Document:

exv10w6

 

Exhibit 10.6

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is made and entered into as of
March 29, 2007, by and between Kitty Hawk, Inc., a Delaware corporation (the “Company”),
and Laurus Master Fund, Ltd. (the “Purchaser”).

     This Agreement is made pursuant to the Security Agreement, dated as of March ___, 2007, by and
among the Purchaser, the Company and various subsidiaries of the Company party thereto (as amended,
modified or supplemented from time to time, the “Security Agreement”), and pursuant to the
Note and the Warrants referred to therein.

     The Company and the Purchaser hereby agree as follows:

     1. Definitions. Capitalized terms used and not otherwise defined herein that are defined in
the Security Agreement shall have the meanings given such terms in the Security Agreement. As used
in this Agreement, the following terms shall have the following meanings:

          “Closing Date” means the date of the issuance by the Company of the Note and Warrants referred
to in the Security Agreement.

          “Commission” means the Securities and Exchange Commission.

          “Common Stock” means shares of the Company’s common stock, par value $0.000001 per share.

          “Effectiveness Date” means (i) with respect to the initial Registration Statement required to
be filed hereunder, a date no later than one hundred eighty (180) days following the Closing Date,
and (ii) with respect to each additional Registration Statement required to be filed hereunder, a
date no later than one hundred eighty (180) days following the applicable Filing Date.

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

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor
statute.

          “Filing Date” means, with respect to (i) the Registration Statement required to be filed
hereunder in respect of the shares of Common Stock issuable upon exercise of the Warrants issued as
of the Closing Date, a date no later than ninety (90) days following the Closing Date, (ii) the
shares of Common Stock issuable upon exercise of any Warrant issued after the Closing Date, the
date which is ninety (90) days after the date of the issuance of such Warrant, and (iii) the shares
of Common Stock issuable to the Holder as a result of adjustments to the Exercise Price made
pursuant to the Warrant or otherwise, thirty (30) days after the occurrence such event or the date
of the adjustment of the Exercise Price.

 

 

          “Holder” or “Holders” means the Purchaser or any of its affiliates or transferees to the
extent any of them hold Registrable Securities, other than those purchasing Registrable Securities
in a market transaction.

          “Indemnified Party” has the meaning set forth in Section 5(c).

          “Indemnifying Party” has the meaning set forth in Section 5(c).

          “Note” has the meaning set forth in the Security Agreement.

          “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 or deemed to be incorporated by reference in such
Prospectus.

          “Registrable Securities” means the shares of Common Stock issuable upon exercise of the
Warrants.

          “Registration Statement” means each registration statement required to be filed hereunder,
including the Prospectus therein, amendments and supplements to such registration statement or
Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference in such registration statement.

          “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 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, and any successor statute.

          “Security Agreement” has the meaning given to such term in the Preamble hereto.

          “Trading Market” the NASD Over The Counter Bulletin Board, NASDAQ Capital Market,
NASDAQ National Market System, American Stock Exchange or New York Stock

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Exchange (whichever of the foregoing is at the time the principal trading exchange or market
for the Common Stock).

          “Warrants” means the Common Stock purchase warrants issued in connection with the
Security Agreement, whether on the Closing Date or thereafter.

     2. Registration.

     (a) On or prior to the Filing Date the Company shall prepare and file with the
Commission a Registration Statement covering the Registrable Securities for a selling
stockholder resale offering to be made on a continuous basis pursuant to Rule 415. The
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 herewith). The Company shall use its
best efforts to cause each Registration Statement to become effective and remain effective
as provided herein. The Company shall use its best efforts to cause each Registration
Statement to be declared effective under the Securities Act as promptly as possible after
the filing thereof, but in any event no later than the Effectiveness Date. The Company
shall use its reasonable commercial efforts to keep each Registration Statement continuously
effective under the Securities Act until the date which is the earlier date of when (i) all
Registrable Securities have been sold or (ii) all Registrable Securities covered by such
Registration Statement may be sold immediately without registration under the Securities Act
and without volume restrictions pursuant to Rule 144(k), as determined by the counsel to the
Company pursuant to a written opinion letter to such effect, addressed and acceptable to the
Company’s transfer agent and the affected Holders (the “Effectiveness Period”).

     (b) Within three business days of the Effectiveness Date, the Company shall cause its
counsel (which may be in-house counsel) to issue a blanket opinion in the form attached
hereto as Exhibit A, to the transfer agent stating that the shares are subject to an
effective registration statement and can be reissued free of restrictive legend upon notice
of a sale by the Purchaser and confirmation by the Purchaser that it has complied with the
prospectus delivery requirements, provided that the Company has not advised the transfer
agent orally or in writing that the opinion has been withdrawn. Copies of the blanket
opinion required by this Section 2(c) shall be delivered to the Purchaser within the time
frame set forth above.

