Document:

exh4-2_1369277.htm

EXHIBIT 4.2

 

	
Warrant No.: ______
	
Issue Date: ________

	
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR ANY NON-U.S. OR STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE THEREWITH.  THIS SECURITY IS ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER AS SET FORTH
IN THE SECURITIES PURCHASE AGREEMENT, COPIES OF WHICH MAY BE OBTAINED UPON REQUEST FROM THE COMPANY OR ANY SUCCESSOR THERETO.

WARRANT

 

To Purchase Shares of Class A Common Stock of

 

ACCESS INTEGRATED TECHNOLOGIES, INC.

 

THIS IS TO CERTIFY THAT, for value received, Sageview Capital Master, L.P., or its registered assigns, is entitled at the times specified herein, to purchase from Access Integrated Technologies, Inc. d/b/a Cinedigm Digital Cinema Corp., a Delaware corporation (the “Company”), up
to an aggregate of sixteen million (16,000,000) Warrant Shares (as hereinafter defined and subject to adjustment as provided herein), in whole or in part, including fractional parts, at a purchase price per Warrant Share equal to the Exercise Price (as hereinafter defined), all on the terms and conditions and pursuant to the provisions hereinafter set forth.

 

ARTICLE 1

 

DEFINED TERMS

                      

Section 1.1     Definitions.  Capitalized terms used and not defined herein shall have the meanings assigned to them in the Securities Purchase Agreement.  As
used herein, the following terms shall have the following meanings:

 

“Additional Shares of Class A Common Stock” means any shares of Class A Common Stock issued (whether from the Company’s treasury or authorized and unissued shares of capital stock) or, as provided in Section
3.6(a), deemed to be issued by the Company after the Closing Date; provided that, notwithstanding anything to the contrary contained herein, Additional Shares of Class A Common Stock shall not include (a) issuances of Class A Common Stock (including any deemed issuance pursuant to Section 3.6(a)) that are pursuant to employee benefit plans and compensation-related arrangements
approved by the Board (including any duly authorized committee thereof), (b) shares of Class A Common Stock issuable upon the exercise, exchange or conversion of the Convertible Securities (including, without limitation, the Warrants) listed on Schedule 3.1(g) to the Securities Purchase Agreement or (c) securities issued as consideration pursuant to acquisitions of businesses or entities by the Company or its subsidiaries approved by a majority vote of the non-employee members of the Board of Directors (but excluding
any transaction in which the Company is issuing securities primarily for the

 

  

  

  

purpose of raising capital or to an entity whose primary business is investing in securities).

 

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with, such specified Person. Notwithstanding
the foregoing, (i) the Company, its Subsidiaries and its other controlled Affiliates shall not be considered Affiliates of the Holder and (ii) none of the Holder or its Affiliates shall be considered Affiliates of any portfolio company in which the Holder or any of its Affiliates have made a debt or equity investment.

 

“Aggregate Amount” shall have the meaning provided in Section 3.5.

 

“Below Exercise Price Issuance” shall have the meaning provided in Section 3.6(c).

 

“Beneficially Own,” “Beneficially Owned,” or “Beneficial Ownership”
shall have the meaning set forth in Rule 13d-3 of the rules and regulations promulgated under the Exchange Act; provided, however, that the Holder shall not be deemed to Beneficially Own any securities owned by its portfolio companies as long as the Holder does not directly or indirectly encourage, assist or provide any information to such portfolio company in respect of the acquisition,
disposition or voting of such securities.

 

“Board” means the Board of Directors of the Company.

 

“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by law to be closed in the City of New York.

 

“Cashless Exercise” shall have the meaning provided in Section 2.3(b).

 

“Cashless Exercise Ratio” means a fraction, (i) the numerator of which is the excess of the Fair Market Value per Warrant Share on the date of exercise over the Exercise Price per Warrant Share as of the date of exercise
and (ii) the denominator of which is the Fair Market Value per Warrant Share on the date of exercise.

 

“Change of Control” means (i) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company (including, for the avoidance
of doubt, the sale of all or substantially all of the assets and/or the capital stock of the Company’s Subsidiaries in the aggregate) to any Person or group (as defined in Section 13(d) of the Exchange Act) (other than Sageview Capital Partners LP and/or any of its Affiliates), (ii) the approval by the holders of the Company’s capital stock of any plan or proposal to effect the liquidation, dissolution or winding up of the Company, (iii) any Person or group (as defined in Section 13(d)(3) of the Exchange
Act) (other than Sageview Capital Partners LP and/or any of its Affiliates) shall become the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of voting securities representing more than 35% of the aggregate voting power of all classes of the voting securities of the Company, (iv) the consolidation, merger or other business combination of the Company with or into another Person (other than as permitted by Section 8(p)(i) of the Notes), (v) as a direct result of any proxy contest or solicitation
opposed by the Company, individuals who, at the commencement of that proxy contest or solicitation (the “Incumbent Directors”) cease to constitute at least a majority of

 

  

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the Company’s board of directors at the conclusion thereof, provided that any person becoming a director in connection with that proxy contest or solicitation whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors shall be an Incumbent Director or (vi) if the Purchaser Director
Entitlement or the Purchaser Observer Entitlement is at least one Director or one Observer, respectively, for 10 consecutive Trading Days the Class A Common Stock is neither listed for trading on a U.S. national securities exchange nor quoted on an established U.S. automated interdealer quotation system and no American Depositary Shares or similar instruments for such common stock are so listed or approved for listing in the United States.

 

“Class A Common Stock” means the Class A common stock, par value $0.001 per share, of the Company and any securities issued in respect thereof, or in substitution therefor, in connection with any stock split, dividend,
spin-off or combination, or any reclassification, recapitalization, merger, consolidation, exchange or other similar reorganization or business combination.

 

“Class B Common Stock” means the Class B common stock, par value $0.001 per share, of the Company and any securities issued in respect thereof, or in substitution therefor, in connection with any stock split, dividend,
spin-off or combination, or any reclassification, recapitalization, merger, consolidation, exchange or other similar reorganization or business combination.

 

“Common Stock” means the Class A Common Stock and the Class B Common Stock.

 

“Company” shall have the meaning provided in the preamble hereto.

 

“Company Rights Plan” means that certain Tax Benefit Preservation Plan, dated as of August 10, 2009, between the Company and American Stock Transfer & Trust Company, LLC, as amended from time to time in accordance
with its terms and in compliance with the Securities Purchase Agreement.

 

“control” (including the terms “controlled by” and “under common control with”),
with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee or executor, by contract or otherwise.

 

“Convertible Securities” means any debt or other evidences of indebtedness, capital stock, rights, options, warrants or other securities directly or indirectly convertible into or exercisable or exchangeable for Class
A Common Stock.

 

“Daily Price” means (i) if the shares of Class A Common Stock then are listed and traded on Nasdaq, the closing sale price or, if no closing sale price is reported, the last reported sale price of the shares of Class
A Common Stock on the Nasdaq on such date, (ii) if the shares of Class A Common Stock then are not listed and traded on the Nasdaq, the closing sale price or, if no closing sale price is reported, the last reported sale price of the shares of Class A Common Stock on such date by the principal United States national securities exchange on which the

 

  

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shares are listed and traded or (iii) if the shares of Class A Common Stock then are not listed and traded on any such securities exchange, the last quoted bid price on such date for the shares of Class A Common Stock in the over-the-counter market as reported by Pink Sheets LLC or a similar organization.  If on any determination
date the shares of Class A Common Stock are not quoted by any such organization or such bid price is not available, the Daily Price shall be the fair market value of the shares of Class A Common Stock on such date as determined by a nationally recognized investment bank, appraisal or accounting firm (whose fees and expenses will be paid by the Company) selected by mutual agreement of the Company and the holders of Warrants then exercisable for a majority of the Warrant Shares.

 

“Disposition Event” shall have the meaning provided in Section 3.4.

 

“Distribution Date” shall have the meaning given thereto in the Company Rights Plan or its comparable term/provision under any successor, substitute or additional shareholder rights plan.

 

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

 

“Exercise Price” means $1.37 per Warrant Share, as adjusted from time to time in accordance herewith.

 

“Expiration Date” means August 11, 2016; provided, however, that if (a) the Fair Market
Value of the Class A Common Stock on August 11, 2016 is less than $7.50 per share (as adjusted to reflect any stock split, reverse stock split, recapitalization or similar transaction) and (b) Sageview Capital Master, L.P. and its Affiliates hold Warrants exercisable for at least 1,000,000 Warrant Shares on August 11, 2016, then upon the Company’s receipt of a written notice no later than ten (10) Trading Days after August 11, 2016, the Expiration Date shall thereafter be August 11, 2019.

 

“Expiration Time” shall have the meaning provided in Section 3.5.

 

“Fair Market Value” of Common Stock or any other security or property means the fair market value thereof as determined in accordance with the following rules: (i) for Class A Common Stock or any other security traded
or quoted on the Nasdaq or any other United States national securities exchange, the Fair Market Value will be the average of the closing prices of such security on such securities exchange over a ten (10) consecutive Trading Day period, ending on the Trading Day immediately prior to the date of determination; (ii) for any security that is not so traded or quoted, the Fair Market Value shall be determined: (x) mutually by the Board and the Holder, or (y) by a nationally recognized investment bank, appraisal or
accounting firm (whose fees and expenses will be paid by the Company) selected by mutual agreement between the Board and the holders of Warrants then exercisable for a majority of the Warrant Shares; or (iii) for any other property, the Fair Market Value shall be determined by the Board in good faith assuming a willing buyer and a willing seller in an arms’-length transaction; provided that if holders of Warrants then exercisable for a majority
of the Warrant Shares object to a determination of the Board made pursuant to this clause (iii), the Fair Market Value of such property shall be as determined by nationally recognized investment bank, appraisal or accounting firm (whose fees and expenses will be paid by the Company unless the subsequent

 

  

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determination of Fair Market Value by such bank, appraisal or accounting firm is less than one hundred and five percent (105%) of the Board’s determination in which case, such fees and expenses will be paid by the holders of the Warrants) selected by mutual agreement between the Board and such holders.

 

“Group” shall have the meaning assigned to it in Section 13(d)(3) of the Exchange Act.

 

“Holder” means the duly registered holder of this Warrant under the terms hereof, including assignees thereof.

 

“Initial Exercise Date” means the earliest to occur of the following: (i) the date upon which Shareholder Approval has been obtained, (ii) the date upon which the third Shareholder Meeting has been completed or (iii)
February 28, 2011.

 

“Maximum Voting Power” means, at the time of determination of the Maximum Voting Power, the total number of votes which may be cast in respect of all capital stock of the Company on the applicable matter subject to
the vote of the Common Stock.

 

“Measurement Date” means, with respect to a transaction, the public announcement of such transaction (or, if no such public announcement is made, the date of consummation of the transaction).

 

“Nasdaq” means the Nasdaq Global Market (or any successor thereto).

 

“Person” means any individual, corporation, limited liability company, limited or general partnership, joint venture, association, joint-stock company, trust, unincorporated organization, government or any agency or
political subdivisions thereof or any Group comprised of two or more of the foregoing.

 

“Principal Market” means, with respect to the Class A Common Stock, Nasdaq or such other primary United States national securities exchange on which the Class A Common Stock subsequently becomes traded, and with respect
to any other security, the principal securities exchange or trading market for such other security.

 

“Public Sale” means (i) a sale pursuant to an effective registration statement (other than a registration statement on Form S-4, Form S-8 or any successor or other forms promulgated for similar purposes) filed under
the Securities Act or (ii) a “brokers’ transaction” (as defined in Rule 144 of the Securities Act) or a “riskless principal transaction” (as defined in Rule 144 of the Securities Act).

 

“Purchased Shares” shall have the meaning provided in Section 3.5.

 

“Rights” shall have the meaning given thereto in the Company Rights Plan (or the comparable right under any successor, substitute or additional shareholder rights plan).

 

“Rights Plan Exchange” shall be the exchange of Rights for Class A Common Stock or other securities after the occurrence of a Rights Plan Triggering Event pursuant to the Company Rights Plan or under any successor,
substitute or additional shareholder rights plan.

 

  

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“Rights Plan Triggering Event” shall have the same meaning as “Trigger Event” set forth in the Company Rights Plan or its comparable term/provision under any successor, substitute or additional shareholder
rights plan.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

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

 

“Securities Purchase Agreement” means the Securities Purchase Agreement, dated as of August 11, 2009, between the Company and the Purchasers, as amended from time to time in accordance with its terms.

 

“Shareholder Approval” means all approvals of the stockholders of the Company necessary to approve, for purposes of the listing rules of Nasdaq, each of the following:  (a) the removal of the limitation on
exercise of the Warrants set forth in Section 2.9, (b) the removal of the limitation on adjustments set forth in Section 3.6(d) and (c) the Second Director Right.

 

“Tender Expiration Date” shall have the meaning provided in Section 3.5.

 

“Trading Day” means any day on which the Class A Common Stock is traded on its Principal Market; provided that “Trading Day” shall not include
any day on which the Principal Market is open for trading for fewer than 4.5 hours.

 

“Transfer Restriction Termination Event” means, following the Issuance Date, the earliest to occur of (i) August 11, 2011, (ii) consummation of a Change of Control or (iii) an Event of Default (as defined in the Notes).

 

“Warrant Exercise Notice” shall have the meaning provided in Section 2.3(a).

 

“Warrant Shares” means the shares of Class A Common Stock issuable, received, or issued, as the case may be, upon exercise of the Warrants.

 

“Warrants” means this Warrant and all warrants issued upon transfer, division or combination of, or in substitution for, any thereof.  All Warrants shall at all times be identical as to terms and conditions
and date, except as to the number of Warrant Shares for which they may be exercised.

