Document:

Exhibit 10.2

 

 

REGISTRATION RIGHTS AGREEMENT

 

by and among

 

GP STRATEGIES CORPORATION

 

and

 

SAGARD CAPITAL PARTNERS, L.P.

 

 

Dated as of December 30, 2009

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.       DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.       REGISTRATION

  	
  3

  
	
   

  	
   

  	
   

  
	
  (A)

  	
  MANDATORY REGISTRATION

  	
  3

  
	
  (B)

  	
  INELIGIBILITY FOR FORM S-3

  	
  4

  
	
  (C)

  	
  SUFFICIENT NUMBER OF SHARES REGISTERED

  	
  4

  
	
  (D)

  	
  UNDERWRITTEN OFFERING

  	
  4

  
	
  (E)

  	
  PLAN OF DISTRIBUTION

  	
  6

  
	
  (F)

  	
  LEGAL COUNSEL

  	
  6

  
	
   

  	
   

  	
   

  
	
  3.       RELATED OBLIGATIONS

  	
  6

  
	
   

  	
   

  	
   

  
	
  4.       OBLIGATIONS OF THE INVESTORS

  	
  11

  
	
   

  	
   

  	
   

  
	
  5.       SUSPENSION OF REGISTRATION RIGHTS

  	
  12

  
	
   

  	
   

  	
   

  
	
  (A)

  	
  SUSPENSION NOTICES

  	
  12

  
	
  (B)

  	
  HOLDBACK PERIODS

  	
  13

  
	
  (C)

  	
  DELAY PAYMENTS

  	
  14

  
	
   

  	
   

  	
   

  
	
  6.       EXPENSES OF REGISTRATION

  	
  15

  
	
   

  	
   

  	
   

  
	
  7.       INDEMNIFICATION

  	
  15

  
	
   

  	
   

  	
   

  
	
  (A)

  	
  OBLIGATIONS OF THE COMPANY TO INDEMNIFY

  	
  15

  
	
  (B)

  	
  OBLIGATIONS OF THE INVESTORS TO INDEMNIFY

  	
  16

  
	
  (C)

  	
  PROCEDURE

  	
  17

  
	
  (D)

  	
  CONTRIBUTION

  	
  18

  
	
  (E)

  	
  OTHER AGREEMENTS

  	
  18

  
	
  (F)

  	
  PAYMENTS

  	
  18

  
	
  (G)

  	
  SURVIVAL

  	
  18

  
	
   

  	
   

  	
   

  
	
  8.       REPORTS UNDER THE EXCHANGE ACT

  	
  19

  
	
   

  	
   

  	
   

  
	
  9.       MISCELLANEOUS

  	
  19

  
	
   

  	
   

  	
   

  
	
  (A)

  	
  OTHER REGISTRATION RIGHTS

  	
  19

  
	
  (B)

  	
  GENERAL PIGGYBACK RIGHTS OF THE INVESTORS

  	
  19

  
	
  (C)

  	
  ASSIGNMENT OF REGISTRATION RIGHTS

  	
  20

  
	
  (D)

  	
  SUCCESSORS AND ASSIGNS; THIRD PARTY BENEFICIARIES

  	
  20

  
	
  (E)

  	
  SEVERABILITY

  	
  20

  
	
  (F)

  	
  DESCRIPTIVE HEADINGS

  	
  21

  
	
  (G)

  	
  NOTICES

  	
  21

  
	
  (H)

  	
  GOVERNING LAW

  	
  22

  
	
  (I)

  	
  AMENDMENTS AND WAIVERS

  	
  23

  
	
  (J)

  	
  SPECIFIC PERFORMANCE

  	
  23

  

 

i

 

	
  (K)

  	
  DELAYS OR OMISSIONS

  	
  23

  
	
  (L)

  	
  FINAL AGREEMENT

  	
  23

  
	
  (M)

  	
  EXECUTION

  	
  23

  
	
  (N)

  	
  CONSENTS

  	
  23

  
	
  (O)

  	
  CONSTRUCTION

  	
  23

  
	
  (P)

  	
  TERMINATION OF
  AGREEMENT

  	
  23

  
	
   

  	
   

  	
   

  
	
  Exhibit A  -    Plan
  of Distribution

  
	
  Exhibit B  -    Notice
  of Registration and Selling Securityholder Questionnaire

  
	
  Exhibit C  -    Notice
  of Transfer

  

 

ii

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT (this “Agreement”),
dated as of December 30, 2009, is by and among GP Strategies Corporation,
a Delaware corporation (the “Company”),
and the undersigned Purchaser (the “Purchaser”).

 

RECITALS

 

In connection with, and
pursuant to, that certain Securities Purchase Agreement by and among the
parties hereto of even date herewith (the “Securities Purchase Agreement”), the Company has agreed,
upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to the Purchaser at the Closing 2,857,143 shares
(the “Purchased Shares”) of Common Stock, par value $0.01 per share (the
“Common Stock”), of the
Company.  Capitalized terms used and not
otherwise defined herein shall have the respective meanings set forth in the
Securities Purchase Agreement.

 

To induce the Purchaser to
execute, deliver and perform the Securities Purchase Agreement, the Company has
agreed to provide certain registration rights under the Securities Act of 1933,
as amended, and the rules and regulations thereunder, or any similar
successor statute (collectively, the “Securities
Act”), and applicable state securities laws.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Investors (as defined
below) hereby agree as follows:

 

1.                                       DEFINITIONS.  In addition to the capitalized terms
elsewhere defined herein, the following terms, when used herein, shall have the
following meanings, unless the context otherwise requires:

 

“Agreement” has the
meaning set forth in the preface above.

 

“Assignment Period”
has the meaning set forth in Section 5(c).

 

“Black Out Period”
has the meaning set forth in Section 5(a)(i)(B).

 

“Business Day” means
any day except Saturday, Sunday and any day which shall be a legal holiday or a
day on which banking institutions in New York, New York generally are
authorized or required by law or other governmental actions to close.

 

“Claims” has the
meaning set forth in Section 7(a).

 

“Common Stock” has
the meaning set forth in the recitals above.

 

“Company” has the
meaning set forth in the preface above.

 

“Effective Date”
means the date a Registration Statement is declared or becomes effective under
the Securities Act.

 

 

“Effectiveness Deadline”
has the meaning set forth in Section 2(a).

 

“Exchange Act” has
the meaning set forth in Section 3(b).

 

“Filing Deadline” has
the meaning set forth in Section 2(a).

 

“Holdback Period” has
the meaning set forth in Section 5(b).

 

“Investor Representative”
means Sagard Capital Partners, L.P.

 

“Investors” means (i) the
Purchaser, (ii) any transferee or assignee thereof to whom the Purchaser
or an Investor assigns its rights under this Agreement and who agrees to become
bound by the provisions of this Agreement in accordance with Section 9(c),
and (iii) any transferee or assignee thereof to whom a transferee or
assignee assigns its rights under this Agreement and who agrees to become bound
by the provisions of this Agreement in accordance with Section 9(c).

 

“Legal Counsel” has
the meaning set forth in Section 2(f).

 

“Liquidated Damages”
has the meaning set forth in Section 5(c).

 

“Notice and Questionnaire”
means the selling securityholder questionnaire attached to the Notice of
Registration and Selling Securityholder Questionnaire attached as Exhibit B
hereto.

 

“Person” means an
individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, other entity, an unincorporated organization and a
governmental or any department or agency thereof.

 

“Purchased Shares”
has the meaning set forth in the recitals above.

 

“Purchaser” has the
meaning set forth in the preface above.

 

“Records” has the
meaning set forth in Section 3(q)(ii).

 

“Register,” “registered,”
and “registration” refer to a registration effected by preparing and
filing one or more Registration Statements in compliance with the Securities
Act and pursuant to Rule 415 under the Securities Act or any successor rule providing
for offering securities on a continuous or delayed basis (“Rule 415”),
and the declaration or ordering of effectiveness of such Registration Statement(s) by
the SEC.

 

“Registrable Securities”
means (i) all Purchased Shares, (ii) all shares of Common Stock
issued pursuant to Section 4(l) of the Securities Purchase Agreement
(including shares of Common Stock issuable upon exercise, conversion or
exchange of securities issued pursuant to such Section 4(l)) and (iii) any
shares of capital stock issued or issuable with respect to the Purchased Shares
or any of the shares described in clause (ii), in either case as a result of
any stock split, stock dividend, recapitalization, exchange or similar event or
otherwise; provided, however,
that Registrable Securities shall not include any such shares (A) which
have been disposed of pursuant to an effective registration statement under the
Securities Act, (B) which 

 

2

 

have
been sold or otherwise transferred in a transaction in which the rights under
the provisions of this Agreement have not been assigned, (C) which have
been sold under Rule 144 or (D) which are owned by an Investor with
respect to which this Agreement has terminated pursuant to Section 9(p) hereof.

 

“Registrable Securities
Purchase Price” means, with respect to any Registrable Security, the
purchase price actually paid by Sagard Capital Partners, L.P. for such
Registrable Security (or, if such Registrable Security was acquired upon
exercise or conversion of other equity securities, the exercise price or
conversion price thereof), in all cases subject to adjustment for any stock
split, dividend, spin-off or combination, or any reclassification,
recapitalization, merger, consolidation, exchange or other similar
reorganization or business combination.

 

“Registration Default”
has the meaning set forth in Section 5(c).

 

“Registration Period”
has the meaning set forth in Section 3(a).

 

“Registration Statement”
means a registration statement or registration statements of the Company filed
under the Securities Act covering the Registrable Securities.

 

“Rule 144” means
Rule 144 promulgated by the SEC under the Securities Act.

 

“Scheduled Earnings
Blackouts” has the meaning set forth in Section 5(a)(i)(B).

 

“SEC” means the
United States Securities and Exchange Commission.

 

“Securities Act” has
the meaning set forth in the recitals above.

 

“Securities Purchase
Agreement” has the meaning set forth in the recitals above.

 

“Subsequent Registration
Rights” has the meaning set forth in Section 9(a)(ii).

 

“Suspension Notice”
has the meaning set forth in Section 5(a)(i).

 

“Underwritten Offering”
means an offering registered under the Securities Act in which securities of
the Company are sold to an underwriter or underwriters for reoffering to the
public.

 

2.                                       REGISTRATION.

 

(a)                                  Mandatory
Registration.  The Company
shall prepare and file with the SEC a Registration Statement on Form S-3
covering the resale of all of the Registrable Securities. The Company shall
file the Registration Statement no later than ninety (90) days prior to the
first anniversary of the Closing.  Such
deadline is referred to herein as the “Filing
Deadline.”  If Form S-3
is unavailable for such a registration, the Company shall use such other form
as is available for such a registration, subject to the provisions of Section 2(b).  The Registration Statement prepared pursuant
hereto shall register for resale at least that number of shares of Common Stock
equal to the aggregate number of Registrable Securities issued and outstanding
as of the trading day immediately preceding the date the Registration Statement
is initially filed with the SEC, subject to adjustment as provided in Section 2(d).  The Company shall use its reasonable best 

 

3

 

efforts to have the Registration Statement declared effective by the
SEC no later than the first anniversary of the Closing (the “Effectiveness Deadline”).