     3. Registration Procedures. If and whenever the Company is required by the provisions hereof
to effect the registration of any Registrable Securities under the Securities Act, the Company
will, as expeditiously as possible:

     (a) prepare and file with the Commission a Registration Statement with respect to such
Registrable Securities, respond as promptly as possible to any comments received from the
Commission, and use its best efforts to cause the Registration Statement to become and
remain effective for the Effectiveness Period with respect thereto, and promptly provide to
the Purchaser copies of all filings and Commission letters of comment relating thereto;

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     (b) prepare and file with the Commission such amendments and supplements to the
Registration Statement and the Prospectus used in connection therewith as may be necessary
to comply with the provisions of the Securities Act with respect to the disposition of all
Registrable Securities covered by such Registration Statement and to keep such Registration
Statement effective until the expiration of the Effectiveness Period applicable to such
Registration Statement;

     (c) furnish to the Purchaser such number of copies of the Registration Statement and
the Prospectus included therein (including each preliminary Prospectus) as the Purchaser
reasonably may request to facilitate the public sale or disposition of the Registrable
Securities covered by the Registration Statement;

     (d) use its best efforts to register or qualify the Purchaser’s Registrable Securities
covered by such Registration Statement under the securities or “blue sky” laws of such
jurisdictions within the United States as the Purchaser may reasonably request, provided,
however, that the Company shall not for any such purpose be required to qualify generally to
transact business as a foreign corporation in any jurisdiction where it is not so qualified
or to consent to general service of process in any such jurisdiction;

     (e) list the Registrable Securities covered by such Registration Statement with any
securities exchange on which the Common Stock of the Company is then listed;

     (f) promptly notify the Purchaser at any time when a Prospectus relating thereto is
required to be delivered under the Securities Act, of the happening of any event of which
the Company has knowledge as a result of which the Prospectus contained in such Registration
Statement, as then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing; and

     (g) make available for inspection by the Purchaser and any attorney, accountant or
other agent retained by the Purchaser, all publicly available, non-confidential financial
and other records, pertinent corporate documents and properties of the Company, and cause
the Company’s officers, directors and employees to supply all publicly available,
non-confidential information reasonably requested by the attorney, accountant or agent of
the Purchaser.

     4. Registration Expenses. All expenses relating to the Company’s compliance with Sections 2
and 3 hereof, including, without limitation, all registration and filing fees, printing expenses,
fees and disbursements of counsel and independent public accountants for the Company, fees and
expenses (including reasonable counsel fees) incurred in connection with complying with state
securities or “blue sky” laws, fees of the NASD, and fees of transfer agents and registrars, are
called “Registration Expenses”. All selling commissions applicable to the sale of
Registrable Securities, including any fees and disbursements of any counsel to the Holders are
called “Selling Expenses”. The Company shall only be responsible for all Registration
Expenses.

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     5. Indemnification.

     (a) In the event of a registration of any Registrable Securities under the Securities
Act pursuant to this Agreement, the Company will indemnify and hold harmless the Purchaser,
and its officers, directors and each other person, if any, who controls the Purchaser within
the meaning of the Securities Act, against any losses, claims, damages or liabilities, joint
or several, to which the Purchaser, or such persons 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 statement or alleged untrue
statement of any material fact contained in any Registration Statement under which such
Registrable Securities were registered under the Securities Act pursuant to this Agreement,
any preliminary Prospectus or final Prospectus contained therein, or any amendment or
supplement thereof, 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, and will reimburse the Purchaser, and each such person
for any reasonable legal or other expenses incurred by them in connection with investigating
or defending any such loss, claim, damage, liability or action; provided,
however, that the Company will not be liable in any such case if and to the extent
that any such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission so made in conformity
with information furnished by or on behalf of the Purchaser or any such person in writing
specifically for use in any such document.

     (b) In the event of a registration of the Registrable Securities under the Securities
Act pursuant to this Agreement, the Purchaser will indemnify and hold harmless the Company,
and its officers, directors and each other person, if any, who controls the Company within
the meaning of the Securities Act, against all losses, claims, damages or liabilities, joint
or several, to which the Company or such persons 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 statement or alleged untrue statement of
any material fact which was furnished in writing by the Purchaser to the Company expressly
for use in (and such information is contained in) the Registration Statement under which
such Registrable Securities were registered under the Securities Act pursuant to this
Agreement, any preliminary Prospectus or final Prospectus contained therein, or any
amendment or supplement thereof, 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, and will reimburse the Company and each such person
for any reasonable legal or other expenses incurred by them in connection with investigating
or defending any such loss, claim, damage, liability or action, provided,
however, that the Purchaser will be liable in any such case if and only to the
extent that any such loss, claim, damage or liability arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission so made in
conformity with information furnished in writing to the Company by or on behalf of the
Purchaser specifically for use in any such document. Notwithstanding the provisions of this
paragraph, the Purchaser shall not be required to indemnify any person or entity in excess
of the amount of the aggregate net

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proceeds received by the Purchaser in respect of Registrable Securities in connection
with any such registration under the Securities Act.

