Document:

REGISTRATION RIGHTS AGREEMENT

 

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

November 10, 2003

To each of the persons

named on Schedule I hereto:

Dear Sirs:

     This will confirm that in consideration of the consummation of the merger
of BI-USAIG Acquisition Corp. (“BI-USAIG”), a wholly-owned subsidiary of The
BISYS Group, Inc. (the “Company”), with and into USA Insurance Group, Inc.
(“USA”), pursuant to the Agreement and Plan of Merger dated as of November 10,
2003 among BI-USAIG, USA and the other persons named therein (the “Merger
Agreement”), in which an aggregate number of shares of common stock, $.02 par
value, of the Company (the “Shares”) set forth on Schedule I hereto opposite
your name will be issuable to you upon conversion of shares of Common Stock of,
or other equity interests in, USA, the Company hereby covenants and agrees with
each of you, as follows:

     1. Certain Definitions. As used herein, the following terms shall have
the following respective meanings:

     “Agreement” shall mean this Registration Rights Agreement between the
Company and you.

     “Commission” shall mean the United States Securities and
Exchange Commission, or any other federal agency at the time
administering the Securities Act (hereinafter defined).

     “Common Stock” shall mean the common stock, $.02 par value, of
the Company.

     “Distribution Period” shall mean the period commencing on the
effective date of the registration statement referred to in
Sections 2 and 3 hereof and ending on the earlier to occur of (i)
the sale of all of the Registerable Stock (hereinafter defined)
covered by such registration statement or (ii) the second
anniversary of the Effective Time.

     “Effective Time” shall mean the Effective Time of the Merger,
as defined in the Merger Agreement.

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     “Exchange Act” shall mean the Securities Exchange Act of 1934
or any similar federal statute, and the rules and regulations of
the Commission thereunder, all as the same shall be in effect at
the time.

     “Merger” shall mean the merger of BI-USAIG with and into USA
pursuant to the Merger Agreement.

     “Registerable Stock” shall mean (a) shares of Common Stock
issued to you in the Merger and owned by you or a person or entity
specified in clause (ii), (iii) or (iv) of Section 8(a) of this
Agreement, and (b) any Common Stock issued or issuable with respect
to the Shares by way of replacement, stock dividend, stock-split or
combination of shares of Common Stock recapitalization, merger,
consolidation, reorganization, or otherwise (unless such shares
have been already registered under the Securities Act); provided,
however, that such shares of Common Stock shall cease to be
Registerable Stock when sold pursuant to a registration statement
filed pursuant to the Agreement.

     “Securities Act” shall mean the Securities Act of 1933, as
amended, or any similar federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be
in effect at the time.

     2. Registration of Registerable Stock.

     As soon as practicable after the Effective Time, the Company shall use its
reasonable best efforts to register under the Securities Act for public resale
all shares of Registerable Stock. The Company shall not be obligated to effect
registration of Registerable Stock pursuant to this Section 2 on more than one
occasion.

     3. Registration Procedures. The Company shall, as expeditiously as is
practicable after the Effective Time:

     (a) (i) prepare, submit to you and to one counsel for the
sellers of Registerable Stock, for a reasonable opportunity to
review, and thereafter file with the Commission as soon as
practicable, a registration statement with respect to such
Registerable Stock (which shall be on Form S-3 if the Company is
then eligible to use such form and otherwise on such other form of

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general applicability acceptable to the Company), and (ii) use its
reasonable best efforts to cause such registration statement to
become and remain continuously effective during the Distribution
Period.

     (b) prepare and file with the 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 continuously effective during the
Distribution Period.

     (c) furnish to each seller of Registerable Stock such number
of copies of the registration statement and the prospectus included
therein and any amendment or supplement thereto as such person may
reasonably request in order to facilitate the public sale of the
Registerable Stock covered by such registration statement;

     (d) use its best efforts to register or qualify the
Registerable Stock covered by such registration statement under the
securities or blue sky laws of a reasonable number of jurisdictions
(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 paragraph (d), (ii)
subject itself to taxation in any such jurisdiction or (iii)
consent to general service of process in any jurisdiction);

     (e) promptly notify each seller of Registerable Stock (i) when
such registration statement or any amendment or supplement thereto
or to the prospectus contained therein has been filed, (ii) of any
request by the Commission for amendments or supplements to such
registration statement or prospectus or for additional information
from such seller, (iii) of the issuance by the Commission of any
stop order suspending the effectiveness of such registration
statement or the initiation of proceedings for that purpose, or
(iv) of the receipt by the Company of any notification with respect
to the suspension of the qualification of the Registerable Stock
for sale in any jurisdiction or the initiation or threatening of
any proceeding for that purpose;

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     (f) promptly notify each seller of Registerable Stock at any
time when a prospectus relating thereto is required to be delivered
under the Securities Act, of the happening of any event of which
the Company is aware as a result of which the prospectus contained
in such registration statement, as then in effect, includes an
untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances
then existing, and as promptly as practicable thereafter prepare
and file with the Commission a supplement or amendment to such
prospectus, such registration statement or any document
incorporated therein by reference, or make such other filing, such
that as thereafter delivered to the purchasers of Registerable
Stock the prospectus will not contain an untrue statement of
material fact or omit to state any material fact necessary to make
the statements therein not misleading provided, however, in no
event shall the registration statement be unavailable (i) for any
continuous period in excess of ninety (90) days or (ii) for an
aggregate of one hundred twenty (120) days or more, during the
Distribution Period.

     (g) use its reasonable best efforts to obtain the withdrawal
of any order suspending the effectiveness of such registration
statement.

     (h) use its best efforts to cause all Registerable Stock to be
listed on the New York Stock Exchange or such inter-dealer
quotation system on which Common Stock is then listed.