 

(b)                                 Ineligibility
for Form S-3.  If Form S-3
is not available for the registration of the resale of Registrable Securities
hereunder, the Company shall (i) register the resale of the Registrable
Securities on another appropriate form reasonably acceptable to the Investor
Representative and (ii) undertake to register the Registrable Securities
on Form S-3 as soon as such form is available, provided that the Company
shall maintain the effectiveness of the Registration Statement then in effect
until such time as a Registration Statement on Form S-3 covering the
Registrable Securities has been declared effective by the SEC.

 

(c)                                  Sufficient
Number of Shares Registered.  If the number of shares available under the
Registration Statement filed pursuant to Section 2(a) is, or
becomes, insufficient to cover all of the Registrable Securities required to be
covered by the Registration Statement, the Company shall amend the Registration
Statement, or file a new Registration Statement (on the short form available
therefor, if applicable), or both, so as to cover at least 100% of the aggregate
number of the Registrable Securities required to be registered hereunder as of
the trading day immediately preceding the date of the filing of such amendment
or new Registration Statement, in each case, as soon as practicable, but in any
event not later than fifteen (15) days after the necessity therefor
arises.  The Company shall use its
reasonable best efforts to cause such amendment and/or new Registration
Statement to become effective as soon as practicable following the filing
thereof.  For all purposes of this
Agreement, such additional Registration Statement shall be deemed to be the
Registration Statement required to be filed by the Company pursuant to Section 2(a) of
this Agreement, and the Company and the Investors shall have the same rights and
obligations with respect to such additional Registration Statement as they
shall have with respect to the initial Registration Statement required to be
filed by the Company pursuant to Section 2(a).

 

(d)                                 Underwritten
Offering.  If, at any
time and from time to time, the Investor Representative wishes to effect an
Underwritten Offering of any Registrable Securities:

 

(i)                                     the Investor
Representative shall have the right to select the managing/book-running
underwriter(s), if any, for the Registrable Securities to be registered
pursuant to Section 2(a), subject to the Company’s written approval
of such managing/book-running underwriter(s), such written approval not to be
unreasonably withheld, conditioned or delayed;

 

(ii)                                  if a
representative of the managing/book-running underwriter(s) advises the
Investors and the Company in writing that marketing factors require a
limitation of the number of securities to be underwritten (including
Registrable Securities) because the number of securities to be underwritten is
likely to have an adverse effect on the price, timing or the distribution of
securities to be offered, then the number of securities that may be included in
the underwriting shall be allocated, first, to the Investors, allocated
among the Investors on a pro rata basis based on the total number of
Registrable Securities held by the Investors and second, only if the
Investors are able to have all of the Registrable Securities included that they
seek to have included, to the Company and other holders of registration rights
to the extent they are participating in such offering.  For the avoidance of doubt, any Registrable
Securities or other 

 

4

 

securities excluded or
withdrawn from such underwriting shall continue to be covered by the shelf
Registration Statement;

 

(iii)          if there is, at
such time, an effective shelf Registration Statement in respect of the
Registrable Securities, the Company shall promptly amend or supplement the
shelf Registration Statement if and as may be necessary in order to enable such
Registrable Securities to be distributed pursuant to an Underwritten Offering,
but in any event no later than thirty (30) days after the request from the
Investor Representative, and shall use its reasonable best efforts to cause
such amendment to become effective as soon as practicable after such filing,
but in any event no later than ninety (90) days after the request from the
Investor Representative;

 

(iv)                              if there is, at
such time, no effective shelf Registration Statement in effect in respect of
the Registrable Securities, the Company shall:

 

(A)                              cause to be
prepared and to file a Registration Statement as promptly as reasonably
practicable after the request from the Investor Representative, but in any event
no later than thirty (30) days thereafter;

 

(B)                                use reasonable
best efforts to cause such Registration Statement to become effective as soon
as practicable after filing, but in any event no later than ninety (90) days
after the request from the Investor Representative;

 

(C)                                use reasonable
best efforts to maintain in effect, supplement and amend, if necessary, the
Registration Statement, as required by the instructions applicable to such
registration form or by the Securities Act for the period required to
consummate the Underwritten Offering;

 

(D)                               furnish, upon
request, to the holders of the Registrable Securities to which the Registration
Statement relates copies of any supplement or amendment to such Registration
Statement prior to such supplement or amendment being used and/or filed with
the SEC; and

 

(E)                                 pay all
Registration Expenses in connection with the Registration Statement, whether or
not it becomes effective, and whether all, some or none of the Registrable
Securities to which it relates are sold pursuant to it.

 

The Investor Representative
shall not be entitled to require more than one (1) Underwritten Offering
in any 12-month period (counting only those Underwritten Offerings which have
been consummated (i.e., the registration statement for the underwriting
has been declared effective and the securities registered thereunder have
actually been sold) in any such 12-month period).  Furthermore, notwithstanding the foregoing,
nothing in this Section 2(d) shall obligate the Company to
file a Registration Statement prior to the Filing Deadline or to cause a
Registration Statement for an Underwritten Offering to become effective prior
to the Effective Date.

 

Notwithstanding anything
contained herein to the contrary, no Investor may participate in any Underwritten
Offering pursuant to a registration hereunder unless that Investor (i) agrees
to sell its Registrable Securities on the basis provided in any underwriting
arrangements approved 

 

5

 

by
the Investor Representative and (ii) completes and executes all
questionnaires (including customary signed questionnaires for due diligence
purposes in connection with any filing with the Financial Industry Regulatory
Authority, Inc.), powers of attorney, indemnities (but only in the same
manner and to the same extent as set forth in Section 7(b)),
underwriting agreements and other documents reasonably required under the terms
of such underwriting arrangements.

 

(e)                                  Plan of
Distribution.  The
intended method or methods of disposition and/or sale (Plan of Distribution) of
the Registrable Securities contained in the Registration Statement to be filed
hereunder shall be in the form attached hereto as Exhibit A, with
only such modifications and changes as expressly agreed by the Company and the
Investor Representative.

 

(f)                                    Legal Counsel.  Subject to Section 6 hereof, the
Investor Representative shall have the right to select one legal counsel in
connection with any offering pursuant to this Section 2 (“Legal Counsel”), which shall
be Finn Dixon & Herling LLP or such other counsel as hereafter
designated by the Investor Representative. 
The Company shall reasonably cooperate with Legal Counsel in performing
the Company’s obligations under this Agreement.

 

3.                                       RELATED
OBLIGATIONS.  At such
time as the Company is obligated to file a Registration Statement with the SEC
pursuant to Section 2 or Section 3(p), the Company will
use its reasonable best efforts to effect the registration of the Registrable
Securities covered by such Registration Statement in accordance with the
intended method of disposition thereof and the Company shall have the following
additional obligations:

 

(a)                                  The Company shall use its reasonable best efforts to keep
the Registration Statement effective pursuant to Rule 415 at all times
from the Effective Date until the date on which the Investors shall have sold
all the Registrable Securities covered by such Registration Statement (the “Registration
Period”), which Registration Statement (including any amendments or
supplements thereto and prospectuses contained therein), at the time it is
first filed with the SEC, at the time it is ordered effective by the SEC and at
all times during which it is required to be effective hereunder (and each such
amendment and supplement at the time it is filed with the SEC and at all times
during which it is available for use in connection with the offer and sale of
the Registrable Securities) shall not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein,
or necessary to make the statements therein, in light of the circumstances in
which they were made, not misleading.  If
the Registration Statement is no longer effective during the Registration
Period, the Company shall use its reasonable best efforts to cause a new
Registration Statement to become effective pursuant to Section 2 or
Section 3(p) as promptly as practicable.

 

(b)                                 The Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to a
Registration Statement and the prospectus used in connection with such
Registration Statement, which prospectus is to be filed pursuant to Rule 424
promulgated under the Securities Act, as may be necessary to keep such
Registration Statement effective at all times during the Registration Period,
and, during such period, comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities of the Company covered
by such Registration Statement until such time as all of such Registrable
Securities shall have been disposed of in accordance with the intended methods
of disposition by the seller or sellers thereof as set forth in such
Registration Statement.  In the case 

 

6

 

of
amendments and supplements to a Registration Statement which are required to be
filed pursuant to this Agreement (including pursuant to this Section 3(b))
by reason of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K
or any analogous report under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), the Company shall have incorporated such report by
reference into the Registration Statement, if applicable, or shall file such
amendments or supplements with the SEC on the same day on which the Exchange
Act report is filed which created the requirement for the Company to amend or
supplement the Registration Statement.

 

(c)                                  The Company shall permit Legal Counsel to review and comment
upon (i) any Registration Statement prior to its filing with the SEC and (ii) all
other Registration Statements and all amendments and supplements to all
Registration Statements (except for Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K and any similar
or successor reports) prior to their filing with the SEC.  The Company shall not submit a request for
acceleration of the effectiveness of a Registration Statement or any amendment
or supplement thereto without the prior approval of Legal Counsel, which
consent shall not be withheld unless Legal Counsel has reasonable objections to
disclosures in the Registration Statement relating to the Investors.  The Company shall furnish to Legal Counsel,
without charge, (i) any correspondence from the SEC or the staff of the
SEC to the Company or its representatives relating to any Registration
Statement, (ii) promptly after the same is prepared and filed with the
SEC, one copy of any Registration Statement and any amendment(s) thereto,
including financial statements and schedules, all documents incorporated
therein by reference and all exhibits and (iii) upon the effectiveness of
any Registration Statement, one copy of the prospectus included in such
Registration Statement and all amendments and supplements thereto.

 

(d)                                 The Company shall furnish, without charge, to each Investor
selling Registrable Securities and each underwriter, if any, such number of
copies of such Registration Statement, each amendment and supplement thereto
(in each case including all exhibits), the prospectus included in such
Registration Statement (including each preliminary prospectus and any summary
prospectus) and any other prospectus filed under Rule 424 under the
Securities Act, and each free writing prospectus utilized in connection
therewith, in each case, in conformity with the requirements of the Securities
Act, and other documents, as such Investor or underwriter may reasonably
request in order to facilitate the public sale or other disposition of the
Registrable Securities owned by such Investor.

 

(e)                                  The Company shall use its reasonable best efforts to cause
such Registrable Securities to be registered with or approved by such other
governmental agencies or authorities as may be necessary to consummate the
disposition of such Registrable Securities pursuant to a Registration
Statement; provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to (i) qualify
to do business in any jurisdiction where it would not otherwise be required to
qualify but for this Section 3(e), (ii) subject itself to
general taxation in any such jurisdiction, or (iii) file a general consent
to service of process in any such jurisdiction.

 

(f)                                    The Company shall notify Legal Counsel and each Investor in
writing of the happening of any event, as promptly as practicable after
becoming aware of such event, as a result of which the prospectus included in a
Registration Statement, as then in effect, includes an

 

7

 

untrue
statement of a material fact or omission to state a material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading (provided that in no
event shall such notice contain any material, nonpublic information), and
promptly prepare a supplement or amendment to such Registration Statement to
correct such untrue statement or omission, and deliver such number of copies of
such supplement or amendment to Legal Counsel and each Investor as Legal
Counsel or such Investor may reasonably request.  The Company shall also promptly notify Legal
Counsel and each Investor in writing (i) when a prospectus or any
prospectus supplement or post-effective amendment has been filed, and when a
Registration Statement or any post-effective amendment has become effective
(notification of such effectiveness shall be delivered to Legal Counsel and
each Investor by email on the same day of such effectiveness and by overnight
delivery), (ii) of any request by the SEC for amendments or supplements to
a Registration Statement or related prospectus or related information, and (iii) of
the Company’s reasonable determination that a post-effective amendment to a
Registration Statement would be appropriate.