     (c) Promptly after receipt by a party entitled to claim indemnification hereunder (an
“Indemnified Party”) of notice of the commencement of any action, such Indemnified
Party shall, if a claim for indemnification in respect thereof is to be made against a party
hereto obligated to indemnify such Indemnified Party (an “Indemnifying Party”),
notify the Indemnifying Party in writing thereof, but the omission so to notify the
Indemnifying Party shall not relieve it from any liability which it may have to such
Indemnified Party other than under this Section 5(c) and shall only relieve it from any
liability which it may have to such Indemnified Party under this Section 5(c) if and to the
extent the Indemnifying Party is prejudiced by such omission. In case any such action shall
be brought against any Indemnified Party and it shall notify the Indemnifying Party of the
commencement thereof, the Indemnifying Party shall be entitled to participate in and, to the
extent it shall wish, to assume and undertake the defense thereof with counsel reasonably
satisfactory to such Indemnified Party, and, after notice from the Indemnifying Party to
such Indemnified Party of its election so to assume and undertake the defense thereof, the
Indemnifying Party shall not be liable to such Indemnified Party under this Section 5(c) for
any legal expenses subsequently incurred by such Indemnified Party in connection with the
defense thereof; if the Indemnified Party retains its own counsel, then the Indemnified
Party shall pay all fees, costs and expenses of such counsel, provided,
however, that, if the defendants in any such action include both the Indemnified
Party and the Indemnifying Party and the Indemnified Party shall have reasonably concluded
based on the advice of counsel that there may be reasonable defenses available to it which
are different from or additional to those available to the Indemnifying Party or if the
interests of the Indemnified Party reasonably may be deemed to conflict with the interests
of the Indemnifying Party, the Indemnified Party shall have the right to select one separate
counsel and to assume such legal defenses and otherwise to participate in the defense of
such action, with the reasonable expenses and fees of such separate counsel and other
expenses related to such participation to be reimbursed by the Indemnifying Party as
incurred.

     (d) In order to provide for just and equitable contribution in the event of joint
liability under the Securities Act in any case in which either (i) the Purchaser, or any
officer, director or controlling person of the Purchaser, makes a claim for indemnification
pursuant to this Section 5 but it 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 this Section 5 provides for indemnification in such case,
or (ii) contribution under the Securities Act may be required on the part of the Purchaser
or such officer, director or controlling person of the Purchaser in circumstances for which
indemnification is provided under this Section 5; then, and in each such case, the Company
and the Purchaser will contribute to the aggregate losses, claims, damages or liabilities to
which they may be subject (after contribution from others) in such proportion so that the
Purchaser is responsible only for the portion represented by the percentage that the public
offering price of its securities offered by the Registration Statement bears to the public
offering price of all securities offered by such Registration

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Statement, provided, however, that, in any such case, (A) the Purchaser
will not be required to contribute any amount in excess of the public offering price of all
such securities offered by it pursuant to such Registration Statement; and (B) no person or
entity guilty of fraudulent misrepresentation (within the meaning of Section 10(f) of the
Act) will be entitled to contribution from any person or entity who was not guilty of such
fraudulent misrepresentation.

     6. Representations and Warranties.

     (a) The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act and, except with respect to certain matters which the Company has disclosed to the
Purchaser on Schedule 12(x) to the Security Agreement or which are excluded pursuant
to the terms of Section 12(x) of the Security Agreement, the Company has timely filed all
proxy statements, reports, schedules, forms, statements and other documents required to be
filed by it under the Exchange Act since January 1, 2006. The Company has filed (i) its
Annual Report on Form 10-K for its fiscal year ended December 31, 2005 and (ii) its
Quarterly Report on Form 10-Q for the fiscal quarters ended September 30, 2006, June 30,
2006 and March 31, 2006 (collectively, the “SEC Reports”). Each SEC Report was, at
the time of its filing, in substantial compliance with the requirements of its respective
form and none of the SEC Reports, nor the financial statements (and the notes thereto)
included in the SEC Reports, as of their respective filing dates, contained any untrue
statement of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. The financial statements of the Company included in
the SEC Reports comply as to form in all material respects with applicable accounting
requirements and the published rules and regulations of the Commission or other applicable
rules and regulations with respect thereto. Such financial statements have been prepared in
accordance with generally accepted accounting principles (“GAAP”) applied on a
consistent basis during the periods involved (except (i) as may be otherwise indicated in
such financial statements or the notes thereto or (ii) in the case of unaudited interim
statements, to the extent they may not include footnotes or may be condensed) and fairly
present in all material respects the financial condition, the results of operations and the
cash flows of the Company and its subsidiaries, on a consolidated basis, as of, and for, the
periods presented in each such SEC Report.

     (b) The Common Stock is listed or quoted, as applicable, for trading on the American
Stock Exchange and satisfies all requirements for the continuation of such listing or
quotation, as applicable; and the Company shall do all things necessary so that the Common
Stock continues to be listed or quoted, as applicable, on a Trading Market. The Company has
not received any notice that its Common Stock will be delisted from or no longer be quoted
on, as applicable, the American Stock Exchange (except for prior notices which have been
fully remedied) or that the Common Stock does not meet all requirements for the continuation
of such listing or quotation, as applicable.

     (c) Neither the Company, nor any of its affiliates, nor any person acting on its or
their behalf, has directly or indirectly made any offers or sales of any security or

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solicited any offers to buy any security under circumstances that would cause the
offering of the Securities pursuant to the Security Agreement to be integrated with prior
offerings by the Company for purposes of the Securities Act which would prevent the Company
from selling the Common Stock pursuant to Rule 506 under the Securities Act, or any
applicable exchange-related stockholder approval provisions, nor will the Company or any of
its affiliates or subsidiaries take any action or steps that would cause the offering of the
Securities to be integrated with other offerings.

     (d) The Warrants and the shares of Common Stock issuable upon exercise of the Warrants
are all restricted securities under the Securities Act as of the date of this Agreement.
The Company will not issue any stop transfer order or other order impeding the sale and
delivery of any of the Registrable Securities at such time as such Registrable Securities
are registered for public sale or an exemption from registration is available, except as
required by federal or state securities laws or as permitted under the provisions of Section
7(d) below.

