Document:

exv10w40

Exhibit 10.40

INDEMNIFICATION AGREEMENT

     This INDEMNIFICATION AGREEMENT (the “Agreement”), is effective as of _________________, 2011,
between Thermadyne Technologies Holdings, Inc., a Delaware corporation (the “Company”), and
_____________________ (“Indemnitee”).

     WHEREAS, the Board of Directors of the Company has determined that it is in the best interests
of the Company and the Company’s stockholders to attract and retain the most capable persons as
directors and officers of the Company; and

     WHEREAS, the Board of Directors, after reasonable investigation, has determined that the
liability insurance coverage presently available to the Company may be inadequate in certain
circumstances to cover all possible exposure for which Indemnitee should be protected and that the
Company should act to assure such persons that there will be adequate certainty of protection
through a combination of insurance and indemnification against risks of claims and actions against
them arising out of their service to and activities on behalf of the Company; and

     WHEREAS, the Amended and Restated Certificate of Incorporation of the Company (together with
the Company’s Amended and Restated Bylaws, as amended to date, the “Charter Documents”) provides
for indemnification of its officers and directors to the fullest extent permitted by Section 145 of
the General Corporation Law of the State of Delaware (the “DGCL”), and the Company wishes to
clarify and enhance the rights and obligations of the Company and Indemnitee with respect to
indemnification; and

     WHEREAS, Section 145 of the DGCL, under which the Company is organized, empowers the Company
to indemnify its directors, officers, employees and agents by agreement and to indemnify persons
who serve, at the request of the Company, as the directors, officers, employees or agents of other
corporations or enterprises, and expressly provides that the indemnification provided by Section
145 is not exclusive;

     WHEREAS, in order to induce and encourage highly experienced and capable persons such as
Indemnitee to serve and continue to serve as directors and officers of the Company and in any other
capacity with respect to the Company, and to otherwise promote the desirable end that such persons
will resist what they consider unjustified lawsuits and claims made against them in connection with
the good faith performance of their duties to the Company, with the knowledge that certain costs,
judgments, penalties, fines, liabilities and expenses incurred by them in their defense of such
litigation are to be borne by the Company and they will receive the maximum protection against such
risks and liabilities as may be afforded by law, the Board of Directors of the Company has
determined that the contractual indemnification as set forth herein is not only reasonable and
prudent but also promotes the best interests of the Company and its stockholders; and

     WHEREAS, the Company desires to have Indemnitee serve or continue to serve as a director or
officer of the Company and in such other capacity with respect to the Company as the Company may
request, as the case may be, free from undue concern for unpredictable, inappropriate or
unreasonable legal risks and personal liabilities by reason of Indemnitee acting

 

 

in good faith in the performance of Indemnitee’s duty to the Company; and Indemnitee desires
to continue so to serve the Company, provided, and on the express condition, that he or she is
furnished with the indemnity set forth hereinafter;

     Now, therefore, in consideration of Indemnitee’s willingness to serve or continue to serve as
a director or officer of the Company, the parties hereto agree as follows:

     1. Service by Indemnitee. Indemnitee will serve and/or continue to serve as a
director or officer of the Company or, at the Company’s request and the agreement of the
Indemnitee, another enterprise, faithfully and to the best of Indemnitee’s ability so long as
Indemnitee is duly elected or appointed and until such time as Indemnitee is removed as permitted
by law or tenders a resignation in writing.

     2. Indemnification. The Company shall indemnify Indemnitee to the fullest extent
permitted by the DGCL in effect on the date hereof or as such law may from time to time be amended
(but, in the case of any such amendment, only to the extent that such amendment permits the Company
to provide broader indemnification rights than said law permitted the Company to provide prior to
such amendment). Without diminishing the scope of the indemnification provided by this Section, the
rights of indemnification of Indemnitee provided hereunder shall include but shall not be limited
to those rights hereinafter set forth, except that no indemnification shall be paid to Indemnitee:

     (a) to the extent expressly prohibited by the DGCL;

     (b) for which payment is actually made to Indemnitee under a valid and collectible
insurance policy or under a valid and enforceable indemnity clause, by-law or agreement of
the Company or any other company or organization Indemnitee serves as a director, officer,
employee or agent at the request of the Company, except in respect of any indemnity
exceeding the payment under such insurance policy, indemnity clause, by-law or agreement;

     (c) for prosecution of a claim brought by Indemnitee in an action, suit or proceeding,
or part thereof, initiated by Indemnitee, except a judicial proceeding or arbitration
pursuant to Section 10 below to enforce rights under this Agreement, unless the action, suit
or proceeding (or part thereof) was authorized by the Board of Directors of the Company;

     (d) with respect to any action, suit or proceeding brought by or on behalf of the
Company against Indemnitee that is authorized by the Board of Directors of the Company,
except as provided in Sections 4, 5, 6 and 10 below;

     (e) to indemnify Indemnitee on account of any proceeding if and to the extent that
final judgment is rendered against Indemnitee for payment or an accounting of profits
arising from the purchase or sale by Indemnitee of securities in violation of Section 16(b)
of the Securities Exchange Act of 1934, as amended, or any similar successor statute; or

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     (f) to indemnify Indemnitee in connection with proceedings or claims involving the
enforcement of non-compete and/or non-disclosure agreements or the non-compete and/or
non-disclosure provisions of employment, consulting or similar agreements the Indemnitee may
be a party to with the Company, or any subsidiary of the Company or any other applicable
foreign or domestic corporation, partnership, joint venture, trust or other enterprise, if
any.

     3. Indemnity in Proceedings Other than an Action by or in the Right of the Company.
Except as limited by Section 2 above, Indemnitee shall be entitled to the indemnification rights
provided in this Section if Indemnitee is a party or is threatened to be made a party to any
Proceeding (other than an action by or in the right of the Company) by reason of the fact that
Indemnitee is or was a director, officer, employee or agent of the Company, or is or was serving at
the request of the Company as a director, officer, employee or agent (which, for purposes of this
Agreement, shall include a trustee, fiduciary, partner or manager or similar capacity ) of any
other entity (which, for purposes of this Agreement, shall include another corporation,
partnership, joint venture, sole proprietorship, trust, employee benefit plan or other enterprise),
or by reason of anything done or not done by Indemnitee in any such capacity. Pursuant to this
Section, Indemnitee shall be indemnified against all costs, judgments, penalties, fines,
liabilities, amounts paid in settlement by or on behalf of Indemnitee, and Expenses actually and
reasonably incurred by Indemnitee in connection with such Proceeding, if Indemnitee acted in good
faith and in a manner he reasonably believed to be in or not opposed to the best interests of the
Company, and with respect to any criminal Proceeding, had no reasonable cause to believe his or her
conduct was unlawful. If Indemnitee is serving as a director, officer, employee or agent of
another entity affiliated with the Company, then there shall be a rebuttable presumption that
Indemnitee is doing so at the request of the Company.

     4. Indemnity in Proceedings by or in the Right of the Company. Except as limited by
Section 2 above, Indemnitee shall be entitled to the indemnification rights provided in this
Section if Indemnitee was or is a party or is threatened to be made a party to any Proceeding
brought by or in the right of the Company to procure a judgment in its favor by reason of the fact
that Indemnitee is or was a director, officer, employee or agent of the Company, or is or was
serving at the request of the Company as a director, officer, employee or agent of any other
entity, or by reason of anything done or not done by Indemnitee in any such capacity. Pursuant to
this Section, Indemnitee shall be indemnified against all costs, judgments, penalties, fines,
liabilities, amounts paid in settlement by or on behalf of Indemnitee, and Expenses actually and
reasonably incurred by Indemnitee in connection with such Proceeding if Indemnitee acted in good
faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests
of the Company; provided, however, that no such indemnification shall be made in respect of any
claim, issue, or matter as to which the DGCL expressly prohibits such indemnification by reason of
any adjudication of liability of Indemnitee to the Company, unless and only to the extent that the
Court of Chancery of the State of Delaware or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability but in view of all the
circumstances of the case, Indemnitee is entitled to indemnification for such costs, judgments,
penalties, fines, liabilities, amounts paid in settlement and Expenses as such court shall deem
proper.

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     5. Indemnification for Costs, Charges and Expenses of Successful Party.
Notwithstanding the limitations of Section 2(d), 3 and 4 above, to the extent that Indemnitee has
been successful, on the merits or otherwise, in whole or in part, in defense of any action, suit or
proceeding (including an action, suit or proceeding brought by or in the right of the Company) or
in defense of any claim, issue or matter therein, Indemnitee shall be indemnified against all
Expenses actually and reasonably incurred in connection therewith. For purposes of this Agreement
and without limiting the foregoing, if any action, suit or proceeding is disposed of, on the merits
or otherwise (including a disposition without prejudice), without (i) the disposition being adverse
to Indemnitee, (ii) an adjudication that Indemnitee was liable to the Company, (iii) a plea of
guilty or nolo contendere by Indemnitee, (iv) an adjudication that Indemnitee did not act in good
faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests
of the Company, and (v) with respect to any criminal proceeding, an adjudication that Indemnitee
had reasonable cause to believe Indemnitee’s conduct was unlawful, Indemnitee shall be considered
for the purposes hereof to have been wholly successful with respect thereto.

     6. Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of the costs, judgments,
penalties, fines, liabilities, amounts paid in settlement or Expenses actually and reasonably
incurred in connection with any action, suit or proceeding (including an action, suit or proceeding
brought by or in the right of the Company), but not, however, for all of the total amount thereof,
the Company shall nevertheless indemnify Indemnitee for the portion of such costs, judgments,
penalties, fines, liabilities, amounts paid in settlement and Expenses actually and reasonably
incurred to which Indemnitee is entitled.

     7. Indemnification for Expenses of a Witness. Notwithstanding any other provision of
this Agreement, to the maximum extent permitted by applicable law, Indemnitee shall be entitled to
indemnification against all Expenses actually and reasonably incurred or suffered by Indemnitee or
on Indemnitee’s behalf if Indemnitee appears as a witness or otherwise incurs legal or other
Expenses as a result of or related to Indemnitee’s service as a director, officer, employee or
agent of the Company, or Indemnitee’s service at the request of the Company as a director, officer,
employee or agent of any other entity, in any threatened, pending or completed legal,
administrative, investigative or other proceeding or matter to which Indemnitee neither is, nor is
threatened to be made, a party.