     In connection with each registration hereunder, each seller of
Registerable Stock shall furnish to the Company in writing such information
with respect to himself and the proposed distribution by him as shall be
reasonably necessary in order to assure compliance with federal and applicable
state securities laws, including, without limitation, such information as shall
enable the Company to prepare prospectus supplements as and when required to
enable bona fide pledgees or donees of such seller to sell shares of
Registerable Stock under the registration statement filed pursuant to Section 2
hereof.

     4. Expenses. All expenses incurred by the Company in complying with
Sections 2 and 3 hereof, including, without limitation, all registration and
filing fees, printing expenses,

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fees and disbursements of counsel and independent public accountants for the
Company, fees of the New York Stock Exchange, Inc., transfer taxes, fees of
transfer agents and registrars, and the reasonable fees and disbursements of
one counsel for the holders of Registerable Stock will be paid by the Company
in connection with the registration statement filed pursuant to Sections 2 and
3 hereof.

     5. Indemnification. Notwithstanding the indemnification obligations of
Parent under Section 7.08(b) of the Merger Agreement, the Company will
indemnify and hold harmless each seller of Registerable Stock under the
registration statement filed pursuant to Sections 2 and 3 and each other
person, if any, who controls such seller within the meaning of the Securities
Act, and each partner, director or officer of such persons, against any losses,
claims, damages or liabilities, joint or several, to which such seller,
partner, officer, director or controlling person may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon (i)
any untrue statement or alleged untrue statement of any material fact contained
or incorporated by reference in the registration statement filed pursuant to
Sections 2 and 3 hereof, any prospectus contained therein, or any amendment or
supplement thereof, (ii) the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and (iii) any violation or alleged violation by the
Company of the Securities Act, the Exchange Act, any state securities law or
any rule or regulation promulgated under any of the same in connection with the
offering covered by such registration statement, and the Company will reimburse
each such seller, partner, officer, director and each such controlling person
for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case if and
to the extent that any such loss, claim, damage or liability arises out of or
is based upon an untrue statement or alleged untrue statement or omission or
alleged omission so made in reliance upon and in conformity with information
furnished by such seller or any of its partners, officers, directors or such
controlling person in writing specifically for use in such registration
statement or prospectus.

     Each seller of such Registerable Stock under the registration statement
filed pursuant to Sections 2 and 3 hereof, severally and not jointly, will
indemnify and hold harmless the

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Company and each person, if any, who controls the Company within the meaning of
the Securities Act, each officer of the Company who signs the registration
statement, each director of the Company, and each person who controls any of
the foregoing within the meaning of the Securities Act, against all losses,
claims, damages or liabilities, joint or several, to which the Company or such
officer or director or controlling person may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon (i)
any untrue statement or alleged untrue statement of any material fact contained
in the registration statement filed pursuant to Sections 2 and 3 hereof, any
prospectus contained therein, or any amendment or supplement thereof, (ii) the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, or
(iii) any violation or alleged violation by the Company of the Securities Act,
the Exchange Act, any state securities law or any rule or regulation
promulgated under any of the same in connection with the offering covered by
such registration statement, and each such seller will reimburse the Company
and each such officer, director and controlling person for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that such seller will be liable hereunder in any such case if and only to the
extent that any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged
omission made in reliance upon and in conformity with information furnished in
writing to the Company by such seller specifically for use in such registration
statement or prospectus. Notwithstanding the foregoing, (i) no seller shall be
liable for payments of amounts paid in settlement of any loss, claim, damage,
liability or action if such settlement is effected without the consent of such
seller (which consent shall not be unreasonably withheld), and (ii) in no event
shall the liability of any seller of Registerable Stock under this Section 5 in
connection with any registration exceed the proceeds received by such seller
from the sale of shares of Registerable Stock in such registration.

     Promptly after receipt by an indemnified party hereunder of notice of the
commencement of any action, such indemnified party shall, if a claim in respect
thereof is to be made against the indemnifying party hereunder, notify the
indemnifying party in writing thereof; provided, however, that the failure of
any indemnified party to give notice to such indemnifying party as provided
herein shall not relieve such indemnifying party of its

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obligations under the foregoing provisions of this Section 5, except and solely
to the extent that such indemnifying party is actually prejudiced by such
failure to give notice. In case any such action shall be brought against any
indemnified party and it shall notify the indemnifying party of the
commencement thereof, the indemnifying party shall be entitled to participate
in and, to the extent it shall wish, to assume and undertake the defense
thereof with counsel satisfactory to such indemnified party, and, after notice
from the indemnifying party to such indemnified party of its election so to
assume and undertake the defense thereof, the indemnifying party, if it shall
actually undertake the defense thereof, shall not be liable to such indemnified
party under this Section 5 for any legal expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation and of liaison with counsel so selected; provided,
however, that, if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be reasonable defenses available to it
which are different from or additional to those available to the indemnifying
party, or if the interests of the indemnified party reasonably may be deemed to
conflict with the interests of the indemnifying party, the indemnified party
shall have the right to select a separate counsel and to assume such legal
defenses and otherwise to participate in the defense of such action, with the
expenses and fees of such separate counsel and other expenses related to such
participation to be reimbursed by the indemnifying party as incurred.

