Document:

Exhibit 10.3

                     CHANGE IN CONTROL SEVERANCE AGREEMENT
                        SIMSBURY BANK AND TRUST COMPANY

     This Agreement is made and entered into, effective as of the 2nd day of
November, 2010, by and between Simsbury Bank & Trust Company, a state bank and
trust company with its principal office and place of business at 981 Hopmeadow
Street, Simsbury, Connecticut 06070 ("Bank") and Michael T. Sheahan, a resident
of Wolcott, Connecticut ("Executive").

                              W I T N E S S E T H:

     WHEREAS, Executive is employed by Bank as Senior Vice President - Mortgage
and Consumer Lending Department;

     WHEREAS, the Board of Directors of Bank considers it to be in the best
interests of Bank and the stockholders of Bank to foster the continued
employment of Executive in the event of a Potential Change-in-Control (as
hereinafter defined), although no specific such event is now contemplated or
foreseen;

     WHEREAS, Bank desires to assure Executive of what it considers to be fair
and reasonable terms in the event of a Change-in-Control (as hereinafter
defined), and Executive so agrees;

     NOW THEREFORE, in consideration of the promises and mutual covenants herein
contained, the parties hereto, intending to be legally bound, do hereby mutually
covenant and agree as follows:

     1.     Term of Agreement.
            ------------------

            (a)    Generally. Except as provided in Section 1(b) hereof, (i)
this Agreement shall be effective as of the date and year first above written,
and shall continue in effect through December 31, 2010, and (ii) commencing on
January 1, 2011, and each January 1 thereafter, this Agreement shall be
automatically extended for one additional year unless, not later than September
30th of the preceding year, either party to this Agreement gives written notice
to the other that the Agreement shall not be extended under this Section 1(a);
provided, however, that no such notice by Bank shall be effective if prior to
the date of such notice (i) a "Potential Change in Control" shall have occurred
and the event giving rise thereto has not been terminated, abandoned or
rescinded, or (ii) a "Change in Control" shall have occurred.

            (b)    Upon a Change in Control. If a Change in Control shall have
occurred at any time during the period in which this Agreement is effective,
this Agreement shall continue in effect for (i) the remainder of the month in
which the Change in Control occurred and (ii) a term of 12 months beyond the
month in which such Change in Control occurred (such entire period hereinafter
referred to as the "Protected Period"). Note that in certain circumstances
defined and set forth below, provisions of this Agreement shall survive for
longer than the period described above.

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     2.     Definitions.
            ------------

            For purposes of this Agreement, the following terms shall have the
following meanings:

            (a)    A "Change in Control" shall be deemed to have occurred if,
during the term of this Agreement:

                   (i)    any Person directly or indirectly or acting through
one or more other Persons first acquires ownership, control, or power to vote
25% or more of the voting common stock of Bank or a Controlling Person; or

                   (ii)   any Person acquires or agrees to acquire all or
substantially all of the assets and business of Bank or a Controlling Person; or

                   (iii)  any Person (A) is a party to a merger, consolidation,
or any other form of reorganization having substantially the same effect as a
merger or consolidation, with Bank or a Controlling Person and (B) immediately
prior to such transaction the Person had total assets as of the end of its most
recent fiscal year equal to or greater than 100% of the total assets of Bank or
the Controlling Person, as applicable, as of the end of its most recent fiscal
year; or

                   (iv)   during any period of twenty-four (24) consecutive
months, individuals who at the beginning of such period constitute the Board of
Directors of Bank cease for any reason to constitute a majority of such Board,
unless the election, or the nomination for election, of each new Director was
approved by a vote of at least two-thirds (2/3) of the Directors then still in
office who were Directors at the beginning of such period; or

                   (v)    the Board of Directors of Bank, by vote of a majority
of all the Directors (excluding Executive if Executive is a Director), adopts a
resolution to the effect that a "Change in Control" has occurred for purposes of
this Agreement.

            (b)    A "Potential Change in Control" shall be deemed to have
occurred if:

                   (i)    Bank or any Controlling Person enters into a letter of
intent, memorandum of understanding, or definitive agreement providing for, or
publicly announces that it is considering, one or more transactions, the
consummation of which would result in the occurrence of a Change in Control;

                   (ii)   any Person (including Bank) publicly announces an
intention to take or to consider taking actions which if consummated would
constitute a Change in Control; or

                   (iii)  the Board adopts a resolution to the effect that, for
purposes of this Agreement, a Potential Change in Control has occurred.

            (c)    A "Person" shall include a natural person, corporation, or
other entity. When two or more persons act as a partnership, limited
partnership, syndicate, or other group for the purpose of acquiring, holding, or
disposing of Bank common stock, such partnership, syndicate, or group shall be
considered a Person. Beneficial ownership shall be determined under the then
current provisions of Securities Exchange Act Rule 13d-3; 17 C.F.R. ss.
240.13d-3.

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<PAGE>
            (d)    A "Controlling Person" shall mean a Person who directly or
indirectly or acting through one or more other Persons owns, controls or has
power to vote 50% or more of the voting common stock of Bank.

            (e)    Notwithstanding the definitions contained in Section 2
hereof, the formation by Bank of a bank holding company that is approved by the
Board and the shareholders of Bank shall not in and of itself constitute either
a Change in Control or a Potential Change in Control.

     3.     Duties Upon Potential Change-in-Control.
            ----------------------------------------

            In the event that a Potential Change-in-Control shall occur while
Executive is employed by Bank, Executive agrees to remain in the employ of Bank,
and in such event Bank agrees to continue to employ Executive in the offices
then held by Executive with Bank and on the terms of employment then in effect
until the earlier to occur of the following:  (i) the event giving rise to the
Potential Change-in-Control shall have been abandoned or terminated; (ii) a
Change-in-Control occurs; or (iii) the Board of Directors of Bank shall
determine by vote of at least two-thirds (2/3) of all the Directors (excluding
Executive if Executive is a Director) that Executive's obligations under this
Section 3 shall cease.  During the period covered by the preceding sentence,
Executive shall render, to the best of Executive's ability, such services as
shall be required of Executive in order to explore and pursue fully the
Potential Change-in-Control in accordance with directions, policies and
determinations from time to time made by the Board of Directors of Bank and
communicated to Executive.  During said period, Executive shall use reasonable
best efforts to fulfill Executive's responsibilities to Bank in the interests of
Bank and the shareholders of Bank and as reasonably requested of Executive for
such purposes.  The employment of Executive pursuant to the first sentence of
this Section 3 may be terminated, without breach of this Agreement, either by
Bank for Cause, Disability or Material Breach, or by Executive for Good Reason
(as such terms are defined in Section 4(f) below).

     4.     Termination.
            ------------

            (a)    Termination by Bank for Cause, by Executive Without Good
Reason, or by Reason of Death, Disability or Retirement. If during the Protected
Period Executive's employment by Bank is terminated by Bank for Cause, by
Executive without Good Reason, or because of Executive's death, Disability or
voluntary Retirement, Bank shall not be obligated to make any payments to
Executive by reason of this Agreement other than (i) payment of amounts
otherwise accrued and owing but not yet paid and (ii) any amounts payable under
then-existing employee benefit programs at the time such amounts are due.

            (b)     Termination by Bank Without Cause or by Executive for Good
Reason. If during the Protected Period Executive's employment by Bank is
terminated by Bank without Cause or by Executive for Good Reason, subject to the
provisions of Section 6 hereof, Executive shall be entitled to the compensation
and benefits described in this Section 4(b). If Executive's employment by Bank
is terminated prior to a Change in Control at the request of a Person engaging
in a transaction or series of transactions that would result in a Change in
Control, the Protected Period shall commence upon the subsequent occurrence of a
Change in Control, Executive's actual termination shall be deemed a termination
occurring during the Protected Period and covered by this Section 4(b),
Executive's Date of Termination shall be deemed to have occurred immediately
following the Change in Control, and Notice of Termination shall be deemed to
have been given by Bank immediately prior to Executive's actual termination.
Executive's continued employment shall not constitute consent to, or a waiver of
rights with respect to, any circumstances constituting Good Reason hereunder.

                                      -26-
<PAGE>
     The compensation and benefits provided under this Section 4(b) are as
follows:

                   (i)    Bank shall pay Executive's full base salary through
the Date of Termination at the rate in effect at the time Notice of Termination
is given, no later than the fifth day following the Date of Termination, and
Executive shall receive all other vested amounts to which Executive is entitled
under any benefit plan of Bank, at the time such payments are due under the
terms of such benefit plan of Bank.

                   (ii)   At the time specified in Section 4(d) hereof, Bank
shall pay to Executive, in lieu of amounts which may otherwise be payable to
Executive under any bonus plan for the year in which the Date of Termination
occurs, an amount in cash equal to Executive's annual target bonus that would be
payable in cash for such year, multiplied by a fraction, (A) the numerator of
which equals the number of days in such annual performance period during which
Executive was employed by Bank and (B) the denominator of which is 365.

                   (iii)  At the time specified in Section 4(d) hereof, Bank
shall pay Executive, in lieu of any further salary, bonus or severance payments
under the Bank's Severance Plan or otherwise for periods subsequent to the Date
of Termination, a lump sum amount in cash equal to two times the sum of:

                          (A)    the greater of (I) Executive's annual base
salary in effect immediately prior to the Change in Control of Bank or (II)
Executive's annual base salary in effect at the time Notice of Termination is
given; and

                          (B)    the greater of (I) Executive's annual target
bonus for the year in which the Change in Control occurs or, (II) if no such
target bonus has yet been determined for such year, Executive's annual target
bonus actually earned by Executive in the year immediately preceding the year in
which the Change in Control occurs.

                   (iv)   Stock options or restricted stock held by Executive at
the time of Executive's termination, the vesting of which is service based, if
not then vested and exercisable, will become fully vested and exercisable at the
date of such termination notwithstanding anything to the contrary set forth in
the plans and programs and the agreements and other documents pursuant to which
such options or restricted stock were granted, and, in all other respects
(including the period following termination during which such options may be
exercised), such options or restricted stock shall be governed by the plans and
programs and the agreements and other documents pursuant to which such options
or restricted stock were granted.

                   (v)    Any performance objectives upon which the earning of
performance-based restricted stock or deferred stock awards, including
outstanding stock plan awards, and other long-term incentive awards are
conditioned shall be deemed to have been met at target level at the date of
termination, and restricted stock and deferred stock awards, including
outstanding stock plan awards, and other long-term incentive awards (to the
extent then or previously earned, in the case of performance-based awards) shall
become fully vested and non-forfeitable at the date of such termination
notwithstanding anything to the contrary set forth in the plans and programs and
the agreements and other documents pursuant to which such awards were granted,
and, in all other respects, such awards shall be governed by the plans and
programs and the agreements and other documents pursuant to which such awards
were granted.

                                      -27-
<PAGE>
                   (vi)   For the 24 consecutive month period immediately
following Executive's termination of employment, Bank shall arrange to provide
Executive with health insurance benefits no less favorable than those which
Executive was receiving immediately prior to the Notice of Termination. If
Executive elects after termination of employment continued coverage under Bank's
health plan in accordance with the applicable provisions of the Consolidated
Omnibus Budget Reconciliation Act of 1985 ("COBRA"), then Executive shall
continue to receive such individual and/or family health benefits coverage as
Executive was receiving at the time of termination of employment with Bank with
Executive paying the same portion of the cost of such coverage as existed at the
time of Executive's termination of employment, for so long during the
continuation period as Executive elects to continue coverage and pays
Executive's portion of the costs of coverage.

                   (vii)  At the time specified in Section 4(d) hereof, an
amount equal to the aggregate amounts that Bank would have contributed on behalf
of Executive under Bank's 401(k) Plan, or similar qualified plan if any such
plan shall be in effect, for a 24-month period following Executive's termination
of employment (plus a fixed earnings rate of 7% thereon) had Executive continued
in the employ of Bank until the end of said period and made contributions under
said plan at a rate, as a percentage of salary, equal to the rate at which
Executive had made contributions to said plan in the plan year immediately
preceding Executive's termination.

                   (viii) At the time specified in Section 4(d) hereof, access
to outplacement and job search services (including, but not limited to, office
and secretarial expenses), with a value not to exceed $10,000, provided that
such access shall apply only during the 24-month period following Executive's
termination of employment.

                   (ix)   Bank shall not be obligated to continue any disability
or disability income insurance or life insurance on behalf of Executive
following the date of Executive's termination of employment. To the extent
permitted under any contracts, programs or policies of such nature in effect at
the time of such termination, Executive may continue at Executive's sole cost
and expense coverage thereunder for a period of up to 24 months.