 

(g)           The
Company shall use its reasonable best efforts to prevent the issuance of any
stop order or other suspension of effectiveness of a Registration Statement, or
the suspension of the qualification of any of the Registrable Securities for
sale in any jurisdiction and, if such an order or suspension is issued, to
obtain the withdrawal of such order or suspension promptly and to notify Legal
Counsel and each Investor who holds Registrable Securities being sold of the
issuance of such order and the resolution thereof or its receipt of actual
notice of the initiation or threat of any proceeding for such purpose.

 

(h)           The
Company shall cooperate with the Investors who hold Registrable Securities
being offered and facilitate the timely preparation and delivery of
certificates (not bearing any restrictive legend) representing the Registrable
Securities to be offered pursuant to a Registration Statement and enable such
certificates to be in such denominations or amounts, as the case may be, as the
Investors may reasonably request and registered in such names as the Investors
may request.

 

(i)            The
Company shall appoint (if one has not already been appointed) and maintain a
transfer agent and registrar for its Common Stock not later than the Effective
Date.  The Company shall use reasonable
best efforts to procure the cooperation of the Company’s transfer agent in
settling any offering or sale of Registrable Securities, including with respect
to the transfer of physical stock certificates into book-entry form in
accordance with any procedures reasonably requested by any Investor.

 

(j)            The
Company shall otherwise use its reasonable best efforts to comply (and continue
to comply) with all applicable rules and regulations of the SEC
(including, without limitation, maintaining disclosure controls and procedures
(as defined in Exchange Act Rule 13a-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rule 13a-15(f)) in
accordance with the Exchange Act);

 

(k)           Within
one (1) Business Day after a Registration Statement which covers
Registrable Securities is ordered effective by the SEC, the Company shall
deliver or shall cause legal counsel for the Company to deliver to the
Company’s transfer agent confirmation that such Registration Statement has been
declared effective by the SEC.

 

8

 

(l)            The
Company shall use commercially reasonable efforts to take all other actions
reasonably necessary to expedite and facilitate disposition by Investors of
Registrable Securities pursuant to a Registration Statement.

 

(m)          In
the event of any underwritten public offering (at the election of the
Investors, as described in Section 2), the Company shall:

 

(i)            enter into such customary
agreements, including a customary underwriting agreement, in each case in form
and substance reasonably satisfactory to the Company, which may include
indemnification provisions in favor of underwriters and other Persons in
addition to, or in substitution for the provisions hereof, and shall use
reasonable best efforts to take such other actions as the Investors or the
underwriters may reasonably request in order to expedite or facilitate the
disposition of such Registrable Securities;

 

(ii)           obtain one or more comfort
letters, dated such date or dates as are customary for the Company in the
context of an Underwritten Offering by the Company, addressed to any
underwriters of the Underwritten Offering, signed by the Company’s independent
public accountants, in form and covering such matters of the type customarily
covered by comfort letters delivered by the Company in connection with
underwritten company offerings as the lead underwriters may reasonably request;

 

(iii)          make available for
inspection by the Investors, by any underwriter participating in any
disposition to be effected pursuant to an Underwritten Offering and by any
attorney, accountant or other agent retained by the Investors or any such
underwriter, all pertinent financial and other records, pertinent corporate documents
and properties of the Company, and cause all of the Company’s officers,
directors and employees to supply all information reasonably requested by the
Investors or any such underwriter, attorney, accountant or agent in connection
with such Underwritten Offering;

 

(iv)          if reasonably requested by
the managing underwriter or agent or the Investors, promptly incorporate in a
prospectus supplement or post-effective amendment such information as the
managing underwriter or agent or the Investors reasonably request to be
included therein, including, with respect to the number of Registrable
Securities being sold by the Investors to such underwriter or agent, the
purchase price being paid therefor by such underwriter or agent and with
respect to any other terms of the Underwritten Offering and make all required
filings of such prospectus supplement or post-effective amendment as soon as
reasonably practicable after being notified of the matters incorporated in such
prospectus supplement or post-effective amendment;

 

(v)           obtain for delivery to the
underwriter or agent an opinion or opinions from counsel for the Company in
customary form, substance and scope reasonably satisfactory to such
underwriters or agents and their counsel; and

 

(vi)          use its commercially reasonable
efforts to make available the executive officers of the Company to participate
with the Investors and/or any underwriters in any customary “road shows” or
other selling efforts that may be reasonably requested by the Investors, on the
one hand, or managing underwriters, on the other hand, in connection with an

 

9

 

Underwritten Offering; provided, that, after the Company has consummated two (2) Underwritten
Offerings requested by the Investor pursuant to this Agreement, this clause (vi) shall
only apply to those Underwritten Offerings that, based on the good faith
determination of the Investors in consultation with the managing underwriter,
are expected to result in gross proceeds of at least $10.0 million.

 

(n)           The
Company shall use its reasonable best efforts to secure the listing of all of
the Registrable Securities covered by such Registration Statement upon each
national securities exchange and automated quotation system, if any, upon which
shares of Common Stock shall be so listed and shall maintain, so long as any
other shares of Common Stock shall be so listed, such listing of such
Registrable Securities.

 

(o)           During
the period that the Company is required to maintain effectiveness of the
Registration Statement pursuant to Section 3(a), the Company shall
not bid for or purchase any Common Stock or any right to purchase Common Stock
or attempt to induce any person to purchase any such security or right if such
bid, purchase or attempt would in any way limit the right of the Investors to
sell Registrable Securities by reason of the limitations set forth in
Regulation M under the Exchange Act.

 

(p)           If
a Registration Statement covering the Registrable Securities will terminate by
its terms, the Company shall, as far in advance as is practicable, refile (or
file and have declared effective) a new Registration Statement and use its
reasonable best efforts to minimize and gap between the two Registration
Statements.

 

(q)           To
the extent that any of the Investors is deemed to be an underwriter of
Registrable Securities pursuant to any SEC comments or policies, the Company
agrees that:

 

(i)            The indemnification and
contribution provisions contained in Section 7 shall be applicable
to the benefit of the Investors in their role as deemed underwriter in addition
to their capacity as holders of Registrable Securities;

 

(ii)           The Investors shall be
entitled to conduct the due diligence which they would normally conduct in
connection with an offering of securities registered under the Securities Act,
including without limitation receipt of customary opinions and comfort letters;
provided, however,
that each Investor shall agree to hold in strict confidence and shall not make
any disclosure or use of any record or other information (“Records”)
which the Company determines in good faith to be confidential, and of which
determination the Investors are so notified, unless (A) the disclosure of
such Records is required by law or (B) the information in such Records has
been made generally available to the public other than by disclosure in
violation of this Agreement;

 

(iii)          The Company shall obtain
opinions of counsel to the Company (which counsel and opinions (in form, scope
and substance) shall be reasonably satisfactory to the Investor Representative)
in customary form addressed to the Investors, covering such matters as are
customarily covered in opinions requested in underwritten offerings and dated
as of the date such opinion is customarily dated;

 

10

 

(iv)          The Company shall obtain
“comfort letters” and updates thereof from the independent public accountants
of the Company (and, if necessary, any other independent public accountants of
any subsidiary of the Company or of any business acquired by the Company for
which financial statements and financial data are, or are required to be,
included in the Registration Statement), addressed to the Investors, in
customary form and covering matters of the type customarily covered in comfort
letters in connection with primary underwritten offerings and dated as of the
date such comfort letter is customarily dated; and

 

(v)           The Company shall deliver
such other customary documents and certificates as may be reasonably requested
by the Investors to evidence compliance with any customary conditions contained
in underwriting agreements, if any.

 

4.             OBLIGATIONS
OF THE INVESTORS.

 

(a)           At
least ten (10) Business Days prior to the first anticipated filing date of
a Registration Statement, the Company shall, by delivering a Notice and
Questionnaire, notify each Investor in writing of the information the Company
reasonably requires from each such Investor if such Investor elects to have any
of such Investor’s Registrable Securities included in such Registration
Statement.  It shall be a condition
precedent to the obligations of the Company to complete the registration
pursuant to this Agreement with respect to the Registrable Securities of a
particular Investor that such Investor shall furnish to the Company such
information regarding itself, the Registrable Securities held by it and the
intended method of disposition of the Registrable Securities held by it as
shall be reasonably required to effect the registration of such Registrable
Securities and shall execute such documents in connection with such
registration as the Company may reasonably request, including, without
limitation, a properly completed Notice and Questionnaire.

 

(b)           Each
Investor, by such Investor’s acceptance of the Registrable Securities, agrees
to cooperate with the Company as reasonably requested by the Company in
connection with the preparation and filing of any Registration Statement
hereunder, unless such Investor no longer holds any Registrable Securities or
has notified the Company in writing of such Investor’s election to exclude all
of such Investor’s Registrable Securities from such Registration Statement.

 

(c)           Each
Investor agrees that, upon receipt of any notice from the Company of the
happening of any event of the kind described in the first sentence of Section 3(f) or
in Section 3(g) or, such Investor will immediately discontinue
disposition of Registrable Securities pursuant to any Registration Statement(s) covering
such Registrable Securities until such Investor’s receipt of the copies of the
supplemented or amended prospectus contemplated by the first sentence of Section 3(f) or
by Section 3(g) or receipt of notice that no supplement or
amendment is required and, if so directed by the Company, such Investor shall
deliver to the Company, or destroy all copies in such Investor’s possession,
any prospectus covering such Registrable Securities current at the time of
receipt of such notice.  Notwithstanding
anything to the contrary contained herein, if the Investor has sold any Registrable
Securities prior to the Investor’s receipt of a notice from the Company of the
happening of any event of the kind described in the first sentence of Section 3(f) or
in Section 3(g) but has not yet settled such sale prior to the
receipt of any such notice, the Company shall cause its transfer agent to
deliver an

 

11

 

unlegended
certificate(s) representing the shares of Common Stock to be transferred
to the applicable transferee(s) in accordance with the terms of the
Securities Purchase Agreement.

 

5.             SUSPENSION
OF REGISTRATION RIGHTS.

 

(a)           Suspension
Notices.