     Any indemnified party shall have the right to retain its own counsel in
any such action, but the fees and disbursements of such counsel shall be at the
expense of such indemnified party unless (i) the indemnifying party shall have
failed to retain counsel for the indemnified person as aforesaid or shall have
failed to defend such action in accordance with the preceding paragraph or (ii)
the indemnifying party and such indemnified party shall have mutually agreed to
the retention of such counsel. It is understood that the indemnifying party
shall not, in connection with any action or related actions in the same
jurisdiction, be liable for the fees and disbursements of more than one
separate firm qualified in such jurisdiction to act as counsel for the
indemnified party. The indemnifying Party shall not, without the consent of
the indemnified Party, which consent shall not be unreasonably withheld or
delayed, consent to the entry of any judgment or enter into any settlement with
respect to such action; provided, that, unless agreed to by the indemnified
party, such judgment or settlement must include an unconditional

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release of the indemnified party from all liability in respect of such action.
The indemnifying party shall not be liable for any settlement of any proceeding
effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, the indemnifying party agrees to
indemnify the indemnified party from and against any loss or liability by
reason of such settlement or judgment.

     If the indemnification provided for in the first two paragraphs of this
Section 5 is unavailable or insufficient to hold harmless an indemnified party
under such paragraphs in respect of any losses, claims, damages or liabilities
or actions in respect thereof referred to therein, then each indemnifying party
shall in lieu of indemnifying such indemnified party contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims,
damages, liabilities or actions in such proportion as appropriate to reflect
the relative fault of the Company, on the one hand, and the sellers of such
Registerable Stock, on the other, in connection with the statements or
omissions which resulted in such losses, claims, damages, liabilities or
actions as well as any other relevant equitable considerations. The relative
fault shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact relates to information
supplied by the Company, on the one hand, or the sellers of such Registerable
Stock, on the other, and to the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The Company and each of you agree that it would not be just and equitable if
contributions pursuant to this paragraph were determined by pro rata allocation
(even if all of the sellers of such Registerable Stock were treated as one
entity for such purpose) or by any other method of allocation which did not
take account of the equitable considerations referred to above in this
paragraph. The amount paid or payable by an indemnified party as a result of
the losses, claims, damages, liabilities or action in respect thereof, referred
to above in this paragraph, shall be deemed to include 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 paragraph, the sellers of such Registerable Stock shall not
be required to contribute any amount in excess of the amount, if any, by which
the total price at which the Common Stock sold by each of them was offered to
the public exceeds the amount of any damages which they would have otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission. No person guilty of fraudulent misrepresentations (within the
meaning of

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Section 11(f) of the Securities Act), shall be entitled to contribution from
any person who is not guilty of such fraudulent misrepresentation.

     6. Current Public Information. For so long as you hold Registerable
Stock, the Company agrees with you as follows:

     (a) The Company shall use its reasonable best efforts to make
and keep public information available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all
times from and after the date hereof.

     (b) The Company shall use its reasonable best efforts to file
with the Commission in a timely manner all reports and other
documents as the Commission may prescribe under Section 13(a) or
15(d) of the Exchange Act.

     (c) The Company shall furnish to each seller of Registerable
Stock upon request (i) a written statement by the Company as to its
compliance with the reporting requirements under the Exchange Act,
as required for the use of Rule 144 under the Securities Act, (ii)
a copy of the most recent annual or quarterly report of the
Company, and (iii) such other reports and documents so filed as a
holder may reasonably request to avail itself of any rule or
regulation of the Commission allowing a holder of Registerable
Stock to sell any such securities without registration.

     7. Effectiveness of this Agreement. This Agreement shall become effective
at the Effective Time. If the Effective Time shall not occur, this Agreement
shall be of no force and effect.

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     8. Miscellaneous.

          (a) All covenants and agreements contained in this Agreement by or on
behalf of any of the parties hereto shall bind and inure to the benefit of the
respective successors and assigns of the parties hereto whether so expressed or
not, provided, however, that the obligations of the Company hereunder shall
inure only to the benefit of (i) you, (ii) a person who shall become a holder
of Registerable Stock by gift or by will or the laws of descent and
distribution, (iii) an institutional lender to whom shares of Registerable
Stock are bona fide pledged as collateral security for a loan, (iv) a
broker-dealer to whom shares of Registerable Stock are bona fide pledged or (v)
any entity in which you and members of your immediate family own in excess of
50% of the equity or beneficial ownership, and the term “Registerable Stock” as
used herein shall be limited to Registerable Stock held by you or any such
person or entity.

          (b) All notices, requests, consents and other communications hereunder
shall be in writing and shall be mailed by first class registered mail, postage
prepaid, addressed as follows:

     if to the Company, to it at: 90 Park Avenue, New
York, New York 10016, Attention: Executive Vice
President and General Counsel;

     if to any holder of Registerable Stock, at its address
as set forth in Annex I hereto;

     if to any subsequent holder of Registerable Stock
pursuant to Section 8(a) hereof to it at such address
as may have been furnished to the Company in writing
by such holder;

or, in any case, at such other address or addresses as
shall have been furnished in writing to the Company
(in the case of a seller of Registerable Stock) or to
the sellers of Registerable Stock (in the case of the
Company).

          (c) This Agreement shall be governed by and construed in accordance with
the laws of the State of New York.

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          (d) This Agreement constitutes the entire agreement of the parties with
respect to the subject matter hereof and may not be modified or amended except
in writing signed by the Company and by the holders of not less than a majority
of the Registerable Stock.

          (e) The Company will not, on or after the date hereof, enter into any
agreement with respect to its securities which is inconsistent with the rights
granted to the holders of Registerable Stock in this Agreement or otherwise
conflicts with the provisions hereof. The rights granted to holders of
Registerable Stock hereunder do not in any way conflict with any other
agreement to which the Company is a party.

          (f) All remedies under this Agreement, or by law or otherwise afforded to
any party hereto, shall be cumulative and not alternative. Any person having
rights under any provision of this Agreement will be entitled to enforce such
rights specifically to recover damages caused by reason of any breach of any
provision of this Agreement and to exercise all other rights granted by law.
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 may in its sole discretion apply to any court of law or equity of
competent jurisdiction (without posting any bond or other security) for
specific performance and for other injunctive relief in order to enforce or
prevent violation of the provisions of this Agreement.