 

ARTICLE 2

 

EXERCISE TERMS

 

Section 2.1     Exercise Periods.  Subject to Section 2.9 hereof, at any time from and after the Initial Exercise Date and until 5:00
p.m., New York City time, on the Expiration Date, the Holder may exercise this Warrant, subject to required regulatory approval (other than in connection with any such exercise and contemporaneous sale by the Holder of the applicable Warrant Shares issued upon exercise of the Warrant), if any, for all or any part of the number of Warrant Shares purchasable hereunder.

 

  

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Section 2.2     Expiration.  This Warrant shall terminate and become void as of the earlier of (i) 5:00 p.m., New York City time, on the Expiration Date and (ii) the time and date this Warrant is exercised
in full.

 

Section 2.3     Manner of Exercise.  (a) In order to exercise this Warrant, in whole or in part, Holder shall deliver to the Company at its principal office at 55 Madison Avenue, Suite 300, Morristown,
New Jersey 07960 or at the office or agency designated by the Company pursuant to Article 6 (i) a written notice of Holder’s election to exercise this Warrant, which notice shall specify the number of Warrant Shares to be purchased and shall be substantially in the form of the subscription form appearing at the end of this Warrant as Exhibit A (a “Warrant Exercise Notice”),
(ii) subject to Section 2.3(b), payment of the Exercise Price for the number of Warrant Shares in respect of which such Warrant is then exercised and (iii) this Warrant.  Payment of the Exercise Price may be made (x) in cash or by certified or official bank check payable to the order of the Company or by wire transfer of funds to an account designated by the Company for such purpose, (y) by surrender of Warrants as set forth in Section
2.3(b) or (z) by any combination of the methods specified in clauses (x) or (y) of this sentence.  The rights represented by this Warrant shall be exercisable at the election of the Holder hereof either in full at any time or in part from time to time, in each case subject to Section 2.1, Section 2.2 and Section
2.9 hereof, and, in the event that this Warrant is surrendered for exercise in respect of less than all the Warrant Shares purchasable on such exercise at any time prior to the Expiration Date, the Company shall, at the time of delivery of the certificate or certificates representing the Warrant Shares, promptly deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the remaining unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects
be identical with this Warrant.

 

(b)     In lieu of payment of the Exercise Price in cash, at the option of the Holder, as indicated on the subscription form appearing at the end of this Warrant as Exhibit A, the Holder may demand that the
Company reduce the number of Warrant Shares to be delivered to such Holder upon exercise of the Warrants then being exercised so that the Holder receives a number of Warrant Shares equal to the product of (i) the number of Warrant Shares for which such Warrant would otherwise then be nominally exercised if payment of the Exercise Price as of the date of exercise were being made in cash and (ii) the Cashless Exercise Ratio.  An exercise of a Warrant in accordance with this clause (b) is herein called
a “Cashless Exercise”.  The Holder may use the Cashless Exercise option whether or not this Warrant is being exercised in full or in part and whether or not the Holder elects to pay any portion of the aggregate Exercise Price in cash.

 

Section 2.4     Issuance of Warrant Shares.  Subject to Section 2.5, upon the surrender of this Warrant and payment of the per share
Exercise Price in cash and/or in accordance with a Cashless Exercise as set forth in Section 2.3, the Company shall, as promptly as practicable, and in any event within three (3) Trading Days thereafter, issue (or cause there to be issued) and deliver (or cause to be delivered) to or upon the written order of the Holder and in such name or names as the Holder may designate in the Warrant Exercise Notice provided pursuant to Section
2.3(a), a certificate or certificates for the number of full Warrant Shares so purchased upon the exercise of such Warrants or other securities or property to which it is entitled, registered or otherwise to the Person or Persons entitled to receive the same, together with cash as provided in Section 2.5 in respect of any fractional Warrant Shares otherwise issuable upon such exercise.

 

  

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Such certificate or certificates shall be deemed to have been issued and any Person so designated to be named therein shall be deemed to have become a holder of record of such Warrant Shares as of the date of the delivery of the Warrant Exercise Notice provided pursuant to Section 2.3(a),
the surrender of this Warrant and, subject to Section 2.3(b), payment of the per share Exercise Price, notwithstanding that the stock transfer books of the Company may then be closed or such certificate or certificates may not be actually delivered on such date.  If, prior to both (x) a Rights Plan Triggering Event and (y) a Distribution Date, this Warrant is exercised for Class A Common Stock, upon the exercise of this Warrant,
the shares of Class A Common Stock issued in respect thereof shall be issued with the same Rights, if any, attached thereto as are attached to the then-outstanding shares of Class A Common Stock.  If following the occurrence of a Distribution Date and prior to the expiration or redemption of the Rights (it being understood that a Rights Plan Exchange shall not be deemed to be an expiration or redemption of the Rights), this Warrant is exercised for Class A Common Stock, upon the exercise of this Warrant,
the holders of such Class A Common Stock shall receive the number of Rights which would have been attached to such Class A Common Stock assuming the Distribution Date had not occurred prior to such exercise and, if the Company has previously completed a Rights Plan Exchange that would have applied to such Rights had they been outstanding at the time of such Rights Plan Exchange, the Company shall promptly effect the same exchange of the Rights received by such holders as was previously completed pursuant to such
Rights Plan Exchange (it being understood that Section 3.5 shall not apply to such Rights Plan Exchange).

 

Section 2.5     Fractional Warrant Shares.  The Company shall not be required to issue fractional Warrant Shares on the exercise of Warrants.  If any fraction of a Warrant Share would, except
for the provisions of this Section 2.5, be issuable on the exercise of this Warrant (or specified portion thereof), the Company shall pay an amount in cash equal to the Fair Market Value for one Warrant Share on the Trading Day immediately preceding the date the Warrant is exercised, multiplied by such fraction, rounded to the nearest whole cent.

 

Section 2.6     Reservation of Warrant Shares.  (a) The Company shall at all times on and following the Closing Date keep reserved out of its authorized but unissued shares of Common Stock a number
of shares of Class A Common Stock sufficient to provide for the exercise in full of all outstanding Warrants.  The registrar for the Class A Common Stock shall at all times on and following the Closing Date and until the Expiration Date, or the time at which all Warrants have been exercised or canceled, reserve such number of authorized shares of Class A Common Stock as shall be required for such purpose.  All Warrant Shares which may be issued upon exercise of this Warrant shall be duly and
validly authorized, validly issued, fully paid, nonassessable, free of preemptive rights and free from all Liens, other than Liens created pursuant to the Securities Purchase Agreement or created by the Holder.

 

(b)     Before taking any action which would cause an adjustment pursuant to Article 3 to reduce the Exercise Price below the then par value (if any) of the Class A Common Stock, the Company shall take any and
all corporate action which may, based on the advice of its counsel, be necessary in order that the Company may validly and legally issue fully paid and nonassessable shares of Class A Common Stock at the Exercise Price as so adjusted.

 

Section 2.7     Listing; Compliance with Law.  On or prior to the Initial Exercise Date, the Company will, if applicable, (A) procure, at its sole expense, the listing of the Warrant

 

  

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Shares and other securities issuable upon exercise of this Warrant, subject to issuance or notice of issuance on all stock exchanges on which the Warrant Shares are then listed or traded and (B) use its best efforts to maintain the listing of such Warrant Shares after issuance. The Company will use its reasonable best efforts to ensure that
the Warrant Shares may be issued without violation of any applicable law or regulation or of any requirement of any securities exchange on which the Warrant Shares are listed or traded.

 

Section 2.8     Payment of Taxes.  Issuance of certificates for Warrant Shares (or other securities) to the Holder upon exercise of this Warrant shall be made without charge to the Holder for any issue
or transfer tax or other incidental expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company.

 

Section 2.9     Limitation on Exercise.  (a) Prior to the receipt of Shareholder Approval with respect to the removal of the limitations set forth in this Section
2.9, no Holder will be permitted to exercise the right to purchase Warrant Shares, if and to the extent, following such exercise, either (i) the aggregate voting power of such Holder (or of any Group including such Holder) on a matter being voted on by holders of the Common Stock would exceed 19.99% of the Maximum Voting Power or (ii) such Holder (or any Group including such Holder) would Beneficially Own more than 19.99% of the then outstanding Common Stock; provided, however,
that such exercise restriction shall not apply in connection with and subject to completion of (A) a Public Sale of the Class A Common Stock to be issued upon such exercise, if following consummation of such Public Sale such Holder or Group will not Beneficially Own in excess of 19.99% of the then outstanding Common Stock or (B) a bona fide third party tender offer for the Common Stock.  For purposes of the foregoing sentence, the number of shares of Common Stock Beneficially Owned by a Holder (or any
Group including such Holder) shall include the number of shares of Class A Common Stock to be issued with respect to which a Warrant Exercise Notice has been given, but shall exclude the number of shares of Common Stock which would be issuable upon conversion or exercise any other outstanding Warrants Beneficially Owned by such Holder (or any Group including such Holder). At any time upon the written request of the Holder, the Company shall within two (2) Trading Days confirm in writing to the Holder the number
of shares of Common Stock and Maximum Voting Power then outstanding.  Effective immediately upon receipt of Shareholder Approval with respect to the removal of the limitations set forth in this Section 2.9, this Section 2.9 shall cease to apply.

 

ARTICLE 3

 

ADJUSTMENT PROVISIONS

 

Section 3.1     Changes in Common Stock.  In the event that at any time or from time to time after the date hereof, the Company shall (i) pay a dividend or make a distribution on its Class A Common
Stock, in each case in shares of its Class A Common Stock, (ii) subdivide its outstanding shares of Class A Common Stock into a larger number of shares of Class A Common Stock, (iii) combine its outstanding shares of Class A Common Stock into a smaller number of shares of Class A Common Stock or (iv) increase or decrease the number of shares of Class A Common Stock outstanding by reclassification of its Class A Common Stock (in each case, other than a transaction to which Section
3.4 is applicable), then the number of shares of Class A Common Stock purchasable upon exercise of this Warrant immediately after the 

 

  

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happening of such event shall be adjusted so that, after giving effect to such adjustment, the Holder of this Warrant shall be entitled to receive the number of shares of Class A Common Stock upon exercise that such Holder would have owned or have been entitled to receive had this Warrant been exercised immediately prior to the happening of
the events described above (or, in the case of a dividend or distribution of Class A Common Stock, immediately prior to the record date therefor), and the Exercise Price shall be adjusted in inverse proportion.  An adjustment made pursuant to this Section 3.1 shall become effective immediately after the effective date, retroactive to the record date therefor in the case of a dividend or distribution in shares of Class A Common Stock, and
shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification.

 

Section 3.2     Cash Dividends and Other Distributions.  In the event that at any time or from time to time after the date hereof, the Company shall distribute to all holders of Class A Common Stock
(i) any dividend or other distribution of cash, evidences of its indebtedness, shares of its capital stock or any other properties or securities, or (ii) any options, warrants or other rights to subscribe for or purchase any of the foregoing (other than, in each case set forth in (i) and (ii), (x) any dividend or distribution described in Section 3.1 or Section 3.5, (y) any rights,
options, warrants or other Convertible Securities described in Section 3.3 or (z) in connection with any transaction resulting in the issuance of additional warrants pursuant to Section 3.13), then (1) the number of shares of Class A Common Stock purchasable upon the exercise of this Warrant shall be increased to a number determined by multiplying the number of shares of Class
A Common Stock purchasable upon the exercise of this Warrant immediately prior to the record date for any such dividend or distribution by a fraction, (A) the numerator of which shall be the Fair Market Value per share of Class A Common Stock on the record date for such distribution, and (B) the denominator of which shall be such Fair Market Value per share of Class A Common Stock less the sum of (x) any cash distributed per share of Class A Common Stock and (y) the Fair Market Value  of the portion,
if any, of the distribution applicable to one share of Class A Common Stock consisting of evidences of indebtedness, shares of stock, securities, other property, options, warrants or subscription or purchase rights and (2) the Exercise Price shall be adjusted to a number determined by dividing the Exercise Price immediately prior to such record date by the above fraction.  Such adjustments shall be made whenever any distribution is made and shall become effective as of the date of distribution, retroactive
to the record date for any such distribution.  No adjustment shall be made pursuant to this Section 3.2 which shall have the effect of decreasing the number of shares of Class A Common Stock purchasable upon exercise of each Warrant or increasing the Exercise Price.

 

Section 3.3     Rights Issue.  In the event that at any time or from time to time after the date hereof, the Company shall issue, sell, distribute or otherwise grant any rights to subscribe for or
to purchase, or any options or warrants for the purchase of, or any securities exercisable for, or convertible or exchangeable into, Class A Common Stock to all holders of Class A Common Stock, entitling such holders to subscribe for or purchase shares of Class A Common Stock or securities exchangeable for, or convertible or exchangeable into, Class A Common Stock, whether or not immediately exercisable, convertible or exchangeable, as the case may be, and the subscription or purchase price per share of Class
A Common Stock or the price per share of Class A Common Stock issuable upon exercise, conversion or exchange thereof is lower at the record date for such issuance than the then Fair Market Value per share of Class A Common

 

  

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Stock, the number of shares of Class A Common Stock thereafter purchasable upon the exercise of this Warrant shall be determined by multiplying the number of shares of Class A Common Stock purchasable upon the exercise of this Warrant prior to the record date by a fraction, (A) the numerator of which shall be the number of shares of Class
A Common Stock outstanding on the date of issuance of such rights, options, warrants or other securities plus the number of additional shares of Class A Common Stock offered for subscription or purchase or into or for which such securities are exercisable, convertible or exchangeable, and (B) the denominator of which shall be the number of shares of Class A Common Stock outstanding on the date of issuance of such rights, options, warrants or other securities plus the total number of shares of Class A Common Stock
which could be purchased at the Fair Market Value with the aggregate consideration received through the issuance of such rights, options, warrants, or other securities.  In the event of any such adjustment, the Exercise Price shall be adjusted to a number determined by dividing the Exercise Price immediately prior to such date of issuance by the above fraction.  Such adjustment shall be made whenever such rights, options or warrants are issued and shall become effective retroactively immediately
after the record date for the determination of stockholders entitled to receive such rights, options, warrants or securities.