                   (x)    For a 24-month period following Executive's
termination of employment, to the extent permissible under the governing
arrangement, Executive shall continue to receive such perquisites, other than
those specified in the preceding subparagraphs above, as Executive was receiving
at the time of termination of employment with, to the extent applicable, the
same cost sharing with Bank as was in effect immediately prior to Executive's
termination of employment.

                   (xi)   Bank shall reimburse Executive for the amount of any
reasonable legal fees and expenses incurred by Executive in any successful
action (whether or not arbitration or litigation shall be involved) to obtain or
enforce any right or benefit provided to Executive by Bank hereunder or as
confirmed or acknowledged hereunder.

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<PAGE>
            (c)    Section 280G Limit.  Notwithstanding any other provision of
this Agreement, in the event that any payment or benefit received or to be
received by Executive, whether payable pursuant to the terms of this Agreement
or any other plan, arrangement or agreement with Bank, its successors, or any
person affiliated with Bank ("Affiliate") within the meaning of Section 1504 of
the Internal Revenue Code of 1986, as amended (the "Code") (collectively "Total
Payments") would, in the determination of the independent certified public
accounting firm then retained by Bank (the "Tax Advisor"), not be deductible (in
whole or in part) by Bank, an affiliate of Bank or other person making such
payment or providing such benefit as a result of Section 280G of the Code, or
any successor to such Section, payments and benefits pursuant to this Agreement
shall be reduced until no portion of the Total Payments is not deductible as a
result of Section 280G of the Code, or payments and benefits pursuant to this
Agreement are reduced to zero. At the time of Executive's termination, Bank
shall obtain an appraisal of the then current present value of the covenants by
Executive set forth in Sections 7 and 8 of this Agreement, an amount of the
total payments to be made to Executive under clause (ii) of Section 4(b) equal
to said amount shall be for all purposes treated as a payment to Executive in
consideration of such covenants and the remainder, if any, shall be treated as
supplemental wage payments to Executive. For purposes of the limitation
contained in this Section 4(c), (i) no portion of the Total Payments the receipt
of which Executive, in the determination of the Tax Advisor, shall have
effectively waived prior to the date which is fifteen (15) days following
termination of employment and prior to the earlier of the date of constructive
receipt and the date of payment thereof shall be taken into account; and (ii)
any reduction in the payments and benefits pursuant to Section 4(b) above shall
be made from the payments and benefits to be made pursuant to clauses (i)
through (xi) of Section 4(b) hereof, in such order as may be determined by
Executive, except to the extent that such payments and benefits, in the
determination of the Tax Advisor, are reasonable compensation within the meaning
of Section 280G of the Code. The determination of the Tax Advisor as to the
deductibility of the Total Payments shall be completed not later than forty-five
(45) days following Executive's termination of employment, and such
determination shall be communicated in writing to Bank, with a copy to
Executive, within said forty-five (45) day period. The determination of the Tax
Advisor as to the deductibility of the Total Payments shall be deemed conclusive
and binding on Bank and Executive and shall not be subject to the arbitration
provisions of this Agreement. Bank shall pay the fees and other costs of the Tax
Advisor hereunder. In the event that the independent certified public accounting
firm then retained by Bank is unable or declines to serve as Tax Advisor for
purposes of making the foregoing determinations, Bank shall appoint another
accounting firm of national reputation to serve as Tax Advisor.

            (d)    Time of Payment.  The payments provided for in clauses (ii),
(iii), (vii) and (viii) of Section 4(b) hereof shall be made not later than the
fifteenth day following the Date of Termination; provided, however, that if the
amount of such payments cannot be finally determined on or before such day, Bank
shall pay to Executive on such day an estimate, as determined in good faith by
Bank, of the minimum amount of such payments and shall pay the remainder of such
payments (together with interest at the rate provided in Section 1274(b)(2)(B)
of the Code) as soon as the amount thereof can be determined but in no event
later than the thirtieth day after the Date of Termination. Notwithstanding the
above, the Bank may delay any payment provided for herein until a date no later
than the date that is six months following the Executive's termination of
employment, if, in the opinion of the Bank's certified public accountants, such
delay is necessary in order to avoid the imposition of an excise tax upon the
Executive under Section 409A of the Code. In all events, the Bank and the
Executive intend that this Agreement shall be complaint with, and payments shall
be made in accordance with, Section 409A of the Code, and this Agreement is to
be interpreted accordingly. Reimbursement amounts will be paid within the time
frame set forth in Treas. Reg. ss. 1.409A-3(i)(1)(iv)(A).

            (e)    Notice.  During the Protected Period, any purported
termination of Executive's employment by Bank or by Executive shall be
communicated by written Notice of Termination to the other party hereto.

            (f)    Certain Definitions.  Except as otherwise indicated in this
Agreement, all definitions in this Section 4(f) shall be applicable during the
Protected Period.

                                      -29-
<PAGE>
                   (i)    Disability.  "Disability" shall mean Executive's
absence from the full-time performance of Executive's duties with Bank for six
consecutive months as a result of Executive's incapacity due to physical or
mental illness or disability, and within 30 days after written Notice of
Termination is thereafter given Executive shall not have returned to the
full-time performance of Executive's duties.

                   (ii)   Cause.  "Cause" shall mean termination on account of
(A) the willful and continued failure by Executive to substantially perform
Executive's duties with Bank (other than any such failure resulting from
Executive's incapacity due to physical or mental illness or Disability or any
failure after the issuance of a Notice of Termination by Executive for Good
Reason) which failure is demonstrably and materially damaging to the financial
condition or reputation of Bank and/or its affiliates, and which failure
continues more than 48 hours after a written demand for substantial performance
is delivered to Executive by the Board, which demand specifically identifies the
manner in which the Board believes that Executive has not substantially
performed Executive's duties or (B) the willful engaging by Executive in conduct
which is demonstrably and materially injurious to Bank or its affiliates,
monetarily or otherwise. No act, or failure to act, on Executive's part shall be
deemed "willful" unless done, or omitted to be done, by Executive not in good
faith and without reasonable belief that Executive's action or omission was in
the best interest of Bank. Notwithstanding the foregoing, Executive shall not be
deemed to have been terminated for Cause unless and until there shall have been
delivered to Executive a copy of the resolution duly adopted by the affirmative
vote of not less than three-quarters (3/4) of the entire membership of the Board
at a meeting of the Board (after reasonable notice to Executive and an
opportunity for Executive, together with Executive's counsel, to be heard before
the Board) finding that, in the good faith opinion of the Board, Executive was
guilty of conduct set forth above in this Section 4(f)(ii) and specifying the
particulars thereof in detail.

                   (iii)  Good Reason.  "Good Reason" shall mean, without
Executive's express written consent, the occurrence upon or within two years
after a Change in Control of any of the following circumstances. The Executive
must give written notice to the Company of the Good Reason condition within 90
days of the initial existence of such condition, and the Company will be
afforded the right to fully cure the condition within 30 days following receipt
of such notice:

                          (A)    the assignment to Executive of any material
duties inconsistent with the position in Bank that Executive held immediately
prior to the Change in Control, or a material adverse alteration in the nature
or status of Executive's responsibilities or the conditions of Executive's
employment from those in effect immediately prior to such Change in Control
(excluding inadvertent actions that are promptly remedied);

                          (B)    a material reduction in Executive's annual base
salary as in effect immediately prior to the Change in Control;

                          (C)    a material reduction in Executive's perquisites
as in effect immediately prior to the Change in Control as the same may be
increased from time to time except for across-the-board perquisite reductions
similarly affecting all senior executives of Bank and all senior executives of
any Person in control of Bank;

                          (D)    the relocation of the principal place of
Executive's employment to a location more than 50 miles from Executive's
principal place of employment immediately prior to the Change in Control;

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<PAGE>
                          (E)    the failure by Bank to pay to Executive any
portion of Executive's compensation or to pay to Executive any portion of an
installment of deferred compensation under any deferred compensation program of
Bank within seven days of the date such compensation is due;

                          (F)    the failure by Bank to continue in effect any
material compensation or benefit plan in which Executive participated
immediately prior to the Change in Control, unless an equitable arrangement
(embodied in an ongoing substitute or alternative plan) has been made with
respect to such plan, or the failure by Bank to continue Executive's
participation therein (or in such substitute or alternative plan) on a basis not
materially less favorable, both in terms of the amounts of benefits provided and
the level of Executive's participation relative to other participants, as
existed at the time of the Change in Control;

                          (G)    the failure of Bank to obtain a satisfactory
agreement from any successor to assume and agree to perform this Agreement, as
contemplated in Section 11 hereof; or

                          (H)    any purported termination of Executive's
employment that is not effected pursuant to a Notice of Termination satisfying
the requirements of Section 4(f)(v) hereof, which purported termination shall
not be effective for purposes of this Agreement.

                   (iv)    Retirement. "Retirement" shall mean Executive's
voluntary retirement from Bank in accordance with the retirement policy of Bank,
including early retirement, generally applicable to its executives or in
accordance with any retirement arrangement with respect to Executive established
by the Board with the consent of Executive.

                   (v)     Notice of Termination.  "Notice of Termination" shall
mean notice indicating the specific termination provision in this Agreement
relied upon and setting forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive's employment under the
provision so indicated.

                   (vi)    Date of Termination.  "Date of Termination" shall
mean (A) if Executive's employment is terminated for Disability, 30 days after
Notice of Termination is given (provided that Executive shall not have returned
to the full-time performance of Executive's duties during such 30-day period) or
(B) if Executive's employment is terminated for any other reason, the date
specified in the Notice of Termination (which, in the case of a termination for
Cause, shall not be less than 30 days from the date such Notice of Termination
is given and, in the case of a termination for Good Reason, shall not be less
than 30 nor more than 60 days from the date such Notice of Termination is
given). In all cases, however, the Date of Termination shall be determined in a
manner consistent with the "separation from service" rules in effect under
Section 409A of the Code.

     5.     Mitigation.
            -----------

            So long as Executive shall not be in breach of any provisions of
Sections 7 or 8, Executive shall not be required to mitigate the amount of
payment provided for under this Agreement by seeking other employment or
otherwise, nor shall the amount of payment or benefit provided for under this
Agreement be reduced by any compensation earned by Executive as the result of
employment by another employer, by retirement benefits, by offset against any
amount claimed to be owed by Executive to Bank, or otherwise.

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     6.     Release.
            --------

            As a condition of receiving payments or benefits provided for in
this Agreement, at the request of Bank, or its successor, Executive shall
execute and deliver for the benefit of Bank and any Controlling Person, a
general release in substantially the form set forth in Attachment A hereto, and
such release shall become effective in accordance with its terms. The failure or
refusal of Executive to sign such a release or the revocation of such a release
shall cause the termination of any and all obligations of Bank to make payments
or provide benefits hereunder, and the forfeiture of Executive's right to
receive any such payments and benefits, and will not absolve the Executive from
his or her obligations hereunder. Executive acknowledges that Bank has advised
Executive to consult with an attorney prior to signing this Agreement and that
Executive has had an opportunity to do so. If any payments hereunder are
conditioned upon the Executive's execution of a general release, and if the
period for consideration and revocation of the general release spans two of the
Executive's tax years, then the payment or payments at issue will be paid upon
the later of (i) the end of the revocation period (assuming no revocation is
made), or (ii) the first pay period occurring in the second tax year.

     7.     Confidential Information.
            -------------------------

            Executive understand that in the course of Executive's employment by
Bank, Executive will receive or have access to confidential information
concerning the business or purposes of Bank which Bank desires to protect.  Such
confidential information shall be deemed to include, but not be limited to,
Bank's customer lists and information, and employee lists, including, if known,
personnel information and data.  Executive agrees that Executive will not, at
any time during the period ending two years after the Date of Termination,
reveal to anyone outside Bank or use for Executive's own benefit any such
information without specific written authorization by Bank.  Executive further
agrees not to use any such confidential information or trade secrets in
competing with Bank at any time.

     8.     Non-Competition and Non-Disclosure; Non-Disparagement; Certain
            Forfeitures.
            --------------------------------------------------------------

            (a)    Non-Competition.  In consideration for the compensation and
benefits provided under this Agreement, without the consent in writing of the
Board of Bank, Executive will not, at any time during the term of this Agreement
and for a period of two years following Executive's termination of employment
during the Protected Period, acting alone or in conjunction with others,
directly or indirectly (i) engage (either as owner, investor, partner,
stockholder, employer, employee, consultant, advisor, or director) in any
business of any bank, bank holding company, savings bank, savings and loan
association, savings and loan holding company, or other institution engaged in
the business of accepting deposits or making loans, or any direct or indirect
subsidiary or affiliate of any such entity, that maintains an office in any town
in which Bank maintains an office as of Executive's date of termination or in
any town in which Bank had plans to open an office within six months after
Executive's date of termination; (ii) induce any customers of Bank or any of its
affiliates with whom Executive had contacts or relationships, directly or
indirectly, during and within the scope of Executive's employment with Bank, to
curtail or cancel their business with Bank or any such affiliate; (iii) induce
or attempt to influence any employee of Bank or any affiliate to terminate
employment; or (iv) solicit, hire or retain as an employee or independent
contractor, or assist any third party in the solicitation, hire, or retention as
an employee or independent contractor, any person who during the previous twelve
months was an employee of Bank or any such affiliate; provided, however, that
activities engaged in by or on behalf of Bank are not restricted by this
covenant. The provisions of clauses (i), (ii), (iii), and (iv) above are
separate and distinct commitments, each independent of the other subparagraphs.
It is agreed that the ownership of not more than one percent (1%) of the equity
securities of any company having securities listed on an exchange or regularly
traded in the over-the-counter market shall not, of itself, be deemed
inconsistent with clause (i) of this Section 8(a).

