Document:

Exhibit 10.1

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT (“Agreement”) is
made as of               ,
2005, by and among GSC Holdings Corp., a Delaware corporation (the “Company”),
and EB Nevada Inc., a             
corporation and James J. Kim (the “Stockholders”), and each person or entity
that subsequently becomes a party to this Agreement pursuant to, and in
accordance with, the provisions of Section 11 hereof.  Capitalized terms used herein without
definition shall the respective meanings ascribed thereto in the Merger
Agreement (as defined below).

 

WHEREAS, pursuant to an Agreement and Plan of Merger
(the “Merger Agreement”), dated April 17, 2005, each share of common stock
of Electronics Boutique Holdings Corp. issued and outstanding immediately prior
to the Effective Time will be converted into the right to receive Company Cash
Consideration and Company Stock Consideration;

 

WHEREAS, the Company and the Stockholders are
executing and delivering this Agreement pursuant to the terms of the Kim Group
Voting Agreement.

 

NOW, THEREFORE, in consideration of the premises and
mutual covenants contained herein, the parties hereto hereby agree as follows:

 

1.                                       DEFINITIONS. 
As used in this Agreement, the following terms shall have the following
respective meanings:

 

“Board” shall mean the board of directors of the
Company.

 

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

 

“Holder” shall mean, collectively, the Stockholders and
the Permitted Transferees; provided, however, that the term “Holder” shall not
include any of the foregoing that ceases to own or hold any Registrable
Securities.

 

“Permitted Transferee” shall have the meaning set
forth in Section 11.

 

“Registrable Securities” shall mean (i) the Company
Stock Consideration issued to the Stockholders pursuant to the terms of the
Merger Agreement, and (ii) shall include any shares of the Company’s Common
Stock issued with respect to the Registrable Securities as a result of any
stock split, stock dividend, recapitalization, exchange or similar event;
provided, however, that all Registrable Securities shall cease to be
Registrable Securities once they have been sold pursuant to a registration
statement or such shares are transferred pursuant to Rule 144 or are eligible
to be sold without restriction pursuant to Rule 144(k).

 

“Rule 144” shall mean Rule 144 promulgated under the
Securities Act and any successor or substitute rule, law or provision.

 

 

“SEC” shall mean the Securities and Exchange
Commission.

 

“Securities Act” shall mean the Securities Act of 1933, as amended, and
all of the rules and regulations promulgated there under.

 

2.                                       EFFECTIVENESS.  This Agreement shall become effective and
legally binding upon the Effective Time.

 

3.                                       MANDATORY REGISTRATION.

 

(a)                                  As promptly as practicable following the
Effective Time, subject to Section 6, the Company will prepare and file
with the SEC a registration statement on Form S-3 or any successor form (except
that if the Company is not then eligible to register for resale the Registrable
Securities on Form S-3, then such registration shall be on Form S-1 or any
successor form) for the purpose of registering under the Securities Act all of
the Registrable Securities for resale by, and for the account of, the Holders
as selling stockholders thereunder (the “Registration Statement”).  The Registration Statement shall permit the
Holders to offer and sell, on a delayed or continuous basis pursuant to Rule
415 under the Securities Act, any or all of the Registrable Securities.  The Company agrees to use reasonable best
efforts to cause the Registration Statement to become effective (which shall
include using reasonable best efforts to respond to any comments of the SEC in
respect of the Registration Statement within ten (10) business days
following receipt thereof) within 90 days following the Effective Time.  The Company shall use its reasonable best
efforts to keep the Registration Statement effective until the earlier of
(i) the date when all of the Registrable Securities registered thereunder
shall have been sold, or (ii) the date all Registrable Securities are
eligible to be sold without restriction pursuant to Rule 144(k).

 

(b)                                 Within three (3) business days after a
Registration Statement that covers applicable Registrable Securities is
declared effective by the SEC, the Company shall deliver, or shall cause legal
counsel to deliver, to the transfer agent for such Registrable Securities (with
copies to the Holders whose Registrable Securities are included in such
Registration Statement) confirmation that such Registration Statement has been
declared effective by the SEC.