 

(i)            Notwithstanding anything to
the contrary herein, during any earnings blackout period in effect pursuant to
a policy established by the Company’s Board of Directors or a designated
committee thereof (including, without limitation, the Company’s current
earnings blackout policy) (a “Scheduled Earnings Blackout”), unless the
Company provides the Investors notice that a Black Out Period (as defined
below) with respect to a Scheduled Earnings Blackout will not be in effect, or
if the Company shall at any time furnish to the Investors a certificate signed
by any of its authorized officers (a “Suspension Notice”) stating that:

 

(A)          the Company has pending or
in process a material transaction, the disclosure of which would, in the good
faith judgment of the Company’s Board of Directors, after consultation with its
outside counsel, materially and adversely affect the Company or the prospects
for consummation of such material transaction; or

 

(B)           the Company’s Board of
Directors has made the good faith determination after consultation with counsel
that (x) use or continued use of any proposed or effective Registration
Statement for purposes of effecting offers or sales of Registrable Securities
pursuant thereto would require, under the Securities Act, premature disclosure
in such Registration Statement (or the prospectus relating thereto) of
material, non-public information, (y) such premature disclosure would not
be in the best interest of the Company and (z) it is therefore necessary
to defer the filing or to suspend the use of such Registration Statement (and
the prospectus relating thereto) for purposes of effecting offers or sales of
Registrable Securities pursuant thereto,

 

the right of the Investors
to require the Company to file any Registration Statement or, after the filing
thereof, use any Registration Statement (and the prospectus relating thereto)
for purposes of effecting offers or sales of Registrable Securities pursuant
thereto shall be suspended for a period (a “Black Out Period”) of not
more than 200 days in the aggregate in any 360 consecutive-day period; provided,
however, that, during the period beginning on the earlier to occur of (i) the
first anniversary of the date hereof, and (ii) the Effective Date of the
initial Registration Statement required to be filed by the Company pursuant to Section 2(a) (the
earlier of the two dates referred to in clauses (i) and (ii), the “Reference
Date”), and ending on the second anniversary of the Reference Date, such
200 day aggregate limit may be increased for up to two additional periods in
any 12-month period, not to exceed 60 days in the aggregate in any 12
consecutive-month period, but only in the case of a Suspension Notice(s) approved
by all of the members of the executive committee of the Board of Directors
(other than any representative of the Investor to the extent a member thereof)
delivered in respect of a material transaction described in Section 5(a)(i)(A);
and provided, further, however, that following the second
anniversary of the Reference Date, such 200 day aggregate limit may be
increased (such increase in the 200 day aggregate limit pursuant to the
immediately preceding proviso or this proviso, the “Limit Increase”) for
up to two additional periods in any 12-month period, not to exceed 30 days

 

12

 

in the aggregate in any 12
consecutive-month period, but only in the case of a Suspension Notice(s) approved
by all of the members of the executive committee of the Board of Directors
(other than any representative of the Investor to the extent a member thereof)
delivered in respect of a material transaction described in Section 5(a)(i)(A).  If the Company modifies its earnings blackout
policy, or its implementation thereof, to reduce the number of days comprising
Scheduled Earnings Blackouts, the 200 day aggregate limit in the preceding
sentence (as may be increased pursuant to the first proviso or the second
proviso in the preceding sentence) shall be reduced by a like number of
days.  Furthermore, in addition to the
200 day (or such greater or lesser period, as applicable, pursuant to the Limit
Increase and any decrease pursuant to the previous sentence, respectively)
aggregate limit on Blackout Periods per each 360 day period, no Black Out
Period shall last for more than 45 consecutive days in any 360 consecutive day
period except (i) in the case of a Suspension Notice delivered, or a
Scheduled Earnings Blackout designated, in respect of the Company’s year-end
earnings reports, no more than 65 consecutive days after delivery of such
Suspension Notice or start of such Scheduled Earnings Black Out and (ii) in
the case of a Suspension Notice delivered in respect of a material transaction
described in Section 5(a)(i)(A), no more than 100 consecutive days
after delivery of such Suspension Notice. 
For the avoidance of doubt, with respect to any Registrable Security, no
Registration Default shall be applicable to such Registrable Security during
any Black Out Period permitted to be imposed on the holder of such Registrable
Security pursuant to this Section 5.

 

A Suspension Notice shall
not disclose the specific material, non-public information with respect to any
Black Out Period, unless the Investor specifically requests in writing to
receive such material, non-public information and agrees in writing to keep
such material, non-public information confidential.

 

(ii)           Notwithstanding anything to
the contrary in this Section 5(a), the Company shall not impose any
Black Out Period, including any Scheduled Earnings Black Out, in a manner that
is more restrictive (including, without limitation, as to duration) than the
comparable restrictions that the Company may impose on transfers of the
Company’s equity securities by its directors and senior executive officers.

 

(iii)          During any Black Out Period,
no Investor shall offer or sell any Registrable Securities pursuant to or in
reliance upon any Registration Statement (or the prospectus relating thereto)
filed by the Company. Notwithstanding the foregoing, if the public announcement
of such material, nonpublic information is made during a Black Out Period, then
the Black Out Period shall terminate without any further action of the parties
and the Company shall immediately notify the Investors of such termination.

 

(b)           Holdback Periods.  If any sale of securities in connection with
a registration hereunder shall be in connection with an underwritten public
offering, each of the Company and each Investor which is actually selling
shares in such underwritten public offering agree and, if so requested by any
underwriter in connection with such offering or sale, each director or
executive officer of the Company, shall enter into a customary agreement with
such underwriter agreeing not to effect any sale or distribution (subject to
customary carveouts or such other exceptions as the managing underwriter may
agree to), including, in the case of such selling Investors, any sale pursuant
to Rule 144 under the Securities Act, of any such securities of the
Company, or options or other rights convertible into, or exchangeable or
exercisable for, such

 

13

 

securities (other than as part of such underwritten public offering),
within seven (7) days before, or ninety (90) days (or such lesser period
as the managing underwriters may permit) after, the effective date of any such
registration or the closing of any sale of securities in connection with a
registration (except as part of any such registration or sale) (such period, a
“Holdback Period”); provided, that, notwithstanding the
foregoing, with respect to any offering by the Company as to which the
Investors exercise rights under Sections 9(a) or 9(b), the
selling Investors shall have no obligation under this Section 5(b),
and shall not be required to enter into any agreement with an underwriter
pursuant to this Section 5(b), in each case that is more
restrictive than the obligations imposed on and agreements required to be
entered into by the directors and senior executive officers of the Company in
connection with such offering.

 

(c)           Delay Payments.  The Company and each Investor each agree that
any such Investor will suffer damages, and it would not be feasible to
ascertain the extent of such damages with precision, if the Company fails to
fulfill its obligations hereunder. 
Subject in all cases to Section 5 (including any applicable
Blackout Period or Holdback Period imposed in accordance therewith, whether
such period is pursuant to the agreement set forth in Section 5 or
a separate agreement with the underwriters of any company offering or
Underwritten Offering), if (i) a Registration Statement is not filed on or
prior to any required date hereunder, (ii) a Registration Statement is not
declared effective by the SEC or any order of a governmental authority
preventing or suspending the use of any prospectus is not lifted prior to any
Effective Date or Effectiveness Date applicable thereto, (iii) the Company
fails to file with the SEC a request for acceleration of effectiveness in
accordance with Rule 461 promulgated under the Securities Act, within five
(5) Business Days after the date that (A) the Company is notified in
writing by the SEC that a Registration Statement will not be “reviewed,” or is
not subject to further review and (B) Legal Counsel has given its prior
approval to request acceleration of effectiveness pursuant to Section 3(c),
or (iv) after the Effective Date, a Registration Statement required to be
effective hereunder ceases for any reason to remain effective (without being
succeeded immediately by a replacement Registration Statement filed and
declared effective) or usable (excluding as a result of a post-effective amendment
thereto that is required by applicable law in order to cause a permitted
assignee hereunder to be named as a selling securityholder therein, provided
that such post-effective amendment is filed by the Company within ten (10) Business
Days after the Company receiving notice from any Investor that such
post-effective amendment is required (any such ten (10) Business Day
period, an “Assignment Period”) for the resale of Registrable
Securities, or the Investors are otherwise unable to effect the resale of any
Registrable Securities hereunder as a result of a breach by the Company of its
obligations hereunder, in each case for such period of time (excluding the
duration of any Black Out Period applicable to such Registrable Securities, any
Holdback Period, or any Assignment Period) as to any Registrable Securities for
which any Registration Statement is then required to be effective hereunder
(each of the events referred to in clauses (i) through (iv),
a “Registration Default”) the Company shall pay to any Investor holding
any Registrable Securities not eligible for resale as a result of such
Registration Default, for the duration of such Registration Default as it
applies to such Registrable Securities held by such Investor an amount equal to
one percent (1%) of the Registrable Securities Purchase Price of such
Registrable Securities per thirty (30) days (or portion thereof), payable in
cash on the second business day of each calendar month in respect of payments
accruing through the last day of the preceding calendar month, with late
payments accruing interest at a rate of eighteen percent (18%) per annum (or
such lesser maximum amount that is permitted to be paid by applicable law),
compounding on each payment date (the

 

14

 

payments described in this Section 5(c), the “Liquidated
Damages”); provided, however,
that the aggregate amount of Liquidated Damages payable by the Company to the
Investors, for all Registration Defaults, shall not exceed $2,400,000.  Each of the Company and each Investor agree
that the Liquidated Damages provided for in this Section 5
constitute a reasonable estimate of the monetary damages that may be incurred
by the Investor by reason of a Registration Default and that such Liquidated
Damages are the only monetary damages available to the Investors in the event
of a Registration Default. 
Notwithstanding anything to the contrary set forth in this Section 5,
no event shall be considered a Registration Default hereunder if such event or
the primary cause thereof (i) was consented to in writing by the Investor
Representative or (ii) results (and shall not be considered a Registration
Default for as long as it continues to result) solely from (A) any breach
or delay in performance by any Investor of any of its obligations set forth in
this Agreement or (B) any delay solely caused or requested by any
underwriter or underwriters in connection with an Underwritten Offering.

 

6.             EXPENSES OF
REGISTRATION.  The Company
shall bear all expenses, other than underwriting discounts and commissions,
incurred in connection with registrations, filings or qualifications pursuant
to Sections 2 and 3, including, without limitation, all
registration, listing and qualification fees, printers and accounting fees, fees
and disbursements of counsel for the Company in connection with registration,
filing or qualification pursuant to Sections 2 and 3 of this
Agreement, fees and disbursements of Legal Counsel (up to an aggregate of
$25,000 for Legal Counsel) and reasonable fees and disbursements of
underwriters and their counsel customarily paid by the issuers or sellers of
securities (such as fees and expenses related to dealings with and filings with
the Financial Industry Regulatory Authority, Inc. and any “blue-sky” related
filings).  In addition, the Company shall
be responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (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
fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder.

 

For the avoidance of doubt,
each Investor shall pay all underwriting and placement discounts and
commissions, agency and placement fees, brokers’ commissions and transfer
taxes, if any, relating to the sale or disposition of such Investor’s
Registrable Securities.