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            (b)    Non-Disparagement.  Executive shall not, at any time during
the term of this Agreement or thereafter, make statements or representations, or
otherwise communicate, directly or indirectly, in writing, orally, or otherwise,
or take any action which may, directly or indirectly, disparage Bank or any of
its affiliates or their respective officers, directors, employees, advisors,
businesses or reputations. Notwithstanding the foregoing, nothing in this
Agreement shall preclude Executive from making truthful statements that are
required by applicable law, regulation or legal process.

            (c)    Injunction.  Executive hereby acknowledges that Executive's
services are unique and extraordinary, and are not readily replaceable, and
hereby expressly agrees that Bank, in enforcing the covenants contained in
Sections 7 and 8 herein, in addition to any other remedies provided for herein
or otherwise available at law, shall be entitled in any court of equity having
jurisdiction to an injunction restraining him in the event of a breach, actual
or threatened, of the agreements and covenants contained in such Sections.

            (d)    Scope.  The parties hereto believe that the restrictive
covenants contained in Sections 7 and 8 hereof are reasonable. However, if at
any time it shall be determined by any court of competent jurisdiction that
these Sections or any portion of them as written, are unenforceable because the
restrictions are unreasonable, the parties hereto agree that such portions as
shall have been determined to be unreasonably restrictive shall thereupon be
deemed so amended as to make such restrictions reasonable in the determination
of such court, and the said covenants, as so modified, shall be enforceable
between the parties to the same extent as if such amendments had been made prior
to the date of any alleged breach of said covenants.

            (e)     Provision Not Applicable.  The provisions of this Section 8
shall not apply if Bank shall be prohibited under Section 14 below from making
any payments to Executive pursuant to Section 4(b) above.

     9.     Right of Discharge.
            -------------------

            Subject to the obligations to make the payments specified in Section
4(b), and subject to the obligations of Bank under any employment agreement that
may exist between Bank and Executive, it is expressly agreed that, except as set
forth in Section 3 above, Bank shall have the right to discharge or terminate
Executive at any time and for any reason, or no reason.

     10.    Exclusivity.
            ------------

            It is understood and agreed that if any payments are due and made to
Executive under this Agreement then no payments will be due or required, and
Bank shall not in any respect be obligated to Executive, under any severance pay
plan, agreement, or arrangement that might otherwise be applicable to Executive,
or under or by reason of any employment severance pay or similar agreement
between Bank and Executive, including without limitation the Executive Severance
Pay Agreement executed on the same date as this Agreement.

                                      -33-
<PAGE>
     11.    Successors; Binding Agreement.
            ------------------------------

            (a)    Bank shall require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of Bank, and in the case of an acquisition of Bank in
which the corporate existence of Bank continues, the ultimate parent company
following such acquisition, to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that Bank would be required
to perform it if no such succession had taken place. As used in this Agreement,
"Bank" shall mean Bank as hereinbefore defined and any successor to its business
and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

            (b)    This Agreement shall inure to the benefit of and be
enforceable by Executive and Executive's personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. In the event of Executive's death following becoming entitled to
payments hereunder but prior to completion of such payments, all amounts
otherwise payable to Executive hereunder shall, unless otherwise provided
herein, be paid in accordance with the terms of this Agreement to Executive's
devisee, legatee or other designee or, if there is no such designee, to
Executive's estate.

     12.    Notice.
            -------

            Notices and all other communications provided for in this Agreement
shall be in writing and shall be deemed to have been duly given when (a)
personally delivered, (b) sent by Federal Express or other similar overnight
service or (c) mailed by United States certified or registered mail, return
receipt requested, postage prepaid, addressed to the respective addresses set
forth below, or to such other address as either party may have furnished to the
other in writing in accordance herewith, except that notice of change of address
shall be effective only upon receipt.  In the case of Federal Express or other
similar overnight service, such notice or advice shall be effective when sent,
and, in the cases of certified or registered mail, shall be effective two days
after deposit into the mail by delivery to the U.S. Post Office.

            If to Executive, to:

            Michael T. Sheahan
            7 Carriage Hill Drive
            Wolcott, CT 06716

            If to Bank, to:

            Simsbury Bank & Trust Company
            981 Hopmeadow Street
            Simsbury, CT 06070
            Attn: President and Chief Executive Officer

     13.    Dispute Resolution.
            -------------------

            (a)    Negotiation.  Bank and Executive shall attempt in good faith
to resolve any dispute arising out of or relating to this Agreement promptly by
negotiation between the designated representative of the Board of Bank and
Executive. Any party may give the other party written notice of any dispute in
accordance with the notice procedures set forth in Section 12. Within 15 days
after delivery of the notice, the receiving party shall submit to the other, in
accordance with the notice procedures set forth in Section 12, a written
response. The notice and response shall include a statement of that party's
position and summary of arguments supporting that position. Within 30 days after
delivery of the initial notice, the parties shall meet at a mutually acceptable
time and place, and thereafter as often as they reasonably deem necessary, to
attempt to resolve the dispute. All negotiations pursuant to this clause are
confidential and shall be treated as compromise and settlement negotiations for
purposes of applicable rules of evidence.

                                      -34-
<PAGE>
            (b)    Mediation.  If the dispute has not been resolved by
negotiation as provided herein within 45 days after delivery of the initial
notice of negotiation, or if the parties failed to meet within 30 days after
delivery, the parties shall endeavor to settle the dispute by mediation under
the CPR Mediation Procedure then currently in effect; provided, however, that if
one party fails to participate in the negotiation as provided herein, the other
party may initiate mediation prior to the expiration of the 45 days. Unless
otherwise agreed, the parties will select a mediator from the CPR Panels of
Distinguished Neutrals.

            (c)    Arbitration.  Any dispute arising under or in connection with
this Agreement which has not been resolved by mediation as provided herein
within 45 days after initiation of the mediation procedure, shall be finally
resolved by arbitration in accordance with the CPR Rules for Non-Administered
Arbitration then currently in effect, by three independent and impartial
arbitrators, of whom each party shall designate one and the two so designated
shall designate the third; provided, however, that if one party fails to
participate in either the negotiation or mediation as agreed herein, the other
party may commence arbitration prior to the expiration of the time periods set
forth above. The arbitration shall be governed by the Federal Arbitration Act, 9
U.S.C. ss. 1-16, and judgment upon the award rendered by the arbitrators may be
entered by any court having jurisdiction thereof. The place of arbitration shall
be Hartford, Connecticut. For purposes of entering any judgment upon an award
rendered by the arbitrators, Bank and Executive hereby consent to the
jurisdiction of any or all of the following courts: (i) the United States
District Court for the District of Connecticut, (ii) any of the courts of the
State of Connecticut, or (iii) any other court having jurisdiction. Bank and
Executive hereby agree that a judgment upon an award rendered by the arbitrators
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Subject to subsection (e) of this Section 13, Bank shall
bear all costs and expenses arising in connection with any arbitration
proceeding pursuant to this Section 13(c). Notwithstanding any provision in this
Section 13(c), Executive shall be entitled to seek specific performance of
Executive's right to be paid during the pendency of any dispute or controversy
arising under or in connection with this Agreement.

            (d)    Interest on Unpaid Amounts.  Any amount which has become
payable pursuant to the terms of this Agreement or any decision by arbitrators
or judgment by a court of law pursuant to this Section 13 but which has not been
timely paid shall bear interest at the prime rate as quoted by Bank at the time
such amount first becomes payable.

            (e)    Costs of Proceedings.  Bank shall pay all costs and expenses,
including all attorneys' fees and disbursements, of Bank and, at least monthly,
Executive, in connection with any proceedings undertaken pursuant to this
Section 13, whether or not instituted by Bank, or Executive, relating to the
interpretation or enforcement of any provision of this Agreement; provided that
if Executive instituted the proceeding and a finding is entered that Executive
instituted the proceeding in bad faith, Executive shall pay all of Executive's
costs and expenses, including attorneys' fees and disbursements. Any payments
made under this Section 13(e) shall be in conformance with Section 4(b)(xi)
above.

                                      -35-
<PAGE>
     14.    Regulatory Limitation.
            ----------------------

            Notwithstanding any other provision of this Agreement, Bank shall
not be obligated to make, and Executive shall have no right to receive, any
payment, benefit or amount under this Agreement which would violate any law,
regulation or regulatory order applicable to Bank or its parent at the time such
payment, benefit or amount is due, including, without limitation, Section
1828(k)(1) of Title 12 of the United States Code and any regulation or order
thereunder of the Federal Deposit Insurance Corporation ("Prohibited Payment").
If and to the extent Bank shall at a later date be relieved of the restriction
on its ability to make any Prohibited Payment, then at such time Bank shall
promptly make payment of any such amounts to Executive.

     15.    Miscellaneous.
            --------------

            No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and signed
by Executive and such officer as may be designated by the Board.  No waiver by
either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the time or at any prior or subsequent time.  The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Connecticut without regard to its conflicts of law
principles.  All references to sections of the Exchange Act or the Code shall be
deemed also to refer to any successor provisions to such sections.  Any payments
provided for hereunder shall be paid net of any applicable withholding required
under federal, state or local law.  The obligations of Bank and Executive under
this Agreement shall survive the expiration of this Agreement to the extent
necessary to give effect to this Agreement.

     16.    Validity.
            ---------

            The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, which shall remain in full force and effect.

     17.    Counterparts.
            -------------

            This Agreement may be executed in counterparts, each of which shall
be deemed to be an original but all of which together will constitute one and
the same instrument.

     18.    Entire Agreement.
            -----------------

            This Agreement sets forth the entire agreement of the parties hereto
in respect of the subject matter contained herein and during the term of this
Agreement supersedes the provisions of all prior agreements, promises,
covenants, arrangements, communications, representations or warranties, whether
oral or written, by any officer, employee or representative of any party hereof
with respect to the subject matter contained herein.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly set
forth in this Agreement.  Notwithstanding anything to the contrary in this
Agreement, the procedural provisions of this Agreement shall apply to all
benefits payable as a result of a Change in Control (or other change in control)
under any employee benefit plan, agreement, program, policy or arrangement of
Bank.

                                      -36-
<PAGE>
     IN WITNESS WHEREOF, Bank has caused this Agreement to be executed by a duly
authorized officer, and Executive has executed this Agreement, as of the 2nd day
of November, 2010.

SIMSBURY BANK AND TRUST COMPANY

By /s/ Martin J. Geitz
  --------------------------------------------
  Martin J. Geitz

     Its President and Chief Executive Officer

EXECUTIVE

 /s/ Michael T. Sheahan
----------------------------------------------
Michael T. Sheahan

                                      -37-
<PAGE>
ATTACHMENT A

                                    RELEASE

     We advise Executive to consult an attorney before Executive signs this
Release.  Executive have until the date which is seven (7) days after the
Release is signed and returned to Simsbury Bank and Trust Company ("Bank") to
change Executive's mind and revoke this Release.  Executive's Release shall not
become effective or enforceable until after that date.

     In consideration for the benefits provided under Executive's Change in
Control Severance Agreement with Bank effective 2nd day of November, 2010 (the
"Agreement"), and more specifically enumerated in Exhibit 1 hereto, by
Executive's signature below, Executive, for and on behalf of Executive,
Executive's heirs, executors, agents, representatives, successors and assigns,
hereby release and forever discharge Bank its past and present parent
corporations, subsidiaries, divisions, subdivisions, affiliates and related
companies (collectively, the "Company") and the Company's past, present and
future agents, directors, officers, employees, representatives, successors and
assigns (hereinafter  "those associated with the Company") with respect to any
and all claims, demands, actions and liabilities, whether in law or equity,
which Executive may have against the Company or those associated with the
Company of whatever kind, including but not limited to those arising out of
Executive's employment with the Company or the termination of that employment.
Executive agree that this release covers, but is not limited to, claims arising
under the Age Discrimination in Employment Act of 1967, 29 U.S.C. ss. 621 et
seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. ss. 2000e et seq.,
the Americans with Disabilities Act of 1990, 42 U.S.C. ss. 12101 et seq., the
Fair Labor Standards Act, 29 U.S.C. ss. 201 et seq., the Employee Retirement
Income Security Act of 1974, 29 U.S.C. ss. 1001 et seq., the Connecticut Fair
Employment Practices Act, C.G.S. ss. 46a-51 et seq., and any other local, state
or federal law, regulation or order dealing with discrimination in employment on
the basis of sex, race, color, national origin, veteran status, marital status,
religion, disability, handicap, or age. Executive also agree that this release
includes claims based on wrongful termination of employment, breach of contract
(express or implied), tort, or claims otherwise related to Executive's
employment or termination of employment with the Company and any claim for
attorneys' fees, expenses or costs of litigation.