 

4.                                       COMPANY REGISTRATION.

 

(a)                                  If, at any time (but without any obligation
to do so), the Company proposes to register any of its Common Stock or other
equity securities under the Securities Act on Form S-1, Form S-2 or Form S-3
(or an equivalent general registration form then in effect) for purposes of an
offering or sale by or on behalf of the Company of its Common Stock or other
equity securities for its own account, then each such time the Company shall,
at least 20 business days prior to the time when any such registration
statement is filed with the SEC, give prompt written notice to the Holders of
its intention to do so.   Such notice
shall specify, at a minimum, the number and class of shares or other equity
securities so proposed to be registered, the proposed date of filing of such
registration statement, any proposed means of distribution of such shares or
other equity securities, any proposed managing underwriter or underwriters of
such shares or other equity securities and a good faith estimate by the Company
of the proposed 

 

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maximum offering price thereof, as such price is
proposed to appear on the facing page of such registration statement.  Upon the written direction of any Holder or
Holders, given within 10 days following the receipt by such Holder of such
written notice (which direction shall specify the number of Registrable
Securities intended to be disposed of by such Holder and the intended method of
distribution thereof), the Company shall include in such registration statement
any or all of the Registrable Securities then held by such Holder requesting
such registration (a “Selling Holder”) to the extent necessary to permit the
sale or other disposition of such number of Registrable Securities as such
Selling Holder has so directed the Company to be so registered.  Failure of any Stockholders to respond to the
Company’s notice within the 10-day period specified above shall be deemed an
election by such Holder not to have any of such Holder’s Registrable Securities
included in such registration statement. 
Notwithstanding the foregoing, the Holders shall not have any right
under this Section 4(a) if the registration proposed to be effected by the
Company relates solely to shares of Common Stock or other equity securities
that are issuable (1) solely to officers or employees of the Company or any
subsidiary thereof pursuant to a bona fide employee stock option, bonus or
other employee benefit plan or (2) as direct consideration in connection with a
merger, exchange offer or acquisition of a business.

 

(b)                                 In the event that the Company proposes to
register shares of Common Stock or other equity securities for purposes of an
offering described in the first sentence of Section 4(a), and any managing
underwriter shall advise the Company and the Selling Holders in writing that,
in its opinion, market or other factors require a limitation of the number of
securities to be underwritten, then the Company will include in such
registration statement such number of shares or securities as the Company and
such Selling Holders are so advised can be sold in such offering (the “Offering
Maximum Number”), as follows and in the following order of priority:  (A) first, the number of shares or securities
proposed to be included by the Company, and (B) second, if and to the
extent that the number of shares or securities to be registered under clause
(A) is less than the Offering Maximum Number, Registrable Securities of each
Selling Holder, allocated pro rata and without any priority as between the
Selling Holders, in proportion to the number sought to be registered by each
Selling Holder relative to the number sought to be registered by all the
Selling Holders, that, in the aggregate, when added to the number of shares or
securities to be registered under clause (A), equals the Offering Maximum
Number.

 

(c)                                  The Company shall have no obligation under
this Section 4 to make any offering of its securities, or to complete an
offering of its securities that it proposes to make, and shall incur no
liability to the Holders for its failure to do so.

 

(d)                                 Any Holder having notified or directed the
Company to include any or all of such Holder’s Registrable Securities in a
registration statement pursuant to this Section 4 hereof shall have the
right to withdraw such notice or direction with respect to any or all of the Registrable
Securities designated for registration thereby by giving written notice to such
effect to the Company at least five business days prior to the anticipated
effective date of such registration statement. 
In the event of any such withdrawal, the Company shall amend, at the
withdrawing Holder’s expense, such registration statement and take such other
actions as may be necessary so that such withdrawn Registrable Securities are
not included in the applicable registration and not sold pursuant thereto, and
such withdrawn Registrable Securities shall 

 

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continue to be Registrable Securities in accordance
herewith.  No such withdrawal shall
affect the obligations of the Company with respect to Registrable Securities
not so withdrawn.

 

(e)                                  Any Holder having notified or directed the
Company to include any or all of such Holder’s Registrable Securities in a
registration statement pursuant to this Section 4, shall, unless otherwise
agreed by the Company, offer and sell such Registrable Securities using the
same underwriter or underwriters and on the same terms and conditions as other
securities included in such underwritten offering.  Each Selling Holder participating in the
underwritten offering shall (i) enter into an underwriting agreement in
customary form with the managing underwriter or underwriters containing
conventional representations, warranties, allocation of expenses, and customary
closing conditions with any underwriter who acquires any Registrable Securities;
and (ii) complete and execute all reasonable questionnaires, powers of
attorney, indemnities, lock-up letters and other documents required under the
terms of such underwritten offering.