 

7.             INDEMNIFICATION.  If any Registrable Securities are included in
a Registration Statement under this Agreement:

 

(a)           Obligations of the Company
to Indemnify.  In the
event of any registration of any Registrable Securities pursuant to this
Agreement, the Company shall indemnify and hold harmless each Investor and its
directors, officers, partners, agents, stockholders, managers, members,
employees, each underwriter, if any, in the offering or sale of such
securities, and each other Person, if any, who controls such Investor or any
such underwriter within the meaning of the Securities Act, and the directors,
officers, partners, agents, stockholders, managers, members and employees of
each such controlling Person, from and against any and all losses, claims, damages
or liabilities, joint or several, actions or proceedings (whether commenced or
threatened) and expenses (including reasonable fees of counsel) to which each
such indemnified party may become subject under the Securities Act, the
Exchange Act or otherwise (collectively,

 

15

 

“Claims”), insofar as such Claims arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained
in any Registration Statement under which such securities were registered under
the Securities Act or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or any untrue statement or alleged untrue statement of
a material fact contained in any preliminary, final or summary prospectus or
any amendment or supplement thereto, together with the documents incorporated
by reference therein, or any free writing prospectus utilized in connection
therewith, or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, and the Company will reimburse any such indemnified party for any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such Claim as such expenses are
incurred; provided, however, that the Company shall not be liable
to any such indemnified party in any such case to the extent such Claim arises
out of or is based upon any untrue statement or alleged untrue statement of a
material fact or omission or alleged omission of a material fact made in such
registration statement or amendment thereof or supplement thereto or in any
such prospectus or any preliminary, final or summary prospectus or free writing
prospectus in reliance upon and in conformity with written information
furnished to the Company by or on behalf of such indemnified party specifically
for use therein; provided, further, however, that the
Company shall not be liable to any such indemnified party with respect to any
amounts paid in settlement of any such loss, claim, damage, liability, or
action if such settlement is effected without the consent of the Company (which
consent shall not be unreasonably withheld). 
Such indemnity and reimbursement of expenses shall remain in full force
and effect regardless of any investigation made by or on behalf of such indemnified
party and shall survive the transfer of Registrable Securities by an
Investor.  Notwithstanding any of the
foregoing to the contrary, the foregoing indemnity agreement shall not inure to
the benefit of any Investor or underwriter, or any person controlling or
claiming through such Investor or underwriter, from whom the person asserting
any such Claim purchased shares in the offering (i) with respect to any
preliminary prospectus, if a copy of the prospectus (as then amended or
supplemented and previously provided by the Company to the Investor or
underwriter, as applicable, in accordance with Section 3(d)) was
not sent or given by or on behalf of such Investor or underwriter to such
person, if required by law so to have been delivered, at or prior to the
written confirmation of the sale of the shares to such Person, and if the
prospectus (as so amended or supplemented) would have cured the defect giving
rise to such Claim and (ii) with respect to any Registration Statement,
preliminary, final or summary prospectus or any amendment or supplement
thereto, or any free writing prospectus utilized in connection therewith, if
any such document was used during a Black Out Period.

 

(b)           Obligations of the Investors
to Indemnify.  Each
Investor selling Registrable Securities shall, severally and not jointly,
indemnify and hold harmless (in the same manner and to the same extent as set
forth in Section 7(a)) the Company, its officers, directors,
employees, legal counsel and accountants, each Person controlling the Company
within the meaning of the Securities Act and each of the other Investors and
their respective directors, officers, stockholders, fiduciaries, managing
directors, agents, affiliates, consultants, representatives, successors,
assigns or general and limited partners and respective controlling Persons for
Claims insofar as such Claims arise out of are based upon any untrue statement
or alleged untrue statement of any material fact in, or omission or alleged
omission of any material fact from, such

 

16

 

registration statement, any preliminary, final or summary prospectus
contained therein, or any amendment or supplement thereto, or any free writing
prospectus utilized in connection therewith, if such statement or alleged
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company or its
representatives by or on behalf of such Investor specifically for use therein,
and each such Investor shall reimburse such indemnified party for any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such Claim as such expenses are incurred; provided,
however, that the aggregate amount which any such Investor shall be
required to pay pursuant to this Section 7(b) and/or any other
provisions of this Section 7 shall in no case be greater than the
amount of the net proceeds received by such Investor upon the sale of the
Registrable Securities pursuant to the registration statement giving rise to
such Claim.

 

(c)           Procedure.  Any Person entitled to indemnification under
this Agreement shall notify promptly the indemnifying party in writing of the
commencement of any action or proceeding with respect to which a claim for
indemnification may be made pursuant to this Section 7, but the
failure of any indemnified party to provide such notice shall not relieve the
indemnifying party of its obligations under the preceding paragraphs of this Section 7,
except to the extent the indemnifying party is materially and actually
prejudiced thereby, and shall not relieve the indemnifying party from any
liability which it may have to any indemnified party otherwise than under this
Agreement.  In case any action or
proceeding is brought against an indemnified party and it shall notify the
indemnifying party of the commencement thereof (as required above), the
indemnifying party shall be entitled to participate therein and to assume the
defense thereof jointly with any other indemnifying party similarly notified,
to the extent that it chooses, with counsel reasonably satisfactory to such
indemnified party, and after notice from the indemnifying party to such
indemnified party, the indemnifying party shall not be liable to such
indemnified party for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation; provided, however, that (i) if the
indemnifying party fails to take reasonable steps necessary to defend
diligently the action or proceeding within twenty (20) days after receiving
notice from such indemnified party that the indemnified party believes it has
failed to do so; or (ii) if such indemnified party who is a defendant in
any action or proceeding which is also brought against the indemnifying party
reasonably shall have concluded that there may be one or more legal or
equitable defenses available to such indemnified party which are not available
to the indemnifying party or which may conflict with those available to another
indemnified party with respect to such Claim; or (iii) if representation
of both parties by the same counsel is otherwise, in the reasonable opinion of
outside counsel to the indemnified party, a conflict of interest between such
indemnified and indemnifying party may exist in respect of such claim, then, in
any such case, the indemnified party shall have the right to assume or continue
its own defense as set forth above (but with no more than one firm of counsel
for all indemnified parties in each jurisdiction) and the indemnifying party
shall be liable for any reasonable expenses therefor.  No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or
threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or potential
party to such action or claim) unless such settlement, compromise or judgment (A) includes
an unconditional release of the indemnified party from all liability arising
out of such action or

 

17

 

claim and (B) does not include a statement as to or an admission
of fault, culpability or a failure to act, by or on behalf of any indemnified
party.

 

(d)           Contribution.  If for any reason the foregoing indemnity is
unavailable, unenforceable or is insufficient to hold harmless an indemnified
party under Sections 7(a) or (b), then each applicable
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of any Claim in such proportion as is appropriate
to reflect the relative fault of the indemnifying party, on the one hand, and
the indemnified party, on the other hand, with respect to such Claim, as well
as other relevant equitable considerations. 
The relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or
the omission or alleged omission to state a material fact relates to
information supplied by the indemnifying party or the indemnified party and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such untrue statement or omission.  If, however, the allocation provided in the
second preceding sentence is not permitted by applicable law, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only such
relative faults but also the relative benefits of the indemnifying party and
the indemnified party as well as any other relevant equitable
considerations.  The parties hereto agree
that it would not be just and equitable if any contribution pursuant to this Section 7(d) were
to be determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to in the
preceding sentences of this Section 7(d).  The amount paid or payable in respect of any
Claim shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or
defending any such Claim.  No Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.  Notwithstanding anything in this Section 7(d) to
the contrary, no indemnifying party (other than the Company) shall be required
pursuant to this Section 7(d) to contribute any amount in
excess of the net proceeds received by such indemnifying party from the sale of
Registrable Securities in the offering to which the losses, claims, damages or
liabilities of the indemnified parties relate, less the amount of any
indemnification payment made by such indemnifying party pursuant to Section 7(b).

 

(e)           Other Agreements.  Notwithstanding this Section 7,
to the extent that the provisions on indemnification and contribution contained
in the underwriting agreement, if any, entered into in connection with the
underwritten public offering are in conflict with the foregoing provisions, the
provisions in the underwriting agreement shall control.

 

(f)            Payments.  The indemnification and contribution required
by this Section 7 shall be made by periodic payments of the amount
thereof during the course of the investigation or defense, as and when bills
are received or expense, loss, damage or liability is incurred.

 

(g)           Survival.  The indemnification and contribution provided
for under this Agreement will remain in full force and effect regardless of any
investigation made by or on behalf of the indemnified party or any officer,
director or controlling Person of such indemnified party and will survive the
transfer of any Registrable Securities.

 

18

 

8.             REPORTS UNDER
THE EXCHANGE ACT.  With a view
to making available to the Investors all of the benefits of Rule 144 (or
any similar successor rule), the Company agrees to: (i) make and keep
public information available, as those terms are understood and defined in Rule 144
(or any similar successor rule), (ii) file with the SEC in a timely manner
all reports and other documents required of the Company under the Securities
Act and the Exchange Act and (iii) furnish to each Investor so long as
such Investor owns Registrable Securities, promptly upon request, (A) a
written statement by the Company that it has complied with the reporting
requirements of Rule 144 (or any similar successor rule) and the Exchange
Act, (B) a copy of the most recent annual or quarterly report of the
Company and such other reports and documents so filed by the Company and (C) such
other information as may be reasonably requested to permit the Investors to
sell such securities pursuant to Rule 144 (or any similar successor rule)
without registration.

 

9.             MISCELLANEOUS.

 

(a)           Other
Registration Rights.

 

(i)            The Company has not
previously entered into any agreement granting any registration rights with
respect to any of its securities to any Person which have not been fully
satisfied.

 

(ii)           The Company may hereafter
grant to any Person or Persons the right to request the Company to register any
equity securities of the Company (the “Subsequent Registration Rights”),
or any securities convertible or exchangeable into or exercisable for such
securities, without the prior written consent of the holders of the Registrable
Securities; provided, however, that, except for any equity
securities issued to the Investors in the future, the Subsequent Registration
Rights may not have priority over, or parity with, the registration rights of
the Registrable Securities hereunder in any respect and such Subsequent
Registration Rights shall have no piggyback rights on any registration and sale
of Registrable Securities hereunder.

 

(b)           General Piggyback Rights of
the Investors.  If at any
time during the Registration Period, there is not an effective Registration
Statement covering all of the Registrable Securities for any reason whatsoever
and the Company has filed, or is preparing to file, with the SEC a registration
statement relating to an offering for its own account or the account of others
under the Securities Act of any of its equity securities, other than on Form S-4
or Form S-8 (each as promulgated under the Securities Act) or their then
equivalents relating to equity securities to be issued solely in connection
with any acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans, then the Company
shall send to each Investor written notice of such determination and (i) the
Company shall not effect such filing without reasonable prior written notice to
the Investor Representative and (ii) if, within ten (10) days after
receipt of such notice, any such Investor shall so request in writing, the
Company shall include in such registration statement all or any part of such
Registrable Securities such Investor requests to be registered, subject to
customary underwriter cutbacks applicable to all holders of registration
rights, which customary underwriter cutbacks shall be applied such that shares
of Common Stock are included in such registration as follows:  first, all
shares of Common Stock to be offered by the Company and all Registrable
Securities to be offered by Investors, pro rata among the Company and such participating
Investors, and second,

 

19

 

shares of Common Stock to be offered by any other holders of
registration rights.  For the avoidance
of doubt, all of the covenants and obligations of the Company hereunder shall
apply to such piggy back registration, to the extent consistent with this Section 9(b).