     This Release covers all claims based on any facts or events, whether known
or unknown by Executive, that occurred on or before the date of this Release.
Except to enforce this Release, Executive agree that Executive will never
commence, prosecute, or cause to be commenced or prosecuted any lawsuit or
proceeding of any kind against the Company or those associated with the Company
in any forum and agree to withdraw with prejudice all complaints or charges, if
any, that Executive have filed against the Company or those associated with the
Company.

     Anything in this Release to the contrary notwithstanding, this Release does
not include a release of:  (i) Executive's rights under the Agreement or
Executive's right to enforce the Agreement;  (ii) any rights Executive may have
to indemnification under any agreement, law, Company organizational document or
policy, or otherwise; (iii) except as expressly provided in the Agreement, any
rights Executive may have to benefits under the Company's benefit plans; or (iv)
Executive's right to enforce this Release.

By signing this Release, Executive further agree as follows:

     i.     Executive has read this Release carefully and fully understand its
terms;

                                      -38-
<PAGE>
     ii. Executive has had at least twenty-one (21) days to consider the terms
of the Release;

     iii. Executive has seven (7) days from the date Executive signs this
Release to revoke it by written notification to the Company. After this seven
(7) day period, this Release is final and binding and may not be revoked;

     iv. Executive has been advised to seek legal counsel and have had an
opportunity to do so;

     v. Executive would not otherwise be entitled to the benefits provided under
Executive's Agreement had Executive not agreed to execute this Release; and

     vi. Executive's agreement to the terms set forth above is voluntary.

     IN WITNESS WHEREOF, Executive has executed and delivered this release at
Simsbury, Connecticut on the date indicated below.

Name:________________________________________

Signature:___________________________________     Date:

                                      -39-Unassociated Document

Exhibit 4.2

SHAREHOLDERS AGREEMENT

 

BY AND AMONG

 

SEACUBE CONTAINER LEASING LTD.

 

AND

 

SEACASTLE OPERATING COMPANY LTD.

 

 

Dated as of October 27, 2010

 

 

 

  

  

  

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	 	ARTICLE I	 
	 	 	 
	 	DEFINITIONS	 
	 	 	 
	
Section 1.1

	
Certain Defined Terms

	1 
	
Section 1.2

	
Construction

	5 
	 	 	 
	 	
ARTICLE II

	 
	 	 	 
	 	TRANSFER	 
	 	 	 
	
Section 2.1

	
Binding Effect on Transferees

	5 
	
Section 2.2

	
Additional Purchases

	6 
	
Section 2.3

	
Charter Provisions

	6 
	
Section 2.4

	
Legend

	6 
	
Section 2.5

	
Share Certificates

	6 
	 	 	 
	 	ARTICLE III	 
	 	 	 
	 	BOARD OF DIRECTORS	 
	 	 	 
	
Section 3.1

	
Board

	6 
	 	 	 
	 	ARTICLE IV	 
	 	 	 
	 	REGISTRATION RIGHTS	 
	 	 	 
	
Section 4.1

	
Demand Registration

	8 
	
Section 4.2

	
Piggyback Registrations

	10 
	
Section 4.3

	
Shelf Registration

	12 
	
Section 4.4

	
Withdrawal Rights

	14 
	
Section 4.5

	
Registration Procedures

	14 
	
Section 4.6

	
Registration and Offering Expenses

	19 
	
Section 4.7

	
Indemnification

	20 

 

 

  

i

  

 

 

	 	ARTICLE V	 
	 	 	 
	 	MISCELLANEOUS	 
	 	 	 
	
Section 5.1

	
Headings

	22 
	
Section 5.2

	
Entire Agreement

	22 
	
Section 5.3

	
Further Actions; Cooperation

	23 
	
Section 5.4

	
Notices

	23 
	
Section 5.5

	
Applicable Law

	24 
	
Section 5.6

	
Severability

	24 
	
Section 5.7

	
Successors and Assigns

	24 
	
Section 5.8

	
Amendments

	24 
	
Section 5.9

	
Waiver

	24 
	
Section 5.10

	
Counterparts

	25 
	
Section 5.11

	
Submission To Jurisdiction

	25 
	
Section 5.12

	
Injunctive Relief

	25 
	
Section 5.13

	
Recapitalizations, Exchanges, Etc. Affecting the Common Shares; New Issuance

	25 
	
Section 5.14

	
Termination

	26 
	
Section 5.15

	
Rule 144

	26 
	
Section 5.16

	
Information

	26 

 

  

ii  

  

 

SHAREHOLDERS AGREEMENT

 

 

THIS SHAREHOLDERS AGREEMENT (this “Agreement”) is made as of October 27, 2010, by and between Seacastle Operating Company Ltd., a Bermuda exempted company (the “Initial Shareholder”), and SeaCube Container Leasing Ltd., a Bermuda exempted company (the “Company”).  Unless otherwise indicated, references to articles and sections shall be to articles and sections of this Agreement.

 

WHEREAS, the Initial Shareholder is a holder of Common Shares (as hereinafter defined); and

 

WHEREAS, the Company has agreed to provide the registration rights and other rights set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1 Certain Defined Terms.  For purposes of this Agreement, the following terms shall have the following meanings:

 

(a) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under the Exchange Act; provided that no Shareholder shall be deemed an Affiliate of any other Shareholder solely by reason of any investment in the Company.

 

(b) “Agreement” shall have the meaning assigned to it in the preamble.

 

(c) A Person shall be deemed to “Beneficially Own” securities if such Person is deemed to be a “beneficial owner” within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act as in effect on the date of this Agreement.

 

(d) “Board” shall mean the board of directors of the Company.

 

(e) “Bye-laws” shall mean the bye-laws of the Company, as may be amended and/or restated from time to time.

 

(f) “Commission” shall mean the United States Securities and Exchange Commission or any successor agency.

 

(g) “Common Shares” shall mean the Company's common shares, par value $0.01 per share, and any and all securities of any kind whatsoever of the Company which may be issued and outstanding on or after the date hereof in respect of, in exchange for, or upon conversion of Common Shares pursuant to a merger, amalgamation, consolidation, share split, share dividend, recapitalization of the Company or otherwise.

 

  

  

  

 

(h) “Company” shall have the meaning assigned to it in preamble.

 

(i) “Company Securities” shall mean (i) any Common Shares and (ii) any other securities of the Company entitled to vote generally in the election of directors of the Company.

 

(j) “Demand” shall have the meaning assigned to it in Section 4.1(a).

 

(k) “Demand Registration” shall have the meaning assigned to it in Section 4.1(a).

 

(l) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

(m) “FIG LLC” shall mean FIG LLC, a Delaware limited liability company, or any other Person designated as “FIG LLC” by Fortress in a written notice to the Company.

 

(n) “Fortress Affiliate Shareholder” shall mean (A) any director of the Company who may be deemed an Affiliate of Fortress, (B) any director or officer of Fortress and (C) any investment funds (including any managed accounts) managed directly or indirectly by Fortress or its Affiliates; provided that no person who is a Fortress Affiliate Shareholder pursuant to the foregoing clauses (A) or (B) shall be required to take any action under this agreement (including voting any Company Securities) which would cause such person to be deemed a member of a “group” under Section 13(d) of the Exchange Act (but, for the avoidance of doubt, any Company Securities Beneficially Owned by such persons shall be counted towards the thresholds in Section 3.1(a)(i)-(iv)).

 

(o) “Fortress” shall mean Fortress Investment Group LLC.

 

(p) “Form S-3” shall have the meaning assigned to it in Section 4.3(a).

 

(q) “Free Writing Prospectus” shall mean a free writing prospectus, as defined in Rule 405 under the Securities Act.

 

(r) “Identified Director” shall have the meaning assigned to it in Section 3.1(e)(i).

 

(s) “Initial Public Offering” shall mean the initial public offering of Common Shares pursuant to an effective registration statement under the Securities Act.

 

(t) “Initial Shareholder” shall have the meaning assigned to it in preamble.

 

(u) “Inspectors” shall have the meaning assigned to it in Section 4.5(a)(viii).

 

  

2

  

 

(v) “IPO Underwriting Agreement” shall mean the underwriting agreement, dated October 27, 2010, by and among the Company, the Initial Shareholder and the underwriters named therein.

 

(w) “Issuer Free Writing Prospectus” shall mean an issuer free writing prospectus, as defined in Rule 433 under the Securities Act.

 

(x) “Losses” shall have the meaning assigned to it in Section 4.7(a).

 

(y) “Memorandum of Association” shall mean the memorandum of association of the Company, as may be amended and/or restated from time to time.

 

(z) “Notice” shall have the meaning assigned to it in Section 3.1(e)(i).

 

(aa) “Notification Event” shall have the meaning assigned to it in Section 3.1(e).

 

(bb) “Offering Expenses” shall have the meaning assigned to it in Section 4.6.

 

(cc) “Other Demanding Sellers” shall have the meaning assigned to it in Section 4.2(b).

 

(dd) “Other Proposed Sellers” shall have the meaning assigned to it in Section 4.2(b).

 

(ee) “Permitted Transferee” shall mean, with respect to each Shareholder, (i) any other Shareholder, (ii) such Shareholder's Affiliates and (iii) in the case of any Shareholder, (A) any member or general or limited partner of such Shareholder (including, without limitation, any member of the Initial Shareholder), (B) any corporation, partnership, limited liability company or other entity that is an Affiliate of such Shareholder or any general or limited partner of such Shareholder (collectively, “Shareholder Affiliates”), (C) any investment funds managed directly or indirectly by such Shareholder or any Shareholder Affiliates (a “Shareholder Fund”), (D) any general or limited partner of any Shareholder Fund, (E) any managing director, general partner, director, limited partner, officer or employee of any Shareholder Affiliate, or any spouse, lineal descendant, sibling, parent, heir, executor, administrator, testamentary trustee, legatee or beneficiary of any of the foregoing persons described in this clause (E) (collectively, “Shareholder Associates”) or (F) any trust, the beneficiaries of which, or any corporation, limited liability company or partnership, the shareholders, members or general or limited partners of which, consist solely of any one or more of such Shareholder, any general or limited partner of such Shareholder, any Shareholder Affiliates, any Shareholder Fund, any Shareholder Associates, their spouses or their lineal descendants.

 

(ff) “Person” shall mean any individual, firm, corporation, partnership, limited liability company or other entity, and shall include any successor (by merger or otherwise) of such entity.

 

  

3

  

 

(gg) “Piggyback Notice” shall have the meaning assigned to it in Section 4.2(a).

 

(hh) “Piggyback Registration” shall have the meaning assigned to it in Section 4.2(a).

 

(ii) “Piggyback Seller” shall have the meaning assigned to it in Section 4.2(a).

 

(jj) “Public Offering” shall mean an offering of equity securities of the Company pursuant to an effective registration statement under the Securities Act, including an offering in which Shareholders are entitled to sell Common Shares pursuant to the terms of this Agreement.

 

(kk) “Records” shall have the meaning assigned to it in Section 4.5(a)(viii).

 

(ll) “Registrable Amount” shall mean an amount of Common Shares equal to 1% of the Common Shares issued and outstanding immediately after the consummation of the Initial Public Offering.

 

(mm) “Registrable Securities” shall mean any Common Shares currently owned or hereafter acquired by any Shareholder. As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when (x) a registration statement registering such securities under the Securities Act has been declared effective and such securities have been sold or otherwise transferred by the holder thereof pursuant to such effective registration statement or (y) such securities are sold in accordance with Rule 144 (or any successor provision) promulgated under the Securities Act.

 

(nn) “Registration Expenses” shall have the meaning assigned to it in Section 4.6.

 

(oo) “Requesting Shareholder” shall have the meaning assigned to it in Section 4.1(a).

 

(pp) “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

(qq) “Selling Holders” shall have the meaning assigned to it in Section 4.5(a)(i).