 

5.                                       OBLIGATIONS OF THE COMPANY.  In connection with the Company’s obligations
with respect to registration of Registrable Securities pursuant to Sections 3
and 4 hereof, the Company shall use its reasonable best efforts to effect or
cause such registration to permit the sale of the Registrable Securities by the
Holders thereof in accordance with the intended method or methods of
distribution thereof described in the registration statement relating thereto
and to maintain the effectiveness of such registration statement for the period
from the date of effectiveness (the “Effective Date”) of such registration
statement until the earlier of (1) the date on which the disposition of
all of the Registrable Securities covered by such registration statement is
completed or (ii) the date all Registrable Securities are eligible to be
sold without restriction pursuant to Rule 144(k), (such period, the “Registration
Period”).  In connection therewith, the
Company shall, as soon as reasonably practicable:

 

(a)                                  Pursuant to Section 3 hereof, prepare
and file with the SEC a registration statement on Form S-3, or such other form
as may be utilized by the Company and as shall permit the disposition of the
Registrable Securities in accordance with the intended method or methods
thereof, as specified in writing by the Holders thereof;

 

(b)                                 prepare and file with the SEC such amendments
and supplements to such registration statement and the prospectus used in
connection with such registration statement as may be necessary to keep such
registration statement effective during the Registration Period and to comply
with the provisions of the Securities Act with respect to the sale or other
disposition of the Registrable Securities by the Holders, and furnish to the
Holders of Registrable Securities registered thereby and the underwriters, if any,
thereof and the sales or placement agent, if any, therefor copies of any such
supplement or amendment prior to its being used and/or filed with the SEC;

 

(c)                                  comply in all material respects with the
provisions of the Securities Act applicable to the Company with respect to the
disposition of all of the Registrable Securities covered by such Registration
Statement in accordance with the intended method or methods of disposition by
the Holders thereof;

 

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(d)                                 provide the Holders and counsel for the
Holders thereof the opportunity to participate in the preparation of such
registration statement, each prospectus included therein or filed with the SEC
and each supplement or amendment thereto;

 

(e)                                  furnish to each Holder of Registrable
Securities to be registered in such registration statement (A) such number of
copies (including manually executed and conformed copies) of such registration
statement and of each amendment thereof and supplement thereto (including all
annexes, appendices, schedules and exhibits), (B) such number of copies of the
prospectus used in connection with such registration statement (including each
preliminary prospectus, any summary prospectus and the final prospectus and
including prospectus supplements), and (C) such number of copies of other
documents, if any, incorporated by reference in such registration statement or
prospectus, in each case as each respective party may reasonably request in
order to facilitate the offering and disposition of the Registrable Securities
owned by any such Holder, offered or sold by such agent, or underwritten by
such underwriter, and to permit each Holder, agent and underwriter to satisfy
the prospectus delivery requirements of the Securities Act; and the Company
hereby consents to the use of such prospectus (including each preliminary
prospectus, any summary prospectus and the final prospectus) and any amendment
or supplement thereto by each Holder and by any such agent and underwriter, in
each case in the form most recently provided to such party by the Company, in
connection with the offering and sale of the Registrable Securities covered by
the prospectus (including each preliminary prospectus, any summary prospectus
and the final prospectus) or any supplement or amendment thereto;

 

(f)                                    promptly notify the Holders of Registrable
Securities registered thereby, the managing underwriter or underwriters, if
any, thereof and the sales or placement agent, if any, therefor and, if
requested by any such party, confirm such notification in writing, (A) when a
prospectus or any prospectus supplement has been filed with the SEC and when
the registration statement or any post-effective amendment thereto has been
filed with and declared effective by the SEC, (B) of the issuance by the SEC of
any stop order or the coming to its knowledge of the initiation of any
proceedings for that purpose, (C) of the receipt by the Company of any
notification with respect to the suspension of the qualification of any of the
Registrable Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, (D) of the occurrence of any
event that requires the making of any changes to the registration statement or
related prospectus so that such documents 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 light of the
circumstances under which they were made, not misleading (and the Company shall
promptly prepare and furnish to the Holders upon request, a reasonable number
of copies of a supplemented or amended prospectus such that, as thereafter
delivered to the purchasers of the Registrable Securities, such prospectus
shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they are made, not
misleading), and (E) of the Company’s determination that the filing of a
post-effective amendment to the registration statement shall be necessary or
appropriate; and, upon the receipt of any notice from the Company of the
occurrence of any event of the kind described in this Section 5(f)(B), (C)
(but only with respect to the jurisdiction suspending qualification), (D) or
(E), (1) the Holders, underwriters and agents shall forthwith discontinue any
offer and 

