and any right to participate in any claim or remedy of the Authority or the Trustee against the
Company, whether or not such claim, remedy or right arises in equity, or under contract, statute or common law, including, without limitation, the right to take or receive from the Company, directly or indirectly, in cash or other assets or by
set-off or in any other manner, payment or security on account of such claim or other rights. If any amount shall be paid to any Guarantor in violation of the preceding sentence and any Guaranteed Obligations shall not have been paid in full, such
amount shall have been deemed to have been paid to such Guarantor for the benefit of, and held in trust for the benefit of, the Authority or the Trustee, as applicable, and shall forthwith be paid to the Authority or the Trustee, as applicable, to
be credited and applied to the obligations in favor of the Authority or the Trustee, as applicable, whether matured or unmatured, in accordance with the terms of this Guaranty. Each Guarantor acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated by this Guaranty and that the waiver set forth in this Section 8 is knowingly made in contemplation of such benefits. 

  
 -5- 

 Section 9.        Guaranteed Obligations
Reinstated. 
 Subject to Section 7 hereof, the obligations of each Guarantor hereunder shall continue to be effective or shall be
reinstated, as the case may be, if at any time any payment that would otherwise have reduced the obligations of any Guarantor hereunder (whether such payment shall have been made by or on behalf of the Company or by or on behalf of a Guarantor) is
rescinded or reclaimed from the Trustee upon the insolvency, bankruptcy, liquidation or reorganization of the Company or any Guarantor or otherwise, all as though such payment had not been made. If demand for, or acceleration of the time for,
payment by the Company or any other Guarantor is stayed upon the insolvency, bankruptcy, liquidation or reorganization of the Company or such Guarantor, all such indebtedness otherwise subject to demand for payment or acceleration shall nonetheless
be payable by each Guarantor as provided herein. 
 Section 10.        Guaranteed
Obligations Not Affected. 
 The obligations of each Guarantor hereunder shall not be affected, impaired or diminished in any way by any
act, omission, matter or thing whatsoever, occurring before, upon or after any demand for payment hereunder (and whether or not known or consented to by any Guarantor or the Trustee) that, but for this provision, might constitute a whole or partial
defense to a claim against any Guarantor hereunder or might operate to release or otherwise exonerate any Guarantor from any of its obligations hereunder or otherwise affect such obligations, whether occasioned by default of the Trustee or
otherwise, including, without limitation: 
 (a)        any limitation of status or power,
disability, incapacity or other circumstance relating to the Company or any other Person, including any insolvency, bankruptcy, liquidation, reorganization, readjustment, composition, dissolution, winding-up or other proceeding involving or
affecting the Company or any other Person; 
 (b)        any irregularity, defect, unenforceability
or invalidity in respect of any indebtedness or other obligation of the Company or any other Person under the Financing Agreement or any other document or instrument; 

(c)        any failure of the Company or any other Guarantor, whether or not without fault on its
part, to perform or comply with any of the provisions of this Guaranty or the Financing Agreement, or to give notice thereof to a Guarantor; 

(d)        the taking or enforcing or exercising or the refusal or neglect to take or enforce or
exercise any right or remedy from or against the Company or any other Person or their respective assets or the release or discharge of any such right or remedy; 

(e)        the granting of time, renewals, extensions, compromises, concessions, waivers, releases,
discharges and other indulgences to the Company or any other Person; 
 (f)        any change in the
time, manner or place of payment of, or in any other term of, the Bonds or the Financing Agreement, or any other amendment, variation, supplement, replacement or waiver of, or any consent to departure from, the Bonds or the Financing Agreement,
including, without limitation, any increase or decrease in the principal amount of or premium, if any, or interest on the Bonds; 
  

  
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 (g)        except as provided in Section 7, any
change in the ownership, control, name, objects, businesses, assets, capital structure or constitution of the Company or a Guarantor; 