     8. Determination of Entitlement to Indemnification. Upon written request by Indemnitee
for indemnification pursuant to Sections 3, 4, 5, 6 or 7, the entitlement of Indemnitee to
indemnification, to the extent not provided pursuant to the terms of this Agreement, shall, other
than in case of a Change of Control, be determined by the following person or persons who shall be
empowered to make such determination: (a) the Board of Directors of the Company by a majority vote
of Disinterested Directors, whether or not such majority constitutes a quorum; (b) a committee of
Disinterested Directors designated by a majority vote of such directors, whether or not such
majority constitutes a quorum; or (c) if there are no Disinterested Directors, or if the
Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board of
Directors, a copy of which shall be delivered to Indemnitee. Other than in case of a Change of
Control, such Independent Counsel shall be selected by the Board of Directors and approved by
Indemnitee. Upon failure of the Board so to select such Independent Counsel or upon failure of

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Indemnitee so to approve, such Independent Counsel shall be selected by lot from among the ten
(10) law firms which, according to publicly available sources, have the most lawyers practicing in
offices located in St. Louis, Missouri (excluding firms that, in any of their offices, have acted
as counsel for the Company or Indemnitee or any other party to the action, suit or proceeding or
any affiliate of such person). Such determination of entitlement to indemnification shall be made
not later than 30 calendar days after receipt by the Company of a written request for
indemnification. Such request shall include documentation or information which is necessary for
such determination and which is reasonably available to Indemnitee. Any Expenses incurred by
Indemnitee in connection with a request for indemnification or payment of Expenses hereunder, under
any other agreement, any provision of the Charter Documents or any directors’ and officers’
liability insurance, shall be borne by the Company. The Company hereby indemnifies Indemnitee for
any such Expense and agrees to hold Indemnitee harmless therefrom irrespective of the outcome of
the determination of Indemnitee’s entitlement to indemnification. If the person making such
determination shall determine that Indemnitee is entitled to indemnification as to part (but not
all) of the application for indemnification, such person shall reasonably prorate such partial
indemnification among the claims, issues or matters at issue at the time of the determination.

     The Company agrees that if there is a Change in Control of the Company then the entitlement of
Indemnitee with respect to all matters thereafter arising concerning the rights of Indemnitee to
indemnity payments under this Agreement or any other agreement or Charter Document now or hereafter
in effect relating to events indemnifiable under this Agreement, shall be determined by Independent
Counsel in a written opinion. In case of a Change of Control, Independent Counsel shall be selected
by Indemnitee and approved by the Company (which approval shall not be unreasonably withheld). If
Indemnitee and the Company are unable to agree on the selection of Independent Counsel, such
Independent Counsel shall be selected by lot from among the ten (10) law firms which, according to
publicly available sources, have the most lawyers practicing in offices located in St. Louis,
Missouri (excluding firms that, in any of their offices, have acted as counsel for the Company or
Indemnitee or any other party to the action, suit or proceeding or any affiliate of such person).
Independent Counsel, among other things, shall render its written opinion to the Company and
Indemnitee as to whether and to what extent the Indemnitee would be permitted to be indemnified.
The Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to
indemnify fully such counsel against any and all expenses (including attorneys’ fees), claims,
liabilities and damages arising out of or relating to this Agreement or its engagement pursuant
hereto.

     9. Presumptions and Effect of Certain Proceedings. The Secretary of the Company shall,
promptly upon receipt of Indemnitee’s request for indemnification, advise in writing the Board of
Directors or such other person or persons empowered to make the determination as provided in
Section 8 above that Indemnitee has made such request for indemnification. Upon making such request
for indemnification, Indemnitee shall be presumed to be entitled to indemnification hereunder and
the Company shall have the burden of proof by clear and convincing evidence in making any
determination contrary to such presumption. If the person or persons so empowered to make such
determination shall have failed to make the requested determination with respect to indemnification
within 30 calendar days after receipt by the Company of such request, a requisite determination of
entitlement to indemnification shall be deemed to have been made and

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Indemnitee shall be absolutely entitled to such indemnification, absent actual and material
fraud in the request for indemnification. The termination of any Proceeding described in Sections 3
or 4 above by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its
equivalent, shall not, of itself: (a) create a presumption that Indemnitee did not act in good
faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, or, with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that Indemnitee’s conduct was unlawful; or (b) otherwise adversely
affect the rights of Indemnitee to indemnification except as may be provided herein.

     10. Remedies of Indemnitee in Cases of Determination not to Indemnify or not to Pay
Expenses or Other Failure to Indemnify or Pay Expenses. In the event that a determination is
made that Indemnitee is not entitled to indemnification hereunder or if payment has not been timely
made following a determination of entitlement to indemnification pursuant to Sections 8 and 9
above, or if Expenses are not paid pursuant to Section 15 below, Indemnitee shall be entitled to
final adjudication in a court of competent jurisdiction of entitlement to such indemnification or
payment. Alternatively, Indemnitee at Indemnitee’s option may seek an award in an arbitration to be
conducted by a single arbitrator pursuant to the rules of the American Arbitration Association,
such award to be made within sixty days following the filing of the demand for arbitration. The
Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration
or any other claim. The determination in any such judicial proceeding or arbitration shall be made
de novo and Indemnitee shall not be prejudiced by reason of a determination (if so made) pursuant
to Sections 8 or 9 that Indemnitee is not entitled to indemnification. If a determination is made
or deemed to have been made pursuant to the terms of Section 8 or 9 above that Indemnitee is
entitled to indemnification, the Company shall be bound by such determination and is precluded from
asserting that such determination has not been made or that the procedure by which such
determination was made is not valid, binding and enforceable. The Company further agrees to
stipulate in any such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement and is precluded from making any assertions to the contrary. If the
court or arbitrator shall determine that Indemnitee is entitled to any indemnification or any
payment of Expenses hereunder, the Company shall pay all Expenses actually and reasonably incurred
by Indemnitee in connection with such adjudication or award in arbitration (including, but not
limited to, any appellate Proceedings).

     11. Other Rights to Indemnification. Indemnification and payment of Expenses provided
by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may now or
in the future be entitled under any provision of the Charter Documents or other organizational
documents of the Company, vote of stockholders or Disinterested Directors, provision of law,
agreement or otherwise. To the extent that a change in the DGCL (whether by statute or judicial
decision) permits greater indemnification by agreement than would be afforded currently under the
Charter Documents and this Agreement, it is the intent of the parties hereto that Indemnitee shall
enjoy by this Agreement the greater benefits so afforded by such change.

     12. Expenses to Enforce Agreement. In the event that Indemnitee is subject to or
intervenes in any Proceeding in which the validity or enforceability of this Agreement is at issue
or seeks an adjudication or award in arbitration to enforce Indemnitee’s rights under, or to

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recover damages for breach of, this Agreement, Indemnitee, if Indemnitee prevails in whole or
in part in such action, shall be entitled to recover from the Company and shall be indemnified by
the Company against any actual Expenses incurred by Indemnitee.

     13. Continuation of Indemnity. All agreements and obligations of the Company contained
herein shall continue during the period Indemnitee is a director, officer, employee or agent of the
Company or is serving at the request of the Company as a director, officer, employee or agent of
any other entity and shall continue thereafter with respect to any possible claims based on the
fact that Indemnitee was a director, officer, employee or agent of the Company or was serving at
the request of the Company as a director, officer, employee or agent of any other entity. This
Agreement shall be binding upon all successors and assigns of the Company (including any transferee
of all or substantially all of its assets and any successor by merger or operation of law) and
shall inure to the benefit of the heirs, personal representatives and estate of Indemnitee. The
Company shall require and cause any direct or indirect successor (whether by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Company,
by written agreement in form and substance reasonably satisfactory to Indemnitee, expressly to
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform if no such succession had taken place.

     14. Notification and Defense of Claim. Promptly after receipt by Indemnitee of notice
of any Proceeding, Indemnitee will, if a claim in respect thereof is to be made against the Company
under this Agreement, notify the Company in writing of the commencement thereof; but the failure so
to notify the Company will not relieve it from any liability that it may have to Indemnitee, except
to the extent but only to the extent the Company is actually and materially prejudiced in its
defense of such Proceeding as a result of such failure. Notwithstanding any other provision of this
Agreement, with respect to any such Proceeding of which Indemnitee notifies the Company:

     (a) The Company shall be entitled to participate therein at its own expense; and

     (b) Except as otherwise provided in this Section 14(b), to the extent that it may wish,
the Company, jointly with any other indemnifying party similarly notified, shall be entitled
to assume the defense thereof, with counsel satisfactory to Indemnitee. After notice from
the Company to Indemnitee of its election so to assume the defense thereof, the Company
shall not be liable to Indemnitee under this Agreement for any expenses of counsel
subsequently incurred by Indemnitee in connection with the defense thereof except as
otherwise provided below. Indemnitee shall have the right to employ Indemnitee’s own counsel
in such Proceeding, but the fees and expenses of such counsel incurred after notice from the
Company of its assumption of the defense thereof and engagement of counsel with respect
thereto shall be at the expense of Indemnitee, unless (i) the employment of counsel by
Indemnitee has been authorized by the Company, (ii) Indemnitee or Indemnitee’s counsel shall
have reasonably concluded that there may be a conflict of interest between the Company and
Indemnitee in the conduct of the defense of such action or (iii) the Company shall not have
delivered to Indemnitee, within a reasonable time before the expiration of the time period
allotted by law to Indemnitee to move, answer or otherwise plead in response to the notice
of the commencement of such

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Proceeding, notice of its assumption of the defense thereof and engagement of counsel
with respect thereto, in each of which cases the fees and expenses of Indemnitee’s counsel
shall be at the expense of the Company. The Company shall not be entitled to assume the
defense of any Proceeding brought by or in the right of the Company or as to which
Indemnitee or Indemnitee’s counsel shall have made the conclusion provided for in (ii)
above; and

     (c) If the Company has assumed the defense of a Proceeding, the Company shall not be
liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of
any Proceeding effected without the Company’s written consent. The Company shall not settle
any Proceeding in any manner that would impose any penalty or limitation on or disclosure
obligation with respect to Indemnitee, or not include the full release of Indemnitee from
all liability in respect of such Proceeding, without Indemnitee’s written consent. Neither
the Company nor Indemnitee will unreasonably withhold its consent to any proposed
settlement.