          (g) This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

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     Please indicate your acceptance of the foregoing by signing and returning
the enclosed counterpart of this letter, whereupon this letter (herein
sometimes called “this Agreement”) shall be a binding agreement between the
Company and you.

	 	 	 	 	 
	 	 	Very truly yours,
	 	 	 	 	 
	 	 	THE BISYS GROUP, INC
	 	 	 	 	 
	 	 	
By:
	 	s/Dennis Sheehan
	 	 	 	 	

	 	 	
Name:
	 	Dennis R. Sheehan
	 	 	
Title:
	 	President and Chief
Executive Officer
	 	 	 	 	 
	AGREED TO AND ACCEPTED
as of the date first
above written:	 	 	 	 
	 	 	 	 	 
	 	 	s/Nancy A. Birt
	 	 	

	 	 	Nancy A. Birt
	 	 	 	 	 
	 	 	s/Jacalyn Love DeVries
	 	 	

	 	 	Jacalyn Love DeVries
	 	 	 	 	 
	 	 	s/Krista M. Fogleman
	 	 	

	 	 	Krista M. Fogleman
	 	 	 	 	 
	 	 	s/Todd W. Crawford
	 	 	

	 	 	Todd W. Crawford
	 	 	 	 	 
	 	 	s/Jord Hauge
	 	 	

	 	 	Jord C. Hauge
	 	 	 	 	 
	 	 	James P. Love, IRA,
	 	 	First Union Securities,

Custodian
	 	 	 	 	 
	 	 	
By:
	 	s/Les David Frate
	 	 	 	 	

	 	 	 	 	Les David Frate
	 	 	 	 	 
	 	 	s/Marguerite Love
	 	 	

	 	 	Maguerite Love, Trustee
	 	 	Under Agreement Dated
July 21, 1987

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	 	 	s/Patricia A. Love
	 	 	

	 	 	Patricia A. Love
	 	 	 	 	 
	 	 	s/Philip W. Love II
	 	 	

	 	 	Philip W. Love II, Trustee
	 	 	Under Agreement Dated
June 9, 1989
	 	 	 	 	 
	 	 	s/Richard P. Love, Jr.
	 	 	

	 	 	Richard P. Love, Jr., Trustee
	 	 	Under Agreement Dated
July 20, 1987
	 	 	 	 	 
	 	 	s/Richard P. Love III
	 	 	

	 	 	Richard P. Love III
	 	 	 	 	 
	 	 	Robert J. Love, IRA,
	 	 	First Union Securities,

Custodian
	 	 	 	 	 
	 	 	
By:
	 	s/Les David Frate
	 	 	 	 	

	 	 	 	 	Les David Frate
	 	 	 	 	 
	 	 	s/William Love
	 	 	

	 	 	William F. Love
	 	 	 	 	 
	 	 	s/David R. Tooley
	 	 	

	 	 	David R. Tooley
	 	 	 	 	 
	 	 	s/David Zellmer
	 	 	

	 	 	David Zellmer
	 	 	 	 	 
	 	 	s/Lisa M. Zizzo
	 	 	

	 	 	Lisa M. Zizzo
	 	 	 	 	 
	 	 	Kingsway America, Inc.
	 	 	 	 	 
	 	 	
By:
	 	s/James Zuhlke
	 	 	 	 	

	 	 	 	 	James Zuhlke, President

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SCHEDULE I

	 	 	 	 	 
	Name and Address of Persons	 	Number of Shares of Company
	
	 	

	Whom Shares are to be issued	 	Common Stock to be Issued
	
	 	

	Nancy A. Birt
	 	 	5,716	 
	3600 Ficus Place
	 	 	 	 
	Grant, FL 32949
	 	 	 	 
	 
	 	 	 	 
	Jacalyn Love DeVries
	 	 	38,108	 
	130 Island View Drive
	 	 	 	 
	Indian Harbour Beach, FL 32937
	 	 	 	 
	 
	 	 	 	 
	Krista M. Fogleman and
	 	 	2,858	 
	Todd W. Crawford
	 	 	 	 
	4820 Butterworth Place NW
	 	 	 	 
	Washington, DC 20016
	 	 	 	 
	 
	 	 	 	 
	Jord C. Hauge
	 	 	22,007	 
	Tower One, Suite 700
	 	 	 	 
	1701 Gulf Road
	 	 	 	 
	Rolling Meadows, IL 60008
	 	 	 	 
	 
	 	 	 	 
	First Union Securities Cust.
	 	 	5,647	 
	F/B/O James P. Love, IRA
	 	 	 	 
	c/o First Union Clearing Corp.
	 	 	 	 
	10700 Wheatfirst Drive
	 	 	 	 
	Glen Allen, VA 23060
	 	 	 	 
	 
	 	 	 	 
	Marguerite Love, Trustee
	 	 	267,695	 
	Under Agreement Dated
	 	 	 	 
	July 21, 1987
	 	 	 	 
	4 Marine Isle Blvd., Unit 301
	 	 	 	 
	Indian Harbour Beach, FL 32937
	 	 	 	 
	 
	 	 	 	 
	Patricia A. Love
	 	 	38,108	 
	925 Highway A1A-Unit #605
	 	 	 	 
	Satellite Beach, FL 32937
	 	 	 	 
	 
	 	 	 	 
	Philip W. Love II, Trustee
	 	 	95,325	 
	Under Agreement Dated
	 	 	 	 
	June 9, 1989
	 	 	 	 
	5420 Willoughby Dr.
	 	 	 	 
	Melbourne, FL 32934
	 	 	 	 

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	Name and Address of Persons	 	Number of Shares of Company
	