 

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disposition of the Registrable Securities pursuant
to the registration statement covering such Registrable Securities and, if so
directed by the Company, shall deliver to the Company all copies (other than
permanent file copies) of the defective prospectus covering such Registrable
Securities that are then in the Holders’, underwriters’ and agents’ possession
or control, and (2) the Company shall, as promptly as practicable thereafter
(subject, in the case of Section 5 (f)(D), to the provisions of Section 10),
take such action as shall be necessary to remedy such event to permit the
Holders (and the underwriters and agents, if any) to continue to offer and
dispose of the Registrable Securities, including, without limitation, preparing
and filing with the SEC and furnishing to the Holders a supplement or amendment
to such prospectus so that, as thereafter deliverable to the purchasers of the
Registrable Securities, such prospectus will not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading;

 

(g)                                 use its reasonable best efforts to register
or qualify the Registrable Securities covered by such registration statement
under and to the extent required by such other securities or state blue sky
laws of such jurisdictions as any Holder, underwriter or sales or placement
agent shall request, and do any and all other acts and things that may be
necessary under such securities or blue sky laws to enable the Holders, underwriters
and agents to consummate the public sale or other disposition in such
jurisdictions of the Registrable Securities owned by the Holders, except that
the Company shall not for any such purpose be required to qualify to do
business as a foreign corporation in any jurisdiction wherein it is not so
qualified or submit to liability for state or local taxes where it would not
otherwise be liable for such taxes;

 

(h)                                 if requested by any managing underwriter or
underwriters, any placement or sales agent or any Holder, promptly incorporate
in a prospectus supplement or post-effective amendment such information as is
required by the applicable rules and regulations of the SEC and as such
managing underwriter or underwriters, such agent or such Holder specifies
should be included therein relating to the terms of the sale of such
Registrable Securities, including, without limitation, information with respect
to the number of Registrable Securities being sold by the Holders or agent or
to any underwriters, the name and description of the Holders, agent or
underwriter, the offering price of such Registrable Securities and any
discount, commission or other compensation payable in respect thereof, the
purchase price being paid therefor by such underwriters and with respect to any
other terms of the offering of the Registrable Securities to be sold by the
Holders or agent or to such underwriters; and make all required filings of such
prospectus supplement or post-effective amendment promptly after notification
of the matters to be incorporated in such prospectus supplement or
post-effective amendment;

 

(i)                                     use its reasonable best efforts to obtain the
consent or approval of each governmental agency or authority, whether federal,
state or local, that may be required to effect such registration or the
offering or sale in connection therewith or to enable the Holders to offer, or
to consummate the disposition of, the Registrable Securities; and

 

(j)                                     furnish to the Holders or the managing
underwriters, if any, on a timely basis and at the Company’s expense,
certificates free of any restrictive legends representing ownership of the
Registrable Securities being sold in such denominations and registered in such 

 

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names as the Holders or managing underwriters shall
request, and notify the transfer agent of the Company’s securities that it may
effect transfers of the Registrable Securities upon notification from each
respective Holder that it has complied with this Agreement and the prospectus
delivery requirements of the Securities Act.

 

6.                                       FURNISH INFORMATION.  It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Agreement that
the selling Holders shall furnish to the Company such information regarding
them and the securities held by them as the Company shall reasonably request
and as shall be required in order to effect any registration by the Company
pursuant to this Agreement.

 

7.                                       EXPENSES OF REGISTRATION.  All expenses incurred in connection with the
registration of the Registrable Securities pursuant to this Agreement
(excluding underwriting, brokerage and other selling commissions and
discounts), including without limitation all registration and qualification and
filing fees, printing, and fees and disbursements of counsel for the Company,
shall be borne by the Company.  In all
cases, the selling Holders will be responsible for, if applicable, underwriters
discounts, brokerage or other selling commissions and fees and disbursements of
counsel for such Holders.