     15. Payment of Expenses. All Expenses incurred by Indemnitee in advance of the final
disposition of any Proceeding or in connection with a determination of entitlement to
indemnification pursuant to Section 10 above, including the enforcement of this provision, shall be
paid by the Company at the request of Indemnitee, each such payment to be made within 20 calendar
days after the receipt by the Company of a statement or statements from Indemnitee requesting such
payment or payments from time to time. Indemnitee’s entitlement to such Expenses shall include
those incurred in connection with any action, suit or proceeding by or against Indemnitee seeking a
judgment in court or an adjudication or award in arbitration pursuant to this Agreement (including
the enforcement of this provision). Such statement or statements shall reasonably evidence the
expenses and costs incurred by Indemnitee in connection therewith and shall include or be
accompanied by an undertaking by or on behalf of Indemnitee to reimburse such amount if it shall
ultimately be determined by a court of competent jurisdiction, in a judgment no longer subject to
appeal, that Indemnitee is not entitled to be indemnified by the Company. The undertaking shall be
accepted without reference to Indemnitee’s financial ability to repay such advanced Expenses and
without any requirement to post security therefor. Advances are deemed to be an obligation of the
Company to Indemnitee and shall in no event be deemed a personal loan.

     16. Separability; Prior Indemnification Agreements. If any provision or provisions of
this Agreement (including any provision within a single section, paragraph or sentence) shall be
held to be invalid, illegal or unenforceable for any reason whatsoever (a) the validity, legality
and enforceability of the remaining provisions of this Agreement (including without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not by themselves invalid, illegal or unenforceable) shall not
in any way be affected or impaired thereby, and (b) to the fullest extent possible, the provisions
of this Agreement (including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent of the
parties that the Company provide protection to Indemnitee to the fullest enforceable extent.
Except with respect to any pending claim or Proceeding against Indemnitee, this Agreement shall
supersede

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and replace any prior indemnification agreements entered into by and between the Company and
Indemnitee.

     17. Contribution. In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for herein is held by a court of competent
jurisdiction to be unavailable to Indemnitee in whole or in part, it is agreed that, in such event,
the Company shall, to the fullest extent permitted by law, contribute to the payment of
Indemnitee’s Expenses, judgments, fines, or penalties actually levied against Indemnitee or amounts
paid in settlement by or on behalf of Indemnitee, in an amount that is just and equitable in the
circumstances, taking into account, among other things, contributions by other directors and
officers of the Company or others pursuant to indemnification agreements or otherwise; provided,
that, without limiting the generality of the foregoing, such contribution shall not be required
where such holding by the court is due to (i) the failure of Indemnitee to meet the standard of
conduct set forth in Section 3 or Section 4, as applicable, of this Agreement or (ii) any
limitation on indemnification set forth in Section 2 or 14(c) hereof.

     18. Insurance.

     (a) The Company covenants and agrees that, as long as Indemnitee shall be entitled to
indemnification under the terms of this Agreement, including Section 11 hereof, the Company,
subject only to paragraph (b) of this Section 18, shall obtain and maintain in full force and
effect directors’ and officers’ liability insurance (“D&O Insurance”) in reasonable amounts from
established and reputable insurers covering Indemnitee against any liability asserted against or
incurred by Indemnitee or on Indemnitee’s behalf in any indemnified capacity whether or not the
Company would have the power to indemnify Indemnitee against such liability under this Agreement.

     (b) Notwithstanding paragraph (a) of this Section 18, if the Company gives reasonable prior
written notice to Indemnitee of the termination of D&O Insurance coverage, the Company shall be
relieved of its duty to obtain and maintain D&O Insurance in future periods, if the Company in good
faith determines that such insurance is not reasonably available in such future periods, or the
premium costs for such insurance are disproportionate to the amount of coverage available, or the
available coverage is so limited by exclusions that it provides an insufficient benefit, or
Indemnitee is covered by similar insurance maintained by a subsidiary of the Company.

     (c) If the Company has D&O Insurance in effect at the time it receives a notice pursuant to
Section 14 hereof, the Company shall give due and prompt notice of the commencement of such
Proceeding to the insurer(s) in accordance with the procedures set forth in the applicable policy.
The Company shall thereafter take all necessary or desirable action to cause each insurer to pay,
on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with
the terms of the applicable policy.

     (d) Anything herein or elsewhere to the contrary notwithstanding, the Company shall not be
liable to make any indemnity payment if and to the extent that Indemnitee has otherwise actually
received such payment under any insurance policy, contract or agreement.

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     19. Form and Delivery of Communications. Any notice, request or other communication
required or permitted to be given to the parties under this Agreement shall be in writing and
either delivered in person or sent by telecopy, telex, telegram, overnight mail or courier service,
or certified or registered mail, return receipt requested, postage prepaid, to the parties at the
following addresses (or at such other addresses for a party as shall be specified by like notice):

If to the Company:

Thermadyne Technologies Holdings, Inc.

16052 Swingley Ridge Rd., Suite 300

Chesterfield, MO 63017

Attn: General Counsel

Facsimile: 636-728-3011

If to Indemnitee:

_______________________

_______________________

_______________________

_______________________

     20. Headings; References; Pronouns. The headings of the sections of this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this Agreement or to
affect the construction thereof. References herein to section numbers are to sections of this
Agreement. All pronouns and any variations thereof shall be deemed to refer to the masculine,
feminine, neuter, singular or plural as appropriate.

     21. Definitions. For purposes of this Agreement:

     (a) “Change in Control” shall be deemed to have occurred if: (i) any person or group
of persons (within the meaning of the Securities Exchange Act of 1934) has or acquires,
directly or indirectly, beneficial ownership (within the meaning of Rule 13d-3 promulgated
by the Securities and Exchange Commission under the Securities Exchange Act of 1934) of 50%
or more of the issued and outstanding shares of capital Stock of the Company having the
right to vote for the election of directors of the Company under ordinary circumstances;
(ii) during any period of twelve consecutive calendar months, individuals who at the
beginning of such period constituted the board of directors of the Company (together with
any new directors whose election by the board of directors of the Company or whose
nomination for election by the stockholders of the Company was approved by a vote of at
least two-thirds of the directors then still in office who either were directors at the
beginning of such period or whose election or nomination for election was previously so
approved) cease for any reason other than death or disability to constitute a majority of
the directors then in office; or (iii) a “Change of Control” as defined in the Indenture.

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     (b) “Company” includes, without limitation and in addition to the resulting
corporation, any constituent corporation (including any constituent of a constituent)
absorbed in a consolidation or merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors, officers, employees or agents, so
that any person who is or was a director, officer, employee or agent of such constituent
corporation, or is or was serving at the request of such constituent corporation as a
director, officer, employee or agent of another corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise, shall stand in the same position under the
provisions of this Agreement with respect to the resulting or surviving corporation as he or
she would have with respect to such constituent corporation if its separate existence had
continued.

     (c) “Disinterested Director” means a director of the Company who is not or was not a
party to the Proceeding in respect of which indemnification is being sought by Indemnitee.

     (d) “Expenses” includes, without limitation, expenses (including, without limitation,
interest, assessments and other charges) incurred in connection with the defense or
settlement of any and all investigations, judicial or administrative proceedings or appeals,
attorneys’ fees and expenses, witness fees and expenses, fees and expenses of accountants
and other advisors, retainers and disbursements and advances thereon, the premium, security
for, and other costs relating to any bond (including cost bonds, appraisal bonds, appeal
bonds or their equivalents), federal, state, local or foreign taxes imposed on Indemnitee as
a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise
taxes and penalties, and other out-of-pocket costs and reasonable compensation for time
spent by Indemnitee in connection with any Proceeding for which Indemnitee is not otherwise
compensated by the Company or any third party and any expenses of establishing a right to
indemnification under Sections 8, 10 and 12 above but shall not include the amount of
judgments, fines, or penalties actually levied against Indemnitee or amounts paid in
settlement by or on behalf of Indemnitee.

     (e) “Indenture” means that certain Indenture dated as of December 3, 2010, as amended
from time to time, by and among the Company, as issuer of 9% Senior Secured Notes due 2017
in an aggregate principal amount of $260,000,000 issued thereunder, the subsidiary
guarantors named therein and U.S. Bank National Association, as trustee.

     (f) “Independent Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law, and neither of which is presently nor in the past
ten (10) years has been retained to represent: (i) the Company or Indemnitee in any matter
material to either such party, or (ii) any other party to the Proceeding giving rise to a
claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of professional
conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s right to

11

 

indemnification under this Agreement.

     (g) “Proceeding” includes any threatened, pending or completed investigation, action,
suit or other proceeding, whether brought in the name or right of the Company or otherwise,
against Indemnitee, and whether of a civil, criminal, administrative or investigative
nature, including, but not limited to, actions, suits or proceedings in which Indemnitee may
be or may have been involved as a party or otherwise, by reason of the fact that Indemnitee
is or was a director, officer, employee or agent of the Company, or is or was serving at the
request of the Company as a director, officer, employee or agent of any other entity, or by
reason of anything done or not done by Indemnitee in any such capacity, whether or not
Indemnitee is serving in such capacity at the time any liability or expense is incurred for
which indemnification or reimbursement can be provided under this Agreement.

     (h) “Stock” means all shares, options, warrants, general or limited partnership
interests, membership interests or other equivalents (regardless of how designated) of or in
a corporation, partnership, limited liability company or equivalent entity whether voting or
nonvoting, including common stock, preferred stock or any other “equity security” (as such
term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the
Securities and Exchange Commission under the Securities Exchange Act of 1934).

     22. Other Provisions.

     (a) This Agreement shall be interpreted and enforced in accordance with the laws of
Delaware, as applied to contracts between Delaware residents entered into and to be
performed entirely within Delaware.

     (b) For purposes of any claims or proceedings to enforce this Agreement, the Company
consents to the jurisdiction and venue of any federal or state court of competent
jurisdiction in the states of Delaware and Missouri, and waives and agrees not to raise any
defense that any such court is an inconvenient forum or any similar claim.

     (c) This Agreement may be executed in one or more counterparts, each of which shall for
all purposes be deemed to be an original but all of which together shall constitute one and
the same Agreement. Only one such counterpart signed by the party against whom
enforceability is sought needs to be produced as evidence of the existence of this
Agreement.

     (d) This agreement shall not be deemed an employment contract between the Company and
any Indemnitee who is an officer of the Company, and, if Indemnitee is an officer of the
Company, Indemnitee specifically acknowledges that Indemnitee may be discharged at any time
for any reason, with or without cause, and with or without severance compensation, except as
may be otherwise provided in a separate written contract between Indemnitee and the Company.