	 	

	Whom Shares are to be issued	 	Common Stock to be Issued
	
	 	

	Richard P. Love, Jr., Trustee
	 	 	1,242,696	 
	Under Agreement Dated
	 	 	 	 
	July 20, 1987
	 	 	 	 
	4 Marine Isle Blvd., Unit 301
	 	 	 	 
	Indian Harbour Beach, FL 32937
	 	 	 	 
	 
	 	 	 	 
	Richard P. Love III
	 	 	23,351	 
	2107 Parkside Place
	 	 	 	 
	Indian Harbour Beach, FL 32937
	 	 	 	 
	 
	 	 	 	 
	First Union Securities Cust.
	 	 	17,960	 
	F/B/O Robert J. Love, IRA
	 	 	 	 
	4230 State Route 306
	 	 	 	 
	Willoughby, OH 44094
	 	 	 	 
	 
	 	 	 	 
	William F. Love
	 	 	4,763	 
	3425 Saddle Brook Drive
	 	 	 	 
	Melbourne, FL 32934
	 	 	 	 
	 
	 	 	 	 
	David R. Tooley
	 	 	286,530	 
	653 Candlewood Way
	 	 	 	 
	Melbourne, FL 32940
	 	 	 	 
	 
	 	 	 	 
	David Zellmer
	 	 	6,573	 
	907 Bedford Lane
	 	 	 	 
	Libertyville, IL 60045
	 	 	 	 
	 
	 	 	 	 
	Lisa M. Zizzo
	 	 	32,878	 
	106 Island View Drive
	 	 	 	 
	Indian Harbour Beach, FL 32937
	 	 	 	 
	 
	 	 	 	 
	Kingsway America, Inc.
	 	 	707,538	 
	5310 Explorer Drive, Suite 200
	 	 	 	 
	Mississaugo, Ontario L4W 5H8
	 	 	 	 
	Canada
	 	 	 	 

15<PAGE>
                             AMENDED LEASE AGREEMENT

                                    SECTION I
                                     PARTIES

      This document serves as an amendment to that certain lease agreement dated
July 1, 2000 between RICHARD RUTTA & KENNETH LEVINE REAL ESTATE PARTNERSHIP with
an address at 220 Division Street, Kingston, PA 18704 as Landlord, and DIAMOND
TRIUMPH AUTO GLASS, INC., with offices at 220 Division Street, Kingston,
Pennsylvania, 18704, as Tenant for certain leased premises located at 220
Division Street, Kingston, PA 18704 as described in more detail below.

                                   SECTION II
                         DESCRIPTION OF LEASED PREMISES

      Landlord hereby leases to Tenant and Tenant hereby leases from Landlord,
certain premises containing approximately 51,000 sq. ft. of office space and
approximately 148,080 sq. ft. of warehouse space located at 220 DIVISION STREET,
KINGSTON, PA 18704 which premises shall hereafter be referred to as the Premises
and the related parking spaces located in the lot across the street from the
Premises and approximately 7,000 sq. ft. of garage space located at the rear
section of said lot. The aforementioned Premises together with the parking lot
shall hereafter collectively be referred to as the Premises and are more fully
described in Exhibit A attached hereto and incorporated to be reference herein.

                                   SECTION III
                                      TERM

      The Premises are leased for a term to commence on NOVEMBER 1, 2003 and to
end on DECEMBER 31, 2005.

                                 OPTION TO RENEW

      The parties agree that this lease shall be renewed, upon the same terms
and conditions, for additional two (2) year periods, unless this lease is
terminated by either the Landlord or Tenant by such party providing written
notice at least sixty (60) days prior to the expiration of the then current
lease period.

                                   SECTION IV
                                      RENT

      The total annual rent is the sum of $465,740 ($2.26/sq.ft. per annum)
which sum is payable in equal monthly installments, of $38,812 in advance, on
the 1st day of each calendar month during the Term. In addition, the Landlord
and Tenant acknowledge and agree that effective each January 1st of each
calendar year rental period that the annual rent shall be increased by four
percent (4%) for each such calendar year. As such, the annual rent shall be
increased as of January 1, 2004 and each January 1st thereafter.

The Landlord and Tenant acknowledge and agree that the annual rent shall be
subject to adjustment during any option or renewal period. The failure of the
Landlord to increase the annual rent during any renewal period shall not
prohibit the Landlord from subsequently adjusting or increasing the rent during
a subsequent renewal period.

                                    SECTION V
                                USE AND OCCUPANCY

      Tenant shall use and occupy the Premises primarily as a warehouse for
automobile windshields and other related glass products and also a portion as a
Corporate office headquarters. Landlord represents that the Premises may
lawfully be used for such purpose and in the event such use is prohibited by any
zoning law or ordinance during the term that the Tenant shall have the right to
terminate its obligations hereunder by thirty (30) days written notice to
Landlord.

                                       1
<PAGE>
                                   SECTION VI
                            PLACE FOR PAYMENT OF RENT

      Tenant shall pay rent to Landlord at Landlord's above stated address, or
at such other place as Landlord may designate in writing.

                                   SECTION VII
                           CARE AND REPAIR OF PREMISES

      Tenant shall commit no act of waste and shall take good care of the
Premises and the fixtures and appurtenances therein, and shall, in the use and
occupancy of the Premises, conform to all laws, orders, and regulations of the
federal, state and municipal governments as relate solely to Tenant's use,
manner or use of occupancy of the Premises and Tenant's obligations hereunder
shall not extend to conditions pre-existing the commencement of the term of this
Lease.

