Document:

EXHIBIT
10.1

EMPLOYMENT
AGREEMENT

This Employment
Agreement (“Agreement”) is entered into effective as of the 1st day
of June, 2004 (the “Effective Date”), by and between American Medical
Technologies, Inc., a Delaware corporation (“AMT”) and Roger W. Dartt (“Employee”).

NOW, THEREFORE,
for and in consideration of the mutual covenants and conditions contained
herein, and in consideration of the employment of Employee, and further, in
consideration of the compensation contained herein, the receipt and sufficiency
of which is hereby acknowledged, the parties agree as follows:

1.             Term.
AMT hereby agrees to employ Employee for a term commencing on the Effective
Date and ending on December 31, 2006, unless earlier terminated as provided in
this Agreement (“Second Term”). The term of this Agreement may only be extended
by the mutual written agreement of the parties hereto.  However, if neither party has issued a
written notice of termination at least sixty days before the end of the Second
Term, then this Agreement shall automatically be renewed for one (1) year.

2.             Duties.
Employee shall serve as the President and Chief Executive Officer of AMT. He
shall assume such duties as the By Laws of AMT (as in effect as of the
Effective Date) provide or as the Board of Directors of AMT may from time to
time prescribe pursuant to such By Laws. The duties of Employee shall be those
as are generally consistent with the duties of a President and Chief Executive
Officer of a dental/medical development, manufacturing and sales company of
such size as AMT, including such positions with and duties for AMT subsidiaries
as may be assigned from time to time. The responsibilities of the President and
CEO shall include competent executive management. Employee agrees to devote
substantially all his time, attention, and best efforts to the performance of
his duties hereunder.

3.             Compensation.
AMT shall compensate Employee for the services rendered under this Agreement as
follows:

a.                                       Signing Bonus. 
In recognition of outstanding efforts expended by Employee during the
prior Term of his employment with AMT, and further in consideration of Employee’s
agreeing to comply with all of the terms and conditions of
this Agreement, including all covenants, and in consideration of Employee’s
specific agreement and representation to abide by the same, AMT agrees to pay
to Employee a Signing Bonus in the amount of $166,000.  AMT agrees that this bonus reflects the
remainder of the bonus to be paid following completion of the Biolase
Transaction.  Upon payment of this
amount, Employee agrees that he will when paid this bonus purchase 250,000
shares of common stock that have previously vested, and he shall be entitled to
purchase such shares at the agreed option price of $0.33 per share.  Such Bonus, which shall be paid in accordance
with the Company’s usual payroll procedures and policies, shall be paid by on
or about the date of the first payroll following the Effective Date of this
Agreement.

b.                                      Base Salary. An annual base salary (“Base Salary”)
determined by the Board of Directors through its compensation committee in its
discretion and consistent with its practices for executives of AMT, is
$250,000.00 per year (less applicable withholdings), payable in accordance with
the customary payroll practices of AMT for compensation of its executives . If
Employee’s base salary is increased at any time, it shall not thereafter be
decreased during the term of this Agreement without the written consent of the
Employee.

c.                                     Performance
Bonus.  In
recognition of Employee’s outstanding efforts during the prior Term of his
employment with AMT, and as an incentive to promote achievement of various
goals established by AMT during this Second Term, and in further consideration
of the Employee’s agreeing to comply with all of the terms
and conditions of this Agreement, including all covenants, and in consideration
of Employee’s specific agreement and representation to abide by the same, AMT
agrees to pay to Employee a cash bonus which

 

 

shall be calculated as
follows:  (i) A bonus to be earned when
and if AMT’s net operating profit reaches $500,000.00 for the calendar year
2005.  The bonus to be paid shall be 10%
of the $500,000.00, together with 10% of any net operating profit above this
$500,000.00 amount.  Upon AMT’s reaching or
exceeding this goal of operating net profit, Employee shall have the option of
accepting payment of the bonus in cash or accepting 250,000 shares of AMT
common stock at an option price of $0.31 per share (which the parties agree
represents the market price on the date of this Agreement).  For such bonus, the documentation to be used
to determine eligibility shall be the usual 
profit and loss and/or balance sheet statements prepared by AMT in the
ordinary course of business.  Any bonus
which is earned and due and payable to Employee shall be payable in one lump
sum by the first pay period after the issuance of the 10-K annual report
following the end of the calendar year 2005.

d.                                    Sale or Merger. 
Upon the merger of AMT or sale of more than 35% of the authorized and
outstanding shares of common stock of AMT, Employee shall receive in lieu of
the performance bonus (Section 3c. above) as an incentive a  payment of 10% of the difference between the
value of the consideration paid to AMT’s shareholders in such sale or merger
and the then-current market capitalization. 
Such consideration shall in no event be deemed to exceed 105% of the
capitalization shown on the most recent annual balance sheet of AMT.