 

If the Company at any time shall issue two or more securities as a unit and one or more of such securities shall be rights, options or warrants for or securities exercisable for, or convertible or exchangeable into, Class A Common Stock subject to this Section
3.3, the consideration allocated to each such security shall be the relative Fair Market Value thereof as compared to the other security or securities issued as such unit.

 

For the avoidance of doubt, this Section 3.3 shall not apply to the Rights distributed pursuant to the Company Rights Plan as of August 10, 2009.

 

Section 3.4     Disposition Events.  (a) If any of the following events (any such event, a “Disposition Event”) occurs:

 

(i)     any reclassification or exchange of the Class A Common Stock;

 

(ii)     any merger, consolidation or other combination to which the Company is a constituent party; or

 

(iii)     any sale, conveyance, lease, or other disposal of all or substantially all the properties and assets of the Company to any other Person;

 

in each case, as a result of which all or substantially all of the holders of Class A Common Stock shall be entitled to receive cash, securities and/or other property for their shares of Class A Common Stock, then, as a condition precedent to such Disposition Event, proper and adequate provision shall be made so that, upon the basis and terms
and in the manner provided in this Warrant, the Holder shall be entitled upon the exercise of this Warrant at any time after the consummation of such Disposition Event, to the extent this Warrant is not exercised in full prior to such Disposition Event, to receive at the Exercise Price in effect at the time immediately prior to the consummation of such Disposition Event, in lieu of the Class A Common Stock otherwise issuable upon such exercise of this Warrant prior to such Disposition Event, the kind and amount
of cash, securities and/or other property to which such Holder would have been entitled upon the

 

  

11

  

consummation of such Disposition Event (without giving effect to the limitations set forth in Section 2.9 and Section 3.6(d)) if such Holder had exercised this Warrant immediately prior thereto.  In determining
the kind and amount of cash, securities and/or other property receivable upon exercise of this Warrant following the consummation of such Disposition Event, if the holders of Class A Common Stock have the right to elect the kind or amount of consideration receivable upon consummation of such Disposition Event, then the Holder shall have the right to make a similar election upon exercise of this Warrant with respect to the kind and amount of cash, securities and/or other property which the Holder will receive
upon exercise of this Warrant.  The Company may not cause, or agree to cause or permit to occur, a Disposition Event, unless the issuer of any securities or other property into which this Warrant thereafter becomes exercisable (if other than the Company) agrees, for the express benefit of the holders of record of this Warrant (including making them beneficiaries of such agreement), to issue such securities or other property and to otherwise assume the due and punctual observance and performance of each
and every covenant and condition of this Warrant to be performed and observed by the Company and all the obligations and liabilities hereunder.  To the extent that equity securities are received by the holders of Class A Common Stock in connection with a Disposition Event, the portion of this Warrant that will be exercisable into such equity securities will continue to be subject to the adjustments set forth in this Article 3.  The
provisions of this Section 3.4 shall similarly apply to successive Disposition Events.  If this Section 3.4 applies to any event or occurrence, neither Section 3.1 nor Section 3.5 shall apply; provided, however,
that this Section 3.4 shall not apply to any subdivision or combination of shares of Class A Common Stock to which Section 3.1 is applicable.

 

Section 3.5     Adjustment for Certain Tender Offers or Exchange Offers.  In case the Company or any of its Subsidiaries shall, at any time or from time to time, while this Warrant is outstanding,
distribute cash or other consideration in respect of a tender offer or an exchange offer that is treated as a “tender offer” under U.S. federal securities laws made by the Company or any Subsidiary for all or any portion of the Class A Common Stock, where the sum of the aggregate amount of such cash distributed and the aggregate Fair Market Value as of the Tender Expiration Date (as defined below) of such other consideration distributed (such sum, the “Aggregate
Amount”) expressed as an amount per share of Class A Common Stock validly tendered or exchanged, and not withdrawn, pursuant to such tender offer or exchange offer as of the Expiration Time (as defined below) (such tendered or exchanged shares of Class A Common Stock, the “Purchased Shares”) exceeds the Daily Price per share of the Class A Common Stock on the first Trading Day immediately following the last date (such last
date, the “Tender Expiration Date”) on which tenders or exchanges could have been made pursuant to such tender offer or exchange offer (as the same may be amended through the Tender Expiration Date), then, effective immediately prior to the opening of business on the second Trading Day immediately following the Tender Expiration Date:

 

(1) The Exercise Price shall be decreased so that the same shall equal the price determined by multiplying the Exercise Price in effect immediately prior to the close of business on the Trading Day immediately following the Tender Expiration Date by a fraction: (i) the numerator of which shall
be equal to the product of (A) the number of shares of Class A Common Stock outstanding as of the Expiration Time (including all Purchased Shares) and (B) the Daily Price per share of the Class A Common Stock on the first Trading Day immediately

 

  

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following the Tender Expiration Date; and (ii) the denominator of which is equal to the sum of (A) the Aggregate Amount and (B) the product of (I) an amount equal to (x) the number of shares of Class A Common Stock outstanding as of the last time (the “Expiration Time”)
at which tenders or exchanges could have been made pursuant to such tender offer or exchange offer less (y) the Purchased Shares and (II) the Daily Price per share of the Class A Common Stock on the first Trading Day immediately following the Tender Expiration Date; and

 

(2) The number of Warrant Shares issuable upon exercise of this Warrant will be adjusted by multiplying such number by a fraction:  (A) the numerator of which shall be the Exercise Price immediately prior to the adjustment pursuant to Section
3.5(a) and (B) the denominator of which shall be the Exercise Price immediately after such adjustment.

 

In the event that the Company or a Subsidiary is obligated to purchase shares of Class A Common Stock pursuant to any such tender offer or exchange offer, but the Company or such subsidiary is permanently prevented by applicable law from effecting any such purchases, or all such purchases are
rescinded, then the Exercise Price and number of Warrant Shares issuable shall again be adjusted to be the Exercise Price and number of Warrant Shares issuable which would then be in effect if such tender offer or exchange offer had not been made.  Except as set forth in the preceding sentence, if the application of this ‎Section 3.5 to any tender offer or exchange
offer would result in an increase in the Exercise Price or reduction in the number of Warrant Shares issuable, no adjustment shall be made for such tender offer or exchange offer under this ‎Section 3.5.

 

If this Section 3.5 applies to any event, Section 3.2 shall not apply.

 

Section 3.6     Issuance of Additional Shares of Class A Common Stock.

 

(a)     Deemed Issuances of Additional Shares of Class A Common Stock.  The maximum number of shares of Class A Common Stock (as set forth in the instrument relating thereto without regard to any provision
contained therein for a subsequent adjustment of such number) issuable upon the exercise, conversion or exchange of Convertible Securities will be deemed to be Additional Shares of Class A Common Stock issued as of the time of the issuance of such Convertible Securities; provided, however, that:

 

(i)     No adjustment in the Exercise Price will be made upon the subsequent issuance of shares of Class A Common Stock upon the exercise, conversion or exchange of such Convertible Securities;

 

(ii)     To the extent that Additional Shares of Class A Common Stock are not issued pursuant to any such Convertible Security upon the expiration or termination of an unissued, unexercised, unconverted or unexchanged Convertible Security, the Exercise Price will be readjusted
to the Exercise Price that would have been in effect had such Convertible Security (to the extent outstanding immediately prior to such expiration or termination) never been issued; and

 

(iii)     In the event of any change in the number of shares of Class A Common Stock issuable upon the exercise, conversion or exchange of any Convertible Security,

 

  

13

  

excluding a change resulting from any transaction giving rise to an adjustment pursuant to Section 3.1 but including periodic or scheduled accretions or adjustments to a Convertible Security, interest and dividends paid in kind, repricings of the exercise or conversion price
of such Convertible Securities or otherwise, the Exercise Price then in effect will be readjusted to the Exercise Price that would have been in effect if, on the date of issuance, such Convertible Security were exercisable, convertible or exchangeable for such changed number of shares of Class A Common Stock.

 

(b)     Determination of Consideration.  The Fair Market Value of the consideration received by the Company for the issue of any Additional Shares of Class A Common Stock will be computed as follows:

 

(i)     Cash and Property.  Aggregate consideration consisting of cash and other property will:  (x) insofar as it consists of cash, be computed at the aggregate of cash received by the
Company, excluding amounts paid or payable for accrued interest or accrued dividends; (y) insofar as it consists of property other than cash, be computed at the Fair Market Value thereof on the Measurement Date; and (z) insofar as it consists of both cash and other property, be the proportion of such consideration so received.

 

(ii)     Convertible Securities. The aggregate consideration per share received by the Company for Convertible Securities will be determined by dividing:  (x) the total amount, if any, received or
receivable by the Company as consideration for the issuance of such Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Company upon the full and complete exercise, conversion or exchange of such Convertible Securities, by (y) the maximum number of shares of Class A Common Stock (as set forth in the instruments
relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the full and complete exercise, conversion or exchange of such Convertible Securities.

 

(c)     Adjustment of Exercise Price.  Subject to Section 3.6(d), in the event the Company shall, at any time and from time to time
while any of the Warrants is outstanding, issue or sell Additional Shares of Class A Common Stock for a consideration per share, as determined by such consideration’s Fair Market Value in accordance with Section 3.6(b), less than the Exercise Price in effect immediately prior to such issuance (a “Below Exercise Price Issuance”), then, effective immediately upon the date of such Below Exercise Price Issuance:

 

(i)           the Exercise Price in effect immediately after such Below Exercise Price Issuance shall be reduced so that the same shall equal the price determined by multiplying the Exercise Price in effect immediately prior to such Below
Exercise Price Issuance by a fraction:  (1) the numerator of which shall be the sum of (a) the number of shares of Class A Common Stock outstanding immediately prior to such Below Exercise Price Issuance; plus (b) (x) the Fair Market Value of the aggregate consideration received by the Company in respect of such Below Exercise Price Issuance, divided by (y) the Exercise Price in effect immediately prior to such Below Exercise Price Issuance, and (2) the denominator of which shall be the sum of (a) the
number of shares of Class A Common Stock outstanding immediately prior to such

 

  

14

  

Below Exercise Price Issuance, plus (b) the number of such Additional Shares of Class A Common Stock issued in such Below Exercise Price Issuance; and

 

(ii)     the number of Warrant Shares issuable upon exercise of this Warrant shall be adjusted by multiplying such number by a fraction:  (A) the numerator of which shall be the Exercise Price immediately prior to the adjustment pursuant to Section
3.6(c)(i) and (B) the denominator of which shall be the Exercise Price immediately after such adjustment.

 

(d)     Limitation.  Prior to the receipt of Shareholder Approval with respect to the removal of the limitations set forth in this Section
3.6(d), in no event shall any adjustment pursuant to this Section 3.6 cause the Exercise Price to be less than $1.37 (the “Floor Price”) or the number of Warrant Shares issuable to be greater than the number of Warrant Shares issuable at such Exercise Price, provided that such Floor Price and corresponding number of Warrant Shares issuable shall be adjusted in the
same manner as the Exercise Price and number of Warrant Shares issuable to reflect any adjustments made  in accordance with this Article 3 (other than adjustments pursuant to this Section 3.6).  Effective immediately upon Shareholder Approval, this Section 3.6(d) shall cease to apply.

 

Section 3.7     Other Events.  If any event occurs as to which the foregoing provisions of this Article 3 are not strictly applicable
or, if strictly applicable, would not, in the good faith judgment of the Board, fairly and adequately protect the purchase rights of the Warrants in accordance with the essential intent and principles of such provisions, then the Board shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles, as shall be reasonably necessary, in the good faith opinion of the Board, to protect such purchase rights as aforesaid.

 

Section 3.8     Superseding Adjustment.  Upon the expiration of any rights, options, warrants or conversion or exchange privileges which resulted in any adjustments pursuant to this Article
3 (other than Section 3.6), if any of the foregoing shall not have been exercised, the number of Warrant Shares purchasable upon the exercise of each Warrant shall be readjusted as if (i) the only shares of Class A Common Stock issuable upon exercise of such rights, options, warrants, conversion or exchange privileges were the shares of Class A Common Stock, if any, actually issued upon the exercise of such rights, options, warrants or conversion
or exchange privileges and (ii) shares of Class A Common Stock actually issued, if any, were issuable for the consideration actually received by the Company upon such exercise plus the aggregate consideration, if any, actually received by the Company for the issuance, sale or grant of all such rights, options, warrants or conversion or exchange privileges whether or not exercised and the Exercise Price shall be readjusted inversely; provided, however,
that no such readjustment shall (except by reason of an intervening adjustment under Section 3.1 or, if applicable, Section 3.7) have the effect of decreasing the number of Warrant Shares purchasable upon the exercise of each Warrant or increasing the Exercise Price by an amount in excess of the amount of the adjustments to the number of Warrant Shares purchasable and the Exercise
Price initially made in respect of the issuance, sale or grant of such rights, options, warrants or conversion or exchange privileges.

 

Section 3.9     Minimum Adjustment.  The adjustments required by the preceding Sections of this Article 3 shall be made whenever and
as often as any specified event requiring

 

  

15

  

an adjustment pursuant to this Article 3 shall occur, except that no adjustment of the Exercise Price or the number of shares of Class A Common Stock purchasable upon exercise of the Warrants that would otherwise be required shall be made (except in the case of a subdivision
or combination of shares of Class A Common Stock, as provided for in Section 3.1) unless and until such adjustment either by itself or together with all other adjustments pursuant to this Article 3 not previously made as a result of this Section 3.9 increases or decreases by at least one percent (1%) the Exercise Price
or the number of shares of Class A Common Stock purchasable upon exercise of the Warrants immediately prior to the making of such adjustment.  Any adjustment representing a change of less than such minimum amount shall be carried forward and made as soon as such adjustment, together with other adjustments required by this Article 3 and not previously made, would result in a minimum adjustment.  For the purpose of any adjustment,
any specified event shall be deemed to have occurred at the close of business on the date of its occurrence.  In computing adjustments under this Article 3, fractional interests in Class A Common Stock shall be taken into account to the nearest one-hundredth of a share.