 

(rr) “Shareholders” shall mean (i) the Initial Shareholder, (ii) each Fortress Affiliate Shareholder and (iii) each Permitted Transferee who becomes a party to or bound by the provisions of this Agreement in accordance with the terms hereof or a Permitted Transferee thereof who is entitled to enforce the provisions of this Agreement in accordance with the terms hereof, in each case of clauses (i), (ii) and (iii) to the extent that the Initial Shareholder, Fortress Affiliate Shareholders and Permitted Transferees, together, hold at least a Registrable Amount.

 

  

4

  

 

(ss) “Shelf Notice” shall have the meaning assigned to it in Section 4.3(a).

 

(tt) “Shelf Registration Effectiveness Period” shall have the meaning assigned to it in Section 4.3(d).

 

(uu) “Shelf Registration Statement” shall have the meaning assigned to it in Section 4.3(a).

 

(vv) “Shelf Underwritten Offering” shall have the meaning assigned to it in Section 4.3(f).

 

(ww) “Suspension Period” shall have the meaning assigned to it in Section 4.3(e).

 

(xx) “Underwritten Offering” shall mean a sale of securities of the Company to an underwriter or underwriters for reoffering to the public.

 

(yy) “Voting Power of the Company” shall mean the total number of votes that may be cast in the election of directors of the Company if all issued and outstanding Company Securities were present and voted at a meeting held for such purpose.

 

Section 1.2 Construction.  For the purposes of this Agreement (i) words (including capitalized terms defined herein) in the singular shall be held to include the plural and vice versa and words (including capitalized terms defined herein) of one gender shall be held to include the other gender as the context requires, (ii) the terms “hereof,” “herein” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement, and Article and Section references are to Articles and Sections of this Agreement, unless otherwise specified, (iii) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” (iv) all references to any period of days shall be deemed to be to the relevant number of calendar days unless otherwise specified, and (v) all references herein to “$” or dollars shall refer to United States dollars, unless otherwise specified.

 

ARTICLE II

 

TRANSFER

 

Section 2.1 Binding Effect on Transferees.  A Permitted Transferee shall become a Shareholder hereunder, without any further action by the Company, following a transfer by a Shareholder of Company Securities to such Permitted Transferee upon the execution by such Permitted Transferee of a joinder providing that such Person shall be bound by and shall fully comply with the terms of this Agreement (including the provisions of Article IV with respect to the Company Securities being transferred to such transferee).  The Fortress Affiliate Shareholders shall be deemed to be Shareholders without any further action.

 

  

5

  

 

Section 2.2 Additional Purchases. Any Company Securities owned by a Shareholder on or after the date of this Agreement shall have the benefit of and be subject to the terms and conditions of this Agreement.

 

Section 2.3 Charter Provisions. The parties hereto shall use their respective reasonable efforts (including voting or causing to be voted all of the Company Securities held of record by such party or Beneficially Owned by such party by virtue of having voting power over such Company Securities) so as to cause no amendment to be made to the Memorandum of Association or Bye-laws in a manner that would (a) add restrictions to the transferability of the Company Securities by the Initial Shareholder, any Fortress Affiliate Shareholder or their Permitted Transferees who remain Shareholders (as such term is used herein) at the time of such an amendment, which restrictions are beyond those then provided for in the Memorandum of Association or Bye-laws, this Agreement or applicable securities laws or (b) nullify any of the rights of the Initial Shareholder, any Fortress Affiliate Shareholder or their Permitted Transferees who remain Shareholders (as such term is used herein) at the time of such amendment, which rights are explicitly provided for in this Agreement, unless, in each such case, such amendment shall have been approved by such Shareholder.

 

Section 2.4 Legend. Any certificate representing Company Securities issued to a Shareholder shall be stamped or otherwise imprinted with a legend in substantially the following form:

 

“The shares represented by this certificate are subject to the provisions contained in the Shareholders Agreement, dated as of October 27, 2010, by and among SeaCube Container Leasing Ltd. and the Shareholders party thereto.”

 

The Company shall make customary arrangements to cause any Company Securities issued in uncertificated form to be identified on the books of the Company in a substantially similar manner.

 

Section 2.5 Share Certificates.  Upon request by a Shareholder, the Company shall take all necessary actions to promptly issue or reissue, as the case may be, Company Securities in certificated or uncertificated form.

 

ARTICLE III

 

BOARD OF DIRECTORS

 

Section 3.1 Board.

 

(a) For so long as this Agreement is in effect, the Company and each Shareholder shall take all reasonable actions within their respective control (including voting or causing to be voted all of the Company Securities held of record by such Shareholder or Beneficially Owned by such Shareholder by virtue of having voting power over such Company Securities, and, with respect to the Company, as provided in Sections 3.1(c) and (d)) so as to cause to be elected to the Board, and to cause to continue in office, not more than seven directors (or such other number of directors as FIG LLC may agree to in writing), at any given time:

 

  

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(i) at least a majority of such directors shall be individuals designated by FIG LLC, for so long as the Shareholders, together, have Beneficial Ownership of at least 40% of the Voting Power of the Company;

 

(ii) at least three directors (four directors, in the event the Board consists of more than seven directors) shall be individuals designated by FIG LLC, for so long as the Shareholders, together, have Beneficial Ownership of less than 40% but at least 20% of the Voting Power of the Company;

 

(iii) at least two directors (three directors, in the event the Board consists of more than seven directors) shall be individuals designated by FIG LLC, for so long as the Shareholders, together, have Beneficial Ownership of less than 20% but at least 10% of the Voting Power of the Company; and

 

(iv) at least one director shall be an individual designated by FIG LLC, for so long as the Shareholders, together, have Beneficial Ownership of less than 10% but at least 5% of the Voting Power of the Company.

 

(b) If FIG LLC notifies the Shareholders of its desire to remove, with or without cause, any director previously designated by it, the Shareholders shall vote or cause to be voted all of the shares of Company Securities held of record by such Shareholders or Beneficially Owned by such Shareholders by virtue of having voting power over such Company Securities and take all other reasonable actions within its control to cause the removal of such director.

 

(c) The Company agrees to include in the slate of nominees recommended by the Board those persons designated by FIG LLC in accordance with Section 3.1(a) and to use its reasonable best efforts to cause the election of each such designee to the Board, including nominating such designees to be elected as directors, in each case subject to applicable law.

 

(d) In the event that a vacancy is created at any time by the death, disability, retirement, resignation or removal of any director who is designated by FIG LLC in accordance with Section 3.1(a), the Company agrees to take at any time and from time to time all actions necessary to cause the vacancy created thereby to be filled as promptly as practicable by a new designee of FIG LLC.  In the event that the size of the Board is expanded to more than seven directors, the Company agrees to take at any time and from time to time all actions necessary to cause the Board to continue to have the number of FIG LLC designees that corresponds to the requirements of Section 3.1(a).

 

(e) In the event that at any time the number of directors entitled to be designated by FIG LLC pursuant to Section 3.1(a) decreases (a “Notification Event”), FIG LLC, the Initial Shareholder and its Permitted Transferees and the Company will take the following steps:

 

(i) FIG LLC will notify (the “Notice”) the Company which directors previously designated by FIG LLC to serve as directors will be de-designated by FIG LLC (each director, an “Identified Director”).  FIG LLC will provide such notification to the Company by the date that is forty-five calendar days prior to the date on which the Company is required to file its next annual proxy statement with the Commission.  For the avoidance of doubt, FIG LLC has the sole right to (a) determine which designated director(s) will be an Identified Director and (b) select any of its designated directors to be an Identified Director.

 

  

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(ii) Within thirty calendar days of the Company’s receipt of the Notice, the nominating committee of the Company may elect to require the Initial Shareholder to take reasonable actions to cause each Identified Director to resign from the Board at or prior to the end of such Identified Director’s term such that the number of directors designated by FIG LLC after such resignation(s) equals the number of directors FIG LLC would have been entitled to designate pursuant to Section 3.1(a).  Any vacancies created by such resignation may remain vacant until the next annual meeting of shareholders or filled by a majority vote of the Board.

 

(iii) If the nominating committee does not make the election described in (i) above, then (a) the Initial Shareholder will not be required to cause such Identified Director to resign from the Board at or prior to the end of such Identified Director’s term and (b) such Identified Director shall no longer be considered a designee of FIG LLC.

 

ARTICLE IV

 

REGISTRATION RIGHTS

 

Section 4.1 Demand Registration.

 

(a) At any time after the date that is 180 days after the date hereof (or such earlier date (i) as would permit the Company to cause any filings required hereunder to be filed on the 180th day after the date hereof or (ii) as is permitted by waiver of the IPO Underwriting Agreement), any Person that is a Shareholder (a “Requesting Shareholder”) on the date a Demand is made shall be entitled to make a written request of the Company (a “Demand”) for registration under the Securities Act of an amount of Registrable Securities that, when taken together with the amounts of Registrable Securities requested to be registered under the Securities Act by such Requesting Shareholder's Affiliates, equals or is greater than the Registrable Amount (a “Demand Registration”) and thereupon the Company will, subject to the terms of this Agreement, use its commercially reasonable efforts to effect the registration under the Securities Act of:

 

(i) the Registrable Securities which the Company has been so requested to register by the Requesting Shareholders for disposition in accordance with the intended method of disposition stated in such Demand, which may be an Underwritten Offering;

 

  

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(ii) all other Registrable Securities which the Company has been requested to register pursuant to Section 4.1(b); and

 

(iii) all Common Shares which the Company may elect to register in connection with any offering of Registrable Securities pursuant to this Section 4.1, but subject to Section 4.1(f);

 

all to the extent necessary to permit the disposition (in accordance with the intended methods thereof) of the Registrable Securities and the additional Common Shares, if any, to be so registered.

 

(b) A Demand shall specify: (i) the aggregate number of Registrable Securities requested to be registered in such Demand Registration, (ii) the intended method of disposition in connection with such Demand Registration, to the extent then known and (iii) the identity of the Requesting Shareholder (or Requesting Shareholders). Within five days after receipt of a Demand, the Company shall give written notice of such Demand to any other Persons that on the date a Demand is delivered to the Company is a Shareholder, provided, however, that no notice shall be required so long as the Shareholders, together, have Beneficial Ownership of at least 40% of the Voting Power of the Company. Subject to Section 4.1(f), the Company shall include in the Demand Registration covered by such Demand all Registrable Securities with respect to which the Company has received a written request for inclusion therein (i) if a notice by the Company is required by this paragraph, within five days after such notice by the Company has been given, or (ii) if no notice by the Company is required by this paragraph, within five days after receipt by the Company of such Demand. Such written request shall comply with the requirements of a Demand as set forth in this Section 4.1(b).

 

(c) Each Shareholder shall be entitled to an unlimited number of Demand Registrations until such time as the Shareholders, together, Beneficially Own less than a Registrable Amount.

 

(d) Demand Registrations shall be on such appropriate registration form of the Commission as shall be selected by the Requesting Shareholders, including, to the extent permissible, an existing effective registration statement filed by the Company with the Commission, and shall be reasonably acceptable to the Company.

 

(e) The Company shall not be obligated to effect any Demand Registration (A) within three months of a “firm commitment” Underwritten Offering in which all Shareholders were given “piggyback” rights pursuant to Section 4.2 (subject to Section 4.1(f)) and at least 50% of the number of Registrable Securities requested by such Shareholders to be included in such Demand Registration were included) or (B) within three months of any other Underwritten Offering pursuant to Section 4.3(f). In addition, the Company shall be entitled to postpone (upon written notice to all Shareholders) for a reasonable period of time not to exceed 60 days in succession the filing or the effectiveness of a registration statement for any Demand Registration (but no more than twice, or for more than 90 days in the aggregate, in any period of 12 consecutive months) if the Board determines in good faith and in its reasonable judgment that the filing or effectiveness of the registration statement relating to such Demand Registration would cause the disclosure of material, non-public information that the Company has a bona fide business purpose for preserving as confidential. In the event of a postponement by the Company of the filing or effectiveness of a registration statement for a Demand Registration, the holders of a majority of Registrable Securities held by the Requesting Shareholder(s) shall have the right to withdraw such Demand in accordance with Section 4.4.

 

  

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(f) The Company shall not include any securities other than Registrable Securities in a Demand Registration, except with the written consent of Shareholders participating in such Demand Registration that hold a majority of the Registrable Securities included in such Demand Registration.  If, in connection with a Demand Registration, any managing underwriter (or, if such Demand Registration is not an Underwritten Offering, a nationally recognized independent investment bank selected by FIG LLC, the Initial Shareholder or any of the Permitted Transferees thereof (to the extent a Shareholder hereunder), reasonably acceptable to the Company, and whose fees and expenses shall be borne solely by the Company) advises the Company, in writing, that, in its opinion, the inclusion of all of the securities, including securities of the Company that are not Registrable Securities, sought to be registered in connection with such Demand Registration would adversely affect the marketability of the Registrable Securities sought to be sold pursuant thereto, then the Company shall include in such registration statement only such securities as the Company is advised by such underwriter or investment bank can be sold without such adverse effect as follows and in the following order of priority: (i) first, up to the number of Registrable Securities requested to be included in such Demand Registration by the Shareholders, which, in the opinion of the underwriter can be sold without adversely affecting the marketability of the offering, pro rata among such Shareholders requesting such Demand Registration on the basis of the number of such securities held by such Shareholders and such Shareholders that are Piggyback Sellers; (ii) second, securities the Company proposes to sell; and (iii) third, all other securities of the Company duly requested to be included in such registration statement, pro rata on the basis of the amount of such other securities requested to be included or such other method determined by the Company.