(h)        except as provided in Section 7, any merger or amalgamation of the Company or a
Guarantor with any Person or Persons; 
 (i)        the occurrence of any change in the laws, rules,
regulations or ordinances of any jurisdiction by any present or future action of any governmental authority or court amending, varying, reducing or otherwise affecting, or purporting to amend, vary, reduce or otherwise affect, any of the Guaranteed
Obligations or the obligations of a Guarantor under this Guaranty; and 
 (j)        any other
circumstance, including release of another Guarantor pursuant to Section 7 (other than by complete, irrevocable payment), that might otherwise constitute a legal or equitable discharge or defense of the Company under the Financing Agreement or
of a Guarantor in respect of its guarantee hereunder. 
 Section 11.        No Obligation to
Take Action Against the Company. 
 The Trustee shall have no obligation to enforce or exhaust any rights or remedies against the
Company or any other Person or any property of the Company or any other Person before the Trustee is entitled to demand payment and performance by any or all Guarantors of their liabilities and obligations under this Guaranty. 

Section 12.        Dealing with the Company and Others. 

The Trustee, without releasing, discharging, limiting or otherwise affecting in whole or in part the obligations and liabilities of any
Guarantor hereunder and without the consent of or notice to any Guarantor, may: 
 (a)        grant
time, renewals, extensions, compromises, concessions, waivers, releases, discharges and other indulgences to the Company or any other Person; 

(b)        take or abstain from taking security or collateral from the Company or from perfecting
security or collateral of the Company; 
 (c)        release, discharge, compromise, realize,
enforce or otherwise deal with or do any act or thing in respect of (with or without consideration) any and all collateral, mortgages or other security given by the Company or any third party with respect to the obligations or matters contemplated
by the Financing Agreement; 
 (d)        accept compromises or arrangements from the Company; 

  
 -7- 

 (e)        apply all monies at any time received from the
Company or from any security upon such part of the Guaranteed Obligations as the Holders may direct or change any such application in whole or in part from time to time as the Holders may direct; and 

(f)        otherwise deal with, or waive or modify its right to deal with, the Company and all other
Persons and any security as the Trustee may determine. 

Section 13.        Representations. 

Each Guarantor makes the following representations as of the date hereof as the basis for its undertakings hereunder: 

(a)        It is a corporation, limited partnership or limited liability company duly organized, and
validly existing in good standing under the laws of the state of its organization, has the corporate, limited partnership or limited liability company, as applicable, power to enter into this Guaranty and to perform its obligations hereunder, and by
proper corporate action has duly authorized the execution and delivery of this Guaranty and performance of its obligations hereunder. 

(b)        The execution and delivery of this Guaranty and the performance of its obligations
hereunder do not and will not conflict with, or constitute a breach or result in a violation of, its certificate of incorporation, bylaws or other organizational documents, as applicable, or any material agreement or other material instrument to
which it is a party or by which it is bound or any constitutional or statutory provision applicable to it, or order, rule, regulation, decree or ordinance of any court, government or governmental authority having jurisdiction over it or its
property, in each case, the breach, conflict with or the violation of any of which would have a material adverse effect upon the Guarantor’s ability to perform its obligations hereunder. 

(c)        Except for the matters disclosed in the Limited Offering Memorandum dated October 9,
2014 with respect to the Bonds, or in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q or Periodic Reports on Form 8-K filed with the U.S. Securities and Exchange Commission, there are no pending or, to the best of each
Guarantor’s knowledge, threatened actions, suits, proceedings or investigations of a legal, equitable, regulatory, administrative or legislative nature, which could reasonably be expected to adversely affect in a material way its ability to
perform its obligations under this Guaranty. 
 Section 14.        Events of Default;
Remedies. 
 Each of the following events shall be an Event of Default hereunder: 

(a)        Failure of any Guarantor to pay any Guaranteed Obligations upon receipt of demand by the
Trustee to such Guarantor given in accordance with Section 20 hereof. 
 (b)        The
dissolution or liquidation of a Guarantor or the filing by a Guarantor of a voluntary petition in bankruptcy, or the entry of any order or decree granting relief in any involuntary case commenced against a Guarantor under any present or future
federal bankruptcy act or any similar federal or state law, or a petition for such an order or decree shall be filed in 