12

 

     (e) Upon a payment to Indemnitee under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of Indemnitee to recover against any
person for such liability, and Indemnitee shall execute all documents and instruments
required and shall take such other actions as may be necessary to secure such rights,
including the execution of such documents as may be necessary for the Company to bring suit
to enforce such rights. The Company shall pay or reimburse all expenses actually and
reasonably incurred by Indemnitee in connection with such subrogation.

     (f) No supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by both parties hereto. No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar) nor shall such waiver constitute a continuing waiver.

SIGNATURE PAGE TO FOLLOW

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

THERMADYNE TECHNOLOGIES HOLDINGS, INC.

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	INDEMNITEE	 	 
	 
	 	 	 	 
	 	 	 
	[Name]
	 	 	 	 

14exv4w1

Exhibit 4.1

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is made and entered into as of
June 16, 2011, between BlueLinx Holdings Inc., a Delaware corporation (the “Company”), and
Stadium Capital Management, LLC, a Delaware limited liability company (the “Purchaser”).

RECITALS

          WHEREAS, the Company proposes to distribute, at no charge, to each holder of record of shares
of common stock, par value $0.01 per whole share, of the Company (the “Common Stock”) on a
record date to be set by the Board of Directors of the Company transferable rights (the
“Rights”) to subscribe for and purchase a number of shares of Common Stock that, if
exercised in full, will provide gross proceeds to the Company of $60.0 million (the “Rights
Offering”); and

          WHEREAS, each holder of a Right will be entitled (the “Basic Subscription Privilege”)
to purchase up to its pro rata portion of an aggregate number of shares of Common Stock (such
number of shares, the “Offered Shares”) equal to the product of (x) $60 million divided by
(y) the Subscription Price. The “Subscription Price” means the price equal to the lesser
of (A) $2.50 per share and (B) the product of (x) the average per share closing price of the Common
Stock as reported on the New York Stock Exchange (as reported by Bloomberg L.P. or if not reported
thereby, by any other authoritative source) for the ten trading day period ending two trading days
immediately prior to the date the registration statement filed by the Company with respect to the
Rights Offering is declared effective by the Commission and (y) 0.66666667 (as adjusted for any
stock split, combination, reorganization, recapitalization, stock dividend, stock distribution or
similar event); provided, that, in no event shall the Subscription Price be less than $2.00 per
share; and

          WHEREAS, each holder of a Right (including the Purchaser) that exercises in full its Basic
Subscription Privilege will be entitled to subscribe for additional shares of Common Stock at the
Subscription Price (the “Over-Subscription Privilege”), to the extent that holders of
Rights do not subscribe for and purchase all of the Offered Shares available under the Basic
Subscription Privilege; and

          WHEREAS, to induce the Purchaser to participate in the Rights Offering, the Company has agreed
to provide certain registration rights under the Securities Act of 1933, as amended, with respect
to the shares of Common Stock issued to Purchaser in connection with the Rights Offering, subject
to Purchaser exercising in full its Basic Subscription Privilege.

          NOW, THEREFORE, in consideration of the representations, warranties and agreements contained
herein and other good and valuable consideration, the receipt and legal adequacy of which are
hereby acknowledged by the parties, the Company and the Purchaser hereby agree as follows:

 

 

     1. Definitions.

          As used in this Agreement, the following terms shall have the following meanings:

          “Affiliate” shall have the meaning ascribed to such term under Rule 144.

          “Board” shall have the meaning set forth in Section 3(n).

          “Commission” means the Securities and Exchange Commission.

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

          “Effectiveness Date” means, with respect to the Registration Statement required to be
filed hereunder, the 60th calendar day following the closing of the Rights Offering;
provided, however, that such Effectiveness Date will be extended by an additional
day for each day that a Holder fails to deliver to the Company the information required by Sections
4(b)(i) and 4(b)(ii) within the applicable timeframes provided in such Sections.

          “Effectiveness Period” shall have the meaning set forth in Section 2.

          “Exchange” means any of the following markets or exchanges on which the Common Stock
is listed or quoted for trading on the date in question: the NYSE Amex, the Nasdaq Capital Market,
the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC
Bulletin Board (or any successors to any of the foregoing).

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

          “Filing Date” means, with respect to the initial Registration Statement, ten (10)
Trading Days after the closing date of the Rights Offering and, with respect to any additional
Registration Statements which may be required pursuant to Section 3(d), (i) the later of (a) the
date sixty (60) days after the date substantially all of the Registrable Securities registered
under the immediately preceding Registration Statement are sold and (b) the date six (6) months
from the date the immediately preceding Registration Statement is declared effective by the
Commission or (ii) any earlier date on which the Company is permitted by the Securities Act and the
rules and regulations of the Commission to file such additional Registration Statement related to
the Registrable Securities.

          “Holder” means, collectively, each holder from time to time of Registrable Securities
including, without limitation, the Purchaser and its permitted assignees. To the extent this
Agreement refers to an election, consent, waiver, request or approval of or by the Holders, such
reference shall mean an election, consent, waiver, request or approval by the Holders of a majority
in interest of the then-outstanding Registrable Securities.

          “Indemnified Party” shall have the meaning set forth in Section 6(c).

          “Indemnifying Party” shall have the meaning set forth in Section 6(c).

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          “Losses” shall have the meaning set forth in Section 6(a).

          “Person” means an individual or a corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company,
government (or an agency or political subdivision thereof) or other entity of any kind.

          “Proceeding” means an action, claim, suit, investigation or proceeding (including,
without limitation, an investigation or partial proceeding, such as a deposition), whether
commenced or threatened.

          “Prospectus” means the prospectus included in the Registration Statement (including,
without limitation, a prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A promulgated under
the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by the Registration
Statement, and all other amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference in such Prospectus, as applicable.

          “Registrable Securities” means (i) the shares of Common Stock actually issued (A) to
the Purchaser in connection with its exercise of Rights in the Rights Offering (including any
shares issued in connection with the exercise of the Over-Subscription Privilege), and (B) upon any
stock split, stock dividend, recapitalization or similar event with respect to such shares of
Common Stock, (ii) any other securities issued in exchange of or replacement of such shares of
Common Stock (collectively, the “Rights Offering Shares”); until in the case of any
particular Common Share (a) a Registration Statement covering such Registrable Securities has been
declared effective by the Commission and continues to be effective during the Effectiveness Period,
(b) such Common Share is sold in compliance with Rule 144 or (c) such Registrable Securities may be
sold in compliance with Rule 144 without restriction (assuming Holder is not an Affiliate as of the
time of such sale), after which time such Common Share shall not be a Registrable Security.

          “Registration Statement” means the registration statement, including the Prospectus,
amendments and supplements to such registration statement or Prospectus, including, as applicable,
any pre- and post-effective amendments, all exhibits thereto, and all material incorporated by
reference in such registration statement, for the Registrable Securities required to be filed by
the Company with the Commission pursuant to this Agreement.

          “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such Rule.

          “Rule 158” means Rule 158 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such Rule.

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          “Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such Rule.

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

          “Trading Day” means any day on which the principal Exchange is open for trading.

     2. Registration.

          (a) The Company shall prepare and file with the Commission a Registration Statement covering
the resale of the Registrable Securities for an offering to be made on a continuous basis pursuant
to Rule 415 as soon as commercially practicable, but in no event later than the Filing Date. Such
Registration Statement shall be on Form S-3 (except if the Company is not then eligible to register
for resale the Registrable Securities on Form S-3, in which case such registration shall be on
another appropriate form in accordance with the Securities Act and the rules promulgated
thereunder) and shall contain (except if otherwise directed by the Purchaser) the “Plan of
Distribution” substantially in the form attached hereto as Exhibit A. Subject to the
terms of this Agreement, the Company shall use its reasonable best efforts to cause a Registration
Statement filed hereunder to be declared effective under the Securities Act as promptly as possible
after the filing thereof, but in any event prior to the applicable Effectiveness Date, and shall
use its reasonable best efforts to keep such Registration Statement continuously effective under
the Securities Act until all Registrable Securities covered by such Registration Statement (i) have
been sold, thereunder or pursuant to Rule 144, or (ii) (A) may be sold without volume or
manner-of-sale restrictions pursuant to Rule 144 and (B) may be sold without the requirement for
the Company to be in compliance with the current public information requirement under Rule 144 (the
“Effectiveness Period”).

          (b) If: (i) a Registration Statement registering for resale all of the Registrable Securities
is not declared effective by the Commission by the Effectiveness Date, or (ii) after the
Effectiveness Date, such Registration Statement ceases for any reason to remain continuously
effective as to all Registrable Securities included in such Registration Statement, or the Holders
are otherwise not permitted to utilize the Prospectus therein to resell such Registrable Securities
(including, without limitation, because of the suspension of trading or any other limitation
imposed by a Exchange, a failure to keep such Registration Statement effective, a failure to
disclose such information as is necessary for sales to be made pursuant to such Registration
Statement, or a failure to register a sufficient number of shares of Common Stock), for more than
ten (10) consecutive Trading Days or more than an aggregate of twenty (20) Trading Days (which need
not be consecutive Trading Days) during any 12-month period, or (iii) the Company shall fail for
any reason to satisfy the current public information requirement under Rule 144 as to the
applicable Registrable Securities (any such failure or breach being referred to as an
“Event”, and for purposes of clauses (i) and (iii), the date on which such Event occurs,
and for purpose of clause (ii) the date on which such ten (10) Trading Day or twenty (20) Trading
Day period, as applicable, is exceeded being referred to as “Event Date”), then (x) within
two (2) Trading Days of each such Event Date, the Company will pay to each Holder an amount in
cash, as liquidated damages and not as a penalty, equal to 4.0% of the aggregate purchase price
paid

-4-

 

by such Holder in connection with the exercise of the Rights in the Rights Offering for any
Registrable Securities held by the Holder on such Event Date; and (y) on each monthly anniversary
of each such Event Date thereof (if the applicable Event shall not have been cured by such date)
until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as
liquidated damages and not as a penalty, equal to 2.0% of the aggregate purchase price paid by such
Holder in connection with the exercise of the Rights in the Rights Offering for any Registrable
Securities then held by the Holder. The liquidated damages pursuant to the terms hereof shall
apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event, except in
the case of the first Event Date. In the event the Company registers some but not all of the
Registrable Securities, the liquidated damages percentage referred to above for any monthly period
shall be reduced to equal the percentage determined by multiplying the applicable liquidated
damages percentage by a fraction, the numerator of which shall be the number of Registrable
Securities for which there is not an effective Registration Statement at such time and the
denominator of which shall be the number of Registrable Securities at such time. Notwithstanding
anything to the contrary in this Agreement, in no event will the liquidated damages paid to a
Holder under this Section 2(b) be greater than 18.0% of the aggregate purchase price paid by such
Holder in connection with the exercise of the Rights in the Rights Offering for any Registrable
Securities then held by the Holder.