     (e) The Company understands the nature of the Registrable Securities issuable upon
exercise of the Warrant and recognizes that the issuance of such Registrable Securities may
have a potential dilutive effect. The Company specifically acknowledges that its obligation
to issue the Registrable Securities is binding upon the Company and enforceable regardless
of the dilution such issuance may have on the ownership interests of other shareholders of
the Company.

     (f) Except for agreements made in the ordinary course of business, there is no
agreement that has not been filed with the Commission as an exhibit to a registration
statement or to a form required to be filed by the Company under the Exchange Act as set
forth in Item 601 of Regulation S-K, the breach of which could reasonably be expected to
have a material and adverse effect on the Company and its subsidiaries, or would prohibit or
otherwise interfere with the ability of the Company to enter into and perform any of its
obligations under this Agreement in any material respect.

     (g) The Company will at all times have authorized and reserved a sufficient number of
shares of Common Stock for the full exercise of the Warrants.

     (h) The Company shall provide written notice to each Holder of (i) the occurrence of
each Discontinuation Event (as defined below) and (ii) the declaration of effectiveness by
the SEC of each Registration Statement required to be filed hereunder, in each case within
three (3) business days of the date of each such occurrence and/or declaration.

     7. Miscellaneous.

     (a) Remedies. In the event of a breach by the Company or by a Holder, of any of their
respective obligations under this Agreement, each 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.

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     (b) No Piggyback on Registrations. Neither the Company nor any of its security holders
(other than the Holders in such capacity pursuant hereto) may include securities of the
Company in any Registration Statement other than the Registrable Securities, and the Company
shall not after the Closing Date enter into any agreement providing any such right for
inclusion of shares in the Registration Statement to any of its security holders. Except as
disclosed on Schedule 12(c) to the Security Agreement, the Company has not
previously entered into any agreement granting any registration rights with respect to any
of its securities to any person or entity that have not been fully satisfied.

     (c) Compliance. Each Holder covenants and agrees that it will comply with the
prospectus delivery requirements of the Securities Act and the manner of sale provisions set
forth in the Registration Statement, in each case as applicable to it in connection with
sales of Registrable Securities pursuant to the Registration Statement.

     (d) Discontinued Disposition. Each Holder agrees by its acquisition of such
Registrable Securities that, upon receipt of a notice from the Company of the occurrence of
a Discontinuation Event (as defined below), such Holder will forthwith discontinue
disposition of such Registrable Securities under the applicable Registration Statement until
such Holder’s receipt of the copies of the supplemented Prospectus and/or amended
Registration Statement or until it is advised in writing (the “Advice”) 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. The Company may
provide appropriate stop orders to enforce the provisions of this paragraph. For purposes
of this Agreement, a “Discontinuation Event” shall mean (i) 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 (the Company
shall provide true and complete copies thereof and all written responses thereto to each of
the Holders); (ii) any request by the Commission or any other Federal or state governmental
authority for amendments or supplements to such Registration Statement or Prospectus or for
additional information; (iii) the issuance by the Commission of any stop order suspending
the effectiveness of such Registration Statement covering any or all of the Registrable
Securities or the initiation of any Proceedings for that purpose; (iv) 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; (v) any request by the Company
to suspend the filing of a Registration Statement or require that the Purchaser suspend
further offers and sales of Registrable Securities for a period not to exceed an aggregate
of thirty (30) days in any six (6) month period or an aggregate of sixty (60) days in any
twelve (12) month period for valid business reasons (not including avoidance of its
obligations hereunder) to avoid premature public disclosure of a pending corporate
transaction, including pending acquisitions or divestitures of assets, mergers and
combinations and similar events; and/or (vi) the occurrence of any event or passage of time
that makes the financial statements included in such Registration Statement ineligible for
inclusion therein or any statement made in such Registration Statement or Prospectus or any
document

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incorporated or deemed to be incorporated therein by reference untrue in any material
respect or that requires any revisions to such Registration Statement, Prospectus or other
documents so that, in the case of such Registration Statement or 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
light of the circumstances under which they were made, not misleading.

     (e) Piggy-Back Registrations. If at any time after the Closing Date there is not an
effective Registration Statement covering all of the Registrable Securities required to be
covered hereunder and the Company shall determine to prepare and file with the Commission a
registration statement relating to an offering for its own account or the account of others
under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8
(each as promulgated under the Securities Act) or their then equivalents relating to equity
securities to be issued solely in connection with any acquisition of any entity or business
or equity securities issuable in connection with stock option or other employee benefit
plans, then the Company shall send to each Holder written notice of such determination and,
if within fifteen (15) days after receipt of such notice, any such Holder shall so request
in writing, the Company shall include in such registration statement all or any part of such
Registrable Securities such Holder requests to be registered to the extent the Company may
do so without violating registration rights of others which exist as of the date of this
Agreement, subject to customary underwriter cutbacks applicable to all holders of
registration rights and subject to obtaining any required consent of any selling
stockholder(s) to such inclusion under such registration statement.

     (f) 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 of the then outstanding Registrable Securities.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of certain Holders and that does
not directly or indirectly affect the rights of other Holders may be given by Holders of at
least a majority of the Registrable Securities to which such waiver or consent relates;
provided, however, that the provisions of this sentence may not be amended,
modified, or supplemented except in accordance with the provisions of the immediately
preceding sentence.