 

Section 3.10    Other Provisions Regarding Adjustments.  In the event that at any time, as a result of an adjustment made pursuant to Section
3.1 hereof, the Holder shall become entitled to receive any shares of capital stock of the Company other than shares of Class A Common Stock, thereafter the number of such other shares of capital stock so receivable upon exercise of this Warrant shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Class A Common Stock contained in this Article 3 and
the provisions contained elsewhere herein with respect to Class A Common Stock shall apply on like terms to any such other shares.

 

Section 3.11    Notice of Adjustment.  Whenever the Exercise Price or the number of shares of Class A Common Stock and other property, if any, purchasable upon exercise of Warrants is adjusted, as herein
provided, the Company shall promptly deliver to the Holder a certificate of a firm of independent accountants (who may be the regular accountants employed by the Company) or the Chief Financial Officer of the Company setting forth, in reasonable detail, the event requiring the adjustment and the method by which such adjustment was calculated (including a description of the basis on which the Board determined the Fair Market Value of any evidences of indebtedness, other securities or property or warrants or other
subscription or purchase rights), and specifying the Exercise Price and the number of shares of Class A Common Stock or other securities or property purchasable upon exercise of Warrants after giving effect to such adjustment.

 

Section 3.12    Notice of Certain Transactions.  In the event that the Company shall resolve or agree to take any action or permit any event to occur that would require any adjustment of the number of Warrant
Shares subject to this Warrant or the Exercise Price, the Company shall within five (5) Business Days send to the Holder, a notice of such proposed action or offer, such notice to be mailed to the Holder, which shall specify the record date for the purposes of such dividend, distribution or rights, or the date such action or event is to take place and the date of participation therein by the holders of Class A Common Stock, if any such date is to be fixed, and shall briefly indicate the effect of such action
or event on the Class A Common Stock and on the number and kind of any other shares of stock and on other property, if any, and the number of shares of Class A Common Stock and other securities or property, if any,

 

  

16

  

purchasable upon exercise of each Warrant and the Exercise Price after giving effect to any adjustment which will be required as a result of such action or event.

 

Section 3.13    Issuance of Additional Warrants.  In connection with the declaration, issuance or consummation of any dividend, spin-off or other distribution or similar transaction by the Company of the
capital stock of any of its Subsidiaries, the Company shall cause (i) additional warrants of such Subsidiary with, subject to clause (iii) below, substantially similar terms as the Warrants, to be issued to the Holder or one or more of its nominees so that after giving effect to such transaction the Warrants and such warrants of such Subsidiary each represent the same percentage interest in the fully diluted number of common shares of such entity as the Warrants represented in the Company immediately prior to
such transaction, (ii) any such Subsidiary to enter into definitive agreements with the Holder and/or its nominees, as appropriate with respect to such additional warrants on similar terms, conditions, covenants and governance provisions as are provided for with respect to the Warrants in the Securities Purchase Agreement and Registration Rights Agreement and (iii) (A) the exercise price of the Warrants to be reduced by an amount reasonably acceptable to the Holder to reflect the value of the capital stock of
the Subsidiary to be dividended, spun-off or otherwise distributed and (B) the exercise price of the additional warrants of such Subsidiary to be fixed in a manner reasonably acceptable to such Holder to reflect the amount by which the exercise price of the Warrants was reduced pursuant to clause (iii)(A) above, as adjusted to reflect any differences in the fully-diluted number of the shares of common stock of the Company and such Subsidiary.

 

ARTICLE 4

 

TRANSFER, DIVISION AND COMBINATION

 

Section 4.1     Transfer.  Subject to compliance with the Securities Purchase Agreement and Section 4.6, transfer of this Warrant and
all rights hereunder, in whole or in part, shall be registered on the books of the Company to be maintained for such purpose, upon surrender of this Warrant at the principal office of the Company referred to in Section 2.3(a) or the office or agency designated by the Company pursuant to Article 6, together with a written assignment of this Warrant substantially in the form of Exhibit
B hereto duly executed by the Holder or its agent or attorney and, if required, funds sufficient to pay any transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such payment, the Company shall, execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not
so assigned, and this Warrant shall promptly be cancelled.  A Warrant, if properly assigned in compliance with this Section 4.1, may be exercised by a new Holder for the purchase of shares of Class A Common Stock without having a new Warrant issued.

 

Section 4.2     Division and Combination.  Subject to compliance with Section 4.1, this Warrant may be divided or combined with other
Warrants upon presentation hereof at the aforesaid office or agency of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.  Subject to compliance with Section 4.1, as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants

 

  

17

  

in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice.

 

Section 4.3     Expenses.  The Company shall prepare, issue and deliver at its own expense (other than transfer taxes) the new Warrant or Warrants under this Article
4.

 

Section 4.4     Maintenance of Books.  The Company agrees to maintain, at its aforesaid office or agency, books for the registration or transfer of the Warrants.

 

Section 4.5     Restrictive Legend.

 

(a)     Certificates representing Warrants and Warrant Shares issued pursuant to this Warrant shall bear a legend substantially in the form of the legend set forth on the first page of this Warrant to the extent that and for so long as such legend is required pursuant to
the Securities Purchase Agreement or applicable securities laws.

 

(b)     Notwithstanding the provisions of Section 4.5(a), (i) the Company shall deliver Warrants or certificates for Warrant Shares without the first sentence of such legend if the securities referred to in
such legend shall have been registered under the Securities Act or if such legend is otherwise not required under the Securities Act, and if such legend has been set forth on any previously delivered certificates, such legend shall be removed from any certificates at the request of the Holder if the securities referred to in such clause have been registered under the Securities Act or if such legend is not otherwise required under the Securities Act and (ii) the Company shall deliver Warrants or certificates
for Warrant Shares without the second sentence of such legend if the securities referred to in such legend are no longer subject to such additional restrictions on transfer as set forth in the Securities Purchase Agreement.

 

Section 4.6     Transfer Restrictions.  This Warrant and the Warrant Shares may be transferred, sold, assigned, pledged or otherwise encumbered at any time without the consent of the Company after
the Transfer Restriction Termination Event, subject to compliance with Section 4.1 of the Securities Purchase Agreement.  Notwithstanding the foregoing, subject to compliance with Section 4.1 of the Securities Purchase Agreement, the Holder may assign or transfer this Warrant or any of the Warrant Shares at any time without the consent of the Company (i) to any Affiliate of the Holder, (ii) to the Company or any of its subsidiaries or (iii) pursuant to any tender offer, exchange offer, merger, consolidation,
reclassification, reorganization, recapitalization or other similar transaction in which stockholders of the Company are offered, permitted or required to participate as holders of the Company’s capital stock.

 

Section 4.7     Right of First Offer.

 

(a)     If at any time after the Transfer Restriction Termination Event and prior to August 11, 2014, the Holder desires to sell all or any portion of the Warrant (other than (x) to an Affiliate, (y) to the Company or any of its subsidiaries or (z) pursuant to any tender
offer, exchange offer, merger, consolidation, reclassification, reorganization, recapitalization or other similar transaction in which stockholders of the Company are offered, permitted or required to participate as holders of the Company’s capital stock), the Holder shall first give written notice

 

  

18

  

of its desire to sell (a “First Offer Notice”) to the Company setting forth the percentage of the Warrant it desires to sell (“Offered Warrant”).  Following delivery of the First Offer Notice, the Company will have twenty (20) Business Days to provide a written offer (the “Company Offer Notice”)
to purchase all (but not less than all) of the Offered Warrants for cash at a price and on such other terms and conditions specified in such Company Offer Notice.  The Company Offer Notice shall constitute an irrevocable offer for twenty (20) Business Days by the Company to purchase the Offered Warrant, on the terms and conditions contained in the Company Offer Notice, to the Holder.

 

(b)     Within twenty (20) Business Days following receipt of the Company Offer Notice (the “Right of First Offer Period”) from the Company, the Holder may elect to sell all (but not part) of the Offered Warrant on the terms and conditions specified in the Company
Offer Notice by giving written notice thereof to the Company (an “Acceptance”).  If the Holder does not give an Acceptance within the Right of First Offer Period, the Holder shall be deemed to have declined to sell any of the Offered Warrant pursuant to the Company Offer Notice.  If an Acceptance is given within the Right of First Offer Period, such Acceptance shall be deemed to be an irrevocable commitment by the Holder to sell all of the Offered Interest on the terms and conditions
specified in the Company Offer Notice.

 

(c)     Any sale of the Offered Warrant to the Company under this Section 4.7 shall be consummated not later than ten (10) Business Days after the date of the Acceptance.

 

(d)     Notwithstanding anything to the contrary in this Section 4.7, if the Holder declines to sell the Offered Warrant within the Right of First Offer Period referred to above or the Holder does not deliver
an Acceptance within the Right of First Offer Period, the Holder may sell the Offered Warrant to a third party (“Third Party”) for consideration with a Fair Market Value not less than 100% of the price set forth in the Company Offer Notice and otherwise on economic terms substantially similar in all material respects to those set forth in the Company Offer Notice, provided that a definitive agreement with respect to such sale is entered into not later than one hundred eighty (180) days from the expiration
of the Right of First Offer Period, with the closing to be held not later than two hundred seventy (270) days from the expiration of the Right of First Offer Period; if, however, the Offered Warrant is not so transferred within that period (or the Offered Warrant is to be transferred for less than 100% of the price set forth in the Company Offer Notice or on economic terms which vary materially from those set forth in the Company Offer Notice), then this Section
4.7 shall again apply to any future sale of the Warrant under the circumstances set forth above in this Section 4.7.  Upon completion of any sale of the Warrant to a Third Party pursuant this Section 4.7, such Third Party shall be entitled to all the benefits, and shall become subject to all of the obligations, of the Holder hereunder and shall agree to be bound by
all of the applicable provisions hereof.

 

Section 4.8     No Rights as Shareholder Until Exercise.  This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder of the Company prior to the exercise hereof.

 

  

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ARTICLE 5

 

LOSS OR MUTILATION

 

Upon receipt by the Company from any Holder of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of this Warrant and indemnity reasonably satisfactory to it (it being understood that the written agreement of the Holder shall be sufficient
indemnity in the case of the initial Holder of this Warrant) and in case of mutilation upon surrender and cancellation hereof, the Company will execute and deliver in lieu hereof a new Warrant of like tenor to such Holder (without expense to the Holder); provided, in the case of mutilation, no indemnity shall be required if this Warrant in identifiable form is surrendered to the Company for cancellation.

 

ARTICLE 6

 

OFFICE OF THE COMPANY

 

As long as any of the Warrants remain outstanding, the Company shall maintain an office or agency (which may be the principal executive offices of the Company) where the Warrants may be presented for exercise, registration of transfer, division or combination as provided in this Warrant.

 

ARTICLE 7

 

LIMITATION OF LIABILITY

 

No provision hereof, in the absence of affirmative action by the Holder hereof to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder hereof, shall give rise to any liability of such Holder for the Exercise Price or purchase price of any Warrant Shares
or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

ARTICLE 8

 

MISCELLANEOUS

 

Section 8.1     Nonwaiver and Expenses.  No course of dealing or any delay or failure to exercise any right hereunder on the part of the Holder hereof shall operate as a waiver of such right or otherwise
prejudice such Holder’s rights, powers or remedies.  If the Company fails to make, when due, any payments provided for hereunder, or fails to comply with any other provision of this Warrant, the Company shall pay to the Holder hereof such amounts as shall be sufficient to cover any reasonable costs and expenses, including reasonable attorneys’ fees, including those of appellate proceedings, incurred by such Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any
of its rights, powers or remedies hereunder.

 

Section 8.2     Entire Agreement; No Third-Party Beneficiaries.  This Warrant and the agreements referred to herein constitute the entire agreement, and supersede all prior agreements

 

  

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and understandings, both written and oral, between the Holder and the Company with respect to the subject matter of this Warrant.  This Warrant is not intended to confer upon any Person other than the Holder and the Company any rights or remedies.

 

Section 8.3     Amendment.  This Warrant and all other Warrants may be amended with the written consent of the holders of Warrants then exercisable for a majority of the Warrant Shares.

 

Section 8.4     Notices.  Any notice or communication shall be in writing and delivered in person or mailed by first-class mail to the addresses set forth in the Securities Purchase Agreement with
respect to the Company and, if applicable, the Holder or to the Holder at its last known address appearing on the books of the Company maintained for such purposes.

 

The Company and any Holder by notice to the other may designate additional or different addresses for subsequent notices or communications.

 

Section 8.5     Remedies.  The Company and the Holder hereof each stipulates that the remedies at law of each party hereto in the event of any default or threatened default by the other party in the
performance or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.

 

Section 8.6     Governing Law.  This Warrant shall be governed by and construed in accordance with the internal laws of the State of Delaware.

 

Section 8.7     Successors.  This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors and assigns of the Company and the Holder hereof, and shall
be enforceable by any such successors and assigns.

 

Section 8.8     Headings.  The headings of the Articles and Sections of this Warrant have been inserted for convenience of reference only, are not intended to be considered a part hereof and shall
not modify or restrict any of the terms or provisions hereof.

 

Section 8.9     Severability.  The provisions of this Warrant are severable, and if any clause or provision shall be held invalid, illegal or unenforceable in whole or in part in any jurisdiction,
then such invalidity or unenforceability shall affect in that jurisdiction only such clause or provision, or part thereof, and shall not in any manner affect such clause or provision in any other jurisdiction or any other clause or provision of this Warrant in any jurisdiction.

 

Section 8.10    Certain Issuances.  Prior to the receipt of Shareholder Approval with respect to the limitations set forth in Section 3.6(d),
so long as any Warrants are outstanding, in addition to any other approval that may be required by law or the certificate of incorporation of the Company, the written consent of the holders of  the then outstanding Warrants exercisable for a majority of the Warrant Shares shall be necessary for the Company to take, or agree or commit to take, any action for which an adjustment to the Exercise Price would not be made pursuant to

 

  

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Section 3.6 solely as a result of the application of Section 3.6(d).  Effective immediately upon such Shareholder Approval, this Section 8.10 shall
cease to apply.