 

(g) Any time that a Demand Registration involves an Underwritten Offering, the Company shall select the investment banker or investment bankers and managers that will serve as lead and co-managing underwriters with respect to the offering of such Registrable Securities, which shall be reasonably acceptable to Shareholders participating in such Demand Registration that hold a majority of the Registrable Securities included in such Demand Registration.

 

Section 4.2 Piggyback Registrations.

 

(a) Subject to the terms and conditions hereof, whenever the Company proposes to register any of its equity securities under the Securities Act (other than a registration by the Company on a registration statement on Form S-4 or a registration statement on Form S-8 or any successor forms thereto) (each, a “Piggyback Registration”), whether for its own account or for the account of others, the Company shall give the Shareholders prompt written notice thereof (but not less than five days prior to the filing by the Company with the Commission of any registration statement with respect thereto); provided, however, that no notice shall be required so long as the Shareholders, collectively, have Beneficial Ownership of at least 40% of the Voting Power of the Company. Such notice (a “Piggyback Notice”) shall specify, at a minimum, the number of equity securities proposed to be registered, the proposed date of filing of such registration statement with the Commission, the proposed means of distribution and the proposed managing underwriter or underwriters (if any and if known). Upon the written request (i) if a Piggyback Notice is required by this paragraph, of any Person that on the date of such Piggyback Notice is a Shareholder, given within five days after such Piggyback Notice is received by such Person, or (ii) if no Piggyback Notice is required by this paragraph, of any Person that on the date of approval by the Board of the filing of such Piggyback Registration is a Shareholder, within five days of such Board approval (any such Persons as described in (i) and (ii) above, each, a “Piggyback Seller”) (which written request shall specify the number of Registrable Securities then presently intended to be disposed of by such Piggyback Seller), the Company, subject to the terms and conditions of this Agreement, shall use its commercially reasonable efforts to cause all such Registrable Securities held by Piggyback Sellers with respect to which the Company has received such written requests for inclusion to be included in such Piggyback Registration on the same terms and conditions as the Company's equity securities being sold in such Piggyback Registration.

 

  

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(b) If, in connection with a Piggyback Registration, any managing underwriter (or, if such Piggyback Registration is not an Underwritten Offering, a nationally recognized independent investment bank selected by FIG LLC, the Initial Shareholder or any of its Permitted Transferees (to the extent a Shareholder hereunder), reasonably acceptable to the Company, and whose fees and expenses shall be borne solely by the Company) advises the Company in writing that, in its opinion, the inclusion of all the equity securities sought to be included in such Piggyback Registration by (i) the Company, (ii) others who have sought to have equity securities of the Company registered in such Piggyback Registration pursuant to rights to demand (other than pursuant to so-called “piggyback” or other incidental or participation registration rights) such registration (such Persons being “Other Demanding Sellers”), (iii) the Piggyback Sellers and (iv) any other proposed sellers of equity securities of the Company (such Persons being “Other Proposed Sellers”), as the case may be, would adversely affect the marketability of the equity securities sought to be sold pursuant thereto, then the Company shall include in the registration statement applicable to such Piggyback Registration only such equity securities as the Company is so advised by such underwriter or investment bank can be sold without such an effect, as follows and in the following order of priority:

 

(i) if the Piggyback Registration relates to an offering for the Company's own account, then (A) first, such number of equity securities to be sold by the Company as the Company, in its reasonable judgment and acting in good faith and in accordance with sound financial practice, shall have determined, (B) second, Registrable Securities of Piggyback Sellers and securities sought to be registered by Other Demanding Sellers (if any), pro rata on the basis of the number Common Shares held by such Piggyback Sellers and Other Demanding Sellers and (C) third, other equity securities held by any Other Proposed Sellers; or

 

(ii) if the Piggyback Registration relates to an offering other than for the Company's own account, then (A) first, such number of equity securities sought to be registered by each Other Demanding Seller and the Piggyback Sellers (if any), pro rata in proportion to the number of Common Shares held by all such Other Demanding Sellers and Piggyback Sellers and (B) second, other equity securities held by any Other Proposed Sellers or to be sold by the Company as determined by the Company and with such priorities among them as may from time to time be determined or agreed to by the Company.

 

  

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(c) In connection with any Underwritten Offering under this Section 4.2 for the Company's account, the Company shall not be required to include a holder's Registrable Securities in the Underwritten Offering unless such holder accepts the terms of the underwriting as agreed upon between the Company and the underwriters selected by the Company; provided, that any applicable underwriting agreement includes only customary terms and conditions.

 

(d) If, at any time after giving written notice of its intention to register any of its equity securities as set forth in this Section 4.2 and prior to the time the registration statement filed in connection with such Piggyback Registration is declared effective, the Company shall determine for any reason not to register such equity securities, the Company may, at its election, give written notice of such determination to each Shareholder and thereupon shall be relieved of its obligation to register any Registrable Securities in connection with such particular withdrawn or abandoned Piggyback Registration (but not from its obligation to pay the Registration Expenses in connection therewith as provided herein); provided, that Shareholders may continue the registration as a Demand Registration pursuant to the terms of Section 4.1.

 

Section 4.3 Shelf Registration.

 

(a) Subject to Section 4.3(e), and further subject to the availability of a Registration Statement on Form S-3 or a successor form (“Form S-3”) to the Company, the Initial Shareholder or any of its Permitted Transferees (in each case to the extent a Shareholder hereunder) may by written notice delivered (which notice can be delivered at any time after the eleven month anniversary of the date hereof) to the Company (the “Shelf Notice”) require the Company to (i) file as promptly as practicable (but no later than 30 days after the date the Shelf Notice is delivered), and to use commercially reasonable efforts to cause to be declared effective by the Commission at the earliest possible date permitted under the rules and regulations of the Commission (but no later than 60 days after such filing date), a Form S-3, or (ii) designate an existing Form S-3 filed with the Commission, in each case providing for an offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act relating to the offer and sale, from time to time, of the Registrable Securities owned by the Initial Shareholder or the Fortress Affiliate Shareholders (or any of their Permitted Transferees), as the case may be, and any other Persons that at the time of the Shelf Notice meet the definition of a Shareholder who elect to participate therein as provided in Section 4.3(b) (a “Shelf Registration Statement”).

 

(b) Each Shareholder shall be entitled to require the Company to file an unlimited number of Shelf Registration Statements until such time as the Shareholders, together, Beneficially Own less than a Registrable Amount.

 

(c) Within five business days after receipt of a Shelf Notice pursuant to Section 4.3(a), the Company will deliver written notice thereof to each Shareholder; provided, however, that no such notice shall be required so long as the Shareholders, together, have Beneficial Ownership of at least 40% of the Voting Power of the Company. Each Shareholder may elect to participate in the Shelf Registration Statement by delivering to the Company a written request to so participate.

 

  

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(d) Subject to Section 4.3(e), the Company will use commercially reasonable efforts to keep the Shelf Registration Statement continuously effective until the date on which all Registrable Securities covered by the Shelf Registration Statement have been sold thereunder in accordance with the plan and method of distribution disclosed in the prospectus included in the Shelf Registration Statement, or otherwise (the “Shelf Registration Effectiveness Period”).

 

(e) Notwithstanding anything to the contrary contained in this Agreement, the Company shall be entitled, from time to time, by providing written notice to the Shareholders who elected to participate in the Shelf Registration Statement, to require such Shareholders to suspend the use of the prospectus for sales of Registrable Securities under the Shelf Registration Statement for a reasonable period of time not to exceed 60 days in succession or 90 days in the aggregate in any 12 month period (a “Suspension Period”) if the Company shall determine that it is required to disclose in the Shelf Registration Statement a financing, acquisition, corporate reorganization or other similar corporate transaction or other material event or circumstance affecting the Company or its securities, and that the disclosure of such information at such time would be detrimental to the Company or its shareholders.  Immediately upon receipt of such notice, the Shareholders covered by the Shelf Registration Statement shall suspend the use of the prospectus until the requisite changes to the prospectus have been made as required below. Any Suspension Period shall terminate at such time as the public disclosure of such information is made. After the expiration of any Suspension Period and without any further request from a Shareholder, the Company shall as promptly as practicable prepare a post-effective amendment or supplement to the Shelf Registration Statement or the prospectus, or any document incorporated therein by reference, or file any other required document so that, as thereafter delivered to purchasers of the Registrable Securities included therein, the prospectus will not include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(f) At any time, and from time-to-time, during the Shelf Registration Effectiveness Period (except during a Suspension Period), each of the Initial Shareholder, the Fortress Affiliate Shareholders or any of their Permitted Transferees (in each case to the extent a Shareholder hereunder) may notify the Company of their intent to sell Registrable Securities covered by the Shelf Registration Statement (in whole or in part) in an Underwritten Offering (a “Shelf Underwritten Offering”); provided that the Company shall not be obligated to participate in more than four underwritten offerings during any twelve-month period.  Such notice, which may be oral or written, shall specify (x) the aggregate number of Registrable Securities requested to be registered in such Shelf Underwritten Offering and (y) the identity of the Shareholder(s) requesting such Shelf Underwritten Offering.  Upon receipt by the Company of such notice, the Company shall promptly comply with the applicable provisions of Section 4.5, including, without limitation, those provisions relating the Company’s obligation to make filings with the Commission, assist in the preparation and filing with the Commission of prospectus supplements and amendments to the Shelf Registration Statement, participate in “road shows” and obtain “comfort” letters, and the Company shall take such other actions as necessary or appropriate to permit the consummation of such Shelf Underwritten Offering as promptly as practicable.  Each Shelf Underwritten Offering shall be for the sale of an amount of Registrable Securities equal to or greater than the Registrable Amount.  In any Shelf Underwritten Offering, FIG LLC shall select the investment banker or investment bankers and managers that will serve as lead and co-managing underwriters with respect to the offering of such Registrable Securities, which shall be reasonably acceptable to the Company.

 

  

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Section 4.4 Withdrawal Rights.  Any Shareholder having notified or directed the Company to include any or all of its Registrable Securities in a registration statement under the Securities Act shall have the right to withdraw any such notice or direction with respect to any or all of the Registrable Securities designated by it for registration by giving written notice to such effect to the Company prior to the effective date of such registration statement. In the event of any such withdrawal, the Company shall not include such Registrable Securities in the applicable registration and such Registrable Securities shall continue to be Registrable Securities for all purposes of this Agreement. No such withdrawal shall affect the obligations of the Company with respect to the Registrable Securities not so withdrawn; provided, however, that in the case of a Demand Registration, if such withdrawal shall reduce the number of Registrable Securities sought to be included in such registration below the Registrable Amount, then the Company shall as promptly as practicable give each holder of Registrable Securities sought to be registered notice to such effect and, within ten days following the mailing of such notice, such holder(s) of Registrable Securities still seeking registration shall, by written notice to the Company, elect to register additional Registrable Securities, when taken together with elections to register Registrable Securities by its Permitted Transferees, to satisfy the Registrable Amount or elect that such registration statement not be filed or, if previously filed, be withdrawn. During such ten day period, the Company shall not file such registration statement if not previously filed or, if such registration statement has been previously filed, the Company shall not seek, and shall use commercially reasonable efforts to prevent, the effectiveness of such registration statement.

 

Section 4.5 Registration Procedures.