     3. Registration Procedures; Company’s Obligations.

          In connection with the registration of the Registrable Securities, the Company shall:

          (a) Prepare and file with the Commission a Registration Statement on Form S-3 (or if the
Company is not then eligible to register for resale the Registrable Securities on Form S-3 such
registration shall be on another appropriate form in accordance with the Securities Act and the
Rules promulgated thereunder) in accordance with the method or methods of distribution thereof as
specified herein, and use its reasonable best efforts to cause the Registration Statement to become
effective as soon as practicable after the closing of the Rights Offering and remain effective as
provided herein; provided, however, that not less than three (3) Trading Days prior
to the filing of the Registration Statement or any related Prospectus or any amendment or
supplement thereto (including any document that would be incorporated therein by reference), the
Company shall furnish to the Holders copies of all such documents proposed to be filed, which
documents (other than those incorporated by reference) will be subject to the timely review of and
reasonable comment by such Holder (it being acknowledged and agreed that if a Holder does not
object to or comment on the aforementioned documents within three (3) calendar days, the Holder
shall be deemed to consent to and approved the use of such documents).

          (b) Use its reasonable best efforts to (i) prepare and file with the Commission such
amendments, including post-effective amendments, to the Registration Statement as may be necessary
to keep the Registration Statement continuously effective as to the applicable Registrable
Securities for the Effectiveness Period in order to register for resale under the Securities Act
all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented
by any required Prospectus supplement, and as so supplemented or amended to be

-5-

 

filed pursuant to Rule 424 (or any similar provisions then in force) promulgated under the
Securities Act; (iii) respond promptly to any comments received from the Commission with respect to
the Registration Statement or any amendment thereto and promptly provide the Holders with true and
complete copies of all correspondence from and to the Commission relating to the Registration
Statement that pertains to the selling stockholders but not any comments that would result in
disclosure to the Holders of material, non-public information concerning the Company; and (iv)
comply in all material respects with the provisions of the Securities Act and the Exchange Act with
respect to the disposition of all Registrable Securities covered by the Registration Statement
during the Effectiveness Period in accordance with the intended methods of disposition set forth in
the Registration Statement as so amended or in such Prospectus as so supplemented.

          (c) Promptly notify the Holder (and, in the case of (i)(C) below, no later than the first
Trading Day following the date on which the Registration Statement becomes effective) (i)(A) when a
Prospectus or any Prospectus supplement or post-effective amendment to the Registration Statement
is proposed to be filed, (B) when the Commission notifies the Company whether there will be a
“review” of such Registration Statement and whenever the Commission comments in writing on such
Registration Statement, and (C) with respect to the Registration Statement or any post-effective
amendment, when the same has become effective; (ii) of any request by the Commission or any other
Federal or state governmental authority for amendments or supplements to the Registration Statement
or Prospectus or for additional information; (iii) of the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement covering any or all of the
Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt
by the Company of any notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any jurisdiction, or the
initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any
event that makes any statement made in the Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any material respect or
that requires any revisions to the Registration Statement, Prospectus or other documents so that,
in the case of the Registration Statement or the Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

          (d) If during the Effectiveness Period, the number of Registrable Securities at any time
exceeds 100% of the number of shares of Common Stock then registered in a Registration Statement,
then the Company shall file as soon as reasonably practicable, but in any case prior to the
applicable Filing Date, an additional Registration Statement covering the resale by the Holders of
not less than the number of such Registrable Securities.

          (e) Use its commercially reasonable efforts to avoid the issuance of, or, if issued, obtain
the withdrawal of, (i) any order suspending the effectiveness of the Registration Statement, or
(ii) any suspension of the qualification (or exemption from qualification) of any of the
Registrable Securities for sale in any U.S. jurisdiction, at the earliest practicable moment.

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          (f) If requested by a Holder, (i) promptly incorporate in a Prospectus supplement or
post-effective amendment to the Registration Statement such information as the Company reasonably
agrees should be included therein, and (ii) make all required filings of such Prospectus supplement
or such post-effective amendment as soon as practicable after the Company has received notification
of the matters to be incorporated in such Prospectus supplement or post-effective amendment.

          (g) Promptly deliver to the Holder, without charge, as many copies of the Registration
Statement, Prospectus or Prospectuses (including each form of prospectus) and each amendment or
supplement thereto as such Persons may reasonably request.

          (h) Prior to any public offering of Registrable Securities, use its reasonable best efforts to
register or qualify or cooperate with the selling Holder in connection with the registration or
qualification (or exemption from such registration or qualification) of such Registrable Securities
for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United
States as the Holder reasonably requests in writing, to keep each such registration or
qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and
all other acts or things necessary or advisable to enable the disposition in such jurisdictions of
the Registrable Securities covered by a Registration Statement; provided, however,
that the Company shall not be required to qualify generally to do business in any jurisdiction
where it is not then so qualified or to take any action that would subject it to general service of
process in any such jurisdiction where it is not then so subject or subject the Company to any tax
in any such jurisdiction where it is not then so subject.

          (i) Cooperate with the Holder to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold pursuant to a Registration Statement
and to enable such Registrable Securities to be in such denominations and registered in such names
as the Holder may request to the Company’s transfer agent at least two (2) Trading Days prior to
any sale of Registrable Securities.

          (j) Upon the occurrence of any event contemplated by Section 3(c)(v), promptly prepare a
supplement or amendment, including a post-effective amendment, to the Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as thereafter delivered,
neither the Registration Statement nor such Prospectus will contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading.

          (k) Use its reasonable best efforts to cause all Registrable Securities relating to such
Registration Statement to be quoted on any securities exchange, quotation system, market or
over-the-counter bulletin board on which the same securities issued by the Company are then listed.

          (l) Comply in all material respects with all applicable rules and regulations of the
Commission and make generally available to its security holders earning statements satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 not later than ninety

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(90) days after the end of any twelve (12) month period commencing on the first day of the
first fiscal quarter of the Company after the effective date of the Registration Statement, which
statement shall conform to the requirements of Rule 158.

          (m) If, in the good faith judgment of the Board of Directors of the Company (the
“Board”) and reflected in a formal resolution of the Board, the continued effectiveness of
the Registration Statement covering the Registrable Securities would be detrimental to the Company,
and the Board concludes, as a result, that it is in the best interests of the Company to suspend
the effectiveness of such Registration Statement at such time, then, subject to Section 2(b), the
Company may suspend effectiveness of the Registration Statement and suspend the sale of Registrable
Securities under the Registration Statement; provided, however, that the Company
may not suspend effectiveness of the Registration Statement or suspend the sale of Registrable
Securities thereunder for more than sixty (60) days in the aggregate in any twelve (12) month
period or for more than thirty (30) consecutive days.

          (n) Within two (2) Trading Days of the Effectiveness Date, the Company shall deliver, or shall
cause its legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Holders) confirmation that the Registration Statement has been
declared effective by the Commission in the form attached hereto as Exhibit B.

     4. Purchaser’s Representations and Holder’s Obligations

(a) The Purchaser represents and warrants to the Company as follows:

(i) The Purchaser understands that the Rights Offering Shares will have not, as of
the date of issuance, been registered under the Securities Act by reason of a
specific exemption from the registration provisions of the Securities Act, the
availability of which depends upon, among other things, the bona fide nature of the
investment intent and the accuracy of the Purchaser’s representations as expressed
herein or otherwise made pursuant hereto.

(ii) Any Rights Offering Shares will be acquired by Purchaser for investment for
its own account, not as a nominee or agent, and not with the view to, or for resale
in connection with, any distribution thereof not in compliance with the Securities
Act and any applicable state securities or “blue sky” laws, and Purchaser has no
present intention of selling, granting any participation in, or otherwise
distributing the same, except in compliance with the Securities Act and any
applicable state securities or “blue sky” laws.

(iii) The Rights Offering Shares will not be offered for sale, sold or otherwise
transferred by Purchaser except pursuant to the Registration Statement or in a
transaction exempt from, or not subject to, registration under the Securities Act
and any applicable state securities or “blue sky” laws.

(iv) Purchaser is an “accredited investor” within the meaning of Rule 501(a)
promulgated under the Securities Act and Purchaser has such knowledge and experience
in financial and business matters that it is capable of evaluating the merits and
risks of its investment in the Rights Offering Shares. Purchaser

-8-

 

understands and is able to bear any economic risks associated with such investment
(including, without limitation, the necessity of holding the Rights Offering Shares
for an indefinite period of time). Purchaser acknowledges that it has been afforded
the opportunity to ask questions and receive answers concerning the Company and to
obtain additional information that it has requested with respect to the Rights
Offering and the Rights Offering Shares.

(v) Purchaser understands and acknowledges that, upon the original issuance thereof
and until such time as the same is no longer required under any applicable
requirements of the Securities Act or applicable state securities laws as set forth
in Section 7(c) hereof, the Company and its transfer agent shall make such notation
in the stock book and transfer records of the Company as may be necessary to record
that the Rights Offering Shares have not been registered under the Securities Act
and that the Rights Offering Shares may not be resold without registration under the
Securities Act or pursuant to an exemption from the registration requirements
thereof.

(b) In connection with the registration of the Registrable Securities, each Holder shall:

(i) In order to assist the Company in determining the number of Registrable
Securities, within one (1) Trading Day of the expiration date of the Rights
Offering, deliver to the Company copies of all Subscription Rights Certificates
submitted by the Holder to the rights agent in connection with the Rights Offering
and/or, if the exercise of Rights by the Holder was done through book-entry, a
schedule setting forth in reasonable detail the number of Rights that such Holder
elected to exercise along with the account(s) (including the name of the holder of
the account(s)) where the shares of Common Stock to be issued in connection with
such Rights is to be credited.