 

(c)           Assignment of Registration
Rights.  The registration rights of any
Investor under this Agreement with respect to any Registrable Securities may be
assigned to:

 

(i)            any Person who acquires at
least 714,285 of such Registrable Securities (as adjusted for stock splits,
reverse stock splits, stock dividends and the like); and/or

 

(ii)           any of the following
Persons, if they acquire Registrable Securities: (A) any Affiliate of the
Investor, (B) if the Investor is a partnership, its partners or former
partners in accordance with partnership interests or the estate of any such
partner or former partner or a liquidating trust for the benefit of its
partners, (C) if the Investor is a limited liability company, its members
or former members in accordance with their interest in the limited liability
company, (D) if the Investor is a corporation, its majority owned
subsidiaries or Affiliates thereof or (E) if the Investor is an
individual, the Investor’s family members or trust for the benefit of such
Investor or his or her family members or an entity whose equity owners consist
solely of the Investor and his or her family members.

 

Upon any such permitted
assignment, (i) the Investor shall give the Company written notice at or
prior to the time of such assignment stating the name and address of the
assignee and identifying the shares with respect to which the rights under this
Agreement are being assigned; (ii) such assignee shall agree in writing,
in form and substance reasonably satisfactory to the Company, to be bound to
the same extent and in the same capacity as the Investor by the provisions of
this Agreement; and (iii) such assignee shall acknowledge, immediately following
such assignment, that the further disposition of such securities by such
assignee may be restricted under the Securities Act. In connection with any
such transfer the Company shall, at its sole cost and expense, promptly after
such assignment take such reasonable actions as shall be reasonably acceptable
to the Investors and such permitted transferee to assure that the Registration
Statement and related prospectus are available for use by such permitted
transferee for sales of the Registrable Securities in respect of which the
rights to registration have been so assigned. 
Notwithstanding any other provision of this Agreement, no Person who
acquires securities transferred in violation of this Agreement, or who acquires
securities that are not, or upon acquisition cease to be, Registrable
Securities, shall have any rights under this Agreement with respect to such
securities, and such securities shall not have the benefits afforded hereunder
to Registrable Securities.

 

(d)           Successors and Assigns;
Third Party Beneficiaries. 
Except as otherwise expressly provided herein, all covenants and
agreements contained in this Agreement by or on behalf of any of the parties
hereto will bind and inure to the benefit of the respective permitted successors
and assigns of the parties hereto, whether so expressed or not.

 

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

 

20

 

be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of this
Agreement.

 

(f)            Descriptive Headings.  The descriptive headings of this Agreement
are inserted for convenience of reference only and do not constitute a part of,
and shall not be utilized in interpreting, this Agreement.

 

(g)           Notices.  Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered
personally; (ii) upon receipt, when sent by facsimile (provided confirmation
of transmission is mechanically or electronically generated and kept on file by
the sending party); (iii) one (1) Business Day after deposit with a
nationally recognized overnight delivery service or (iv) five (5) days
after deposit in the U.S. mail, return receipt requested, in each case properly
addressed to the party to receive the same. 
The addresses and facsimile numbers for such communications shall be:

 

	
  If to the Company:

  
	
   

  
	
  GP Strategies Corporation

  
	
  6095 Marshalee Drive

  
	
  Suite 300

  
	
  Elkridge, MD 21075

  
	
  Telephone:

  	
  (410) 379-3600

  
	
  Facsimile:

  	
  (410) 540-5302

  
	
  Attention:

  	
  Kenneth L. Crawford, General Counsel

  
	
   

  	
   

  
	
  With a copy to:

  
	
   

  
	
  Latham & Watkins
  LLP

  
	
  805 Third Avenue

  
	
  New York, New York 10022

  
	
  Telephone:

  	
  (212) 906-1200

  
	
  Facsimile:

  	
  (212) 751-4864

  
	
  Attention:

  	
  David M. Schwartzbaum, Esq.

  
	
   

  	
   

  
	
  If to the Purchaser:

  
	
   

  
	
  Sagard Capital Partners,
  L.P.

  
	
  325 Greenwich Avenue

  
	
  Greenwich, Connecticut
  06830

  
	
  Telephone:

  	
  (203) 629-6700

  
	
  Facsimile:

  	
  (203) 629-6721

  
	
  Attention:

  	
  Daniel Friedberg

  

 

21

 

	
  If to Legal Counsel:

  
	
   

  
	
  Finn Dixon &
  Herling LLP

  
	
  177 Broad Street

  
	
  Stamford, Connecticut
  06901

  
	
  Telephone:

  	
  (203) 325-5000

  
	
  Facsimile:

  	
  (203) 325-5001

  
	
  Email:

  	
  cdowney@fdh.com

  
	
  Attention:

  	
  Charles J. Downey III, Esq.

  

 

If to an Investor, to its
address and facsimile number set forth on the Schedule of Investors attached
hereto, with copies to such Investor’s representatives as set forth on the
Schedule of Investors, or to such other address and/or facsimile number and/or
to the attention of such other person as the recipient party has specified by
written notice given to each other party five (5) days prior to the
effectiveness of such change.  Written
confirmation of receipt or deposit in the U.S. mail, as the case may be, (A) given
by the recipient of such notice, consent, waiver or other communication, (B) mechanically
or electronically generated by the sender’s facsimile machine containing the
time, date, recipient facsimile number and an image of the first page of
such transmission, (C) provided by a courier or overnight courier service
shall be rebuttable evidence of personal service, receipt by facsimile or
receipt from a nationally recognized overnight delivery service or (D) by
a signed return receipt in accordance with clause (i), (ii), (iii),
or (iv) above, respectively.

 

(h)           Governing Law.  All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
the internal laws of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of New
York or any other jurisdictions) that would cause the application of the laws
of any jurisdictions other than the State of New York.  Each party hereby irrevocably submits to the
non-exclusive jurisdiction of the state and federal courts sitting in The City
of New York, Borough of Manhattan, for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is
brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper.  Each party
hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof
to such party at the address for such notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of
process and notice thereof.  Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law.  If any
provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in any other
jurisdiction.  EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A
JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH
OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

22

 

(i)            Amendments and Waivers.  The provisions of this Agreement may be
amended, waived or otherwise modified upon the written agreement of the Company
and the Investor Representative.  Any
waiver, permit, consent or approval of any kind or character on the part of any
holders of any provision or condition of this Agreement must be made in writing
and shall be effective only to the extent specifically set forth in writing.

 

(j)            Specific Performance.  The Company and the Investor acknowledge and
agree that irreparable damage to the other party would occur in the event that
any of the provisions of this Agreement were not performed in accordance with
their specific terms or were otherwise breached.  It is accordingly agreed that each party
shall be entitled to an injunction, injunctions or other equitable relief,
without the necessity of posting a bond, to prevent or cure breaches of the
provisions of this Agreement and to enforce specifically the terms and
provisions hereof, this being in addition to any other remedy to which the
parties may be entitled by law or equity.

 

(k)           Delays or Omissions.  It is agreed that no delay or omission to
exercise any right, power or remedy accruing to any party, upon any breach,
default or noncompliance by another party under this Agreement, shall impair
any such right, power or remedy, nor shall it be construed to be a waiver of
any such breach, default or noncompliance, or any acquiescence therein, or of
or in any similar breach, default or noncompliance thereafter occurring.  All remedies, either under this Agreement, by
law, or otherwise afforded to any party, shall be cumulative and not
alternative.

 

(l)            Final Agreement.  This Agreement constitutes the complete and
final agreement of the parties concerning the matters referred to herein and
supersedes all prior agreements and understandings.

 

(m)          Execution.  This Agreement may be executed in identical
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same agreement. 
This Agreement, once executed by a party, may be delivered to the other
party hereto by facsimile transmission of a copy of this Agreement bearing the
signature of the party so delivering this Agreement.

 

(n)           Consents.  All consents and other determinations to be
made by the Investors pursuant to this Agreement shall be made, unless
otherwise specified in this Agreement, by the Investor Representative.

 

(o)           Construction.  The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent
and no rules of strict construction will be applied against any party.

 

(p)           Termination of Agreement.  This Agreement and all registration rights
granted to an Investor shall terminate and be of no further force or effect
with respect to that Investor if both of the following conditions are
satisfied: (i) all Registrable Securities then held by and issuable to
such Investor (and its affiliates, partners and former partners, members and
former members) may be sold under Rule 144 during any ninety (90) day
period and the certificates evidencing such Registrable Securities bear no
legends restricting the transfer thereof (and, to the extent such securities
are issued in global form, bear an unrestricted CUSIP number) and (ii) the

 

23

 

Company’s Common Stock is traded on a national securities exchange or
quoted on an automated inter-dealer quotation system; provided that Section 7,
Section 9 and any accrued but unpaid obligation of the Company in
respect of Liquidated Damages shall survive any termination under this Section 9(p).

 

*
* * * * *

 

24

 

[Signature Page to GP
Strategies Corporation

Registration Rights
Agreement]

 

IN WITNESS
WHEREOF, the Purchaser and the Company have caused this
Registration Rights Agreement to be duly executed as of the date first written
above.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  GP STRATEGIES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott N. Greenberg

  
	
   

  	
   

  	
  Name:

  	
  Scott N. Greenberg

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  

 

 

[Signature Page to GP
Strategies Corporation

Registration Rights Agreement]

 

IN WITNESS
WHEREOF, the Purchaser and the Company have caused this
Registration Rights Agreement to be duly executed as of the date first written
above.

 

	
   

  	
  PURCHASER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SAGARD CAPITAL PARTNERS, L.P.

  
	
   

  	
  By:

  	
  Sagard Capital Partners GP, Inc.,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Daniel Friedberg

  
	
   

  	
   

  	
  Name:

  	
  Daniel Friedberg

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  

 

 

SCHEDULE OF INVESTORS

 

	
  Investor’s Name

  	
  Investor’s Address, Facsimile Number and Email
  Address

  
	
   

  	
   

  
	
  Sagard Capital Partners, L.P.

  	
  325 Greenwich Avenue

  
	
   

  	
  Greenwich, Connecticut 06830

  
	
   

  	
  Attention:

  	
  Daniel Friedberg

  
	
   

  	
  Facsimile:

  	
  (203) 629-6721

  
	
   

  	
  Email:

  	
  On
  file with the Company

  

 

 

EXHIBIT A

 

Plan of Distribution

 

Each Selling Stockholder (the “Selling Stockholders”) of the
common stock and any of their pledgees, assignees and successors-in-interest
may, from time to time, sell any or all of their shares of common stock covered
hereby on any stock exchange, market or trading facility on which the shares
are traded or in private transactions. 
These sales may be at fixed or negotiated prices.  A Selling Stockholder may use any one or more
of the following methods when selling shares:

 

·                  ordinary brokerage transactions and
transactions in which the broker-dealer solicits purchasers;

 

·                  block trades in which the broker-dealer
will attempt to sell the shares as agent but may position and resell a portion
of the block as principal to facilitate the transaction;

 

·                  purchases by a broker-dealer as principal
and resale by the broker-dealer for its account;

 

·                  an exchange distribution in accordance
with the rules of the applicable exchange;

 

·                  privately negotiated transactions;

 

·                  settlement of short sales entered into
after the effective date of the registration statement of which this prospectus
is a part;

 

·                  in transactions through broker-dealers
that agree with the Selling Stockholders to sell a specified number of such
shares at a stipulated price per share;

 

·                  through the writing or settlement of
options or other hedging transactions, whether through an options exchange or
otherwise;

 

·                  a combination of any such methods of
sale; or

 

·                  any other method permitted pursuant to
applicable law.