      Not later than the last day of the term, Tenant shall, at Tenant's
expense, remove all of Tenant's personal property and those improvements made by
fixtures, cabinet work, movable paneling, partitions and the like; repair all
injury done by or in connection with the installation or removal of the property
and shall restore the premises to the same good order and condition in which
they were at the commencement of this Lease, reasonable wear, and damage by
fire, the elements or the agents, servants, visitors or licensees of Landlord
excepted.

                                  SECTION VIII
                     ALTERATIONS, ADDITIONS OR IMPROVEMENTS

      Tenant shall not, without first obtaining the consent of Landlord, make
any structural alterations, or improvements in, to or about the Premises.
Landlord shall not unreasonably withhold consent.

                                   SECTION IX
                    PROHIBITION AGAINST ACTIVITIES INCREASING
                              FIRE INSURANCE RATES

      Tenant shall not do or suffer anything to be done on the Premises, which
will cause an increase in the cost of fire insurance on the building. If Tenant
shall cause the cost of fire insurance to increase Tenant will be responsible
for the incremental increase in said costs.

                                    SECTION X
                     ACCUMULATION OF WASTE OR REFUSE MATTER

      Tenant shall not permit the accumulation of waste or refuse matter on the
leased Premises or anywhere in or near the building.

                                   SECTION XI
                             ASSIGNMENT OR SUBLEASE

      Tenant shall not, without first obtaining the consent of the Landlord,
assign this Lease, in whole or in part, or sublet the Premises or any part of
such Premises. Landlord expressly covenants that such consent shall not be
unreasonably withheld. The Landlord and Tenant acknowledge and agree that in the
event the Tenant effectuates a sale of substantially all of the assets or
attempts to effectuate the transfer of the leasehold interest herein in
conjunction with a consolidation, merger or pooling of interests of Tenant, that
this lease at the Landlord's sole option, may either be terminated or the lease
may be extended and Landlord at his election may renegotiate the rent at the
time of such transfer or sale.

                                       2
<PAGE>
                                   SECTION XII
                                    UTILITIES

      Tenant will pay for all electricity for the Premises herein leased and all
other utilities serving the Premises.

                                  SECTION XIII
                               DAMAGES TO BUILDING

      If the building is damaged by fire or any other cause, the Landlord will
promptly make such repairs as are reasonably necessary. In the event said
repairs are not promptly made, then the Tenant may, but shall not be obligated,
to make said repairs and deduct the cost of same from rent which may thereafter
become due. In the event such damage prevents or hinders the Tenant from
conducting its business on the Premises, then the Tenant may, upon five (5) days
written notice, terminate this Lease. Upon said termination, the Tenant's
obligation hereunder shall cease as of date of such termination notice.

      In any case in which use of the Premises is affected by damage to the
building, there shall be either an abatement or an equitable reduction in rent
depending on the period for which, and the extent to which, the Premises are
unusable for the purposes for which the Premises are leased under this
agreement.

                                   SECTION XIV
                            CONDITION OF THE PREMISES

      The Landlord represents that upon the commencement of the term of this
Lease the plumbing, heating, ventilating, air conditioning systems and
electrical systems shall be in proper working order, and the roof shall be free
of leaks. It shall be the Tenant's responsibility to properly maintain the
plumbing, heating, ventilating, air conditioning and electrical systems in the
Premises, however, nothing contained herein shall obligate the Tenant to replace
these systems. The Landlord shall be solely responsible for maintaining the
structural integrity of the building, including but not limited to the
foundation and bearing walls, as well as the roof and all exterior portions of
the building and Premises.

                                   SECTION XV
                                    AUTHORITY

      The parties hereto represents that they have full authority to enter into
this agreement, and to bind the respective parties hereto. The Landlord
represents that it is the sole owner of the leased Premises.

                                   SECTION XVI
                              BROKERAGE COMMISSION

      The Landlord and Tenant represent and acknowledge that the contracting
party shall be solely responsible for any real estate brokerage commission that
the Landlord or Tenant directly contracted with a third party, which may be due
as a result of such party directly contracting with a third party for such
services.

                                  SECTION XVII
                             WAIVERS OF SUBROGATION

      In the event of loss or damage to the building, the Premises and/or any
contents, each party shall look first to any insurance in its favor before
making any claim against the other party; and , to the extent possible without
additional cost, each party shall obtain, for each policy of such insurance,
provisions permitting waiver of any claim against the other party for loss or
damage within the scope of such insurance, and each party, to such extent
permitted, for itself or its insurers, waives all such insured claims against
the other party.

      However, the Landlord and Tenant agree to indemnify and hold harmless each
other from any losses or damages arising under the terms of this Agreement,
arising from the intentional acts or gross negligence of the other party.

                                       3
<PAGE>
                                 SECTION XVIII
                                 EMINENT DOMAIN

      If the entire Premises or any part of the Premises or any estate therein,
or any other part of the building materially affecting Tenant's use of the
Premises, be taken by eminent domain, then at the Tenant's option, this Lease
shall terminate on the date when title vests pursuant to such taking. The rent,
and any additional rent, shall be apportioned as of the termination date, and
any rent paid for any period beyond such date shall be repaid to Tenant. Tenant
shall not be entitled to any part of the award for such taking or any payment in
lieu of such payment, but Tenant may file a claim for any taking of fixtures and
improvements owned by Tenant, and for moving expenses.