 

(a) If and whenever the Company is required to use commercially reasonable efforts to effect the registration of any Registrable Securities under the Securities Act as provided in Sections 4.1, 4.2 and 4.3, the Company shall as promptly as practicable (in each case, to the extent applicable):

 

(i) prepare and file with the Commission a registration statement to effect such registration, cause such registration statement to become effective at the earliest possible date permitted under the rules and regulations of the Commission, and thereafter use commercially reasonable efforts to cause such registration statement to remain effective pursuant to the terms of this Agreement; provided, however, that the Company may discontinue any registration of its securities that are not Registrable Securities at any time prior to the effective date of the registration statement relating to such securities; provided, further, that before filing such registration statement or any amendments or supplements thereto, the Company will furnish to the counsel selected by the holders of Registrable Securities that are to be included in such registration (“Selling Holders”) copies of all such documents proposed to be filed, which documents will be subject to the review of and comment by such counsel (it being understood that counsel to the Selling Holders will conduct its review and provide any comments promptly);

 

  

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(ii) prepare and file with the Commission such amendments (including post-effective amendments) and supplements to such registration statement and the prospectus used in connection therewith and any Exchange Act reports incorporated by reference therein as may be necessary to keep such registration statement effective and to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement until the earlier of such time as all of such securities have been disposed of in accordance with the intended methods of disposition by the Selling Holder(s) set forth in such registration statement or (i) in the case of a Demand Registration pursuant to Section 4.1, the expiration of 60 days after such registration statement becomes effective or (ii) in the case of a Piggyback Registration pursuant to Section 4.2, the expiration of 60 days after such registration statement becomes effective or (iii) in the case of a Shelf Registration pursuant to Section 4.3, the Shelf Registration Effectiveness Period;

 

(iii) furnish to each Selling Holder and each underwriter, if any, of the securities being sold by such Selling Holder such number of conformed copies of such registration statement and of each amendment and supplement thereto (in each case including all exhibits), such number of copies of the prospectus contained in such registration statement (including each preliminary prospectus and any summary prospectus) and any other prospectus filed under Rule 424 under the Securities Act in conformity with the requirements of the Securities Act, and any Issuer Free Writing Prospectus and such other documents as such Selling Holder and underwriter, if any, may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities owned by such seller;

 

(iv) use commercially reasonable efforts to register or qualify such Registrable Securities covered by such registration statement under such other securities laws or blue sky laws of such jurisdictions as any Selling Holder and any underwriter of the securities being sold by such Selling Holder shall reasonably request, and take any other action which may be reasonably necessary or advisable to enable such Selling Holder and underwriter to consummate the disposition in such jurisdictions of the Registrable Securities owned by such Selling Holder, except that the Company shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction wherein it would not but for the requirements of this clause (iv) be obligated to be so qualified, to subject itself to taxation in any such jurisdiction or to file a general consent to service of process in any such jurisdiction;

 

(v) use commercially reasonable efforts to cause such Registrable Securities to be listed on each securities exchange on which similar securities issued by the Company are then listed and, if no such securities are so listed, use commercially reasonable efforts to cause such Registrable Securities to be listed on the NYSE or the Nasdaq Stock Market;

 

(vi) use commercially reasonable efforts to cause such Registrable Securities covered by such registration statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the Selling Holder(s) thereof to consummate the disposition of such Registrable Securities;

 

  

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(vii) in connection with an Underwritten Offering, obtain for each Selling Holder and underwriter:

 

(1) an opinion of counsel for the Company, covering the matters customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such Selling Holder and underwriters, and

 

(2) a “comfort” letter (or, in the case of any such Person which does not satisfy the conditions for receipt of a “comfort” letter specified in AU Section 634 of the AICPA Professional Standards, an “agreed upon procedures” letter) signed by the independent registered public accountants who have certified the Company's financial statements included in such registration statement (and, if necessary, any other independent registered public accountant of any subsidiary of the Company or any business acquired by the Company from which financial statements and financial data are, or are required to be, included in the registration statement);

 

(viii) promptly make available for inspection by any seller, any underwriter participating in any disposition pursuant to any registration statement, and any attorney, accountant or other agent or representative retained by any such seller or underwriter (collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties of the Company (collectively, the “Records”), as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company's officers, directors and employees to supply all information requested by any such Inspector in connection with such registration statement; provided, however, that, unless the disclosure of such Records is necessary to avoid or correct a misstatement or omission in the registration statement or the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction, the Company shall not be required to provide any information under this subparagraph (viii) if (i) the Company believes, after consultation with counsel for the Company, that to do so would cause the Company to forfeit an attorney-client privilege that was applicable to such information or (ii) if either (A) the Company has requested and been granted from the Commission confidential treatment of such information contained in any filing with the Commission or documents provided supplementally or otherwise or (B) the Company reasonably determines in good faith that such Records are confidential and so notifies the Inspectors in writing unless prior to furnishing any such information with respect to (i) or (ii) such holder of Registrable Securities requesting such information agrees, and causes each of its Inspectors, to enter into a confidentiality agreement on terms reasonably acceptable to the Company; and provided, further, that each holder of Registrable Securities agrees that it will, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, give notice to the Company and allow the Company, at its expense, to undertake appropriate action and to prevent disclosure of the Records deemed confidential;

  

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(ix) promptly notify in writing each Selling Holder and the underwriters, if any, of the following events:

 

(1) the filing of the registration statement, the prospectus or any prospectus supplement related thereto, any Issuer Free Writing Prospectus or post-effective amendment to the registration statement, and, with respect to the registration statement or any post-effective amendment thereto, when the same has become effective;

 

(2) any request by the Commission for amendments or supplements to the registration statement or the prospectus or for additional information;

 

(3) the issuance by the Commission of any stop order suspending the effectiveness of the registration statement or the initiation of any proceedings by any Person for that purpose;

 

(4) when any Issuer Free Writing Prospectus includes information that may conflict with the information contained in the registration statement; and

 

(5) the receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the securities or blue sky laws of any jurisdiction or the initiation or threat of any proceeding for such purpose;

 

(x) notify each Selling Holder, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, upon discovery that, or upon the happening of any event as a result of which, the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and, at the request of any Selling Holder, promptly prepare and furnish to such seller a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading;

 

(xi) make every reasonable effort to obtain the withdrawal of any order suspending the effectiveness of such registration statement;

 

(xii) otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make available to Selling Holders, as promptly as practicable, an earnings statement covering the period of at least 12 months, but not more than 18 months, beginning with the first day of the Company's first full quarter after the effective date of such registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder;

 

  

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(xiii) use its reasonable best efforts to assist Shareholders who made a request to the Company to provide for a third party “market maker” for the Common Shares; provided, however, that the Company shall not be required to serve as such “market maker”;

 

(xiv) cooperate with the sellers and the managing underwriter to facilitate the timely preparation and delivery of certificates (which shall not bear any restrictive legends unless required under applicable law), if necessary or appropriate, representing securities sold under any registration statement, and enable such securities to be in such denominations and registered in such names as the managing underwriter or such sellers may request and keep available and make available to the Company's transfer agent prior to the effectiveness of such registration statement a supply of such certificates as necessary or appropriate;

 

(xv) have appropriate officers of the Company prepare and make presentations at any “road shows” and before analysts and rating agencies, as the case may be, take other actions to obtain ratings for any Registrable Securities (if they are eligible to be rated) and otherwise use its reasonable best efforts to cooperate as reasonably requested by the Selling Holders and the underwriters in the offering, marketing or selling of the Registrable Securities;

 

(xvi) if requested by any Selling Holders or any underwriter, promptly incorporate in the registration statement or any prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such Selling Holders may reasonably request to have included therein, including, without limitation, information relating to the “Plan of Distribution” of the Registrable Securities;

 

(xvii) cooperate and assist in any filings required to be made with the FINRA and in the performance of any due diligence investigation by any underwriter that is required to be undertaken in accordance with the rules and regulations of the FINRA; and

 

(xviii) otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission and all reporting requirements under the rules and regulations of the Exchange Act.

 

The Company may require each Selling Holder and each underwriter, if any, to furnish the Company in writing such information regarding each Selling Holder or underwriter and the distribution of such Registrable Securities as the Company may from time to time reasonably request to complete or amend the information required by such registration statement.

 

  

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(b) Without limiting any of the foregoing, in the event that the offering of Registrable Securities is to be made by or through an underwriter, the Company shall enter into an underwriting agreement with a managing underwriter or underwriters containing representations, warranties, indemnities and agreements customarily included (but not inconsistent with the covenants and agreements of the Company contained herein) by an issuer of common shares in underwriting agreements with respect to offerings of common shares for the account of, or on behalf of, such issuers. In connection with any offering of Registrable Securities registered pursuant to this Agreement, the Company shall furnish to the underwriter, if any (or, if no underwriter, the sellers of such Registrable Securities), unlegended certificates representing ownership of the Registrable Securities being sold (unless, in the Company’s sole discretion, such Registrable Securities are to be issued in uncertificated form pursuant to the customary arrangements for issuing shares in such form), in such denominations as requested and instruct any transfer agent and registrar of the Registrable Securities to release any stop transfer order with respect thereto.

 

(c) Each Selling Holder agrees that upon receipt of any notice from the Company of the happening of any event of the kind described in Section 4.5(a)(ix), such Selling Holder shall forthwith discontinue such Selling Holder's disposition of Registrable Securities pursuant to the applicable registration statement and prospectus relating thereto until such Selling Holder's receipt of the copies of the supplemented or amended prospectus contemplated by Section 4.5(a)(ix) and, if so directed by the Company, deliver to the Company, at the Company's expense, all copies, other than permanent file copies, then in such Selling Holder's possession of the prospectus current at the time of receipt of such notice relating to such Registrable Securities. In the event the Company shall give such notice, any applicable 60 day period during which such registration statement must remain effective pursuant to this Agreement shall be extended by the number of days during the period from the date of giving of a notice regarding the happening of an event of the kind described in Section 4.5(a)(ix) to the date when all such Selling Holders shall receive such a supplemented or amended prospectus and such prospectus shall have been filed with the Commission.

 

Section 4.6 Registration and Offering Expenses. All expenses incident to the Company's performance of, or compliance with, its obligations under this Agreement including, without limitation, (a) (1) all registration and filing fees, all fees and expenses of compliance with securities and “blue sky” laws, (2) all fees and expenses associated with filings required to be made with the Financial Industry Regulatory Authority (“FINRA”) (including, if applicable, the fees and expenses of any “qualified independent underwriter” as such term is defined in NASD Rule 2720 or the equivalent rule incorporated into the FINRA rulebook), (3) all fees and expenses of compliance with securities and “blue sky” laws, (4) all printing (including, without limitation, expenses of printing certificates, if any, for the Registrable Securities in a form eligible for deposit with the Depository Trust Company and of printing prospectuses if the printing of prospectuses and Issuer Free Writing Prospectuses is requested by a holder of Registrable Securities) and copying expenses, (5) all messenger and delivery expenses, (6) all fees and expenses of the Company's independent certified public accountants and counsel (including, without limitation, with respect to “comfort” letters and opinions), (7) fees and expenses of one firm of counsel to the Shareholders selling in such registration (which firm shall be selected by the Shareholders selling in such registration that hold a majority of the Registrable Securities included in such registration) (collectively, the “Registration Expenses”) and (b) any expenses described in clauses (a)(1) through (7) above incurred in connection with the marketing and sale of Registrable Securities (“Offering Expenses”) shall be borne by the Company, regardless of whether a registration is effected, marketing is commenced or sale is made. The Company will pay its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties, the expense of any annual audit and the expense of any liability insurance) and the expenses and fees for listing the securities to be registered on each securities exchange and included in each established over-the-counter market on which similar securities issued by the Company are then listed or traded. Each Selling Holder shall pay its portion of all underwriting discounts and commissions and transfer taxes, if any, relating to the sale of such Selling Holder's Registrable Securities pursuant to any registration.

 

  

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Section 4.7 Indemnification.

 

(a) The Company agrees to indemnify and hold harmless, to the fullest extent permitted by law, each Selling Holder, its officers, directors, employees, managers, members, partners and agents and each Person who controls (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) such Selling Holder or such other indemnified Person from and against all losses, claims, damages, liabilities and expenses (including reasonable expenses of investigation and reasonable attorneys' fees and expenses) (collectively, the “Losses”) caused by, resulting from or relating to any untrue statement (or alleged untrue statement) of a material fact contained in any registration statement, any Issuer Free Writing Prospectus, any prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission (or alleged omission) of 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, except insofar as the same are caused by any information furnished in writing to the Company by such Selling Holder expressly for use therein. In connection with an Underwritten Offering and without limiting any of the Company's other obligations under this Agreement, the Company shall also indemnify such underwriters, their officers, directors, employees and agents and each Person who controls (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) such underwriters or such other indemnified Person to the same extent as provided above with respect to the indemnification (and exceptions thereto) of the holders of Registrable Securities being sold. Reimbursements payable pursuant to the indemnification contemplated by this Section 4.7(a) will be made by periodic payments during the course of any investigation or defense, as and when bills are received or expenses incurred.