  
 -8- 

 
any court and such petition shall not be discharged or denied within 90 days after the filing thereof, or if a Guarantor shall admit in writing its inability to pay its debts generally as they
become due, or a receiver, trustee or liquidator of a Guarantor shall be appointed in any proceeding brought against the Guarantor and shall not be discharged within 90 days after such appointment or if a Guarantor shall consent to such appointment,
or assignment by the Guarantor of all or substantially all of its assets for the benefit of its creditors, or the entry by the Guarantor into an agreement of composition with its creditors with respect to all or substantially all of its assets, or a
bankruptcy, insolvency or similar proceeding shall be otherwise initiated by or against a Guarantor under any applicable bankruptcy, reorganization or analogous law as now or hereafter in effect and if initiated against the Guarantor shall remain
undismissed (subject to no further appeal) for a period of 90 days; provided, the term “dissolution or liquidation of a Guarantor,” as used in this subsection, shall not be construed to include the cessation of the existence of a Guarantor
resulting either from a merger or consolidation of the Guarantor into or with another entity or a dissolution or liquidation of the Guarantor following a transfer of all or substantially all of its assets as an entirety; and provided further that an
Event of Default shall not be triggered under this Subsection (b) if the Company and the unaffected Guarantor or Guarantors shall continue to own more than 50% of the consolidated assets of the Company and the Subsidiaries. 

(c)        If any representation made by a Guarantor contained in this Guaranty was false or
misleading in any material respect at the time it was made or delivered. 
 Whenever an Event of Default shall have happened and be
continuing, (a) the Trustee in the manner provided in Section 7.1 of the Indenture may declare the entire unpaid principal of, or redemption premium, if any, and interest on the Bonds to be immediately due and payable, and (b) the
Trustee may, in its discretion, or shall upon the written request of the Holders of 66 2/3% in principal amount of Bonds then Outstanding, take whatever action at law or in equity as may appear necessary or desirable to collect payments then due or
thereafter to become due hereunder or to enforce observance or performance of any covenant or agreement of the Guarantors under this Guaranty. 

In case the Trustee shall have proceeded to enforce this Guaranty and such proceedings shall have been discontinued or abandoned for any
reason, then and in every such case each Guarantor and the Trustee, subject to any determination in any applicable proceeding, shall be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of the
Guarantors and the Trustee shall continue as though no such proceeding had been taken. 

Section 15.        Successors and Assigns; Enforcement of Remedies. 

This Guaranty shall be binding upon and inure to the benefit of each Guarantor and the Trustee and their respective successors and permitted
assigns, except that no Guarantor may assign any of its obligations hereunder. All rights against each Guarantor arising under this Guaranty shall be for the sole benefit of the Trustee and the Holders of the Bonds and their respective successors
and assigns and, with respect to payments due the Authority under Sections 4.2(d), 7.3, 9.2 and 9.3 of the Financing Agreement, the Authority. If any Guarantor fails to pay in accordance with Section 1 hereof, the Trustee may proceed in
the enforcement of 

  
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this Guaranty and such Guarantor’s obligations thereunder and hereunder by any remedy provided by law, whether by legal proceedings or otherwise, and to recover from such Guarantor the
obligations, without exhausting any other remedies that the Trustee may have pursuant to the terms of the Bonds, the Indenture or the Financing Agreement and without resort to any other security held by or available to the Authority or the Trustee.

 Section 16.        Amendment of Guaranty. 