     (g) Notices. Any notice or request hereunder may be given to the Company or the
Purchaser at the respective addresses set forth below or as may hereafter be specified in a
notice designated as a change of address under this Section 7(g). Any notice or request
hereunder shall be given by registered or certified mail, return receipt requested, hand
delivery, overnight mail, Federal Express or other national overnight next day carrier
(collectively, “Courier”) or telecopy (confirmed by mail). Notices and requests
shall be, in the case of those by hand delivery, deemed to have been given when delivered to
any party to whom it is addressed, in the case of those by mail or overnight mail, deemed to
have been given three (3) business days after the date when deposited in the mail or with
the overnight mail carrier, in the case of a Courier, the next business day

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following timely delivery of the package with the Courier, and, in the case of a
telecopy, when confirmed. The address for such notices and communications shall be as
follows:

	 	 	 	 	 
	 

	 	If to the Company:
	 	Kitty Hawk, Inc.

1515 West 20th Street

P.O. Box 612787

DFW International Airport, Texas 75261

Attention: Chief Financial Officer

Facsimile: (972) 456-2309
	 
	 	 	 	 
	 

	 	 	 	with a copy to:

Haynes and Boone, LLP

901 Main Street, Suite 3100

Dallas, TX 75202

Attention: Garrett DeVries

Facsimile: (214) 200-0428
	 
	 	 	 	 
	 

	 	If to a Purchaser:
	 	To the address set forth under such Purchaser’s

name on the signature pages hereto
	 
	 	 	 	 
	 

	 	 	 	with a copy to:

Edwards Angell Palmer & Dodge LLP

2800 Financial Plaza

Providence, RI 02903

Attention: Edward Kammerer

Facsimile: (401) 276-6611
	 
	 	 	 	 
	 

	 	If to any other Person who is
then the registered Holder:
	 	To the address of such Holder as it
appears in the stock transfer books of the Company

or such other address as may be designated in writing hereafter in accordance with this
Section 7(g) by such Person.

     (h) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties and shall inure to
the benefit of each Holder. The Company may not assign its rights or obligations hereunder
without the prior written consent of each Holder. Each Holder may assign their respective
rights hereunder in the manner and to the persons and entities as permitted under the
Warrants.

     (i) Execution and 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

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signature is executed) the same with the same force and effect as if such facsimile
signature were the original thereof.

     (j) Governing Law, Jurisdiction and Waiver of Jury Trial. THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW. The Company hereby consents and agrees that the state or federal courts
located in the County of New York, State of New York shall have exclusion jurisdiction to
hear and determine any Proceeding between the Company, on the one hand, and the Purchaser,
on the other hand, pertaining to this Agreement or to any matter arising out of or related
to this Agreement; provided, that the Purchaser and the Company acknowledge that any
appeals from those courts may have to be heard by a court located outside of the County of
New York, State of New York, and further provided, that nothing in this
Agreement shall be deemed or operate to preclude the Purchaser from bringing a Proceeding in
any other jurisdiction to collect the obligations, to realize on the Collateral or any other
security for the obligations, or to enforce a judgment or other court order in favor of the
Purchaser. The Company expressly submits and consents in advance to such jurisdiction in
any Proceeding commenced in any such court, and the Company hereby waives any objection
which it may have based upon lack of personal jurisdiction, improper venue or forum non
conveniens. The Company hereby waives personal service of the summons, complaint and other
process issued in any such Proceeding and agrees that service of such summons, complaint and
other process may be made by registered or certified mail addressed to the Company at the
address set forth in Section 7(g) and that service so made shall be deemed completed upon
the earlier of the Company’s actual receipt thereof or three (3) days after deposit in the
U.S. mails, proper postage prepaid. The parties hereto desire that their disputes be
resolved by a judge applying such applicable laws. Therefore, to achieve the best
combination of the benefits of the judicial system and of arbitration, the parties hereto
waive all rights to trial by jury in any Proceeding brought to resolve any dispute, whether
arising in contract, tort, or otherwise between the Purchaser and/or the Company arising out
of, connected with, related or incidental to the relationship established between then in
connection with this Agreement. If either party hereto shall commence a Proceeding to
enforce any provisions of this Agreement, the Security Agreement or any other Ancillary
Agreement, then the prevailing party in such Proceeding shall be reimbursed by the other
party for its reasonable attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such Proceeding.

     (k) Cumulative Remedies. The remedies provided herein are cumulative and not exclusive
of any remedies provided by law.

     (l) Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, 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

12

 

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.

     (m) Headings. The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the meaning hereof.

     (n) Termination of Agreement. Upon the expiration of the Effectiveness Period, this
Agreement shall terminate; provided, however, that the provisions of Section 5 hereof shall
survive any such termination.