(ii) Furnish to the Company a completed Questionnaire in the form attached to this
Agreement as Exhibit C (a “Questionnaire”) not more than three (3)
Trading Days following the closing of the Rights Offering. Each Holder agrees that
it shall not be entitled to be named as a selling securityholder in a Registration
Statement or use the Prospectus for offers and resales of Registrable Securities at
any time unless such Holder has returned to the Company a completed and signed
Questionnaire. If a Holder of Registrable Securities returns a Questionnaire after
the deadline specified in the previous sentence, the Company shall use its
reasonable best efforts to take such actions are required to name such Holder as a
selling stockholder in the Registration Statement or any pre-effective or
post-effective amendment thereto and to include (to the extent not theretofore
included) in the Registration Statement the Registrable Securities identified in
such late Questionnaire. Each Holder acknowledges and agrees that the information
in the Questionnaire will be used by the Company in the preparation of the
Registration Statement and hereby consents to the inclusion of such information in
the Registration Statement.

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(iii) (A) Not sell any Registrable Securities under the Registration Statement
until it has received copies of the Prospectus as then amended or supplemented as
contemplated by Section 3(h) and notice from the Company to the Holders that such
Registration Statement and any post-effective amendments thereto have become
effective as contemplated by Section 3(c), (B) comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales of
Registrable Securities pursuant to the Registration Statement, and (C) furnish to
the Company information regarding such Holder and the distribution of such
Registrable Securities as is required by law to be disclosed in the Registration
Statement, and the Company may exclude from such registration the Registrable
Securities of the Holder if it fails to furnish such information within a reasonable
time prior to the filing of each Registration Statement, supplemented Prospectus
and/or amended Registration Statement.

(iv) Upon receipt of a notice from the Company of the occurrence of any event of
the kind described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v) or 3(n),
forthwith discontinue disposition of such Registrable Securities under the
Registration Statement until the Holder’s receipt of the copies of the supplemented
Prospectus and/or amended Registration Statement contemplated by Section 3(k), or,
with respect to the suspension of effectiveness of a Registration Statement under
Section 3(n), until it is advised in writing by the Company that the use of the
applicable Prospectus may be resumed, and, in either case, has received copies of
any additional or supplemental filings that are incorporated or deemed to be
incorporated by reference in such Prospectus or Registration Statement.

     5. Registration Expenses

          All reasonable fees and expenses incident to the performance of or compliance with this
Agreement by the Company shall be borne by the Company whether or not the Registration Statement is
filed or becomes effective and whether or not any Registrable Securities are sold pursuant to the
Registration Statement. The fees and expenses referred to in the foregoing sentence shall include,
without limitation, the following: (i) all registration and filing fees (including, without
limitation, fees and expenses (A) with respect to filings required to be made with each securities
exchange or other market on which Registrable Securities are listed, (B) with respect to filings
required to be made with the Commission, and (C) in compliance with state securities or Blue Sky
laws); (ii) printing expenses (including, without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses, if the printing of prospectuses is requested
by the holders of a majority of the Registrable Securities included in the Registration Statement);
(iii) messenger, telephone and delivery expenses; (iv) fees and disbursements of counsel for the
Company; and (v) fees and expenses of all other Persons retained by the Company in connection with
the consummation of the transactions contemplated by this Agreement, including, without limitation,
the Company’s independent public accountants (including the expenses of any comfort letters or
costs associated with the delivery by independent public accountants of a comfort letter or comfort
letters). 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

-10-

 

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.

     6. Indemnification

          (a) Indemnification by the Company. To the extent permitted by law, the Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, each of
its officers, directors, legal counsel, and accountants, each Person who controls any such Holder
(within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the
officers, directors, agents and employees of each such controlling Person, and the respective
successors, permitted assigns, estate and personal representatives of each of the foregoing, to the
fullest extent permitted by applicable law, from and against any and all claims, losses, damages,
liabilities, penalties, judgments, costs (including, without limitation, costs of investigation)
and expenses (including, without limitation, reasonable attorneys’ fees and expenses)
(collectively, “Losses”), as incurred, arising out of or relating to any untrue or alleged
untrue statement of a material fact contained in the Registration Statement, any Prospectus, as
supplemented or amended, if applicable, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements
therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of
the circumstances under which they were made) not misleading, except (i) to the extent that such
untrue statements or omissions are based upon information regarding the Holder furnished in writing
to the Company by the Holder, or its officers, directors, legal counsel, or accountants, or each
person controlling such Holder, which information was reviewed and expressly approved by the Holder
expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in
any amendment or supplement thereto, (ii) as a result of the failure of the Holder to deliver a
Prospectus, as amended or supplemented, to a purchaser in connection with an offer or sale
(provided that copies of the Prospectus, as amended or supplemented, have been made available, as
required by this Agreement, to the Holder by the Company for delivery to such purchaser), or (iii)
for amounts paid in settlement of any such Loss if such settlement is effected without the consent
of the Company (which consent shall not be unreasonably withheld, conditioned or delayed). Each
party shall notify the other promptly of the institution, threat or assertion of any Proceeding of
which it is aware in connection with the transactions contemplated by this Agreement. Such
indemnity shall remain in full force and effect regardless of any investigation made by or on
behalf of an Indemnified Party (as defined in Section 6(c) hereof) and shall survive the transfer
of the Registrable Securities by the Holder.

          (b) Indemnification by Holders. Each Holder shall, severally and not jointly,
indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person
who controls the Company (within the meaning of Section 15 of the Securities Act), and the
directors, officers, agents or employees of such controlling Persons, and the respective
successors, assigns, estate and personal representatives of each of the foregoing, to the fullest
extent permitted by applicable law, from and against any and all Losses, as incurred, arising out
of or relating to any untrue or alleged untrue statement of a material fact contained in the
Registration Statement, any Prospectus, as supplemented or amended, if applicable, or arising out
of or relating to any omission or alleged omission of a material fact required to be stated therein
or necessary to make the statements therein (in the case of any Prospectus or form of

-11-

 

prospectus or supplement thereto, in the light of the circumstances under which they were
made) not misleading, to the extent that (i) such untrue statement or omission is contained in or
omitted from any information furnished in writing by the Holder to the Company for inclusion in the
Registration Statement or such Prospectus, and (ii) such information was reasonably relied upon by
the Company for use in the Registration Statement, such Prospectus or such form of prospectus.
Notwithstanding anything to the contrary contained herein, each Holder shall be liable under this
Section 6(b) for only that amount as does not exceed the gross proceeds to such Holder as a result
of the sale of Registrable Securities pursuant to such Registration Statement.

          (c) Conduct of Indemnification Proceedings. If any Proceeding shall be brought or
asserted against any Person entitled to indemnity pursuant to Section 6(a) or 6(b) hereunder (an
“Indemnified Party”), such Indemnified Party promptly shall notify the Person from whom
indemnity is sought (the “Indemnifying Party) in writing, and the Indemnifying Party shall
assume the defense thereof, including the employment of counsel reasonably satisfactory to the
Indemnified Party and the payment of all fees and expenses incurred in connection with defense
thereof; provided, that the failure of any Indemnified Party to give such notice shall not
relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except
to the extent that such failure shall have materially and adversely prejudiced the Indemnifying
Party.

               An Indemnified Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in
writing to pay such fees and expenses; or (ii) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such
Indemnified Party in any such Proceeding; or (iii) the named parties to any such Proceeding
(including any impleaded parties) include both such Indemnified Party and the Indemnifying Party,
and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely
to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party
(in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects
to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall
not have the right to assume the defense thereof and such counsel shall be at the expense of the
Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such
Proceeding effected without its written consent, which consent shall not be unreasonably withheld,
conditioned or delayed. No Indemnifying Party shall, without the prior written consent of the
Indemnified Party, which consent shall not unreasonably be withheld, conditioned or delayed, effect
any settlement of any pending Proceeding in respect of which any Indemnified Party is a party,
unless such settlement includes an unconditional release of such Indemnified Party from all
liability on claims that are the subject matter of such Proceeding.

               All reasonable fees and expenses of the Indemnified Party (including reasonable fees and
expenses to the extent incurred in connection with investigating or preparing to defend such
Proceeding in a manner not inconsistent with this Section 6(c)) shall be paid to the Indemnified
Party, as incurred, within ten (10) Trading Days of written notice thereof to the Indemnifying
Party provided, that the Indemnifying Party may require such Indemnified Party to undertake
to reimburse all such fees and expenses to the extent it is finally judicially determined

-12-

 

that such Indemnified Party is not entitled to indemnification hereunder or pursuant to
applicable law.

          (d) Contribution. If a claim for indemnification under Section 6(a) or 6(b) is
unavailable to an Indemnified Party because of a failure or refusal of a governmental authority to
enforce such indemnification in accordance with its terms (by reason of public policy or
otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in
such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that resulted in such
Losses as well as any other relevant equitable considerations. The relative fault of such
Indemnifying Party and Indemnified Party shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement of a material fact
or omission or alleged omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such action,
statement or omission. The amount paid or payable by a party as a result of any Losses shall be
deemed to include, subject to the limitations set forth in Section 6(c), any reasonable attorneys’
or other reasonable fees or expenses incurred by such party in connection with any Proceeding to
the extent such party would have been indemnified for such fees or expenses if the indemnification
provided for under Section 6(a) or 6(b) was available to such party in accordance with its terms.
Notwithstanding anything to the contrary contained herein, each Holder shall be liable or required
to contribute under this Section 6(d) for only that amount as does not exceed the gross proceeds to
such Holder as a result of the sale of Registrable Securities pursuant to the Registration
Statement.

          The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 6(d) were determined by pro rata allocation or by any other method of allocation that
does not take into account the equitable considerations referred to in the immediately preceding
paragraph. 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.

          The indemnity and contribution agreements contained in this Section 6(d) are in addition to
any liability that the Indemnifying Parties may have to the Indemnified Parties.

     7. Rule 144.

          (a) As long as the Holder owns Registrable Securities, the Company covenants to use its
commercially reasonable efforts to timely file (or obtain extensions in respect thereof and file
within the applicable grace period) all reports required to be filed by the Company after the date
hereof pursuant to Section 13(a) or 15(d) of the Exchange Act for so long as the Company is subject
to such reporting requirements. As long as the Holder owns Registrable Securities, if the Company
is not required to file reports pursuant to Section 13(a) or 15(d) of the Exchange Act, it will use
its commercially reasonable efforts to prepare and furnish to the Holder, and make publicly
available in accordance with Rule 144(c) promulgated under the Securities Act, annual and quarterly
financial statements, together with a discussion and

-13-

 

analysis of such financial statements in form and substance substantially similar to those
that would otherwise be required to be included in reports required by Section 13(a) or 15(d) of
the Exchange Act, as well as any other information required thereby, in the time period that such
filings would have been required to have been made under the Exchange Act. The Company further
covenants to use its commercially reasonable efforts to take such further action as the Holder may
reasonably request, all to the extent required from time to time to enable the Holder to sell the
Registrable Securities without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144 promulgated under the Securities Act. Upon the request of any
Holder, the Company shall deliver to such Holder a written certification of a duly authorized
officer as to whether it has complied with such requirements.