 

8.                                       INDEMNIFICATION AND CONTRIBUTION.

 

(a)                                  To the extent permitted by law, the Company
will indemnify and hold harmless each selling Holder, any investment banking
firm acting as an underwriter for the selling Holder, any broker/dealer acting
on behalf of any selling Holder and each officer and director of such selling
Holder, such underwriter, such broker/dealer and each person, if any, who
controls such selling Holder, underwriter or broker/dealer within the meaning
of the Securities Act, against any losses, claims, damages or liabilities,
joint or several, to which they may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon any untrue or alleged untrue
statement of any material fact contained in the Registration Statement, in any
preliminary prospectus or final prospectus relating thereto or in any
amendments or supplements to the Registration Statement or any such preliminary
prospectus or final prospectus, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein, or necessary to make the statements therein not misleading in light of
the circumstances in which they are made; and will reimburse such selling
Holder, such underwriter, broker/dealer or such officer, director or
controlling person for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the indemnity agreement contained
in this Section 8(a) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Company (which consent shall not be unreasonably
withheld), nor shall the Company be liable in any such case for any such loss,
damage, liability or action to the extent that it arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged
omission made in connection with the Registration Statement, any preliminary
prospectus or final prospectus relating thereto or any amendments or
supplements to the Registration Statement or any such preliminary prospectus or
final prospectus, in reliance upon and in conformity with written information 

 

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furnished expressly for use in connection with the
Registration Statement or any such preliminary prospectus or final prospectus
by or on behalf of the selling Holder, any underwriter for them or controlling
person with respect to them.  This Section 8(a)
shall not inure to the benefit of any selling Holder with respect to any person
asserting loss, damage, liability or action as a result of a selling Holder
selling Registrable Securities during a Suspension Period (as defined in Section 10
hereof) or selling in violation of Section 5(c) of the Securities Act.

 

(b)                                 To the extent permitted by law, each selling
Holder will severally and not jointly indemnify and hold harmless the Company,
each of its officers and directors, each person, if any, who controls the
Company within the meaning of the Securities Act, any investment banking firm
acting as underwriter for the Company or the selling Holder, or any
broker/dealer acting on behalf of the Company or any other selling Holder, and
all other selling Holders against any losses, claims, damages or liabilities to
which the Company or any such director, officer, controlling person,
underwriter, or broker/dealer or other selling Holder may become subject to,
under the Securities Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereto) arise out of or are based upon
any untrue or alleged untrue statement of any material fact contained in the
Registration Statement or any preliminary prospectus or final prospectus,
relating thereto or in any amendments or supplements to the Registration
Statement or any such preliminary prospectus or final prospectus, or arise out
of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances in which they are made, in
each case to the extent and only to the extent that such untrue statement or
alleged untrue statement or omission or alleged omission was made in the
Registration Statement, in any preliminary prospectus or final prospectus
relating thereto or in any amendments or supplements to the Registration
Statement or any such preliminary prospectus or final prospectus, in reliance
upon and in conformity with written information furnished by such selling
Holder expressly for use in connection with the Registration Statement or any
preliminary prospectus or final prospectus related thereto; and such selling
Holders will reimburse any legal or other expenses reasonably incurred by the
Company or any such director, officer, controlling person, underwriter,
broker/dealer or other selling Holder in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the liability of each selling Holder hereunder shall be limited to the gross
proceeds (net of underwriting discounts and commissions, if any) received by
such selling Holder from the sale of Registrable Securities covered by the
Registration Statement; and provided, further, however, that the indemnity
agreement contained in this Section 8(b) shall not apply to amounts paid
in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of those selling Holder(s) against
which the request for indemnity is being made (which consent shall not be
unreasonably withheld).

 

(c)                                  Promptly after receipt by an indemnified
party under this Section 8 of notice of the commencement of any action,
such indemnified party will, if a claim in respect thereof is to be made
against any indemnifying party under this Section 8, notify the
indemnifying party in writing of the commencement thereof and the indemnifying
party shall have the right to participate in and, to the extent the
indemnifying party desires, jointly with any other indemnifying party similarly
noticed, to assume at its expense the defense thereof with counsel mutually
satisfactory to the indemnifying parties with the consent of the indemnified 

 

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party (which consent will not be unreasonably
withheld, conditioned or delayed).  In
the event that the indemnifying party assumes any such defense, the indemnified
party may participate in such defense with its own counsel and at its own
expense, provided, however, that the counsel for the indemnifying party shall
act as lead counsel in all matters pertaining to such defense or settlement of
such claim and the indemnifying party shall only pay for such indemnified party’s
expenses for the period prior to the date of its participation on such defense.  The failure to notify an indemnifying party
promptly of the commencement of any such action, if materially prejudicial to
his ability to defend such action, shall relieve such indemnifying party of any
liability to the indemnified party under this Section 8 to the extent of
such prejudice, but the omission so to notify the indemnifying party will not
relieve him of any liability which he may have to any indemnified party
otherwise other than under this Section 8.