                                   SECTION XIX
                         LANDLORD'S REMEDIES ON DEFAULT

      If Tenant defaults in the payment of rent, or any additional rent or
defaults in the performance of any of the other covenants or conditions of this
agreement, Landlord may give Tenant notice of such default and if Tenant does
not cure any rent, or additional rent, default within seven (7) days, or other
default within ten (10) days, after giving of such notice (or if such other
default is of such nature that it cannot be completely cured within such period,
or if Tenant does not commence such good faith curing within such ten (10) days
notice period and thereafter proceed with reasonable diligence and in good faith
to cure such default), then Landlord may terminate this lease on not less than
seven (7) days; notice to Tenant. On the date specified in the notice, the term
of this Lease shall terminate and Tenant shall then quit and surrender the
Premises to Landlord. If this Lease shall been so terminated by Landlord,
Landlord may, at any time thereafter, resume possession of the Premises by any
lawful means and remove Tenant or other occupants and their effects.

                                   SECTION XX
        EFFECT OF FAILURE TO INSIST ON STRICT COMPLIANCE WITH CONDITIONS

      The failure of either party to insist on strict performance of any
covenant or condition of this agreement, or to exercise any option herein
contained, shall not be construed as a waiver of such covenant, condition, or
option in any other instance. This Lease cannot be modified or terminated
orally.

                                   SECTION XXI
                      COLLECTION OF RENT FROM ANY OCCUPANT

      If the Premises are sublet or occupied by anyone other than Tenant, and
Tenant is in default under this agreement, or if this Lease is assigned by
Tenant, Landlord may collect rent from the assignee, subtenant, or occupant, and
apply the net amount collected to the rent herein reserved. No such collection
shall be deemed a waiver of the covenant herein against assignment and
subletting, or the acceptance of such assignee, subtenant, or occupant as
Tenant, or a release of Tenant from further performance of the covenants herein
contained.

                                  SECTION XXII
                    LANDLORD'S RIGHT TO CURE TENANT'S BREACH

      If Tenant breaches any covenant or condition of this Lease, Landlord may,
on reasonable notice to Tenant, (except that no notice need be given in case of
emergency), cure such breach at the expense of Tenant and the reasonable amount
of all expenses, including attorneys' fees, incurred by Landlord in so doing,
(whether paid by Landlord or not), shall be deemed additional rent payable on
demand.

                                  SECTION XXIII
                                 MECHANICS' LIEN

      Tenant shall, within thirty days (30) after notice from Landlord,
discharge or post security for, any mechanics' liens for materials or labor
claimed to have been furnished to the Premises on Tenant's behalf.

                                       4
<PAGE>
                                  SECTION XXIV
                                     NOTICES

      Any notice by either party to the other shall be in writing and shall be
deemed to have been duly given only if delivered personally, or sent by
certified mail in an addressed postpaid envelope; if to Tenant, Diamond Triumph
Auto Glass, Inc., 220 Division Street, Kingston, Pennsylvania, 18704, Attn: Norm
Harris, CEO, with copy to Mike Sumsky, President; if to Landlord, at Landlord's
address as set forth above to the attention of Kenneth Levine or Richard Rutta;
or to either, at such other address as Tenant or Landlord respectively, may
designate in writing. Notice shall be deemed to have been duly given, if
delivered personally, upon delivery, and if mailed, upon the receipt of such
certified mail.

                                   SECTION XXV
             LANDLORD'S RIGHT TO INSPECTION, REPAIR AND MAINTENANCE

      The Landlord may during the term, at reasonable times and upon adequate
notice have access to the Premises (except that no notice need be given in case
of emergency), for the purpose of inspection or the making of such repairs,
replacements or additions in, to, on and about the Premises or the building.

                                  SECTION XXVI
                         INTERRUPTION OF SERVICE OR USE

      Interruption or curtailment of any service maintained in the building, if
caused by strikes, mechanical difficulties, or any causes beyond Landlord's
control, whether similar or dissimilar to those enumerated, shall not entitle
Tenant to any claim against Landlord or to any abatement in rent, and shall not
constitute constructive or partial eviction, unless Landlord fails to take such
measures as may be reasonable in the circumstances to restore the service
without undue delay. If the Premises are rendered untenantable in whole or in
part, for a period of more than three (3) business days, by the interruption or
curtailment of any such services or the making of repairs, replacements, or
additions, other than those made with Tenant's consent or caused by misuse or
neglect by Tenant's agents, servants, visitors, or licensees, there shall be a
proportionate abatement of rent during the period of such untenantability. If
the Premises shall remain untenantable for twenty (20) days, the Tenant may at
its option terminate this Lease.

                                  SECTION XXVII
                        LANDLORD'S RIGHT TO SHOW PREMISES

      Landlord may show the Premises to prospective purchasers and mortgagees
and during the two (2) months prior to termination of this Lease, to prospective
tenants, during business hours upon reasonable notice to Tenant.

                                 SECTION XXVIII
                         EFFECT OF OTHER REPRESENTATIONS

      No representations or promises shall be binding on the parties to this
agreement except those representations and promises contained herein or in some
future writing signed by the party making such representations or promises.

                                  SECTION XXIX
                                 QUIET ENJOYMENT

      Landlord covenants that if, and so long as, Tenant pays the rent, and any
additional rent as herein provided, Tenant shall peaceably and quietly have,
hold and enjoy the Premises for the entire term herein mentioned, subject to the
provisions of this Lease. If the Tenant's rights pursuant to this paragraph are
materially and substantially impaired and remain so impaired, upon ten (10) days
written notice to the Landlord the Tenant shall have the right to terminate this
lease.