 

(b) In connection with any registration statement in which a holder of Registrable Securities is participating, each such Selling Holder will furnish to the Company in writing information regarding such Selling Holder's ownership of Registrable Securities and its intended method of distribution thereof and, to the extent permitted by law, shall, severally and not jointly, indemnify the Company, its directors, officers, employees and agents and each Person who controls (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) the Company or such other indemnified Person against all Losses caused by any untrue statement of material fact contained in the registration statement, any Issuer Free Writing Prospectus, any prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission of 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, but only to the extent that such untrue statement or omission is caused by and contained in such information so furnished in writing by such Selling Holder expressly for use therein; provided, however, that each Selling Holder's obligation to indemnify the Company hereunder shall, to the extent more than one Selling Holder is subject to the same indemnification obligation, be apportioned between each Selling Holder based upon the net amount received by each Selling Holder from the sale of Registrable Securities, as compared to the total net amount received by all of the Selling Holders of Registrable Securities sold pursuant to such registration statement. Notwithstanding the foregoing, no Selling Holder shall be liable to the Company for amounts in excess of the lesser of (i) such apportionment and (ii) the net amount received by such holder in the offering giving rise to such liability.

 

  

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(c) Any Person entitled to indemnification hereunder shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification; provided, however, the failure to give such notice shall not release the indemnifying party from its obligation, except to the extent that the indemnifying party has been materially prejudiced by such failure to provide such notice on a timely basis.

 

(d) In any case in which any such action is brought against any indemnified party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein, and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not (so long as it shall continue to have the right to defend, contest, litigate and settle the matter in question in accordance with this paragraph) be liable to such indemnified party hereunder for any legal or other expense subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation, supervision and monitoring (unless (i) such indemnified party reasonably objects to such assumption on the grounds that there may be defenses available to it which are different from or in addition to the defenses available to such indemnifying party or (ii) the indemnifying party shall have failed within a reasonable period of time to assume such defense and the indemnified party is or is reasonably likely to be prejudiced by such delay, in either event the indemnified party shall be promptly reimbursed by the indemnifying party for the expenses incurred in connection with retaining separate legal counsel). An indemnifying party shall not be liable for any settlement of an action or claim effected without its consent. The indemnifying party shall lose its right to defend, contest, litigate and settle a matter if it shall fail to diligently contest such matter (except to the extent settled in accordance with the next following sentence). No matter shall be settled by an indemnifying party without the consent of the indemnified party (which consent shall not be unreasonably withheld, it being understood that the indemnified party shall not be deemed to be unreasonable in withholding its consent if the proposed settlement imposes any obligation on the indemnified party other than the payment of money or if the proposed settlement does not include an unconditional release of such indemnified party for all claims relating to such matter).

 

(e) The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified Person and will survive the transfer of the Registrable Securities and the termination of this Agreement.

 

  

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(f) If recovery is not available under the foregoing indemnification provisions for any reason or reasons other than as specified therein, any Person who would otherwise be entitled to indemnification by the terms thereof shall nevertheless be entitled to contribution with respect to any Losses with respect to which such Person would be entitled to such indemnification but for such reason or reasons. In determining the amount of contribution to which the respective Persons are entitled, there shall be considered the Persons' relative knowledge and access to information concerning the matter with respect to which the claim was asserted, the opportunity to correct and prevent any statement or omission, and other equitable considerations appropriate under the circumstances. It is hereby agreed that it would not necessarily be equitable if the amount of such contribution were determined by pro rata or per capita allocation. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not found guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Selling Holder or transferee thereof shall be required to make a contribution in excess of the net amount received by such holder from its sale of Registrable Securities in connection with the offering that gave rise to the contribution obligation.

 

(g) Not less than three days before the expected filing date of each registration statement pursuant to this Agreement, the Company shall notify each Shareholder who has timely provided the requisite notice hereunder entitling the Shareholder to register Registrable Securities in such registration statement of the information, documents and instruments from such Shareholder that the Company or any underwriter reasonably requests in connection with such registration statement, including, but not limited to a questionnaire, custody agreement, power of attorney, lock-up letter and underwriting agreement (the “Requested Information”). If the Company has not received, on or before the day before the expected filing date, the Requested Information from such Shareholder, the Company may file the Registration Statement without including Registrable Securities of such Shareholder. The failure to so include in any registration statement the Registrable Securities of a Shareholder (with regard to that registration statement) shall not in and of itself result in any liability on the part of the Company to such Shareholder.

 

ARTICLE V

 

MISCELLANEOUS

 

Section 5.1 Headings. The headings in this Agreement are for convenience of reference only and shall not control or effect the meaning or construction of any provisions hereof.

 

Section 5.2 Entire Agreement. This Agreement constitutes the entire agreement and understanding of the parties hereto in respect of the subject matter contained herein, and there are no restrictions, promises, representations, warranties, covenants, conditions or undertakings with respect to the subject matter hereof, other than those expressly set forth or referred to herein. This Agreement supersedes all prior agreements and understandings between the parties hereto with respect to the subject matter hereof.

 

  

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Section 5.3 Further Actions; Cooperation. Each of the Shareholders agrees to use its reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, and to assist and cooperate with the other parties in doing, all things necessary, proper or advisable to give effect to the transactions contemplated by this Agreement. Without limiting the generality of the foregoing, each of the Shareholders (i) acknowledges that such Shareholder will prepare and file with the Commission filings under the Exchange Act, including under Section 13(d) of the Exchange Act, relating to its Beneficial Ownership of the Common Shares and (ii) agrees to use its reasonable efforts to assist and cooperate with the other parties in promptly preparing, reviewing and executing any such filings under the Exchange Act, including any amendments thereto.

 

Section 5.4 Notices. All notices, requests, consents and other communications hereunder to any party shall be deemed to be sufficient if contained in a written instrument delivered in person or sent by facsimile, nationally recognized overnight courier or first class registered or certified mail, return receipt requested, postage prepaid, addressed to such party at the address set forth below or such other address as may hereafter be designated on the signature pages of this Agreement or in writing by such party to the other parties:

 

If to the Initial Shareholder or any Fortress Affiliate Shareholders, to:

 

c/o Fortress Investment Group, LLC

1345 Avenue of the Americas, 46th Floor

New York, NY 10105

Fax: (212) 798-6122

Attn: Randal A. Nardone

 

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

 

Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square

New York, NY 10036-6522

Fax: (212) 735-2000

Attn: Joseph A. Coco, Esq.

 

If to the Company, to:

 

SeaCube Container Leasing Ltd.

1 Maynard Drive

Park Ridge, New Jersey 07656

Fax: (201) 391-0356

Attn:  General Counsel

 

If to a Shareholder that is not the Initial Shareholder, then to the address set forth in the written agreement of such Shareholder provided for in Section 2.1 hereof.

 

  

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All such notices, requests, consents and other communications shall be deemed to have been given or made if and when received (including by overnight courier) by the parties at the above addresses or sent by facsimile, with confirmation received, to the facsimile numbers specified above (or at such other address or facsimile number for a party as shall be specified by like notice). Any notice delivered by any party hereto to any other party hereto shall also be delivered to each other party hereto simultaneously with delivery to the first party receiving such notice.

 

Section 5.5 Applicable Law. The substantive laws of the State of Delaware shall govern the interpretation, validity and performance of the terms of this Agreement, without regard to conflicts of law doctrines. THE PARTIES HERETO WAIVE THEIR RIGHT TO A JURY TRIAL WITH RESPECT TO DISPUTES HEREUNDER.

 

Section 5.6 Severability. The invalidity, illegality or unenforceability of one or more of the provisions of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement, including any such provisions, in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

 

Section 5.7 Successors and Assigns. Except as otherwise provided herein, all the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the respective successors and permitted assigns of the parties hereto. No Shareholder may assign any of its rights hereunder to any Person other than a Permitted Transferee. Each Permitted Transferee of any Shareholder shall be subject to all of the terms of this Agreement, and by taking and holding such shares such Person shall be entitled to receive the benefits of and be conclusively deemed to have agreed to be bound by and to comply with all of the terms and provisions of this Agreement; provided, however, no transfer of rights permitted hereunder shall be binding upon or obligate the Company unless and until (i) if required under Section 2.1 hereof, the Company shall have received written notice of such transfer and the joinder of the transferee provided for in Section 2.1 hereof, and (ii) such transferee can establish Beneficial Ownership or ownership of record of a Registrable Amount (whether individually or together with its Affiliates that are Shareholders or transferees of Shareholders and, if applicable, its other Permitted Transferees that are Shareholders or transferees of Shareholders). The Company may not assign any of its rights or obligations hereunder without the prior written consent of each of the Shareholders. Notwithstanding the foregoing, no successor or assignee of the Company shall have any rights granted under this Agreement until such Person shall acknowledge its rights and obligations hereunder by a signed written statement of such Person's acceptance of such rights and obligations.

 

Section 5.8 Amendments. This Agreement may not be amended, modified or supplemented unless such amendment, modification or supplement is in writing and signed by each of the Shareholders and the Company.

 

Section 5.9 Waiver. The failure of a party hereto at any time or times to require performance of any provision hereof shall in no manner affect its right at a later time to enforce the same. No waiver by a party of any condition or of any breach of any term, covenant, representation or warranty contained in this Agreement shall be effective unless in a writing signed by the party against whom the waiver is to be effective, and no waiver in any one or more instances shall be deemed to be a further or continuing waiver of any such condition or breach in other instances or a waiver of any other condition or breach of any other term, covenant, representation or warranty.

 

  

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Section 5.10 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same Agreement.

 

Section 5.11 Submission To Jurisdiction. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT AND ANY ACTION FOR ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HERETO HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND THE APPELLATE COURTS THEREOF. EACH PARTY HERETO IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PARTY AT THE ADDRESS FOR NOTICES SET FORTH HEREIN. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT BROUGHT IN THE COURTS REFERRED TO ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

Section 5.12 Injunctive Relief. Each party hereto acknowledges and agrees that a violation of any of the terms of this Agreement will cause the other parties irreparable injury for which an adequate remedy at law is not available. Therefore, the Shareholders agree that each party shall be entitled to, an injunction, restraining order, specific performance or other equitable relief from any court of competent jurisdiction, restraining any party from committing any violations of the provisions of this Agreement, without the need to post a bond or prove the inadequacy of monetary damages.

 

Section 5.13 Recapitalizations, Exchanges, Etc. Affecting the Common Shares; New Issuance.  The provisions of this Agreement shall apply, to the full extent set forth herein, with respect to Company Securities and to any and all equity or debt securities of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets, or otherwise) which may be issued in respect of, in exchange for, or in substitution of, such Company Securities and shall be appropriately adjusted for any share dividends, splits, reverse splits, combinations, reclassifications, recapitalizations, reorganizations and the like occurring after the date hereof.

 

  

25

  

 

Section 5.14 Termination. Upon the mutual consent of all of the parties hereto or, with respect to each Shareholder, at such earlier time as such Shareholder and its Affiliates and Permitted Transferees ceases to Beneficially Own a Registrable Amount, the terms of this Agreement shall terminate, and be of no further force and effect; provided, however, that the following shall survive the termination of this Agreement: (i) the provisions of Sections 4.2 (which shall terminate, and be of no further force and effect, with respect to each Shareholder, at such time as such Shareholder and its Affiliates and Permitted Transferees ceases to Beneficially Own a Registrable Amount), 4.6, 4.7, 5.5, 5.11, this Section 5.14 and Section 5.15; (ii) the rights with respect to the breach of any provision hereof by the Company and (iii) any registration rights vested or obligations accrued as of the date of termination of this Agreement to the extent, in the case of registration rights so vested, if such Shareholder ceases to meet the definition of a Shareholder under this Agreement subsequent to the vesting of such registration rights as a result of action taken by the Company.

 

Section 5.15 Rule 144. The Company covenants and agrees that it will file the reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder (or, if it is not required to file such reports, it will, upon the request of any holder of Registrable Securities, make publicly available other information so long as necessary to permit sales in compliance with Rule 144 under the Securities Act), and it will take such further reasonable action, to the extent required from time to time to enable such holder to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 under the Securities Act, as such Rule 144 may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission. Upon the reasonable request of any holder of Registrable Securities, the Company will deliver to such holder a written statement as to whether it has complied with such information and filing requirements.

 

Section 5.16 Information.  The Company covenants and agrees that for so long as the Shareholders, together, have Beneficial Ownership of at least 1% of the Voting Power of the Company, it will provide or cause to be provided, upon request, to persons affiliated with Fortress who are covered by applicable Fortress confidentiality policies, all information about the Company and its operations as the Company would ordinarily provide to a director upon his or her request.

 

 

[Remainder of page left blank intentionally]

 

  

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by their respective officers thereunto duly as of the date first above written.

 

	 	
SEACUBE CONTAINER LEASING LTD.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Joseph Kwok	 
	 	 	Name 	Joseph Kwok	 
	 	 	Title	Chief Executive Officer	 
	 	 	 	 

 

	 	SEACASTLE OPERATING COMPANY LTD.	 
	 	 	 	 
	
 

	
By: 

	/s/ Christopher Annese	 
	 	 	Name 	Christopher Annese	 
	 	 	Title 	Chief Financial Officer	 
	 	 	 	 

 

 

 

[SIGNATURE PAGE TO SHAREHOLDERS AGREEMENT]

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