The Trustee and the Guarantors may, without the consent of or notice to the owners or beneficial owners of the Bonds, enter into any
amendment, change or modification of this Guaranty (i) as may be required by the provisions of this Guaranty or the Indenture, (ii) for the purpose of curing any ambiguity or inconsistency, defective provision or omission, (iii) in
connection with an amendment of the Indenture or the Financing Agreement to effect any event or purpose for which there could be such an amendment without the consent of the Holders, or (iv) in connection with any other change herein that is
not to the material prejudice of the Trustee or the owners or beneficial owners of the Bonds. Except for the amendments, changes or modifications described in the preceding sentence, the Trustee and the Guarantors may not enter into any other
amendment, change or modification of this Guaranty without first mailing notice to, and obtaining the written approval or consent of, the owners or beneficial owners of not less than a majority in aggregate principal amount of the Bonds at the time
outstanding; provided, however, that the foregoing does not permit, without the written approval or consent of the Holders of 100% in aggregate principal amount of the Bonds then Outstanding, an extension of the time of payment of, or a reduction
in, any of the Guaranteed Obligations. In addition, any amendment, change or modification of this Guaranty relating to payments due the Authority under Section 4.2(d), 7.3, 9.2 or 9.3 of the Financing Agreement may only be made with the prior
written consent of the Authority. No amendment, modification or waiver of any provision of this Guaranty relating to any Guarantor or consent to any departure by any Guarantor from any such provision will in any event be effective unless it is
signed by such Guarantor and the Trustee. Further, notwithstanding the foregoing, while the Senior Credit Facility remains in effect, the parties hereto agree that they will not (x) amend, modify or waive the provisions set forth in
Section 7 of this Guaranty or (y) amend, modify or waive any of the other provision of this Guaranty (i) if the effect of such modification or waiver would be to delete or otherwise render ineffective the references to Section 7
expressly contained in such provision or (ii) in a manner that could reasonably be expected to be materially adverse to the holders of the Senior Credit Facility, without, in each case, the prior written consent of the administrative agent
thereunder. 
 Section 17.        No Merger or Waiver; Cumulative Remedies. 

This Guaranty shall not operate by way of merger of any of the obligations of a Guarantor under any other agreement. No failure to exercise
and no delay in exercising, on the part of the Trustee, any right, remedy, power or privilege under the Indenture or the Financing Agreement shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or
privilege under the Indenture or the Financing Agreement preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges in this Guaranty and under the
Indenture, the Financing Agreement and any other document or instrument between a Guarantor and/or the Company and the Trustee or the Authority are cumulative and not exclusive of any rights, remedies, powers and privilege provided by law. 

 

  
 -10- 

 Section 18.        Survival of Guaranteed
Obligations. 
 Subject to Section 7 hereof, the obligations of each Guarantor under Section 1 shall be enforceable against
such Guarantor without regard to and without giving effect to any defense, right of offset or counterclaim available to or which may be asserted by the Company or any Guarantor. 

Section 19.        Guaranty in Addition to Other Guarantee Obligations. 

The obligations of each Guarantor under this Guaranty are in addition to and not in substitution for any other obligations to the Trustee in
relation to the Financing Agreement and any guarantees or security at any time held by or for the benefit of the Trustee. 

Section 20.        Notices. 

Demand for payment by any Guarantor of the amounts guaranteed hereunder shall be made by notice in writing as provided in the next sentence.
All demands, notices, approvals, consents, requests and other communication hereunder shall be in writing addressed to the applicable Guarantors, c/o the address of the Company as set forth in Section 12.8 of the Indenture, and shall be deemed
to have been given: (i) when the same are delivered by hand, or (ii) when the same are sent by confirmed facsimile transmission, or (iii) on the next Business Day when the same are sent by overnight delivery service (with delivery
confirmed). The Guarantors, the Company, the Authority and the Trustee may, by notice given hereunder, designate any further or different addresses or means of communication to which subsequent demands, notices, approvals, consents, requests or
other communications shall be sent or persons to whose attention the same shall be directed. 

Section 21.        Miscellaneous. 

(a)        Any provision of this Guaranty that is prohibited or unenforceable in any jurisdiction
shall not invalidate the remaining provisions and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction unless its removal would substantially defeat the
basic intent, spirit and purpose of this Guaranty. 
 (b)        This Guaranty shall be governed by
and construed in accordance with the laws of the State of New Hampshire without giving effect to principles of conflicts of law. Each of the undersigned Guarantors hereby agrees to submit to the jurisdiction of the courts of the State of New
Hampshire in any action or proceeding arising out of or relating to this Guaranty. 

(c)        Each Guarantor hereby acknowledges communication of the terms of this Guaranty, the
Indenture and the Financing Agreement and consents to all the terms, covenants and conditions thereof. 