                                       5
<PAGE>
                                   SECTION XXX
                                      SIGNS

      Tenant shall have the right, at its expense, to erect on the exterior of
the Premises its standard signs, which signs shall be structurally sound and in
conformity with existing municipal regulations

                                  SECTION XXXI
                               LIABILITY INSURANCE

      Tenant shall during the entire term hereof, keep in full force and effect,
a policy of public and general liability insurance including umbrella liability
insurance and property insurance and workers compensation liability insurance
with respect to the Premises, and the business operated by Tenant and any
subtenants of Tenant in the Premises, in which the limits of such pubic and
general liability coverage including umbrella liability coverage shall not be
less than Five Million ($5,000,000.) Dollars, combined bodily injury and
property damage. Such policy shall include the Landlord as an additional
insured. The Tenant acknowledges and agrees that the Tenant shall bear the
premium cost of the above referenced insurance maintained by the Tenant.

      The Tenant and Landlord further acknowledge that the Tenant shall obtain
property insurance for the Premises, including the real property thereon.
However, the Landlord acknowledges that the Landlord shall reimburse the Tenant
for the Premises cost related to the real property coverage obtained by the
Tenant for the Premises.

                                  SECTION XXXII
                       ENVIRONMENTAL INDEMNITY BY LANDLORD

      Landlord will indemnify Tenant and save it harmless from and against any
failure on the part of the Landlord or any prior owner of the Premises or on the
part of any prior occupant of the Premises to comply with the provisions of any
local, state or federal hazardous waste or environmental laws, including, but
not limited to the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, 42 U.S.C. 1801-1812; and the Resource
Conservation and Recovery Act of 1976, 42 U.S.C. 6901-6987 (hereinafter
collectively referred to as the "Hazardous Waste Laws").

      Tenant shall not be responsible for curing any failure on the part of the
Landlord or any prior owner of the Premises or on the parts of any prior
occupant of the Premises to comply with the provisions of any Hazardous Waste
Laws.

                                 SECTION XXXIII
                        ENVIRONMENTAL INDEMNITY BY TENANT

      Tenant warrants and represents that during Tenant's use and occupancy of
the demised Premises, Tenant shall not utilize any portion of the demised
Premises for the production, disposal, storage treatment, processing or other
handling of waste contamination, PCB's or any other toxic or hazardous
substances and Tenant shall indemnify and hold Landlord harmless for any
violation of Hazardous Waste Laws.

                                  SECTION XXXIV
                                   GROSS LEASE

      It is clearly understood that this is a Gross Lease and that the Landlord
shall pay all costs relating to its ownership of the Building and Premises,
including but not limited to, taxes, insurance and like charges other than the
property insurance expense as set for the in Section XXXI above. In addition,
Landlord shall provide all exterior maintenance on the entire building and
Premises and provide snow plowing of the parking lot adjacent to the demised
Premises.

                                       6
<PAGE>
                                  SECTION XXXV
             TENANT'S CERTIFICATION AS TO FORCE AND EFFECT OF LEASE

      Tenant shall, from time to time, upon not less than seven (7) days' prior
written request by Landlord, execute, acknowledge, and deliver to Landlord, a
written statement certifying that the Lease is unmodified and in full force and
effect, or that the Lease is in full force and effect as modified and listing
the instruments of modification; the dates to which the rents and other charges
have been paid; and, whether or not to the best of Tenant's knowledge, Landlord
is in default under this Lease and, if so, specifying the nature of the default.
It is intended that any such statement delivered pursuant to this Section may be
relied upon by a prospective purchaser of Landlord's interest or mortgagees of
Landlord's interest or the assignee of any mortgages upon Landlord's interest in
the building.

                                 SECTION XXXVII
                                SECTION HEADINGS

      The Section headings in this Lease are intended for convenience only and
shall not be taken into consideration in any construction or interpretation of
this Lease or any of its provisions.

DATED: OCTOBER 28, 2003

                 /S/ KENNETH LEVINE                        /S/ SALLY A SIDOREK
----------------------------------------------------      ----------------------
LANDLORD: RICHARD RUTTA & KENNETH LEVINE PARTNERSHIP              WITNESS:

                 /S/ KENNETH LEVINE                        /S/ SALLY A SIDOREK
----------------------------------------------------      ----------------------
TENANT: DIAMOND TRIUMPH AUTO GLASS, INC.                           WITNESS:

                                       7
<PAGE>
                             EXHIBIT A (PAGE 1 OF 4)

                     220 DIVISION STREET, KINGSTON, PA 18704

KINGSTON FACILTY OCCUPIED SQUARE FOOTAGE SUMMARY

<TABLE>
<CAPTION>
                                                                                           GARAGE
                                                               WAREHOUSE     OFFICE         REPAIR       TOTAL
                                                               ---------     ------         ------       -----
<S>                     <C>                                    <C>           <C>           <C>          <C>
MOD 1                      1ST FLOOR                            47,500        7,500                      55,000
MOD 1                      2ND FLOOR                            24,000       41,000                      65,000
MOD 2                                                           42,500        2,500                      45,000
MOD 3                                                           31,680                                   31,680
MOD 5                   (50% OCCUPANCY)                          2,400                                    2,400
GARAGE                  REPAIR FACILTY                                                       7,000        7,000
TOTAL UTILIZED SQ FT                                           148,080       51,000          7,000      206,080
</TABLE>
<PAGE>
                             EXHIBIT A (PAGE 2 OF 4)

                     220 DIVISION STREET, KINGSTON, PA 18704

                         [FIRST FLOOR FLOORPLAN GRAPHIC]
<PAGE>
                             EXHIBIT A (PAGE 3 OF 4)

                       220 DIVISION STREET, KINGSTON, PA

                        [SECOND FLOOR FLOORPLAN GRAPHIC]
<PAGE>
                             EXHIBIT A (PAGE 4 OF 4)

                       220 DIVISION STREET, KINGSTON, PA

--------------------------------------------------------------------------------
                             GARAGE REPAIR FACILITY

                                 7,000 sq. ft.

--------------------------------------------------------------------------------

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