 

The Selling Stockholders may also sell shares under Rule 144 under
the Securities Act of 1933, as amended (the “Securities Act”), if
available, rather than under this prospectus.

 

Broker-dealers engaged by the Selling Stockholders may arrange for
other brokers-dealers to participate in sales. 
Broker-dealers may receive commissions or discounts from the Selling
Stockholders (or, if any broker-dealer acts as agent for the purchaser of
shares, from the purchaser) in amounts to be negotiated, but, except as set
forth in a supplement to this Prospectus, in the case of an agency transaction
not in excess of a customary brokerage commission in compliance with FINRA Rule 2440;
and in the case of a principal transaction a markup or markdown in compliance
with FINRA IM-2440.

 

A-1

 

In connection with the sale of the common stock or interests therein,
the Selling Stockholders may enter into hedging transactions with
broker-dealers or other financial institutions, which may in turn engage in
short sales of the common stock in the course of hedging the positions they
assume.  The Selling Stockholders may
also sell shares of the common stock short and deliver these securities to
close out their short positions, or loan or pledge the common stock to
broker-dealers that in turn may sell these securities.  The Selling Stockholders may also enter into
option or other transactions with broker-dealers or other financial
institutions or create one or more derivative securities which require the
delivery to such broker-dealer or other financial institution of shares offered
by this prospectus, which shares such broker-dealer or other financial
institution may resell pursuant to this prospectus (as supplemented or amended
to reflect such transaction).

 

The Selling Stockholders and any broker-dealers or agents that are
involved in selling the shares may be deemed to be “underwriters” within the
meaning of the Securities Act in connection with such sales.  In such event, any commissions received by
such broker-dealers or agents and any profit on the resale of the shares
purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act.  Each Selling
Stockholder has informed the Company that it does not have any written or oral
agreement or understanding, directly or indirectly, with any person to
distribute the Common Stock.

 

The Company is required to pay certain fees and expenses incurred by
the Company incident to the registration of the shares.  The Company has agreed to indemnify the
Selling Stockholders against certain losses, claims, damages and liabilities,
including liabilities under the Securities Act.

 

Because Selling Stockholders may be deemed to be “underwriters” within
the meaning of the Securities Act, they will be subject to the prospectus
delivery requirements of the Securities Act including Rule 172
thereunder.  The Selling Stockholders
have advised us that there is no underwriter or coordinating broker acting in
connection with the proposed sale of the resale shares by the Selling
Stockholders.

 

We agreed to keep this prospectus effective until all of the shares
continuing to have registration rights have been sold pursuant to this
prospectus or Rule 144 under the Securities Act or any other rule of
similar effect.  The resale shares will
be sold only through registered or licensed brokers or dealers if required
under applicable state securities laws. In addition, in certain states, the
resale shares of Common Stock covered hereby may not be sold unless they have
been registered or qualified for sale in the applicable state or an exemption
from the registration or qualification requirement is available and is complied
with.

 

Under applicable rules and regulations under the
Exchange Act, any person engaged in the distribution of the resale shares may
not simultaneously engage in market making activities with respect to the
common stock for the applicable restricted period, as defined in Regulation M,
prior to the commencement of the distribution. 
In addition, the Selling Stockholders will be subject to applicable
provisions of the Exchange Act and the rules and regulations thereunder,
including Regulation M, which may limit the timing of purchases and sales of
shares of the common stock by the Selling Stockholders or any other
person.  We will make copies of this
prospectus available to the Selling Stockholders and have informed them of the
need to deliver a

 

A-2

 

copy of this prospectus
to each purchaser at or prior to the time of the sale (including by compliance
with Rule 172 under the Securities Act).

 

A-3

 

EXHIBIT B

 

GP Strategies Corporation

 

Notice of Registration
Statement

and

Selling Securityholder Questionnaire

 

[Date]

 

Reference is hereby made to
the Registration Rights Agreement (the “Registration Rights
Agreement”) between GP Strategies Corporation (the “Company”) and the Investors named therein.  Pursuant to the Registration Rights Agreement,
the Company has filed or will file with the United States Securities and
Exchange Commission (the “Commission”) a
registration statement on Form S-3 (the “Shelf
Registration Statement”) for the registration and resale under Rule 415
of the Securities Act of 1933, as amended (the “Securities
Act”), of the Company’s common stock issued in connection with the
Company’s recently completed private exchange offers (the “Securities”).  A copy of the Registration Rights Agreement
has been filed with the Commission on Form 8-K and can be obtained from
the Commission’s website at www.sec.gov. 
All capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the Registration Rights Agreement.

 

Each holder of Registrable
Securities (as defined in the Registration Rights Agreement) is entitled to
have the Registrable Securities held by it included in the Shelf Registration
Statement (or a supplement or amendment thereto).  In order to have Registrable Securities
included in the Shelf Registration Statement, this Notice of Registration
Statement and Selling Securityholder Questionnaire (“Notice and
Questionnaire”) must be completed, executed and delivered to the
Company’s counsel at the address set forth herein for receipt ON OR BEFORE [                  ].  Holders of Registrable Securities who do not
properly complete, execute and return this Notice and Questionnaire by such
date (i) will not be named as selling securityholders in the Shelf
Registration Statement and (ii) may not use the Prospectus forming a part
thereof for resales of Registrable Securities.

 

Certain legal consequences
arise from being named as a selling securityholder in the Shelf Registration
Statement and related Prospectus. 
Accordingly, holders and beneficial owners of Registrable Securities are
advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling securityholder in the Shelf
Registration Statement and related Prospectus.

 

B-1

 

ELECTION

 

The undersigned holder (the “Selling Securityholder”) of Registrable Securities hereby
elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3).  The undersigned, by signing and returning
this Notice and Questionnaire, agrees to be bound with respect to such
Registrable Securities by the terms and conditions of this Notice and
Questionnaire and the Registration Rights Agreement, including, without
limitation, Section 5 of the Registration Rights Agreement, as if the
undersigned Selling Securityholder were an original party thereto.

 

Pursuant to the Registration
Rights Agreement, the undersigned has agreed to indemnify and hold harmless the
Company, its officers who sign any Shelf Registration Statement, and each
person, if any, who controls the Company within the meaning of either Section 15
of the Securities Act or Section 20 of the Exchange Act of 1934, as
amended (the “Exchange Act”), against certain
losses arising out of an untrue statement, or the alleged untrue statement, of
a material fact in the Shelf Registration Statement or the related prospectus
or the omission, or alleged omission, to state a material fact required to be
stated in such Shelf Registration Statement or the related prospectus, but only
to the extent such untrue statement or omission, or alleged untrue statement or
omission, was made in reliance on and in conformity with the information
provided in this Notice and Questionnaire.

 

Upon any sale of Registrable
Securities pursuant to the Shelf Registration Statement, the Selling
Securityholder will be required to deliver to the Company and Transfer Agent
the Notice of Transfer set forth in Exhibit C to the Registration Rights
Agreement.

 

The Selling Securityholder
hereby provides the following information to the Company and represents and
warrants that such information is true, accurate and complete:

 

B-2

 

QUESTIONNAIRE

 

	
  (1)

  	
  (a)

  	
  Full
  legal name of Selling Securityholder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Full
  legal name of registered Holder (if not the same as in (a) above) of
  Registrable Securities listed in Item (3) below:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  Address
  for notices to Selling Securityholder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone:

  
	
   

  	
   

  	
  Fax:

  
	
   

  	
   

  	
  Contact
  Person:

  
	
   

  	
   

  	
  E-mail
  for Contact Person:

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  Beneficial
  Ownership of Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except
  as set forth below in this Item (3), the undersigned does not
  beneficially own any Securities.

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Number
  of shares of Registrable Securities beneficially owned:

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Number of shares of Common
  Stock other than Registrable Securities beneficially owned:             

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Number
  of shares of Registrable Securities that the undersigned wishes to be
  included in the Shelf Registration Statement:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  Beneficial
  Ownership of Other Securities of the Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except
  as set forth below in this Item (4), the undersigned Selling
  Securityholder is not the beneficial or registered owner of any other
  securities of the Company, other than the Securities listed above in
  Item (3).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  State
  any exceptions here:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

B-3

 

	
  (5)

  	
  Individuals who
  exercise dispositive powers with respect to the Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If
  the Selling Securityholder is not an entity that is required to file reports
  with the Commission pursuant to Section 13 or 15(d) of the Exchange
  Act (a “Reporting Company”), then
  the Selling Securityholder must disclose the name of the natural person(s) who
  exercise sole or shared dispositive powers with respect to the
  Securities.  Selling Securityholders
  should disclose the beneficial holders, not nominee holders or other such
  others of record.  In addition, the
  Commission has provided guidance that Rule 13d-3 of the Exchange Act
  should be used by analogy when determining the person or persons sharing
  voting and/or dispositive powers with respect to the Securities.

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Is
  the holder a Reporting Company?

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes   o

  	
  No   o

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If
  “No”, please answer Item (5)(b).

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  List
  below the individual or individuals who exercise dispositive powers with
  respect to the Securities:

  
	
   

  	
   

  	
                     

  
	
   

  	
   

  	
                  

  
	
   

  	
   

  	
                   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Please note that the names of the persons listed in (b) above
  will be included in the Shelf Registration Statement and related Prospectus.

  
	
   

  	
   

  	
   

  
	
  (6)

  	
  Relationships
  with the Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except
  as set forth below, neither the Selling Securityholder nor any of its
  affiliates, officers, directors or principal equity holders (5% or more) has
  held any position or office or has had any other material relationship with
  the Company (or its predecessors or affiliates) during the past three years.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  State
  any exceptions here:

  
	
   

  	
   

  	
                    

  
	
   

  	
   

  	
                    

  
	
   

  	
   

  	
                    

  
	
   

  	
   

  	
   

  
	
  (7)

  	
  Plan
  of Distribution:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except
  as set forth below, the undersigned Selling Securityholder intends to
  distribute the Registrable Securities listed above in Item (3) only in
  accordance with the “Plan of Distribution” section attached as Exhibit A
  to the Registration Rights Agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  State
  any exceptions here:

  
	
   

  	
   

  	
                    

  
	
   

  	
   

  	
                    

  
	
   

  	
   

  	
                    

  

 

B-4

 

	
   

  	
   

  	
  Note:  In no event
  may such method(s) of distribution take the form of an Underwritten
  Offering of Registrable Securities without the prior written agreement of the
  Company.

  
	
   

  	
   

  	
   

  
	
  (8)

  	
  Broker-Dealers:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Commission requires that all Selling Securityholders
  that are registered broker-dealers or affiliates of registered broker-dealers
  be so identified in the Shelf Registration Statement.  In addition, the Commission requires that
  all Selling Securityholders that are registered broker-dealers be named as
  underwriters in the Shelf Registration Statement and related Prospectus, even
  if they did not receive the Registrable Securities as compensation for
  underwriting activities.