 

  

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IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed and its corporate seal to be impressed hereon and attested by its Secretary or an Assistant Secretary.

 

	  	
ACCESS INTEGRATED TECHNOLOGIES, INC.

d/b/a CINEDIGM DIGITAL CINEMA CORP.

 

	  	
By:
	  
	  	  	
Name:

	  	  	
Title:

	
Attest:

	  
	  
	
Name:

	
Title:

 

  

  

  

EXHIBIT A

 

SUBSCRIPTION FORM

 

[To be executed only upon exercise of Warrant]

 

The undersigned registered owner of this Warrant irrevocably exercises this Warrant for the purchase of ______________ shares of Class A Common Stock of Access Integrated Technologies, Inc., and [herewith makes payment therefor] [requests that the Company withhold the number of shares from the
shares of Class A Common Stock receivable by the undersigned in accordance with the Cashless Exercise option specified in Section 2.3 of this Warrant]1, all at the price and on the terms and conditions specified in this Warrant and requests that certificates for the shares of Class A Common Stock hereby purchased (and any securities or other property issuable
upon such exercise) be issued in the name of and delivered to _________________________ whose address is ___________________________________ and, if such shares of Class A Common Stock shall not include all of the shares of Class A Common Stock issuable as provided in this Warrant, that a new Warrant of like tenor and date for the balance of the shares of Class A Common Stock issuable hereunder be delivered to the undersigned.

 

	  
	
(Name of Registered Owner)

	 
	  
	
(Signature of Registered Owner)

	 
	  
	
(Street Address)

	 
	  
	
(City)  (State) (Zip Code)

 

 

	
NOTICE:
	
The signature on this subscription must correspond with the name as written upon the face of the within Warrant in every particular, without alteration or enlargement or any change whatsoever.

 

	
1
	
To be inserted if Cashless Exercise is requested.

 

  

  

  

EXHIBIT B

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED the undersigned registered owner of this Warrant hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned under this Warrant, with respect to the number of shares of Class A Common Stock set forth below:

 

	
Name and Address of Assignee
	
No. of shares of Class A Common Stock

and does hereby irrevocably constitute and appoint _______________________ attorney-in-fact to register such transfer on the books of Access Integrated Technologies, Inc. maintained for the purpose, with full power of substitution in the premises.

 

	
Dated:
	  
	 	 
	
Name:
	  
	  	
(Print)

	 	 
	
Signature:
	  
	 	 
	
Witness:
	  

NOTICE:                      The signature on this subscription must correspond with the name as written upon the face of the within Warrant in every particular, without alteration or enlargement or any change whatsoever.exh4-3_1369360.htm

EXHIBIT 4.3

 

 

Exhibit C

 

 

 

ACCESS INTEGRATED TECHNOLOGIES, INC.

 

d/b/a CINEDIGM DIGITAL CINEMA CORP.

 

REGISTRATION RIGHTS AGREEMENT

 

Dated as of August 11, 2009

 

 

 

 

 

 

 

 

 

 

 

 

  

  

  

 

TABLE OF CONTENTS

 

Page

 

	 ARTICLE I   DEFINITIONS	
1

 

	
    SECTION 1.1.
	
Certain Defined Terms
	
1

	
    SECTION 1.2.
	
Other Capitalized Terms
	
1

 

	 ARTICLE II   REGISTRATION
RIGHTS	
1

 

	
    SECTION 2.1.
	
Piggyback Registrations
	
1

	
    SECTION 2.2.
	
Demand Registration
	
3

	
    SECTION 2.3.
	
Exceptions to the Company’s Obligations
	
5

	
    SECTION 2.4.
	
Registration Procedures
	
7

	
    SECTION 2.5.
	
Information Supplied
	
10

	
    SECTION 2.6.
	
Expenses
	
10

	
    SECTION 2.7.
	
Restrictions on Disposition
	
11

	
    SECTION 2.8.
	
Indemnification
	
11

	
    SECTION 2.9.
	
Required Reports
	
14

	
    SECTION 2.10.
	
Selection of Counsel
	
14

	
    SECTION 2.11.
	
Market Standoff Agreement
	
14

	
    SECTION 2.12.
	
No Inconsistent Agreements
	
14

	
    SECTION 2.13.
	
Termination of Registration Rights
	
14

 

	 ARTICLE III   MISCELLANEOUS	
14

 

	
    SECTION 3.1.
	
Expenses
	
14

	
    SECTION 3.2.
	
Successors and Assigns; Assignment
	
15

	
    SECTION 3.3.
	
No Third Party Beneficiaries
	
15

	
    SECTION 3.4.
	
Entire Agreement
	
15

	
    SECTION 3.5.
	
Severability
	
15

	
    SECTION 3.6.
	
Amendment and Waiver
	
15

	
    SECTION 3.7.
	
Delays or Omissions
	
15

	
    SECTION 3.8.
	
Notices
	
16

	
    SECTION 3.9.
	
Interpretation
	
16

	
    SECTION 3.10.
	
Governing Law; Jurisdiction; Waiver of Jury Trial
	
17

	
    SECTION 3.11.
	
Specific Performance
	
17

	
    SECTION 3.12.
	
Counterparts
	
17

 

-i-

  

  

  

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is entered as of August 11, 2009, among Access Integrated Technologies, Inc. d/b/a Cinedigm Digital Cinema Corp., a Delaware corporation (together with any other issuer of Registrable Securities, the “Company”)
and Sageview Capital Master, L.P., a Delaware limited partnership (“Sageview,” together with its assignees, the “Purchasers”).

 

RECITALS

 

WHEREAS, the Company and Sageview have entered into a Securities Purchase Agreement, dated as of August 11 , 2009 (as it may be amended from time to time, the “Purchase Agreement”), pursuant to which Sageview agreed to purchase (i) Notes (as defined therein); and
(ii) Warrants (as defined below) initially exercisable for 16,000,000 Warrant Shares (as defined below); and

 

WHEREAS, the parties hereto desire to enter into certain arrangements relating to the Company, the Warrant and the Warrant Shares.

 

NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual promises hereinafter set forth, the parties hereto agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

SECTION 1.1.    Certain Defined Terms. Certain terms used herein shall have the meanings given to them in Exhibit A.

 

SECTION 1.2.    Other Capitalized Terms. Capitalized terms used but not defined herein or in Exhibit A shall have the meanings given to them in
the Purchase Agreement.

 

ARTICLE 2

 

REGISTRATION RIGHTS

 

SECTION 2.1.    Piggyback Registrations. If the Company proposes to register Equity Securities under the Securities Act (other than a registration on Form S-4 or Form S-8, or any successor or other forms promulgated
for similar purposes, and other than demand registrations pursuant to Section 2.2) involving the offering of such Equity Securities at any time on or after the Transfer Restriction Termination Event (the “Restricted Period Termination Date”), whether or not for sale for its own account, in a manner which would permit registration of Registrable Securities of the same class of such Equity Securities for sale to the public under the Securities
Act, it will, at each such time, give prompt (and, in any event, at least 10 Business Days prior to the filing of a registration statement with respect thereto with the SEC) written notice (a “Piggyback Offering Notice”) to the Holders of its intention to do so, the form on which the Company expects to effect such registration (e.g., Form S-1, Form S-3, Form S-3ASR), the anticipated filing date with the SEC of such registration statement,
the anticipated date that the registration statement will be declared or

 

  

  

  

 

otherwise become effective, whether the offering is to be underwritten and the anticipated date and time that the offering will be made. The registration rights provided for in this Section 2.1 are in addition to, and not in lieu of, registrations made upon the demand of any Holder in accordance with Section 2.2.

 

(a)    Form S-1. If the Company indicates in the Piggyback Offering Notice that it intends to effect a registration pursuant to Form S-1, upon the written request of any Holder (which request shall specify the
Registrable Securities intended to be registered by such Holder), made within ten (10) days after the receipt of any such notice but in no event later than two (2) Business Days prior to the date the Form S-1 is filed with the SEC, the Company will, subject to the conditions set forth in Section 2.3 and the provision of the information specified in Section 2.5, use reasonable best efforts to effect the registration under the Securities Act of all Registrable Securities which the Company has been so requested
to register by the Holders thereof.

 

(b)    Form S-3. If the Company indicates in the Piggyback Offering Notice that it intends to effect a registration pursuant to Form S-3, upon the written request of any Holder (which request shall specify the
Registrable Securities intended to be registered by such Holder), made within ten (10) days after the receipt of any such notice, notifying the Company whether any Holders intend to include within the Form S-3 or any Prospectus included therein Registrable Securities, the Company will, subject to the conditions set forth in Section 2.3 and the provision of the information specified in Section 2.5, use its reasonable best efforts to effect the registration under the Securities Act of all Registrable Securities
which the Company has been so requested to register by the Holders thereof.

 

(c)    Form S-3ASR. If the Company indicates in the Piggyback Offering Notice that it intends to effect a registration pursuant to Form S-3ASR, upon the written request of any Holder (which request shall specify
the Registrable Securities intended to be registered by such Holder), made within ten (10) days after the receipt of any such notice, prior to the date and time of the offering as specified in the Company’s notice, notifying the Company whether any Holders intend to include within such Form S-3ASR or any Prospectus included therein Registrable Securities, the Company will, subject to the conditions set forth in Section 2.3 and the provision of the information specified in Section 2.5, use its reasonable
best efforts to effect the registration under the Securities Act of all Registrable Securities which the Company has been so requested to register by the Holders thereof.

 

(d)    Right to Withdraw. If a registration pursuant to this Section 2.1 involves an underwritten offering, any Holder requesting to be included in such registration may elect, in writing prior to the effective
date of the registration statement filed in connection with such registration, not to register all or any part of such Holder’s Registrable Securities in connection with such registration.

 

(e)    Exercise of Registrable Securities. Nothing in this Section 2.1 shall limit the right of any Holder to request the registration of the Registrable Securities issuable upon exercise of the Warrants by such
Holder (subject to such exercise occurring prior to the completion of the sale of the underlying Registrable Securities prior to such registration), notwithstanding the fact that at the time of the request such Holder holds Warrants and not the underlying Class A Common Stock.

 

  

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SECTION 2.2.    Demand Registration.

 

(a)    General.

 

(i)    Subject to the provisions of this Section 2.2(a), upon the written request (a “Demand Notice”) of holders holding at least
25% of the aggregate Registrable Securities then held by the Holders (collectively the “Demand Party”) (assuming exercise of all outstanding Warrants into Warrant Shares) requesting that the Company effect the registration under the Securities Act of all or part of such Demand Party’s Registrable Securities, which Registrable Securities will be offered for sale on or after the Restricted Period Termination Date, and specifying
the amount and intended method of disposition thereof, including pursuant to a shelf registration statement utilizing Rule 415 of the Securities Act (or its successor provision) (a “Shelf Registration”), thereupon the Company will promptly give written notice of such requested registration to each of the other Holders and thereupon will, as expeditiously as reasonably practicable (and in any event no later than 30 days after the date
of the Demand Notice), file and use its reasonable best efforts to cause to be declared effective under the Securities Act a registration statement to effect the registration under the Securities Act of the following (provided that, notwithstanding the foregoing: (x) to the extent a Demand Notice is delivered not less than 90 days prior to the Transfer Restriction Termination Event requesting a Shelf Registration, the Company shall use its reasonable
best efforts to cause such registration statement to become effective no later than the Transfer Restriction Termination Event, and (y) under no circumstances under this Section 2.2(a) (including the foregoing clause (x)) shall the Company be required to file any registration statement prior to the date that is 90 days prior to the Restricted Period Termination Date):

 

(1)    such Registrable Securities which the Company has been so requested to register by the Demand Party under the Demand Notice; and

 

(2)    the Registrable Securities of Holders which the Company has been requested to register by written request to the Company by the Holders within ten (10) days after the giving of such written notice by the Company to the Holders (which
request shall specify the amount and intended methods of disposition of such securities).

 

all to the extent necessary to permit the disposition (in accordance with the intended method thereof as aforesaid) of the Registrable Securities and such other securities so to be registered.

 

(ii)    Nothing in this Section 2.2 shall limit the right of any Holder to request the registration of the Registrable Securities issuable upon exercise of the Warrants by such Holder (subject to such exercise occurring prior to the completion of the sale of the underlying
Registrable Securities prior to such registration), notwithstanding the fact that at the time of the request such Holder holds Warrants and not the underlying Class A Common Stock.

 

(b)    Shelf Take-Downs. Any of the Holders whose Registrable Securities have been registered pursuant to a Shelf Registration may initiate an offering or sale of Registrable Securities pursuant to such Shelf
Registration (each, a “Shelf Take-Down”) and, except as set forth in this Section 2.2(b) with respect to Marketed Underwritten Offerings (as defined below in Section 2.4(q)), such Holder shall not be required to permit the offer and sale of Registrable Securities by

 

  

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other Holders in connection with such Shelf Take-Down. If the initiating Holders so elect by written request to the Company, a Shelf Take-Down may be in the form of an underwritten offering (an “Underwritten Shelf Take-Down”), and the Company shall, if so requested,
file and effect an amendment or supplement of the Shelf Registration for such purpose as soon as practicable. Only the Demand Party shall have the right to initiate an Underwritten Shelf Take-Down that is a Marketed Underwritten Offering, and any such Underwritten Shelf Take-Down that is a Marketed Underwritten Offering shall be deemed to be a registration pursuant to Section 2.2(a), and the Company shall provide notice to the other Holders of such registration in accordance with the provisions of Section 2.2(a).