[Balance of page intentionally left blank;

signature page follows]

13

 

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

	 	 	 	 	 	 	 	 	 	 	 
	KITTY HAWK, INC.	 	 	 	LAURUS MASTER FUND, LTD.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ James Kupferschmid 	 	 	 	By:	 	/s/ David Grin 	 	 
	 

	 	 

James Kupferschmid

Chief Financial Officer
	 	 
	 	 	 	 

David Grin

Director
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Address for
Notices:

Laurus Master Fund, Ltd.

c/o M&C Corporate Services Limited

P.O. Box 309 GT

Ugland House

George Town

South Church Street

Grand Cayman, Cayman Islands

Facsimile: 345-949-8080

with copy to:

Laurus Capital Management, LLC

825 Third Avenue, 17th Floor

New York, NY 10022

Attention: Portfolio Services

Facsimile: 212-541-4410exv10w8

 

Exhibit 10.8

AMENDMENT NO. 1 TO RIGHTS AGREEMENT

     AMENDMENT NO. 1 TO RIGHTS AGREEMENT (this “Amendment”) dated as of November 9, 2005 by and
between Kitty Hawk, Inc., a Delaware corporation (the “Company”), and American Stock Transfer &
Trust Company (the “Rights Agent”).

     WHEREAS, the Company and the Rights Agent have previously entered into that certain Rights
Agreement dated as of January 21, 2004 (the “Rights Agreement”); and

     WHEREAS, Section 27 of the Rights Agreement provides that, for so long as the Rights (as
defined in the Rights Agreement) are redeemable, the Company may from time to time supplement or
amend any provision of the Rights Agreement as the Company may deem necessary or desirable without
the approval of any holders of certificates representing shares of Common Stock (as defined in the
Rights Agreement); and

     WHEREAS, the Rights are currently redeemable; and

     WHEREAS, the Board of Directors has determined in good faith that the amendment to the Rights
Agreement set forth herein is desirable and, pursuant to the terms of the Rights Agreement, has
duly authorized such amendment to the Rights Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereby agree as follows:

     1. Amendment to the Definition of “Acquiring Person”. The definition of “Acquiring
Person” set forth in Section 1(a) of the Rights Agreement is hereby amended and restated in its
entirety as follows:

     (a) “Acquiring Person” shall mean any Person (as such term is hereinafter defined) who
or which, together with all Affiliates and Associates of such Person, shall be the
Beneficial Owner (as such term is hereinafter defined) of 15% or more of the shares of
Common Stock then outstanding, but shall not include (i) the Company, (ii) any Subsidiary of
the Company, (iii) any employee benefit plan of the Company or of any Subsidiary of the
Company, or any Person or entity organized, appointed or established by the Company for or
pursuant to the terms of any such plan, (iv) any Person who becomes an Acquiring Person
solely as a result of a reduction in the number of shares of Common Stock outstanding due to
the repurchase of shares of Common Stock by the Company, unless and until such Person shall
purchase or otherwise become (as a result of actions taken by such Person or its Affiliates
or Associates) the Beneficial Owner of additional shares of Common Stock constituting 1% or
more of the then outstanding shares of Common Stock, or (v) an Exempted Person (as such term
is hereinafter defined). Notwithstanding the foregoing, if (i) the Board of Directors of
the Company determines in good faith that a Person who would otherwise be an Acquiring
Person, as defined pursuant to the foregoing provisions of this paragraph, has become such
inadvertently (including, without limitation, because (A) such Person was unaware that it
beneficially owned a percentage of Common Stock that would otherwise cause such Person to be
an Acquiring Person, or (B) such Person was aware of the extent of its Beneficial Ownership
of Common Stock but had no actual knowledge of the consequences of such Beneficial Ownership
under this Agreement) and without any intention of changing or influencing control of the
Company, and (ii) within ten Business Days of being requested by the Company to advise it
regarding the same, such Person certifies to the Company that such Person acquired shares of
Common Stock in excess of 14.99%

 

 

inadvertently or without knowledge of the terms of the Rights and who, together with
all Affiliates and Associates, thereafter does not acquire additional shares of Common Stock
and within ten Business Days of being requested by the Company to do so disposes of the
portion of such shares of Common Stock in excess of 14.99%, then such Person shall not be
deemed to be or to have become an Acquiring Person for any purposes of this Agreement;
provided, however, that if the Person requested to so certify fails to do so
within ten Business Days of the Company’s request or such Person fails to dispose of such
shares of Common Stock in excess of 14.99% within ten Business Days of the Company’s
request, then such Person shall become an Acquiring Person immediately after such ten
Business Day period. The phrase “then outstanding,” when used with reference to a Person’s
Beneficial Ownership of securities of the Company, shall mean the number of such securities
then issued and outstanding together with the number of such securities not then actually
issued and outstanding which such Person would be deemed to own beneficially hereunder.

     2. Amendment to the Definition of “Beneficial Owner”. The definition of “Beneficial
Owner” set forth in Section 1(f) of the Rights Agreement is hereby amended and restated in its
entirety as follows:

     (f) A Person shall be deemed the “Beneficial Owner” of, and shall be deemed to
“beneficially own,” any securities:

          (i) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to acquire (whether such right is exercisable immediately or only
after the passage of time) pursuant to any agreement, arrangement or understanding (whether
or not in writing) or upon the exercise of conversion rights, exchange rights, rights,
warrants or options, or otherwise; provided, however, that a Person shall
not, for purposes of this paragraph (i), be deemed the “Beneficial Owner” of or to
“beneficially own,” (A) securities tendered pursuant to a tender or exchange offer made by
such Person or any of such Person’s Affiliates or Associates until such tendered securities
are accepted for purchase or exchange, or (B) securities issuable upon exercise of Rights at
any time prior to the occurrence of a Triggering Event, or (C) securities issuable upon
exercise of Rights from and after the occurrence of a Triggering Event, which Rights were
acquired by such Person or any of such Person’s Affiliates or Associates prior to the
Distribution Date or pursuant to Section 3(a) (Issuance of Rights Certificates —
Distribution Date; Rights Certificates) or Section 22 (Issuance of New Rights
Certificates) (the “Original Rights”) or pursuant to Section 11(i) (Adjustment of
Purchase Price; Number and Kind of Shares or Number of Rights — Adjustment of
Number of Rights) in connection with an adjustment made with respect to any Original
Rights;