  
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 (d)        No director, officer, employee, incorporator
or stockholder of any Guarantor, as such, shall have any liability for any obligations of the Guarantors hereunder or for any claim based on, in respect of, or by reason of, such obligations or their creation. 

(e)        Each Guarantor shall pay on demand by the Trustee any and all reasonable costs, fees and
expenses incurred by the Trustee, its agents and advisors and in enforcing any of their rights under this Guaranty. 

(f)        This Guaranty may be executed in one or more counterparts, each of which shall constitute
an original and all of which together shall constitute but one and the same instrument. 
 [Signature Page Follows] 

  
 -12- 

 IN WITNESS WHEREOF, the parties have caused this Guaranty to be executed by their duly
authorized representatives as of the date first above written. 
 ALL CYCLE WASTE, INC. 

ATLANTIC COAST FIBERS, INC. 

BLOW BROS. 

BRISTOL WASTE MANAGEMENT, INC. 

C.V. LANDFILL, INC. 

CASELLA MAJOR ACCOUNT SERVICES, LLC 

CASELLA RECYCLING, LLC 

CASELLA RENEWABLE SYSTEMS, LLC 

CASELLA TRANSPORTATION, INC. 

CASELLA WASTE MANAGEMENT OF MASSACHUSETTS, INC. 

CASELLA WASTE MANAGEMENT OF N.Y., INC. 

CASELLA WASTE MANAGEMENT OF PENNSYLVANIA, INC. 

CASELLA WASTE MANAGEMENT, INC. 

CASELLA WASTE SERVICES OF ONTARIO LLC 

CHEMUNG LANDFILL LLC 

COLEBROOK LANDFILL LLC 

FOREST ACQUISITIONS, INC. 

GRASSLANDS INC. 

GROUNDCO LLC 

HAKES C&D DISPOSAL, INC. 

HARDWICK LANDFILL, INC. 

HIRAM HOLLOW REGENERATION CORP. 

KTI BIO FUELS, INC. 

KTI ENVIRONMENTAL GROUP, INC. 

KTI NEW JERSEY FIBERS, INC. 

KTI OPERATIONS, INC. 

KTI SPECIALTY WASTE SERVICES, INC. 

KTI, INC. 

MAINE ENERGY RECOVERY COMPANY, LIMITED PARTNERSHIP 

NEW ENGLAND WASTE SERVICES OF ME, INC. 

NEW ENGLAND WASTE SERVICES OF N.Y., INC. 

NEW ENGLAND WASTE SERVICES OF VERMONT, INC. 

NEW ENGLAND WASTE SERVICES, INC. 

NEWBURY WASTE MANAGEMENT, INC. 

NEWSME LANDFILL OPERATIONS LLC 

NEWS OF WORCESTER LLC 

NORTH COUNTRY ENVIRONMENTAL SERVICES, INC. 

NORTHERN PROPERTIES CORPORATION OF PLATTSBURGH 

[Signature Page to Guaranty Agreement] 

 OXFORD TRANSFER STATION, LLC 

PINE TREE WASTE, INC. 

SCHULTZ LANDFILL, INC. 

SOUTHBRIDGE RECYCLING & DISPOSAL PARK, INC. 

SUNDERLAND WASTE MANAGEMENT, INC. 

THE HYLAND FACILITY ASSOCIATES 

TOMPKINS COUNTY RECYCLING LLC 

WASTE-STREAM INC. 

WINTERS BROTHERS, INC. 
  

			
		
	By:	 	/s/ Edmond R. Coletta
	Name:	 	Edmond R. Coletta
	Title:	 	Vice President and Treasurer

 [Signature Page to Guaranty Agreement (Cont.)] 

 Accepted: 
 U.S.
BANK NATIONAL ASSOCIATION, as Trustee 
  

			
		
	By	 	/s/ Vernita L. Anderson
	Name:	 	Vernita L. Anderson
	Title:	 	Assistant Vice President

 [Signature Page to Guaranty Agreement (Cont.)]

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