 

(c)    Effective Registration Statement. A registration requested pursuant to this Section 2.2 will not be deemed to have been effected unless: (i) it has been declared effective by the SEC or has otherwise become
effective under the Securities Act, or (ii) it has been filed with the SEC but abandoned or withdrawn at the request of the Demand Party prior to effectiveness, other than an abandonment or withdrawal requested because of: (A) the stock price of the Class A Common Stock falling 1 0% or more since the delivery of a request for registration pursuant to this Section 2.2, (B) the delivery of a postponement notice pursuant to Section 2.3(b)(iii), (C) a material adverse change in the Company’s and its Subsidiaries’
prospects, business, operations, properties, assets, liabilities, financial condition or results of operations, taken as a whole, which became known to the Holders or the public after the delivery of a request for registration pursuant to this Section 2.2, or (D) the discovery of materially adverse, non-public information concerning the Company and its Subsidiaries, taken as a whole.

 

(d)    Selection of Underwriters. If a requested registration pursuant to this Section 2.2 involves an underwritten offering, the investment bankers, underwriters and managers for such registration shall be selected
by the Holders of a majority of the Registrable Securities which the Company has been requested to register; provided, however, that such selection of investment bankers, underwriters and managers shall be subject to the reasonable approval by the Company.

 

(e)    Priority in Demand Registrations;
Right to Abandon or Withdraw. If a requested registration pursuant to this Section 2.2 involves an underwritten offering and the managing underwriter advises the Company in writing that, in its opinion, the number of Equity Securities (including Registrable Securities) to be included in such registration as contemplated by the Holders and the Company would be likely to exceed the largest number of Equity Securities that can be sold without
having an adverse effect on the success of such offering, including any impact on the selling price or the number of Equity Securities that can be sold (the “Maximum Offering Size”), then the Company shall include in such registration (i) first, 100% of the Registrable Securities requested to be included in such registration by the Demand Party and other Holders of Registrable
Securities who have requested that their Registrable Securities be included up to the Maximum Offering Size (such Registrable Securities allocated, if necessary for the offering not to exceed the Maximum Offering Size, pro rata among the Demand Party and the other Holders of Registrable Securities so requested to be included in such registration by each) and (ii) second, to the extent the managing underwriter believes additional securities can be
sold in the offering without exceeding the Maximum Offering Size, any securities the Company proposes to sell up to the number of securities that, in the opinion of such managing underwriter, can be sold without exceeding the Maximum Offering Size. Notwithstanding the foregoing, If the managing underwriter of any underwritten offering shall advise the Holders participating in a registration pursuant to this

 

  

-4-

  

Section 2.2 that the Registrable Securities covered by the registration statement cannot be sold in such offering within a price range acceptable to the Demand Party or that all of the Registrable Securities requested to be included in a registration by a Demand Party pursuant to this Section 2.2 cannot be sold in the manner requested,
then the Demand Party shall have the right to notify the Company that it has determined that the registration statement be abandoned or withdrawn, in which event the Company shall abandon or withdraw such registration statement; it being understood that
in the event the Demand Party exercises its right set forth in this sentence, the Company shall remain liable for any Registration Expenses pursuant to Section 2.6 and that the abandonment or withdrawal of the registration statement shall nevertheless constitute a registration for purposes of Section 2.3(b)(i) unless the Demand Party elects to pay (or reimburse the Company for) such Registration Expenses, in which case such registration statement shall not constitute a registration for purposes of Section 2.3(b)(i).

 

SECTION 2.3.    Exceptions to the Company’s Obligations.

 

(a)    Notwithstanding anything in Section 2.1 to the contrary:

 

(i)    if, at any time after giving a Piggyback Offering Notice, the Company shall determine for any reason not to proceed with the proposed registration of the securities to be sold by it, the Company may, at its election, give written notice of such determination to the
Holders and, thereupon, shall be relieved of its obligation to register any Registrable Securities in connection with such registration (but not from its obligation to pay the Registration Expenses in connection therewith); and

 

(ii)    if a registration pursuant to Section 2.1 involves an underwritten offering and the managing underwriter advises the Company in writing that, in its opinion, the number of Equity Securities (including Registrable Securities requested to be included in such registration)
to be included in such registration as contemplated by the Company and the Holders would be likely to exceed the Maximum Offering Size, then the Company shall include in such registration (a) first, 100% of the securities the Company proposes to sell, and (b) second, to the extent of the amount of Registrable Securities requested to be included in such registration which, in the opinion
of such managing underwriter can be sold without exceeding the Maximum Offering Size, the amount of Registrable Securities which the Holders have requested to be included in such registration, such amount to be allocated pro rata among all requesting Holders and all other Persons entitled to registration rights, on the basis of the relative amount of Registrable Securities then held by each such Person (provided that any such amount thereby allocated
to any such Person that exceeds such Person’s request shall be reallocated among the remaining requesting Persons in a like manner to the extent practicable).

 

(b)    Notwithstanding anything in Section 2.2 to the contrary:

 

(i)    in no event shall the Company be required to effect more than (x) five (5) registrations pursuant to Section 2.2(a) or (y) four (4) Marketed Underwritten Offerings;

 

(ii)    the Company shall not be obligated to (x) file a registration statement under Section 2.2(a) within a period of 90 days after the effective date of any other registration statement, (1) for which the Holders exercised their rights pursuant Section 2.1 to include

 

  

-5-

  

Registrable Securities, provided that the Company and the underwriters did not limit the number of Registrable Securities that such Holder was permitted to include in such registration statement to less than 75% of the Registrable Securities that were requested to be sold
by such Holder or (2) which the Company filed or effected pursuant to Section 2.2(a) or (y) effect more than one Marketed Underwritten Offering pursuant to Section 2.2 in any 120-day period;

 

(iii)    if the Company receives a request for registration pursuant to Section 2.2, at a time when (A) registration of the Registrable Securities would, in the good faith judgment of the Chief Executive Officer of the Company (after consultation with counsel), impede, delay
or otherwise interfere with any pending or contemplated material acquisition, corporate reorganization or similar material transaction, or (B) non-public material information not otherwise then required by Law to be publicly disclosed regarding the Company exists, the immediate disclosure of which would in the good faith judgment of the Chief Executive Officer of the Company be disadvantageous in any material respect to the Company (clauses (A) and (B), a “Material
Pending Event”), then the Company may postpone the filing (but not the preparation) of a registration statement requested pursuant to Section 2.2 for a period not to exceed 30 consecutive calendar days from the date of a Demand Notice upon providing the Demand Party with written notice of such postponement (which notice need not include a statement of the reason for such postponement); provided that the Company shall at all times in
good faith use its reasonable best efforts to cause any registration statement required by Section 2.2 to be filed as soon as reasonably practicable thereafter; provided, further, that the Company shall postpone the filing of a registration statement pursuant to this Section 2.3(b)(iii) and/or suspend sales under a shelf registration statement pursuant to Section 2.3(b)(iv) for no
more than 60 days in the aggregate, or three times in the aggregate, in any twelve-month period in respect of all requested registrations and sales; and provided, further, that the Company shall make prompt and adequate disclosure of any material information required to be disclosed from time to time in accordance with Law and Nasdaq rules. Each Holder shall keep confidential any communications
received by it from the Company regarding the postponement pursuant to this Section 2.3(b)(iii) (including the fact of the postponement), except as required by Law. In the event that the Company gives the Holders the notice specified in this Section 2.3(b)(iii), the Demand Party shall have the right, within 1 5 days after receipt thereof, to withdraw its request under Section 2.2, in which case such request shall not be counted as a demand for purposes of Section 2.2 or for purposes of the limitations set forth
in Section 2.3(b)(i); and

 

(iv)    if the Company receives a request for registration pursuant to Section 2.2, at a time when there is a Material Pending Event, then the Company may suspend sales under a shelf registration statement, or a registration statement pursuant to which Registrable Securities
are not immediately sold after the effectiveness thereof, for a period not to exceed 30 days in any 90-day period upon providing the Holders with written notice of such suspension (which notice shall include a statement of the reason for such suspension); provided, that the Company shall suspend sales under a registration statement pursuant to this Section 2.3(b)(iv) and/or postpone the filing of registration statements pursuant to Section 2.3(b)(iii)
for no more than 60 days in the aggregate, or three times in the aggregate, in any twelve-month period in respect of all requested registrations; and provided further that the Company shall make prompt and adequate disclosure of any material information required to be disclosed from time to time in accordance with Law and Nasdaq rules. Upon receipt of a notice from the Company in accordance with the terms of this Section 2.3(b)(iv), each Holder
agrees not to sell or offer to sell any Registrable Securities pursuant to such shelf registration statement until the Company notifies such Holder that the shelf registration statement may be used

 

  

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 (which notice the Company shall promptly provide following the termination of the event or circumstance giving rise to such suspension). Each Holder shall keep confidential any communications received by it from the Company regarding the suspension of sales pursuant
to this Section 2.3(b)(iv) (including the fact of the suspension), except as required by Law.

 

(c)    Notwithstanding anything in Section 2.1 or Section 2.2 to the contrary:

 

(i)    if all of the Registrable Securities beneficially owned by a Holder (together with its Affiliates) constitute less than 5% of the outstanding Class A Common Stock and can be sold without restriction under Rule 144, the Company shall not be required to effect any registrations,
Shelf Take-Downs or Underwritten Shelf Take-Downs of any kind for such Holder pursuant to Section 2.1 or Section 2.2 (but the Company shall be required to maintain the effectiveness of any shelf registration statement that is in effect at such time as required by Section 2.4(b)); and

 

(ii)    if any registration involves an underwritten offering, all Holders requesting to participate in any registration in connection with an underwritten offering hereunder must sell their Registrable Securities on the basis provided in any underwriting arrangements approved
by the Persons entitled to approve such arrangements (with such differences, including any with respect to indemnification and liability insurance, as may be customary or appropriate in combined primary and secondary offerings) and completes and executes all reasonable questionnaires, powers of attorney, underwriting agreements, hold-back or lock-up agreement letters and other documents customarily required under the terms of such underwriting arrangements; provided, however,
that, in no event shall such Holder be obligated under the terms of the underwriting arrangements to (i) make representations and warranties other than generally as to his, her or its respective (A) execution, delivery and performance of such underwriting agreement and the agreements contemplated thereby, (B) individual ownership of the Registrable Securities being sold pursuant to such underwriting agreement and (C) information provided by such Holder in writing specifically for inclusion in the Prospectus and
(ii) agree to provide indemnification for any liability arising out of a breach of any such representations or warranties of such Holder that would exceed the total proceeds received by such Holder for the sale of such Registrable Securities pursuant to such underwriting agreement.

 

SECTION 2.4.    Registration Procedures. If and whenever the Company is required to effect a registration of any Registrable Securities as provided in this Agreement, subject to the limitations set forth in Section
2.3, the Company will:

 

(a)    promptly prepare and file with the SEC a registration statement with respect to such Registrable Securities and use reasonable best efforts to cause a registration statement with respect to a demand registration pursuant to Section 2.2 to be filed (in the case of a
registration pursuant to Form S-3ASR), or become effective (in the case of any registration other than pursuant to Form S-3ASR), as promptly as practicable;

 

(b)    prepare and file with the SEC such amendments and supplements to such registration statement (including Exchange Act documents incorporated by reference into the registration statement) and the Prospectus used in connection therewith as may be necessary to keep such
registration statement effective for a period not in excess of 90 days (or such longer period as

 

  

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 may be requested by the Holders in the event of a shelf registration statement) and to comply with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all securities covered by such registration statement during such period
in accordance with the intended methods of disposition by the seller or sellers thereof set forth in such registration statement; provided that before filing a registration statement or prospectus or any amendments or supplements thereto in accordance with Section 2.4(a) or this Section 2.4(b) to the extent that doing so will not materially interfere with the timing of the offering: (i) the Company will furnish to counsel selected pursuant to Section
2.10 copies of all documents proposed to be filed, and (ii) such documents will be subject to the review of such counsel reasonably in advance of any filing to permit a reasonable opportunity to review and comment in light of the circumstances;

 

(c)    use reasonable best efforts to comply with all applicable securities laws in the United States and register or qualify such Registrable Securities covered by such registration in such jurisdictions in the United States as each seller shall reasonably request, and do
any and all other acts and things which may be reasonably necessary to enable such seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller, except that the Company shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction where, but for the requirements of this Section 2.4(c), it would not be obligated to, subject itself to taxation in any such jurisdiction or to consent to general service of
process in any such jurisdiction;

 

(d)    promptly furnish to each seller of such Registrable Securities such number of copies of such registration statement and of each amendment and supplement thereto (in each case including all exhibits filed therewith, including any documents incorporated by reference),
such number of copies of the Prospectus included in such registration statement (including each preliminary prospectus and summary prospectus), in conformity with the requirements of the Securities Act, and such other similar documents as such seller may reasonably request necessary to facilitate the disposition of the Registrable Securities by such seller;

 

(e)    notify each seller of any such Registrable Securities covered by such registration statement promptly if the Company becomes aware that the Prospectus included in such registration statement, as then in effect, or the registration statement 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 the light of the circumstances then existing and, prepare and furnish to such seller a reasonable number of copies of an amended or supplemental prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Registrable Securities, such Prospectus shall not include an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing;

 

(f)    otherwise use reasonable best efforts to comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as reasonably practicable (but not more than 1 8 months) after the effective date of the registration statement,
an earnings statement which shall satisfy the provisions of Section 11(a) of the Securities Act;

 

(g)    (i) use reasonable best efforts to list such Class A Common Stock covered by such registration statement on the Exchange on which the Class A Common Stock is then listed (if

 

  

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such Registrable Securities are not already so listed and if such listing is then permitted under the rules of such Exchange) to the extent required; and (ii) use reasonable best efforts to provide for a transfer agent and registrar for such Class A Common Stock covered by such registration statement not later than the effective date
of such registration statement;

 

(h)    in connection with an underwritten offering pursuant to a demand registration pursuant to Section 2.2, promptly enter into an underwriting agreement in customary form, which may include indemnification provisions in favor of underwriters and other Persons in addition
to, or in substitution for, the provisions of Section 2.8, and take such other actions as the managing underwriters reasonably request in order to expedite or facilitate the disposition of such Registrable Securities;