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  State whether the
  undersigned Selling Securityholder is a registered broker-dealer:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes   o

  	
  No   o

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  If the answer to
  (a) is “Yes”, you must answer (i) and (ii) below, and
  (iii) below if applicable. Your answers to
  (i) and (ii) below, and (iii) below if applicable, will be
  included in the Shelf Registration Statement and related Prospectus.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)     Were
  the Securities acquired as compensation for underwriting activities?

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes   o

  	
  No   o

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If
  you answered “Yes”, please provide a brief description of the transaction(s) in
  which the Securities were acquired as compensation:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)     Were
  the Securities acquired for investment purposes?

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes   o

  	
  No   o

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)     If you
  answered “No” to both (i) and (ii), please explain the Selling
  Securityholder’s reason for acquiring the Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  State whether the
  undersigned Selling Securityholder is an affiliate of a registered
  broker-dealer and, if so, list the name(s) of the broker-dealer
  affiliate(s):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes   o

  	
  No   o

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

B-5

 

	
   

  	
  (d)

  	
  If
  you answered “Yes” to question (c) above:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)     Did the
  undersigned Selling Securityholder purchase Registrable Securities in the
  ordinary course of business?

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes   o

  	
  No   o

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If
  the answer is “No” to question (d)(i), provide a brief explanation of the
  circumstances in which the Selling Securityholder acquired the Registrable
  Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)     At the time
  of the purchase of the Registrable Securities, did the undersigned Selling
  Securityholder have any agreements, understandings or arrangements, directly
  or indirectly, with any person to dispose of or distribute the Registrable
  Securities?

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes   o

  	
  No   o

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If
  the answer is “Yes” to question (d)(ii), provide a brief explanation of such
  agreements, understandings or arrangements:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If the answer is “No” to Item (8)(d)(i) or “Yes” to Item
  (8)(d)(ii), you will be named as an underwriter in the Shelf Registration
  Statement and the related Prospectus.

  
	
   

  	
   

  	
   

  
	
  (9)

  	
  Hedging and short
  sales:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  State
  whether the undersigned Selling Securityholder has or will enter into
  “hedging transactions” with respect to the Registrable Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yes   o

  	
  No   o

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If “Yes”, provide below a complete description of the hedging
  transactions into which the undersigned Selling Securityholder has entered or
  will enter and the purpose of such hedging transactions, including the extent
  to which such hedging transactions remain in place:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Set forth below is
  Interpretation A.65 of the Commission’s July 1997 Manual of Publicly
  Available Interpretations regarding short selling:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “An issuer filed a
  Form S-3 registration statement for a secondary offering of common stock
  which is not yet effective.  One of the
  selling shareholders wanted to do a short sale of common stock “against the
  box” and cover the short sale with registered shares after the effective
  date.  The issuer was advised that the
  short sale could not be made 

  

 

B-6

 

	
   

  	
   

  	
  before the registration
  statement becomes effective, because the shares underlying the short sale are
  deemed to be sold at the time such sale is made.  There would, therefore, be a violation of
  Section 5 if the shares were effectively sold prior to the effective
  date.”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By returning this
  Notice and Questionnaire, the undersigned Selling Securityholder will be
  deemed to be aware of the foregoing interpretation.

  

 

*     *     *     *     *

 

By signing below, the Selling Securityholder
acknowledges that it understands its obligation to comply, and agrees that it
will comply, with the prospectus delivery and other provisions of the
Securities Act and the Exchange Act, particularly Regulation M (or any
successor rule or regulation).

 

The Selling Securityholder hereby acknowledges its
obligations under the Registration Rights Agreement to indemnify and hold
harmless the Company and certain other persons as set forth in the Registration
Rights Agreement.

 

In the event that the Selling Securityholder
transfers all or any portion of the Registrable Securities listed in Item (3) above
after the date on which such information is provided to the Company, the
Selling Securityholder agrees to notify the transferee(s) at the time of
the transfer of its rights and obligations, if any, under this Notice and
Questionnaire and the Registration Rights Agreement (including Section 8(e) of
the Registration Rights Agreement).

 

By signing below, the Selling Securityholder
consents to the disclosure of the information contained herein in its answers
to Items (1) through (9) above and the inclusion of such
information in the Shelf Registration Statement and related Prospectus.  The Selling Securityholder understands that
such information will be relied upon by the Company in connection with the
preparation of the Shelf Registration Statement and related Prospectus.

 

In accordance with the Selling Securityholder’s
obligation under Section 3(a) of the Registration Rights Agreement to
provide such information as may be required by law for inclusion in the Shelf
Registration Statement, the Selling Securityholder agrees to promptly notify
the Company of any inaccuracies or changes in the information provided herein
which may occur subsequent to the date hereof at any time while the Shelf
Registration Statement remains in effect and to provide such additional
information that the Company may reasonably request regarding such Selling
Securityholder and the intended method of distribution of Registrable
Securities in order to comply with the Securities Act.  Except as otherwise provided in the
Registration Rights Agreement, all notices hereunder and pursuant to the
Registration Rights Agreement shall be made in writing, by hand-delivery,
first-class mail, or air courier guaranteeing overnight delivery as follows:

 

B-7

 

	
   

  	
  (i)

  	
  To the Company:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  GP Strategies Corporation

  
	
   

  	
   

  	
   

  	
  6095 Marshalee Drive

  
	
   

  	
   

  	
   

  	
  Suite 300

  
	
   

  	
   

  	
   

  	
  Elkridge, MD 21075

  
	
   

  	
   

  	
   

  	
  Attention:     Kenneth
  L. Crawford, General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  With
  a copy to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Latham &
  Watkins LLP

  
	
   

  	
   

  	
   

  	
  805
  Third Avenue

  
	
   

  	
   

  	
   

  	
  New
  York, New York 10022

  
	
   

  	
   

  	
   

  	
  Attention:     David
  M. Schwartzbaum, Esq.

  

 

Once this Notice and Questionnaire is executed by
the Selling Securityholder and received by the Company, the terms of this
Notice and Questionnaire, and the representations and warranties contained
herein, shall be binding on, shall inure to the benefit of and shall be
enforceable by the respective successors, heirs, personal representatives, and
assigns of the Company and the Selling Securityholder (with respect to the
Registrable Securities beneficially owned by such Selling Securityholder and
listed in Item (3) above).  This
Notice and Questionnaire shall be governed in all respects by the laws of the
State of New York.

 

B-8

 

IN WITNESS WHEREOF, the undersigned, by authority
duly given, has caused this Notice and Questionnaire to be executed and delivered
either in person or by its duly authorized agent.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
                                             

  	
   

  
	
   

  	
  Selling
  Securityholder

  	
   

  
	
   

  	
  (Print/type
  full legal name of holder of Registrable Securities)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND
QUESTIONNAIRE FOR RECEIPT ON OR BEFORE [                      ]
TO THE COMPANY AT:

 

GP
Strategies Corporation

6095
Marshalee Drive

Suite 300

Elkridge,
MD  21075

Attention:  Kenneth L. Crawford, General Counsel

 

B-9

 

EXHIBIT C

 

NOTICE OF TRANSFER PURSUANT
TO REGISTRATION STATEMENT

 

GP
Strategies Corporation

c/o
Computershare

[ADDRESS]

Attention:  Transfer Agent and Registrar

	
   

  	
  Re:

  	
  GP
  Strategies Corporation (the “Company”)

  
	
   

  	
   

  	
  Common
  Stock

  

 

Dear Sirs:

 

Please be advised that                                              has
transferred
                        
shares of the above-referenced Common Stock pursuant to an effective
Registration Statement on Form S-3 (File No. 333-           )
filed by the Company.

 

We hereby certify that the prospectus delivery
requirements, if any, of the Securities Act of 1933, as amended, have been
satisfied and that the above-named beneficial owner of the Common Stock is
named as a “Selling Holder” in the Prospectus dated [date]
or in amendments or supplements thereto, and that the number of shares of
Common Stock transferred equals the number of shares of Common Stock listed in
such Prospectus as amended or supplemented opposite such owner’s name.

 

Dated:

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Authorized Signature)

  

 

C-1Exhibit 10.3

 

AMENDMENT TO EMPLOYMENT AGREEMENT

 

This
Amendment is dated and made as of December 30, 2009, modifying the
Employment Agreement dated as of July 1, 1999 (together with any and all
previous amendments, the “Employment Agreement”) between GP Strategies
Corporation (the “Company”) and Scott N. Greenberg (“Employee”).

 

Whereas,
the Company and Employee wish to amend the Employment Agreement to extend the
minimum term of employment, modify the definition of “change in control,” and
to provide for the future award of stock options if an investment in the
Company by Sagard Capital Partners, L.P. occurs.

 

NOW,
THEREFORE, intending to be legally bound, and for good and valuable
consideration, including the mutual covenants set forth herein, the Company and
the Employee hereby agree to amend the Employment Agreement as follows:

 

1.             Section 3 (Term of
Employment) of the Employment Agreement is hereby amended to read in its
entirety as follows:

 

“Unless
sooner terminated in accordance with the provisions of this Agreement the term
of employment of Employee by the Company pursuant to this Agreement shall be
for the period (the “Employment Period”) commencing on the date hereof and
ending on the earlier of (a) the date determined in accordance with Section 10
below, (b) the date which is not less than two (2) years after the
Company or Employee has given written notice to the other of its decision to
end the Employment Period (but in no case prior to December 31, 2012), or (c) the
date mutually agreed in writing by Company and Employee.”

 

2.             Subsection 5(d) of the
Employment Agreement is hereby amended by adding the following:

 

“Provided
that the Company received the investment by Sagard Capital Partners, L.P.
contemplated by that certain Securities Purchase Agreement dated December 30,
2009, the Company shall grant to Employee under its 2003 Incentive Stock Plan,
effective January 8, 2010, options to purchase 120,000 shares of the
common stock of the Company at an exercise price equal to the market price on
the date of grant.  Such options shall
vest 20% on the first and each subsequent anniversary of the date of grant,
shall terminate six (6) years after the date of grant, and shall
accelerate as provided in Section 11(d)(ii)(C).”

 

3.             Notwithstanding anything to
the contrary in Subsection 10(d) of the Employment Agreement, with respect
to beneficial ownership, directly or indirectly, of securities of the Company
by Sagard Capital Partners, L.P. and/or its Affiliate(s) (collectively, 

 

1

 

“Sagard”),
no “change in control” or “management change in control” shall be deemed to
occur unless Sagard is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company
representing 25% or more of the combined voting power of the Company’s then
outstanding securities.  For purposes of
this Amendment, the term “Affiliate” shall have the meaning ascribed to it in
the Securities Purchase Agreement dated December 30, 2009 between the
Company and Sagard.

 

4.             Except as otherwise amended
hereby, the Employment Agreement shall remain unmodified and in full force and
effect as previously amended.

 

IN
WITNESS WHEREOF, the Company and the Employee have duly executed this Amendment
as of the date first above written.

 

GP
STRATEGIES CORPORATION

 

 

	
  By:

  	
  /s/ Harvey P. Eisen

  	
   

  	
  /s/ Scott N. Greenberg

  
	
   

  	
  Chairman of the Board

  	
   

  	
  Scott N. Greenberg

  

 

2

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