          (b) As of the date hereof, (i) taking into account the shares of Common Stock currently owned
by the Purchaser and the shares of Common Stock Purchaser currently intends to purchase (but is not
obligated to do so) in connection with the Rights Offering (which together with the shares
currently owned by Purchaser will result in Purchaser owning less than 20% of the Company’s
outstanding shares following completion of the Rights Offering) and (ii), assuming Cerberus ABP
Investor LLC, together with its affiliates continues to hold more than 50% of the Company’s
outstanding shares following completion of the Rights Offering, the Company acknowledges and agrees
that the Purchaser is not an Affiliate of the Company.

          (c) The Registrable Securities shall not bear any restrictive legend (including any restricted
legend regarding registration under the Securities Act), (i) while a registration statement
(including the Registration Statement) covering the resale of such security is effective under the
Securities Act, (ii) following any sale of such Registrable Securities pursuant to Rule 144, (iii)
if such Rights Offering Shares are eligible for sale under Rule 144, without the requirement for
the Company to be in compliance with the current public information required under Rule 144 as to
such Registrable Securities and without volume or manner-of-sale restrictions, or (iv) if such
legend is not required under applicable requirements of the Securities Act (including judicial
interpretations and pronouncements issued by the staff of the Commission). The Company agrees that
following the Effectiveness Date or at such time as such legend is no longer required under this
Section 7(b), it will, no later than three (3) Trading Days following the delivery by a Holder to
the Company or the Transfer Agent of a request to remove the restrictive legend, deliver or cause
to be delivered to such Purchaser a certificate or evidence of book-entry shares that is free from
all restrictive and other legends. Further, if a legal opinion is required by the transfer agent
to remove a restrictive legend, upon receipt of the required representations from the Holder, the
Company or its legal counsel will promptly provide such opinion to the transfer agent at no cost to
the Holder.

          (d) In the event that (A) the Holder is eligible to sell all of its Registrable Securities
under Rule 144 and (B) the Company is in compliance with the public information requirement under
Rule 144, the Holder agrees to sell any remaining Registrable Securities under Rule 144 and not
under the Registration Statement and the Company shall not be obligated to maintain the
effectiveness of the Registration Statement or deliver any notice of the suspension of the
effectiveness of the Registration Statement to the Holder (and the Company shall not deliver any
notice of suspension of the effectiveness of the Registration Statement to the Holder).
Notwithstanding the foregoing, if at any time the Holder may not sell all of its remaining
Registrable Securities under Rule 144, including, among other things, as a result the Company’s

-14-

 

failure to be in compliance with the public information requirements under Rule 144, all of
the Company’s obligations with respect to the effectiveness of the Registration Statement and the
delivery of notices shall be in full force and effect.

     8. Miscellaneous.

          (a) Remedies. The remedies provided in this Agreement are cumulative and, except for
defaults for which liquidated damages are provided for in Section 2(b) hereof, not exclusive of any
remedies provided by law, and in the event of a breach by the Company or by the Holder of any of
their obligations under this Agreement, the Holder or the Company, as the case may be, in addition
to being entitled to exercise all rights granted by law and under this Agreement, including
recovery of damages, will be entitled to specific performance of its rights under this Agreement.

          (b) Consent to Jurisdiction. With respect to any disputes arising out of or related to
this Agreement or the transactions contemplated hereby, the parties hereto consent to the exclusive
jurisdiction of, and venue in, the state courts in Wilmington County in the State of Delaware (or
in the event of exclusive federal jurisdiction, the courts of the District of Delaware). The
parties hereto hereby waive, and agree not to assert in any such suit, action or proceeding, any
claim that it is not personally subject to the jurisdiction of such court, that the suit, action or
proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding
is improper. The Company and the Purchaser consent to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address in effect for notices to it
under this Agreement and agree that such service shall constitute good and sufficient service of
process and notice thereof. Nothing in this Section 8(b) shall affect or limit any right to serve
process in any other manner permitted by law. The Company and the Purchaser hereby agree that the
prevailing party in any suit, action or proceeding arising out of or relating to the Registrable
Securities or this Agreement, shall be entitled to reimbursement for reasonable legal fees from the
non-prevailing party.

          (c) Amendments and Waivers. The provisions of this Agreement, including the provisions
of this sentence, may not be amended, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given, unless the same shall be in writing and
signed by the Company and the Holders holding a majority of the Registrable Securities (excluding
any of such shares that have been sold to the public or pursuant to Rule 144); provided,
however, that if any amendment, modification, or supplement operates in a manner that
treats any Holder different from other Holders, the consent of such Holder shall also be required
for such amendment, modification or supplement. Any such amendment, modification, or supplement
effected in accordance with this paragraph shall be binding upon each Holder and each future holder
of all such securities of Holder. Each Holder acknowledges that by the operation of this paragraph,
the holders of a majority of the Registrable Securities (excluding any of such shares that have
been sold to the public or pursuant to Rule 144) will have the right and power to diminish or
eliminate all rights of such Holder under this Agreement.

          (d) Notices. Any notice, demand, request, waiver or other communication required or
permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery
if delivered in person or upon transmission if sent by telecopy or facsimile at the

-15-

 

address or number designated below (if delivered on a Trading Day during normal business hours
where such notice is to be received), or the first Trading Day following such delivery (if
delivered other than on a Trading Day during normal business hours where such notice is to be
received), or (b) on the second Trading Day following the date of mailing by express courier
service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be:

               (x) if to the Company:

BlueLinx Holdings Inc.

4300 Wildwood Parkway

Atlanta, Georgia 30339

Facsimile: (770) 953-7008

Attention: Legal Department

with a copy to:

Troutman Sanders LLP

600 Peachtree Street, N.E.

Suite 5200

Atlanta, Georgia 30308

Facsimile: (404) 962-6599

Attention: David W. Ghegan, Esq.

Electronic mail: david.ghegan@troutmansanders.com

               (y) if to the Purchaser:

Stadium Capital Management, LLC

199 Elm Street

New Canaan, CT 06840

Attention: Alexander Seaver or Bradley Kent

Facsimile: (203) 972-2987

with a copy to:

Wilson Sonsini Goodrich & Rosati, P.C.

650 Page Mill Road

Palo Alto, California 94304

Attention: Bradley L. Finkelstein, Esq.

Facsimile No.: (650) 493-6811

or to such other address or addresses or facsimile number or numbers as any such party may most
recently have designated in writing to the other parties hereto by such notice.

          (e) Successors and Assigns. Subject to Section 8(f), this Agreement shall be binding
upon and inure to the benefit of the parties and their successors and permitted assigns and shall
inure to the benefit of their successors and assigns.

-16-

 

          (f) Assignment of Registration Rights. The rights of each Holder hereunder, including
the right to have the Company register for resale the Registrable Securities in accordance with the
terms of this Agreement, shall be assignable by each Holder to any transferee of the Holder of all
or a portion of the shares of the Registrable Securities if: (i) the Holder agrees in writing with
the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the
Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable
time after such transfer or assignment, furnished with written notice of (A) the name and address
of such transferee or assignee, and (B) the securities with respect to which such registration
rights are being transferred or assigned; (iii) following such transfer or assignment the further
disposition of such securities by the transferee or assignees is restricted under the Securities
Act and applicable state securities laws; (iv) at or before the time the Company receives the
written notice contemplated by clause (ii) of this Section 8(f), the transferee or assignee agrees
in writing with the Company to be bound by all of the provisions of this Agreement; and (v) such
transfer shall be for no less than 20% of the Registrable Securities held by such Holder. The
rights to assignment shall apply to the Holder (and to subsequent) successors and assigns. In the
event of an assignment pursuant to this Section 8(f), if requested by the Company, the Holder shall
pay all incremental costs and expenses incurred by the Company in connection with filing a
Registration Statement (or an amendment to the Registration Statement) to register the shares of
Registrable Securities assigned to any assignee or transferee of the Holder.

          (g) Counterparts. This Agreement may be executed in any number of counterparts, each
of which when so executed shall be deemed to be an original, and all of which taken together shall
constitute one and the same Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the party executing (or on
whose behalf such signature is executed) the same with the same force and effect as if such
facsimile signature were the original thereof.

          (h) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware, without regard to principles of conflicts of law thereof.
This Agreement shall not be interpreted or construed with any presumption against the party causing
this Agreement to be drafted.

          (i) Termination. This Agreement shall terminate on the earlier of (i) the date when
the Effectiveness Period expires, (ii) the date on which all remaining Registrable Securities may
be sold without restriction pursuant to Rule 144, and (iii) the closing date of the Rights Offering
in the event that Purchaser does not exercise its Basic Subscription Privilege in full.

          (j) Severability. If any term, provision, covenant or restriction of this Agreement is
held to be invalid, illegal, void or unenforceable in any respect, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall remain in full force and effect and
shall in no way be affected, impaired or invalidated, and the parties hereto shall use their
reasonable efforts to find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or restriction. It is hereby
stipulated and declared to be the intention of the parties that they would have executed the
remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

-17-

 

          (k) Headings. The headings herein are for convenience only, do not constitute a part
of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

[Signature Pages Follow]

-18-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized persons as of the date first indicated above.

	 	 	 	 	 
	 	BLUELINX HOLDINGS INC.

 	 
	 	By:  	/s/ H. Douglas Goforth
 	 
	 	 	Name:  	H. Douglas Goforth 	 
	 	 	Title:  	Senior Vice President, Chief Financial

Officer and Treasurer 	 
	 

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized persons as of the date first indicated above.