 

(i)    in connection with an underwritten offering pursuant to a demand registration pursuant to Section 2.2, promptly obtain a “cold comfort” letter or letters from the Company’s independent public accounts in customary form and covering matters of the type
customarily covered by “cold comfort” letters provided to sellers of securities as the seller or sellers of a majority of shares of such Registrable Securities shall reasonably request;

 

(j)    promptly make available for inspection by any seller of such Registrable Securities covered by such registration statement, by any underwriter participating in any disposition to be effected pursuant to such registration statement and by any attorney, accountant or
other agent retained by any such seller or any such underwriter, all pertinent financial and other records, pertinent corporate documents and properties of the Company, and cause all of the Company’s officers, directors and employees to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with the “due diligence” of such seller or such underwriter with respect to such registration statement, subject to the execution of a mutually
acceptable confidentiality agreement;

 

(k)   promptly notify counsel (selected pursuant to Section 2.10) for the Holders of Registrable Securities included in such registration statement and the managing underwriter or agent and confirm such notice in writing (i) when the registration statement, or any post-effective
amendment to the registration statement, shall have become effective, or any supplement to the Prospectus and any amendments to the Prospectus shall have been filed (other than in the case of a registration pursuant to Form S-3ASR), (ii) of the receipt of any comments from the SEC, (iii) of any request by the SEC to amend the registration statement or amend or supplement the Prospectus or for additional information, and (iv) of the issuance by the SEC of any stop order suspending the effectiveness of the registration
statement or of any order preventing or suspending the use of any Prospectus, or of the suspension of the qualification of the registration statement for offering or sale in any jurisdiction, or of the institution or threatening of any proceedings for any of such purposes;

 

(l)    use reasonable best efforts to prevent the issuance of any stop order suspending the effectiveness of the registration statement or of any order preventing or suspending the use of any Prospectus and, if any such order is issued, to obtain the withdrawal of any such
order as soon as practicable;

 

(m)    (i) if requested by the managing underwriter or agent or any Holder of Registrable Securities covered by the registration statement, promptly incorporate in a prospectus

 

  

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supplement or post-effective amendment such information as the managing underwriter or agent or such Holder reasonably requests to be included therein, including, with respect to the number of Registrable Securities being sold by such Holder to such underwriter or agent, the purchase price being paid therefor by such underwriter or agent;
and (ii) make all required filings of such prospectus supplement or post-effective amendment as soon as practicable after being notified of the matters incorporated in such prospectus supplement or post-effective amendment;

 

(n)    cooperate with the Holders of Registrable Securities covered by the registration statement and the managing underwriter or agent, if any, to facilitate the timely preparation and delivery of certificates or electronic representation (in either case, not bearing any
restrictive legends) evidencing securities to be sold under the registration statement, and enable such securities to be in such denominations and registered in such names as the managing underwriter or agent, if any, or such Holders may reasonably request;

 

(o)    in connection with an underwritten offering pursuant to a demand registration pursuant to Section 2.2, promptly obtain for delivery to the Holders of Registrable Securities being registered and to the underwriter or agent an opinion or opinions from counsel for the
Company in customary form and scope for sellers of securities;

 

(p)    cooperate with each seller of Registrable Securities and each underwriter or agent participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with the FINRA or the NASD; and

 

(q)    use reasonable best efforts to make available the executive officers of the Company to participate and to cooperate with the Holders of Registrable Securities and any underwriters in any “road shows” or other selling efforts, in each case in the United States,
that may be reasonably be requested upon reasonable notice thereof by the Holders in connection with a firm commitment underwritten offering for the Registrable with respect to a registration statement effected pursuant to Section 2.2 (an underwritten offering contemplated by this Section 2.4(q), a “Marketed Underwritten Offering”).

 

SECTION 2.5.    Information Supplied. It shall be a condition precedent to the obligations of the Company to take any action to register the Registrable Securities held by any Holder as to which any registration
is being effected that such Holder shall furnish the Company with such information regarding such Holder that is pertinent to the disclosure requirements relating to the registration and the distribution of such securities as the Company may from time to time reasonably request. Each Holder agrees to promptly furnish to the Company all information required to be disclosed in order to make the information previously furnished to the Company by such Holder not misleading.

 

SECTION 2.6.   Expenses. Except as provided herein, the Company will pay all Registration Expenses in connection with registrations of Registrable Securities requested pursuant to Section 2.1 or Section 2.2. Each
Holder shall pay all underwriting discounts and commissions, broker fees and commissions, and transfer taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities pursuant to any registration statement.

 

  

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SECTION 2.7.    Restrictions on Disposition. Each Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 2.4(e), Section 2.4(k)(iii) or
Section 2.4(k)(iv), such Holder will forthwith discontinue disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 2.4(e) or written notice from the Company that the registration statement is again effective and no amendment or supplement is needed. In the event that the Company shall give any such notice, the period referred to in Section
2.4(b) shall be extended by the number of days during the period from and including the date of the giving of such notice pursuant to Section 2.4(e) and to and including the date when each seller of Registrable Securities covered by such registration statement shall have receive the copies of the supplemented and amended Prospectus contemplated by Section 2.4(e).

 

SECTION 2.8.    Indemnification.

 

(a)    Indemnification by the Company. In the event of any registration of any securities of the Company under the Securities Act pursuant to Section 2.1 or Section 2.2, to the fullest extent permitted by law,
the Company will indemnify and hold harmless each Holder, each Affiliate of such Holder and their respective directors and officers, members, managers and general and limited partners (and the directors, officers, employees, affiliates and each Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) (hereinafter referred to as a “Controlling Person”) of any of the foregoing),
and each underwriter, if any, and each person who controls within the meaning of Section 15 of the Securities Act any underwriter (collectively, the “Seller Indemnified Parties”), against all claims, losses, damages and liabilities, joint or several, actions or proceedings (whether commenced or threatened in writing) in respect thereof (“Claims”) and expenses
arising out of or based on: (i) any untrue statement or alleged untrue statement of a material fact contained in a registration statement (or any amendment or supplement thereto), including all documents incorporated therein by reference, or any omission or alleged omission therefrom of a material fact, in each case, necessary in order to make the statements therein not misleading, in light of the circumstances under which they were made, (ii) any untrue statement or alleged untrue statement of a material fact
contained in a Prospectus (or any amendment or supplement thereto), including all documents incorporated therein by reference, or any omission or alleged omission therefrom of a material fact, in each case, necessary in order to make the statements therein not misleading, in light of the circumstances under which they were made, or (iii) any untrue statement or alleged untrue statement of a material fact contained in any Issuer Free Writing Prospectus prepared by it or authorized by it in writing for use by such
Holder (or any amendment or supplement thereto), including all documents incorporated therein by reference, or any omission or alleged omission therefrom of a material fact, in each case, necessary in order to make the statements therein not misleading, in light of the circumstances under which they were made, and the Company will reimburse each such Seller Indemnified Party for any reasonable fees and disbursements of counsel and any other reasonable out-of-pocket expenses incurred in connection with investigating
and defending or settling any such Claim; provided that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability, or action arises out of or is based on any untrue statement or alleged untrue statement or omission or alleged omission by such Holder or underwriter but only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission is made in such registration
statement, Prospectus, or Issuer Free Writing Prospectus in reliance upon and in conformity with written

 

  

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information furnished to the Company by or on behalf of such Holder and stated to be specifically for use therein; and provided, further that, the indemnity agreement contained in this Section 2.8(a) shall
not apply to amounts paid in settlement of any such Claim if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld or delayed); and provided, further, that the Company will not be liable to any Seller Indemnified Parties pursuant to this Section 2.8(a) to the extent that any Claims for which such Seller Indemnified Party seeking
indemnification relates to a sale of Registrable Securities in violation of Section 2.3(b)(iv).

 

(b)    Indemnification by the Holders. To the fullest extent permitted by law,
each Holder will, if Registrable Securities held by such Holder are included in the registration statement or Prospectus, indemnify and hold harmless the Company, all other Holders or any prospective underwriter, as the case may be, and any of their respective Affiliates, directors, officers, members, managers, general and limited partners and Controlling Persons (collectively, the “Company Indemnified Parties”), against all Claims and
expenses arising out of or based on: (i) any untrue statement or alleged untrue statement of a material fact contained in a registration statement (or any amendment or supplement thereto), including all documents incorporated therein by reference, or any omission or alleged omission therefrom of a material fact, in each case, necessary in order to make the statements therein not misleading, in light of the circumstances under which they were made, (ii) any untrue statement or alleged untrue statement of a material
fact contained in a Prospectus (or any amendment or supplement thereto), including all documents incorporated therein by reference, or any omission or alleged omission therefrom of a material fact, in each case, necessary in order to make the statements therein not misleading, in light of the circumstances under which they were made, or (iii) any untrue statement or alleged untrue statement of a material fact contained in any Issuer Free Writing Prospectus (or any amendment or supplement thereto), including all
documents incorporated therein by reference, or any omission or alleged omission therefrom of a material fact, in each case, necessary in order to make the statements therein not misleading, in light of the circumstances under which they were made, and the Holder will reimburse each such Company Indemnified Party for any reasonable fees and disbursements of counsel and any other reasonable expenses incurred in connection with investigating and defending or settling any such Claim, in each of the forgoing cases
to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, Prospectus, or Issuer Free Writing Prospectus in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Holder and stated to be specifically for use therein; and provided that the indemnity agreement contained in this Section 2.8(b)
shall not apply to amounts paid in settlement of any such Claim if such settlement is effected without the consent of such Holder (which consent shall not be unreasonably withheld or delayed); and provided, further, that the liability of each selling Holder of Registrable Securities hereunder shall be limited to the net proceeds received by such selling Holder from the sale of Registrable
Securities covered by such registration statement.

 

(c)    Notification of Claims. Promptly after receipt by a Person entitled to indemnification pursuant to Section 2.8 (an “Indemnified Party”)
hereunder of written notice of the commencement of any action or proceeding with respect to which a claim for indemnification may be made pursuant to this Section 2.8, such Indemnified Party will, if a claim in respect thereof is to be made against an indemnifying party, give written notice to the latter of the commencement of such action or proceeding; provided that the failure of the Indemnified Party to give notice as provided herein shall not
relieve the indemnifying party of its obligations under this Section 2.8,

 

  

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except to the extent that the indemnifying party is prejudiced by such failure to give notice. In case any such action or proceeding is brought against an Indemnified Party, unless in such Indemnified Party’s reasonable judgment, based upon advice of counsel, a conflict of interest between such indemnified and indemnifying parties
may exist in respect of such action or proceeding (in which case the Indemnified Party shall have the right to assume or continue its own defense and the indemnifying party shall be liable for any reasonable expenses therefor), the indemnifying party will be entitled to participate in and to assume the defense thereof (at its expense), jointly with any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such Indemnified Party, and after notice from
the indemnifying party to such Indemnified Party of its election so to assume the defense thereof, the indemnifying party will not be liable to such Indemnified Party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof other than reasonable costs of investigation and shall have no liability for any settlement made by the Indemnified Party without the consent of the indemnifying party, such consent not to be unreasonably withheld. No indemnifying party will
settle any action or proceeding or consent to the entry of any judgment without the prior written consent of the Indemnified Party, unless such settlement or judgment (i) includes as an unconditional term thereof the giving by the claimant or plaintiff of a release to such Indemnified Party from all liability in respect of such action or proceeding and (ii) does not involve the imposition of equitable remedies or the imposition of any obligations on such Indemnified Party and does not otherwise adversely affect
such Indemnified Party, other than as a result of the imposition of financial obligations for which such Indemnified Party will be indemnified hereunder. An Indemnified Party may not settle any action or proceeding or the entry of any judgment without the prior written consent of the indemnifying party (which consent shall not be unreasonably withheld or delayed).

 

(d)    Contribution. (i) If the indemnification provided for in this Section 2.8 from the indemnifying party is unavailable to an Indemnified Party hereunder in respect of any Claim or expenses referred to herein,
then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Claim or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and Indemnified Party in connection with the actions which resulted in such Claim or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and Indemnified Party shall be determined
by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party under this Section 2.8(d) as a result of the Claim and
expenses referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with any action or proceeding; and (ii) the parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 2.8(d) 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 Section 2.8(d)(i). 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.

 

(e)    Non-Exclusive Remedy. The obligations of the parties under this Section 2.8 shall be in addition to any liability which any party may otherwise have to any other party.

 

  

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SECTION 2.9.    Required Reports. The Company covenants that it will use reasonable best efforts to file the reports required to be filed by it
under the Exchange Act, and it will take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such Holder to sell shares of Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (i) Rule 144, or (ii) any similar rule or regulation hereafter adopted by the SEC. Upon the request of any Holder, the Company will deliver to such Holder a written statement as to whether it has complied with
such requirements.

 

SECTION 2.10.   Selection of Counsel. In connection with any registration of Registrable Securities pursuant to Section 2.1 and Section 2.2, the Holders of a majority of the Registrable Securities covered by any such
registration may select one counsel to represent all Holders of Registrable Securities covered by such registration; provided, however, that in the event that the counsel selected as provided above is also acting as counsel to the Company in connection with such registration, a majority of the remaining Holders shall be entitled to select one additional counsel to represent all such
remaining Holders.

 

SECTION 2.11.   Market Standoff Agreement. In connection with any underwritten public offering pursuant to Section 2.2, each Holder who holds Registrable Securities and was offered the opportunity to include Registrable
Securities in such offering will agree upon the request of the managing underwriter with respect to such offering not to effect any public sale or distribution, including any sale pursuant to Rule 144 under the Securities Act, of any Equity Security of the Company during the 14-day period prior to, and for the 90 days after (plus any Booster Period), the effective date of the registration statement for such offering (or such lesser period as the managing underwriters may require or permit), except for such Equity
Securities to be included in such offering; provided that all of the Company’s executive officers and all of the members of the Company’s Board are restricted in the same manner and for the same duration; and provided, further, that the obligations set forth in this Section 2.11 shall not apply to any Holder
who was limited in the number of Registrable Securities that such Holder could sell in the offering pursuant to Section 2.2(e) and did not otherwise sell Registrable Securities in such offering.