 

(d)                                 Notwithstanding anything to the contrary
herein, without the prior written consent of the indemnified party, the
indemnifying party shall not be entitled to settle any claim, suit or
proceeding unless in connection with such settlement the indemnified party
receives an unconditional release with respect to the subject matter of such
claim, suit or proceeding and such settlement does not contain any admission of
fault by the indemnified party.

 

(e)                                  In order to provide for just and equitable
contribution under the Securities Act in any case in which (i) the indemnified
party makes a claim for indemnification pursuant to Section 8 hereof but
is judicially determined (by the entry of a final judgment or decree by a court
of competent jurisdiction and the expiration of time to appeal or the denial of
the last right of appeal) that such indemnification may not be enforced in such
case notwithstanding the fact that the express provisions of Section 8
hereof provide for indemnification in such case, or (ii) contribution under the
Securities Act may be required on the part of any indemnified party, then the
Company and the applicable selling Holder shall contribute to the aggregate
losses, claims, damages or liabilities to which they may be subject (which
shall, for all purposes of this Agreement, include, but not be limited to, all
reasonable costs of defense and investigation and all reasonable attorneys’
fees), in either such case (after contribution from others) on the basis of
relative fault as well as any other relevant equitable considerations.  The relative fault shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company on the one hand or
the applicable selling Holder on the other hand, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.  The Company
and the Holders agree that it would not be just and equitable if contribution
pursuant to this Section 8(e) were determined by pro rata allocation or by
any other method of allocation which does not take account of the equitable
considerations referred to in this Section 8(e).  The amount paid or payable by an indemnified
party as a result of the losses, claims, damages or liabilities (or actions in
respect thereof) referred to above in this Section 8 shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or
claim.  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.

 

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Notwithstanding any other provision of this Section 8(e), in no
event shall (i) any selling Holder be required to undertake liability to any
person under this Section 8(e) for any amounts in excess of the dollar
amount of the gross proceeds to be received by the selling Holder from the sale
of such selling Holder’s Registrable Securities (after deducting any fees,
discounts and commissions applicable thereto) pursuant to any Registration
Statement under which such Registrable Securities are or were to be registered
under the Securities Act and (ii) any underwriter be required to undertake
liability to any person hereunder for any amounts in excess of the aggregate
discount, commission or other compensation payable to such underwriter with
respect to the Registrable Securities underwritten by it and distributed
pursuant to the Registration Statement.

 

9.                                       REPORTS UNDER THE EXCHANGE ACT.  With respect to each Holder, from the date of
Closing until the date on which all of the Registrable Securities that such
Holder owns become freely transferable under Rule 144(k) promulgated under the
Securities Act, the Company agrees to use its reasonable best efforts:
(i) to make and keep public information available, as those terms are
understood and defined in the General Instructions to Form S-3, or any
successor or substitute form, and in Rule 144, (ii) to file with the SEC
all reports and other documents required to be filed by an issuer of securities
registered under Sections 13 or 15(d) of the Exchange Act, and (iii) if such
filings are not available via EDGAR, to furnish to such Holder as long as the
Holder owns or has the right to acquire any Registrable Securities prior to the
applicable termination date described above, a copy of the most recent annual
or quarterly report of the Company, and such other reports and documents so
filed by the Company under Sections 13 or 15(d) of the Exchange Act as may be
reasonably requested in availing such Holder of any rule or regulation of the
SEC permitting the selling of any such Registrable Securities without
registration.

 

10.                                 DEFERRAL AND LOCK-UP.

 

(a)                                  Notwithstanding anything in this Agreement to
the contrary, if the Company shall furnish to the selling Holders a certificate
signed by the President and Chief Executive Officer of the Company stating that
the Board has made the good faith determination (i) that continued use by
the selling Holders of the Registration Statement for purposes of effecting
offers or sales of Registrable Securities pursuant thereto would require, under
the Securities Act, disclosure in the Registration Statement (or the prospectus
relating thereto) of material, nonpublic information concerning the Company,
its business or prospects or any proposed transaction involving the Company,
and (ii) that such disclosure would be premature and would be adverse to
the Company, its business or prospects or any such proposed transaction or
would make the successful consummation by the Company of any such transaction
significantly less likely, then the right of the selling Holders to use the
Registration Statement (and the prospectus relating thereto) for purposes of
effecting offers or sales of Registrable Securities pursuant thereto shall be
suspended for a period (the “Suspension Period”) of not more than 60 days after
delivery by the Company of the certificate referred to above in this Section 10.  During the Suspension Period, none of the
Holders shall offer or sell any Registrable Securities pursuant to or in
reliance upon the Registration Statement (or the prospectus relating
thereto).  The Company may not exercise
this right more than two times in each year after the Closing.  Notwithstanding anything herein to the contrary,
during such time as any Selling Holder or an 