          (ii) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to vote or dispose of or has “beneficial ownership” of (as
determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange
Act), including pursuant to any agreement, arrangement or understanding, whether or not in
writing; provided, however, that a Person shall not be deemed the
“Beneficial Owner” of, or to “beneficially own,” any security under this subparagraph (ii)
as a result of an agreement, arrangement or understanding to vote such security if such
agreement, arrangement or understanding: (A) arises solely from a revocable proxy given in
response to a public proxy or consent solicitation made pursuant to, and in accordance with,
the applicable provisions of the General Rules and Regulations under the Exchange Act, and
(B) is not also then reportable by such Person on a Schedule 13D under the Exchange Act (or
any comparable or successor report); or

2

 

          (iii) which are “beneficially owned,” directly or indirectly, by any other Person (or
any Affiliate or Associate thereof) with which such Person (or any of such Person’s
Affiliates or Associates) has any agreement, arrangement or understanding (whether or not in
writing), for the purpose of acquiring, holding, voting (except pursuant to a revocable
proxy as described in the proviso to subparagraph (ii) of this paragraph (f)) or disposing
of any voting securities of the Company;

provided, however, that nothing in this paragraph (f) shall cause a Person engaged
in business as an underwriter of securities to be the “Beneficial Owner” of or to “beneficially
own,” any securities acquired through such Person’s participation in good faith in a firm
commitment underwriting until the expiration of forty (40) calendar days after the date of such
acquisition.

     3. Amendment to the Definition of “Exempted Person”. The definition of “Exempted
Person” set forth in Section 1(t) of the Rights Agreement is hereby amended and restated in its
entirety as follows:

     (t) “Exempted Person” shall mean Miller, unless and until the earlier of such time as
(i) Miller, directly or indirectly, and together with its Affiliates and Associates, becomes
the Beneficial Owner of 23.50% or more of the shares of Common Stock then outstanding (other
than under circumstances described in Section 1(a)(iv) and in the second sentence of Section
1(a) (replacing for purposes of this clause (i) all references in Section 1(a) to 14.99%
with 23.49%)), (ii) Miller, directly or indirectly, and together with its Affiliates and
Associates, becomes the Beneficial Owner of less than 15% of the shares of Common Stock then
outstanding, or (iii) Miller breaches the terms of the Standstill Agreement. Upon the
occurrence of (i), (ii) or (iii) above, Miller immediately shall cease to be an Exempted
Person.

     4. Deletion of Definitions. Section 1 of the Rights Agreement shall be amended as
follows:

     (a) Section 1(q) of the Rights Agreement shall be amended and restated in its entirety as
follows:

     “(q) [INTENTIONALLY DELETED]”

     (b) Section 1(z) of the Rights Agreement shall be amended and restated in its entirety as
follows:

     “(z) [INTENTIONALLY DELETED]”

     (c) Section 1(ii) of the Rights Agreement shall be amended and restated in its entirety as
follows:

     “(ii) [INTENTIONALLY DELETED]”

     (d) Section 1(pp) of the Rights Agreement shall be amended and restated in its entirety as
follows:

     “(pp) [INTENTIONALLY DELETED]”

3

 

     5. Additional Definitions. Section 1 of the Rights Agreement shall be amended to
include the following definitions:

     (uu) “Miller” shall mean collectively, Lloyd I. Miller, III and any of his Affiliates and
Associates.

     (vv) “Standstill Agreement” shall mean that certain Standstill Agreement, dated as of November
10, 2005, by and among the Company, Miller, and the other parties thereto.

     6. Amendment to Section 3(a). Section 3(a) of the Rights Agreement is hereby amended
and restated in its entirety as follows:

     (a) Distribution Date; Rights Certificates. Until the earlier of (i) the Close of
Business on the tenth Business Day after the Stock Acquisition Date (or, if the tenth Business Day
after the Stock Acquisition Date occurs before the Record Date, the Close of Business on the Record
Date), or (ii) the Close of Business on the tenth Business Day (or such later date as the Board
shall determine prior to such time as any Person becomes an Acquiring Person) after the date that a
tender or exchange offer by any Person (other than the Company, any Subsidiary of the Company, any
employee benefit plan of the Company or of any Subsidiary of the Company, or any Person or entity
organized, appointed or established by the Company for or pursuant to the terms of any such plan)
is first published or sent or given within the meaning of Rule 14d-2(a) of the General Rules and
Regulations under the Exchange Act, if upon consummation thereof such Person would be the
Beneficial Owner of 15% (or, in the case of Miller, 23.50%, for so long as Miller is an Exempted
Person) or more of the shares of Common Stock then outstanding (the earlier of (i) and (ii) being
herein referred to as the “Distribution Date”), (x) the Rights will be evidenced (subject to the
provisions of paragraph (b) of this Section 3) by the certificates for the Common Stock registered
in the names of the holders of the Common Stock (which certificates for Common Stock shall be
deemed also to be certificates for Rights) and not by separate certificates, and (y) the Rights
will be transferable only in connection with the transfer of the underlying shares of Common Stock
(including a transfer to the Company, except pursuant to the provision of Section 23 (Redemption
and Termination)). As soon as practicable after the Distribution Date, the Rights Agent will send
by first-class, insured, postage prepaid mail, to each record holder of the Common Stock as of the
Close of Business on the Distribution Date, at the address of such holder shown on the records of
the Company, one or more rights certificates, in substantially the form of Exhibit 2 hereto (the
“Rights Certificates”), evidencing one Right for each share of Common Stock so held, subject to
adjustment as provided herein. In the event that an adjustment in the number of Rights per share
of Common Stock has been made pursuant to Section 11(p) (Adjustment of Purchase Price; Number and
Kind of Shares or Number of Rights — Common Stock Adjustments) at the time of distribution of the
Rights Certificates, the Company shall make the necessary and appropriate rounding adjustments (in
accordance with Section 14(a) (Fractional Rights and Fractional Shares — Fractional Rights)) so
that Rights Certificates representing only whole numbers of Rights are distributed and cash is paid
in lieu of any fractional Rights. As of and after the Distribution Date, the Rights will be
evidenced solely by such Rights Certificates.

     7. Amendment to Section 27. Section 27 of the Rights Agreement is hereby amended and
restated in its entirety as follows:

     Section 27. Supplements and Amendments. For so long as the Rights are redeemable, and
subject to the penultimate sentence of this Section 27, the Company may, and the Rights Agent
shall, if the Company so directs, supplement or amend any provision of this Agreement without the
approval of any holders of certificates representing shares of Common Stock or, on and after the
Distribution Date, the

4

 

holders of Rights Certificates. At any time when the Rights are no longer
redeemable and subject to the penultimate sentence of this Section 27, the Company and the Rights
Agent shall, if the Company so directs, supplement or amend this Agreement without the approval of
any holders of Rights Certificates;
provided, however, that no such supplement or amendment may (i) adversely
affect the interests of the holders of Rights Certificates (other than an Acquiring Person or an
Affiliate or Associate of any such Person) or, prior to the Distribution Date, holders of
certificates representing shares of Common Stock; (ii) cause this Agreement again to become
amendable other than in accordance with this sentence; or (iii) cause the Rights again to become
redeemable. Upon the delivery of a certificate from an appropriate officer of the Company which
states that the proposed supplement or amendment is in compliance with the terms of this Section
27, the Rights Agent shall execute such supplement or amendment. Notwithstanding anything contained
in this Agreement to the contrary, no supplement or amendment shall be made which changes the
Redemption Price, the Final Expiration Date, the Purchase Price, or the number of one
one-thousandths of a share of Preferred Stock for which a right is exercisable; provided,
however, that at any time prior to (i) a Stock Acquisition Date or (ii) the date that a
tender or exchange offer by any Person (other than the Company, any Subsidiary of the Company, any
employee benefit plan of the Company or any Subsidiary of the Company, or any Person or entity
organized, appointed or established by the Company for or pursuant to the terms of any such plan)
is first published or sent or given within the meaning of Rule 14d-2(a) of the General Rules and
Regulations under the Exchange Act, if upon consummation thereof, such Person would be the
Beneficial Owner of 15% (or, in the case of Miller, 23.50%, for so long as Miller is an Exempted
Person) or more of the shares of Common Stock then outstanding the Board may amend this Agreement
to increase the Purchase Price or extend the Final Expiration Date. Prior to the Distribution
Date, the interests of the holders of Rights shall be deemed coincident with the interests of the
holders of Common Stock.

     8. Effectiveness. This Amendment shall be effective as of November 9, 2005, as if
executed by both parties on such date. Except as expressly amended by this Amendment, the Rights
Agreement shall remain in full force and effect, and all references to the Rights Agreement from
and after such time shall be deemed to be references to the Rights Agreement as amended hereby.

     9. Governing Law. This Amendment shall be deemed to be a contract made under the laws
of the State of Delaware and for all purposes shall be governed by and construed in accordance with
the laws of such state applicable to contracts made and to be performed entirely within such state.

     10. Counterparts. This Amendment may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.

     11. Severability. If any term, provision, covenant or restriction of this Amendment
is held by a court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Amendment
shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

     12. Descriptive Headings. Descriptive headings of the several Sections of this
Amendment are inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions of this Amendment.

     13. Exhibits. Exhibit 2 to the Rights Agreement shall be deemed amended in a manner
consistent with this Amendment.

* * * * *

5

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the day and year first above written.

	 	 	 	 	 	 
	 	 	KITTY HAWK, INC.	 
	 
	 

	 	By:	 	/s/  Robert W. Zoller, Jr.	 
	 

	 	 	 	 	 
	 	 	Name: Robert W. Zoller, Jr. 

Title: President and Chief Executive Officer	 
	 
	 	 	 	 	 

	 	 	 	 	 
	AGREED AND ACCEPTED:	 	 
	 
	 	 	 	 
	AMERICAN STOCK TRANSFER & TRUST COMPANY	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

{Signature Page to the Amendment No. 1 to Rights Agreement}

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