 

SECTION 2.12.   No Inconsistent Agreements. The Company represents, warrants and covenants that it is not a party to, and will not enter into, any Contract that conflicts with or limits or prohibits the exercise of
the rights granted to the Holders of Registrable Securities in this ARTICLE II.

 

SECTION 2.13.   Termination of Registration Rights. The rights and obligations of any Holder under this ARTICLE II shall terminate (other than Section 2.6, Section 2.8 and Section 2.13) at such time as all of the
Registrable Securities held by such Holder and its Affiliates can be sold without restriction under Rule 144.

 

ARTICLE 3

 

MISCELLANEOUS

 

SECTION 3.1.    Expenses. Except as otherwise provided herein (and except as provided in the Purchase Agreement), all expenses incurred in connection with this Agreement and the transactions contemplated hereby
shall be paid by the party incurring such expenses.

 

  

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SECTION 3.2.    Successors and Assigns; Assignment. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, permitted assigns,
heirs, executors and administrators of the parties hereto. This Agreement may not be assigned without the prior written consent of the other parties, except that this Agreement (i) may be assigned by a Holder in connection with any transfer of Registrable Securities so long as the Person to whom it is being assigned agrees to be bound under this Agreement as a Holder hereunder and delivers a counterpart signature page to this Agreement to the Company and (ii) shall be assigned by the Company in the event of any
merger, consolidation or other transaction upon consummation of which the issuer of the Class A Common Stock is an entity other than the Company (such entity, the “Survivor”) to such Survivor, and the Company shall not enter into any such transaction unless and until the Survivor assumes all rights and obligations of the Company hereunder pursuant to a written agreement for the benefit of the Holders (it being understood that if the
Survivor is the issuer of the Class A Common Stock and such assumption of the rights and obligations of the Company hereunder occurs by operation of law, that such Survivor shall not be required to execute a written agreement for the benefit of the Holders).

 

SECTION 3.3.    No Third Party Beneficiaries. Except as specifically provided in Section 2.8 (with respect to which the Indemnified Parties named therein shall be express, intended third party beneficiaries of
such provision), this Agreement is not intended, and shall not be deemed, to confer any rights or remedies upon any Person other than the parties hereto or otherwise create any third party beneficiary hereto.

 

SECTION 3.4.    Entire Agreement. This Agreement and the other agreements or documents referred to herein, constitute the full and entire understanding and agreement among the parties with respect to the subject
matter hereof and supersede any prior understandings, agreements or representations by or among the parties, written or oral, that may have related to the subject matter hereof in any way.

 

SECTION 3.5.    Severability. In case any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

 

SECTION 3.6.    Amendment and Waiver. No amendment, waiver or other modification of, or consent under, any provision of this Agreement shall be effective against the Company, unless it is approved in writing
by the Company, and no amendment, waiver or other modification of, or consent under, any provision of this Agreement shall be effective against any Holder, unless it is approved in writing by Holders holding a majority of the Registrable Securities. No waiver of any breach of any agreement or provision herein contained shall be deemed a waiver of any preceding or succeeding breach thereof nor of any other agreement or provision herein contained.

 

SECTION 3.7.    Delays or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to any party, upon any breach, default or noncompliance by another party under this
Agreement, shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach, default or noncompliance, or any acquiescence therein, or of or in any similar breach, default or noncompliance thereafter occurring. It is further agreed that any waiver, permit, consent or approval of any kind or character on an Holder’s part of any breach, default or noncompliance under this Agreement or any waiver on such party’ s part of any provisions

 

  

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or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, by law, or otherwise afforded to any party, shall be cumulative and not alternative.

 

SECTION 3.8.    Notices. Except as otherwise provided herein, all notices required or permitted hereunder shall be in writing and shall be deemed effectively given and received: (a) upon personal delivery to
the party to be notified; (b) when sent by confirmed facsimile or e-mail if sent during normal business hours of the recipient, if not, then on the next business day; or (c) one (1) business day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All notices to a Holder shall be delivered to the address of such Holder set forth on the signature page of such Holder hereto (or such other address as such Holder may designate by like notice
to the Company hereunder). All notices to the Company shall be delivered to:

 

Access Integrated Technologies, Inc. dlb/a

Cinedigm Digital Cinema Corp.

55 Madison Avenue, Suite 300

Morristown, NJ 07960

Attention:  General Counsel

Facsimile:  9973) 290-0081

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

Kelley Drye & Warren LLP

101 Park Avenue

New York, NY 10178

Attention:  Jonathan K. Cooperman

Facsimile:  (212) 808-7897

SECTION 3.9.    Interpretation. The words “hereof’, “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not
to any particular provision of this Agreement. When reference is made in this Agreement to an Article or a Section, such reference shall be to an Article or Section of this Agreement, unless otherwise indicated. The table of contents, table of defined terms and headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto
to express their mutual intent, and no rule of strict construction shall be applied against any party. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa. Any reference to any federal, state, local or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise,
and shall include all amendments of the same and any successor or replacement statutes and regulations as of the Closing Date. All references to agreements shall mean such agreement as may be amended or otherwise modified from time to time. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”

 

  

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SECTION 3.10.   Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed in all respects by the Laws of the State of New York. Any disagreement, issue, dispute, claim, demand or controversy
arising out of or relating to this Agreement (each, a “Dispute”) shall be brought in the United States District Court for the Southern District of New York in New York, New York or any New York State court sitting in New York, New York, so long as one of such courts shall have subject matter jurisdiction over such Dispute. Each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such Dispute and irrevocably waives,
to the fullest extent permitted by Law, any objection that it may now or hereafter have to the laying of the venue of any such Dispute in any such court and that any such Dispute which is brought in any such court has been brought in an inconvenient forum. Process in any such Dispute may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 3.8 shall
be deemed effective service of process on such party.

 

(b)    EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

SECTION 3.11.   Specific Performance. The parties hereto agree that the obligations imposed on them in this Agreement are special, unique and of an extraordinary character, and that, in the event of breach by any
party, damages would not be an adequate remedy and each of the other parties shall be entitled to specific performance and injunctive and other equitable relief in addition to any other remedy to which it may be entitled, at law or in equity; and the parties hereto further agree to waive any requirement for the securing or posting of any bond in connection with the obtaining of any such injunctive or other equitable relief.

 

SECTION 3.12.   Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

 

[Remainder of Page Intentionally Left Blank.]

  

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

 

	  	  	
ACCESS INTEGRATED TECHNOLOGIES, INC.

	  	  	  	  
	  	  	  	  
	  	  	
By:
	
/s/ Gary S. Loffredo

	  	  	  	
Name: Gary S. Loffredo

	  	  	  	
Title:  Senior Vice President

	  	  	  	  
	  	  	  	  

 

 

[Signature Page to Registration Rights Agreement]

  

  

  

By executing this Registration Rights Agreement, the undersigned is agreeing to the rights and obligations of a “Holder” hereunder.

 

HOLDER

Name of Holder: SAGEVIEW CAPITAL

MASTER, L.P.

By: Sageview Capital GenPar, Ltd.,

its general partner

By: /s/ Barbara E. Parker                                  

Name:  Barbara E. Parker

Title:  Vice President

Date:      August 10, 2009                                  

Address:

Sageview Capital LP

245 Lytton Avenue, Suite 250

Palo Alto, CA 94301

Attention:  Edward A. Gilhuly

Email:  ned@sageviewcapital.com

Phone:  (650) 473-5400

Fax:  (650) 473-4501

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

Simpson Thacher & Bartlett LLP

2550 Hanover St

Palo Alto, CA 94304

Attention:  Chad Skinner

Email:  cskinner@stblaw.com

Phone:  (650) 251-5000

Fax:  (650) 251-5002

 

 

 

[Signature Page to Registration Rights Agreement]

  

  

  

EXHIBIT A

 

“Affiliate” means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such specified Person, for so long as such Person remains so associated to
the specified Person.

 

“Booster Period” means such additional period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including the restrictions contained
in NASD Rule 271l(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto.

 

“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by law to be closed in New York.

 

“Capital Stock” means any and all shares of capital stock of the Company, including without limitation, any and all shares of Class A Common Stock.

 

“Class A Common Stock” means the Class A Common Stock, par value $0.001 per share, of the Company and any securities issued in respect thereof, or in substitution therefor, in connection with any stock split, dividend or combination, or any reclassification, recapitalization,
merger, consolidation, exchange or other similar reorganization.

 

“control” or “controlled by” have the meaning set forth in Rule 12b-2 of the Exchange Act.

 

“Equity Securities” means any and all shares of Capital Stock of the Company, securities of the Company convertible into, or exchangeable or exercisable for, such shares, and options, warrants or other rights to acquire such shares (including the Warrants and the
Warrant Shares).

 

“Exchange” means Nasdaq or the New York Stock Exchange, as the case may be.

 

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

 

“FINRA” means the Financial Industry Regulatory Authority.

 

“Form S-1” means a registration statement on Form S-1 under the Securities Act, or any successor form thereto.

 

“Form S-3” means a registration statement on Form S-3 (other than on Form S-3ASR) under the Securities Act, or any successor form thereto.

 

“Form S-3ASR” means an “automatic shelf’ registration statement on Form S-3 filed by a Well-Known Seasoned Issuer.

 

“Form S-4” means a registration statement on Form S-4 under the Securities Act, or any successor form thereto.

 

  

  

  

“Form S-8” means a registration statement on Form S-8 under the Securities Act, or any successor form thereto.

 

“Holder” means any Purchaser that beneficially owns any Registrable Securities and any of their respective assignees pursuant to the terms hereof.

 

“incur” means, directly or indirectly, to incur, refinance, create, assume, guarantee or otherwise become liable.

 

“Issuer Free Writing Prospectus” shall have the meaning set forth in Rule 433 of the Securities Act.

 

“Nasdaq” means the NASDAQ Global Market, or any successor thereto.

 

“NASD” means the National Association of Securities Dealers, Inc.

 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, governmental authority or other entity.

 

“Prospectus” means the prospectus included in any registration statement, including any preliminary prospectus, any final prospectus and any such prospectus as amended or supplemented by any prospectus supplement, including any such prospectus supplement with respect
to the terms of the offering of any portion of the Registrable Securities covered by a registration statement, and by all other amendments and supplements to a prospectus, including post-effective amendments, and in each case including all materials incorporated by reference therein.

 

“Registrable Securities” means (i) the Warrants, (ii) the Warrant Shares held by any Holder or issuable upon the exercise of Warrants held by the Holders, (iii) additional shares of Class A Common Stock held by any Holder that were acquired pursuant to Section 4.12
of the Purchase Agreement or upon the conversion, exchange or exercise of any Equity Securities acquired pursuant to Section 4.12 of the Purchase Agreement and (iv) any Class A Common Stock or other securities which may be issued, converted, exchanged or distributed in respect thereof, or in substitution therefor, in connection with any stock split, dividend or combination, or any recapitalization, reclassification, merger, consolidation, exchange or other similar reorganization with respect to the Registrable
Securities described in clauses (i), (ii) and (iii). As to any particular Registrable Securities, once issued, such Registrable Securities shall cease to be Registrable Securities when (A) a registration statement with respect to the sale by the Holder of such securities shall have become effective under the Securities Act and such securities shall have been disposed of in accordance with such registration statement, (B) such securities shall have been distributed to the public pursuant to Rule 144, or (C) such
securities shall have ceased to be outstanding. For purposes of this Agreement, any required calculation of the amount of, or percentage of, Registrable Securities shall be based on the number of shares of Class A Common Stock which are Registrable Securities, including shares issuable upon the conversion, exchange or exercise of any security convertible, exchangeable or exercisable into Class A Common Stock (including the Warrants).

 

“Registration Expenses” means any and all expenses incident to performance of or compliance with ARTICLE II, including (i) all SEC and securities exchange, FINRA or NASD registration and filing fees (including, if applicable, the fees and expenses of any “qualified

 

  

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independent underwriter,” as such term is defined in Section 2720 of the bylaws of the NASD, and of its counsel), (ii) all fees and expenses of complying with securities or blue sky laws (including reasonable fees and disbursements of counsel for the underwriters in connection with blue sky qualifications of the Registrable Securities
and any escrow fees), (iii) all printing, messenger and delivery expenses, (iv) all fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange, (v) the fees and disbursements of counsel for the Company and of its independent public accountants, including the expenses of any special audits and/or “cold comfort” letters required by or incident to such performance and compliance, (vi) the reasonable fees and disbursements of counsel selected pursuant
to Section 2.10, (vii) any fees and disbursements of underwriters customarily paid by the issuers, including liability insurance if the Company so desires, and (viii) the reasonable expenses incurred by the Company or any underwriters in connection with any “road show” undertaken pursuant to Section 2.1 or Section 2.4(q).

 

“Rule 144” means Rule 144 under the Securities Act (or any successor rule).

 

“SEC” means the U.S. Securities and Exchange Commission or any other federal agency then administering the Securities Act or the Exchange Act and other federal securities laws.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Transfer Restriction Termination Event” has the meaning set forth in the Warrants.

 

“Underwritten Offering” means any Marketed Underwritten Offering, Underwritten Shelf Take-Down or other underwritten offering pursuant to Section 2.2.

 

“Warrants” means the warrants issued by the Company pursuant to the Purchase Agreement and any securities issued in respect thereof, or in substitution therefor, in connection with any stock split, dividend or combination, or any reclassification, recapitalization,
merger, consolidation, exchange or other similar reorganization (other than the Warrant Shares upon exercise thereof).

 

“Warrant Shares” means the shares of Class A Common Stock that may be issued upon the exercise of the Warrants.

 

“Well-Known Seasoned Issuer” has the meaning set forth in Rule 405 under the Securities Act.

 

  

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