 

10

 

affiliate thereof is a director or executive officer
of the Company, such Selling Holder or an affiliate thereof shall be subject to
the policies of the Company regarding insider sales of the Company’s securities
and shall not effect any offers or sales of Registrable Securities pursuant to
or in reliance upon the Registration Statement or otherwise in violation of
such policies.

 

(b)                                 Holders shall not, during the period starting
with the Company’s date of filing of, and ending ninety calendar days
immediately following the effective date of any registration statement
pertaining to securities of the Company, if so requested by an underwriter in
an underwritten offering for the Company, effect any public sale or
distribution of any of the Company’s equity securities including a sale
pursuant to Rule 144.  In addition, if
requested by the Company, the Stockholders shall not effect any public sale or
distribution of any of the Registrable Securities pursuant to the Registration
Statement, during the ten-day period prior to any period during which an
exchange ratio or similar valuation formula based upon the trading prices of
the Company’s common stock is being calculated.

 

11.                                 TRANSFER OF REGISTRATION RIGHTS.  None of the rights of any Holder under this
Agreement shall be transferred or assigned to any person.  Notwithstanding the foregoing, a Holder’s
right under this Agreement may be assigned, in whole or in part, to any
Permitted Transferee, and any Permitted Transferee shall be deemed to be a
Holder (and, to the extent required by law, amend the Registration Statement in
connection with such assignment); provided that no such assignment shall be
effective or confer any right on any such assignee unless, prior to such
assignment, the assignee agrees in writing, by executing and delivering to the
Company an Instrument of Adherence in the form attached as Exhibit A, that such
assignee will be bound by all provisions binding on a Holder hereunder.  A “Permitted Transferee” is (i) any member of
the family of a Holder, including such Holder’s spouse and descendants and any
trust, partnership, corporation, limited liability company or other entity for
the sole benefit of such spouse and/or descendants to whom or which any
Registrable Securities have been transferred by such Holder for estate or tax
planning purposes or any charity or foundation to which Registrable Securities
have been transferred by such Holder for estate or tax planning or charitable
purposes; provided that such transferee agrees to be bound by the provisions
hereof in accordance with the preceding sentence and (ii) any trust,
partnership, corporation, limited liability company or other entity for the
sole benefit of such Stockholder and which entity is controlled solely by such
Stockholder.  Neither this Agreement nor
any provision hereof is intended to confer upon any Person other than the
parties hereto and any Permitted Transferee any rights or remedies hereunder.

 

12.                                 ENTIRE AGREEMENT.  This Agreement constitutes and contains the
entire agreement and understanding of the parties with respect to the subject
matter hereof, and it also supersedes any and all prior negotiations, correspondence,
agreements or understandings with respect to the subject matter hereof.

 

13.                                 MISCELLANEOUS.

 

(a)                                  This Agreement and the obligations of the
Company hereunder shall terminate on the earlier of: (i) the first date on
which no Registrable Securities remain outstanding, or (ii) the five-year
anniversary of the effectiveness of the Registration Statement.

 

11

 

(b)                                 This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware, and
shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, personal representatives, successors or permitted
assigns.  This Agreement shall also be
binding upon and inure to the benefit of any Permitted Transferee of any of the
Registrable Securities provided that the terms and conditions of Section 11
hereof are satisfied.

 

(c)                                  (i)                                     Any notices, reports or other correspondence
(hereinafter collectively referred to as “correspondence”) required or
permitted to be given hereunder shall be sent by courier (overnight or same
day) or telecopy or delivered by hand to the party to whom such correspondence
is required or permitted to be given hereunder. 
The date of giving any notice shall be the date of its actual receipt.

 

(ii)                                  All correspondence to the Company shall be
addressed as follows:

 

GSC
Holdings Corp.