	 	 	 	 	 
	 	PURCHASER:

STADIUM CAPITAL MANAGEMENT, LLC

 	 
	 	By:  	/s/ Bradley R. Kent
 	 
	 	 	Name:  	Bradley R. Kent 	 
	 	 	Title:  	Managing Director 	 

 

 

	 	 	 	 	 

EXHIBIT A

FORM PLAN OF DISTRIBUTION

     We are registering shares of common stock on behalf of the selling stockholders. The common
stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the
time of sale, at prices related to the prevailing market prices, at varying prices determined at
the time of sale, or at negotiated prices. These sales may be effected at various times in one or
more of the following transactions, or in other kinds of transactions:

	 	•	 	transactions on the New York Stock Exchange or on any other national securities
exchange or U.S. inter-dealer system of a registered national securities association on
which our common stock and the warrants may be listed or quoted at the time of sale;
	 
	 	•	 	in the over-the-counter market;
	 
	 	•	 	in private transactions and transactions otherwise than on these exchanges or systems
or in the over-the-counter market;
	 
	 	•	 	in connection with short sales of shares of our common stock;
	 
	 	•	 	by pledge to secure or in payment of debt and other obligations;
	 
	 	•	 	through the writing of options, whether the options are listed on an options exchange
or otherwise;
	 
	 	•	 	in connection with the writing of non-traded and exchange-traded call options, in hedge
transactions and in settlement of other transactions in standardized or over-the-counter
options; or
	 
	 	•	 	through a combination of any of the above transactions.

         The selling stockholders and their successors, including their transferees, pledgees or donees
or their successors, may sell the common stock and the warrants directly to purchasers or through
underwriters, broker-dealers or agents, who may receive compensation in the form of discounts,
concessions or commissions from the selling stockholders or the purchasers. These discounts,
concessions or commissions as to any particular underwriter, broker-dealer or agent may be in
excess of those customary in the types of transactions involved.

         In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule
144 of the Securities Act may be sold under Rule 144 rather than pursuant to this prospectus.

         We entered into a registration rights agreement for the benefit of the selling stockholders to
register the common stock under applicable federal and state securities laws. The registration

 

 

rights agreement provides for cross-indemnification of the selling stockholders and us and our
respective directors, officers and controlling persons against specific liabilities in connection
with the offer and sale of the common stock, including liabilities under the Securities Act.

 

 

EXHIBIT B

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

[Name and address of Transfer Agent]

_________________

_________________

_________________

Attn: ____________

          Re: BlueLinx Holdings Inc.

Ladies and Gentlemen:

     We are counsel to BlueLinx Holdings, Inc., a Delaware corporation (the
“Company”), and have represented the Company in connection with the issuance by the Company of
transferable rights to subscribe for and purchase shares of the Company’s common stock (the “Rights
Offering”). In connection with the Rights Offering, the Company has entered into a Registration
Rights Agreement (the “Registration Rights Agreement”) with the purchasers named therein (the
“Purchasers”), dated as of [DATE], 2011, pursuant to which the Company agreed, among other things,
to register the Registrable Securities (as defined in the Registration Rights Agreement), under the
Securities Act of 1933, as amended (the “1933 Act”). In connection with the Company’s obligations
under the Registration Rights Agreement, on [DATE], 2011, the Company filed a Registration
Statement on Form S-3 (File No. 333-________) (the “Registration Statement”) with the Securities
and Exchange Commission (the “SEC”) relating to the resale of the Registrable Securities which
names the Purchaser as a selling stockholder thereunder.

     In connection with the foregoing, we advise you that the SEC has entered an order declaring
the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER
DATE OF EFFECTIVENESS] and we have no knowledge that any stop order suspending its effectiveness
has been issued or that any proceedings for that purpose are pending before, or threatened by, the
SEC and, accordingly, the Registrable Securities are available for resale under the 1933 Act in the
manner specified in, and pursuant to the terms of, the Registration Statement.

Very truly yours,

By:

cc: [HOLDERS]

 

 

EXHIBIT C

FORM OF SELLING STOCKHOLDER QUESTIONNAIRE

     The undersigned holder of shares of the common stock, par value $0.01 per share, of BlueLinx
Holdings Inc., a Delaware corporation (the “Company”) issued in connection with the Rights Offering
(as defined in that certain Registration Rights Agreement, dated as of June __, 2011, between the
Company and Stadium Capital Management, LLC (the “Agreement”)), understands that the Company
intends to file with the Securities and Exchange Commission a registration statement on Form S-3
(the “Resale Registration Statement”) for the registration and the resale under Rule 415 of the
Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities in
accordance with the terms of the Agreement. All capitalized terms not otherwise defined herein
shall have the meanings ascribed thereto in the Agreement.

     In order to sell or otherwise dispose of any Registrable Securities pursuant to the Resale
Registration Statement, a holder of Registrable Securities generally will be required to be named
as a selling stockholder in the related prospectus or a supplement thereto (as so supplemented, the
“Prospectus”), deliver the Prospectus to purchasers of Registrable Securities and be bound by the
provisions of the Agreement (including certain indemnification provisions, as described below).
Holders must complete and deliver this Notice and Questionnaire in order to be named as selling
stockholders in the Prospectus.

     Certain legal consequences arise from being named as a selling stockholder in the Resale
registration Statement and the Prospectus. Holders of Registrable Securities are advised to
consult their own securities law counsel regarding the consequences of being named or not named as
a selling stockholder in the Registration Statement and the Prospectus.

NOTICE

     The undersigned holder (the “Selling Stockholder”) of Registrable Securities hereby gives
notice to the Company of its intention to sell or otherwise dispose of Registrable Securities owned
by it and listed below in Item (3), unless otherwise specified in Item (3), pursuant to the
Registration Statement. The undersigned, by signing and retuning this Notice and Questionnaire,
understands and agrees that it will be bound by the terms and conditions of this Notice and
Questionnaire and the Agreement.

     The undersigned hereby provides the following information to the Company and represents and
warrants that such information is accurate and complete:

 

 

QUESTIONNAIRE

	1.	 	Name

	 	(a)	 	Full Legal Name of Selling Stockholder:
	 
	 	 	 	 

	 
	 	(b)	 	Full Legal Name of Registered Holder (if not the same as (a) above) through
which Registrable Securities Listed in Item 3 below are held:

	 	 	 

	 	(c)	 	Full Legal Name of Natural Control Person (which means a natural person who
directly or indirectly alone or with others has power to vote or dispose of the
securities covered by the questionnaire):

	 	 	 

	 
	2.	 	Address for Notices to Selling Stockholder:
	 
	 	 	 

	 
	 	 	 

	 
	 	 	 

	 	Telephone: 	 	 

	 	 

	 
	 	Fax: 	 	 

	 	 

	 
	 	Contact Person:  	 	 

	 	 

	 
	 	E-mail address of Contact Person:   	 	 

	 	 	 	 

	 

	3.	 	Beneficial Ownership of Registrable Securities Issuable Pursuant to the Purchase Agreement:

	 	(a)	 	Type and Number of Registrable Securities beneficially owned and issued
pursuant to the Agreement:
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	(b)	 	Number and shares of Common Stock to be registered pursuant to this Notice for
resale:
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

 

 

	4.	 	Broker-Dealer Status:

	 	(a)	 	Are you a broker-dealer:

Yes o      No o

	 	(b)	 	If “yes” to Section 4(a), did you receive your Registrable Securities as
compensation for investment banking services to the Company?

Yes o      No o

	 	Note:	 	If no, the Commission’s staff has indicated that you should be identified as
an underwriter in the Registration Statement.
	 
	 	(c)	 	Are you an affiliate of a broker-dealer?

Yes o      No o

	 	Note:	 	If yes, provide a narrative explanation below:
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	(d)	 	If you are an affiliate of a broker-dealer, do you certify that you bought the
Registrable Securities in the ordinary course of business, and at the time of the
purchase of the Registrable Securities to be resold, you had agreements or
understandings, directly or indirectly, with any person to distribute the Registrable
Securities?

Yes o      No o

	 	Note:	 	If no, the Commission’s staff has indicated that you should be identified as
an underwriter in the Registration Statement.

	5.	 	Beneficial Ownership of Other Securities of the Company Owned by the Selling Shareholder.
	 
	 	 	Except as set forth below in this Item 5, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable Securities
listed above in Item 3.

	 	(a)	 	Type and Amount of other securities beneficially owned:

 

 

	6.	 	Relationships with the Company:
	 
	 	 	Except as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% or more of the equity securities of the
undersigned) 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:
	 
	 	 	The undersigned has reviewed the form of Plan of Distribution attached as Annex A to the
Registration Rights Agreement, and hereby confirms that, except as set forth below, the
information contained therein regarding the undersigned and its plan of distribution is
correct and complete.
	 
	 	 	State any exceptions here:
	 
	 	 	 

	 
	 	 	 

**********

The undersigned agrees to promptly notify the Company of any inaccuracies or changes in the
information provided herein that may occur subsequent to the date hereof and prior to the effective
date of any applicable Registration Statement. All notices hereunder and pursuant to the Agreement
shall be made in writing, by hand delivery, confirmed or facsimile transmission, first-class mail
or air courier guaranteeing overnight delivery at the address set forth below. In the absence of
any such notification, the Company shall be entitled to continue to rely on the accuracy of the
information in this Notice and Questionnaire.

By signing below, the undersigned consents to the disclosure of the information contained herein in
its answers to Items (1) through (7) above and the inclusion of such information in the
Registration Statement and the Prospectus. The undersigned understands that such information will
be relied upon by the Company in connection with the preparation or amendment of any such
Registration Statement and the related Prospectus.

By signing below, the undersigned acknowledges that it understands its obligation to comply, and
agrees that it will comply, with the provisions of the Exchange Act and the rules and regulations
thereunder, particularly Regulation M in connection with any offering of Registrable Securities
pursuant to the Registration Statement. The undersigned also acknowledges that it understands that
the answers to this Notice and Questionnaire are furnished for use in connection

 

 

with Registration Statements filed pursuant to the Agreement and any amendments or supplements
thereto filed with the Commission pursuant to the Securities Act.

The undersigned hereby acknowledges and is advised that the SEC has previously issued guidance with
respect to short-sales of common stock that will be covered with registered shares after the
effective date of a resale registration statement and stated that such short sales could not be
made before the resale registration statement becomes effective, because the shares underlying the
short sale are deemed to be sold at 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 will be deemed to be aware of the
foregoing interpretation by the SEC.

I confirm that, to the best of my knowledge and belief, the foregoing statements (including without
limitation the answers to this Questionnaire) are correct.

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:                                                             	 	Beneficial Owner:   
                                                                     	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL
BY OVERNIGHT MAIL, TO:

BlueLinx Holdings Inc.

4300 Wildwood Parkway

Atlanta, Georgia 30339

Facsimile: (770) 953-7008

Attention: Legal Department

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