2250 William D. Tate Avenue

Grapevine, Texas 76051

Telecopy No:  817-424-2820

Attention:  R. Richard Fontaine

 

with a copy to:

 

Bryan
Cave LLP

1290 Avenue of the Americas

New York, NY  10104

Telecopy No.:  212-541-1400

Attention:  Michael N. Rosen

 

(iii)                               All correspondence to any Holder shall be addressed as follows:

 

Mr.
James J. Kim

1345 Enterprise Drive

West Chester, PA 19380

Telecopy No.: 
610-431-9967

 

with a copy to:

 

Drinker Biddle &
Reath, LLP

One Logan Square

18th & Cherry Streets

Philadelphia,
PA 19103

Telecopy
No.: 215-988-2757

Attention:
Stephen Burdumy

 

12

 

Any
party may change the address to which correspondence to it is to be addressed
by notification as provided for herein.

 

(d)                                 The parties acknowledge and agree that in the
event of any breach of this Agreement, remedies at law may be inadequate, and
each of the parties hereto shall be entitled to seek specific performance of
the obligations of the other parties hereto and such appropriate injunctive
relief as may be granted by a court of competent jurisdiction.

 

(e)                                  This Agreement may be executed in a number of
counterparts, each of which together shall for all purposes constitute one
Agreement, binding on all the parties hereto notwithstanding that all such
parties have not signed the same counterpart.

 

(f)                                    Any action of the Stockholders under
this Agreement shall be made by approval of those Stockholders holding the
majority of the Registrable Shares on the date of such action.

 

13

 

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

 

 

	
  GSC HOLDINGS CORP.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STOCKHOLDERS:

  	
   

  
	
   

  	
   

  
	
  EB NEVADA INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  James J. Kim

  	
   

  
						

 

 

EXHIBIT A

 

INSTRUMENT OF ADHERENCE

 

Reference
is hereby made to that certain Registration Rights Agreement, dated as of          ,
2005, between GSC Holdings Corp., a Delaware corporation (the “Company”), the
Stockholders and the Permitted Transferees, as amended and in effect from time
to time (the “Registration Rights Agreement”). 
Capitalized terms used herein without definition shall have the
respective meanings ascribed thereto in the Registration Rights Agreement.

 

The
undersigned, in order to become the owner or holder of, or have the right to
acquire,           shares of
Registrable Securities, hereby agrees that, from and after the date hereof, the
undersigned has become a party to the Registration Rights Agreement in the
capacity of a Permitted Transferee, and is entitled to all of the benefits
under, and is subject to all of the obligations, restrictions and limitations
set forth in, the Registration Rights Agreement that are applicable to
Permitted Transferees.  This Instrument
of Adherence shall take effect and shall become a part of the Registration Rights
Agreement immediately upon execution.

 

Print Name of
Permitted Transferee:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
				

 

Permitted
Transferee’s Address and Fax Number for Notice:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Accepted:

 

	
  GSC HOLDINGS
  CORP.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  Date:Exhibit 10.1

 

 

 

 

 

April 11,2005

 

 

Geoffrey Boyd

Chief Financial Officer

Eschelon Telecom, Inc.

730 Second Avenue South

Suite 900

Minneapolis, MN 55402-2456

 

Dear Mr. Boyd:

 

Your existing service agreement expired on March 31, 2005 and we are
extending the termination language in that agreement for another two (2) years
or through April 30, 2007.

 

In the event that your employment with Eschelon Telecom, Inc. is
terminated without cause anytime before April 30, 2007, the Company will
continue your salary and medical payments for a period of one (1) year beyond
termination.  Additionally, Eschelon will
accelerate the vesting of options by one (1) year in such event.  The obligations imposed on you as an Officer
of Eschelon Telecom, Inc. with respect to confidentiality, non-disclosure, and
non-solicitation shall continue notwithstanding the termination of the
employment relationship between the parties.

 

Accepted and Agreed:

 

 

	
  By:

  	
  /s/ Richard A.
  Smith

  	
  By:

  	
  /s/ Cliff D.
  Williams

  
	
   

  	
  Richard A. Smith

  	
   

  	
  Cliff D. Williams

  
	
   

  	
    President & Chief Executive Officer

  	
   

  	
  Chairman &
  Founder

  

 

 

Accepted and Agreed

 

 

	
  By:

  	
  /s/ Geoffrey M. Boyd

  	
   

  
	
   

  	
   Geoffrey M. Boyd

  	
   

  
	
   

  	
  Chief Financial Officer

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