The parties
acknowledge and agree that the grants made in this Section 3 are being made as
an inducement essential to Employee’s continued employment with AMT under the
terms of this Agreement. All of the grants described in this Section 3 are
being made as of the Effective Date.

4.             Employee
Benefits.

a.                                       Benefit Plans. Employee shall be entitled to full
participation on a basis commensurate with his position with AMT, in all plans
of life, accident, medical payment, health and disability insurance,
retirement, pension, perquisites and other employee benefit and pension plans
which generally are made available to executives of AMT or its subsidiaries (“AMT
Benefit Plans”).  In addition, the Board
may, in its sole discretion, adopt additional benefits for Employee in
accordance with applicable law in recognition of Employee’s contributions to
the Company.

b.                                      Vacation. 
Employee shall be entitled to an annual vacation leave at full pay as
may be provided for by AMT vacation policies applicable to executives, but not
less than three weeks during the first twelve months of the Term and four weeks
thereafter.

5.             Termination
and Rights upon Termination.

a.                                       Death, Total Disability
or Retirement

(i)                                   This agreement shall automatically
terminate upon the death, total disability, or retirement of Employee.

(ii)                                Total disability shall be deemed to occur
if, as a result of his incapacity resulting from physical or mental illness or
disease (including alcohol or other substance addiction), which is likely to be
permanent, Employee shall have been unable to perform his duties hereunder for
a period of more than 120 consecutive days during any twelve month period. The
Board of Directors will determine if Employee’s termination is due to total and
permanent disability according to any long-term disability plan then in effect
for executives of AMT, and otherwise in good faith consistent with generally
prevailing practices of employers of like-size and industry type in the general
geographic location.

(iii)                             Upon termination for Employee’s death,
AMT shall within sixty (60) days pay in one lump sum to a legal representative
previously designated in 

 

 

writing by Employee (the “Legal
Representative”), or if no such designation has been made, to Employee’s
estate, the lesser of twelve months’ salary or the amount otherwise due to
Employee in base salary for the remaining term of this Agreement, subject to
the Employee’s signing a general release of any claims against AMT, known or
unknown.

(iv)                            Upon termination for Employee’s total
disability, AMT within sixty (60) days shall pay in one lump sum to the Legal
Representative (or if no designation has been made, to Employee or Employee’s
other legal representative) the lesser of twelve months’ salary or the amount
otherwise due to Employee in base salary for the remaining term of this Agreement,
subject to the Employee’s signing a general release of any claims against AMT,
known or unknown.

(v)                               Upon termination for Employee’s
retirement at any time after Employee reaches the age of 67, Employee’s rights
to compensation and participation in AMT Benefit Plans shall end and Employee
shall not be entitled to a severance/separation payment.

(vi)                            Following any termination pursuant to
this Section 5(a), Employee, Employee’s heirs, administrators, executors or
legal representatives, as applicable, shall have a period of one year from the
date this Agreement is so terminated to exercise any vested options previously
granted to Employee. All previously granted Options shall continue to vest
during such one-year period in accordance with the vesting schedule included as
part of the grant of the applicable Options.

b.                                      Termination for Cause. 
AMT may terminate this Agreement at any time “For Cause” (as defined
below).

(i)                                     A
termination “For Cause” means any of (A) the failure by Employee to follow the
reasonable instructions of the Board of Directors, which failure is not
remedied in a reasonable period of time (not to exceed thirty (30) days) after
receipt of written notice from AMT to Employee of such failure, (B) the willful
commission by Employee of acts that are dishonest, unethical, or inconsistent
with the local normal business standards, (C) the commission by Employee of a
felonious act, (I)) intentional wrongful disclosure of confidential information
of AMT, (E) Employee’s engagement in any competitive activity in violation of
Section 9, or (F) Employee’s gross neglect of his duties, which neglect is not
remedied in a reasonable period of time (not to exceed thirty (30) days) after
receipt of written notice from AMT to Employee of such failure.  During any such 30-day period, Employee shall
still be entitled to receive his salary and any such options shall continue to
vest.

(ii)                                  Employee’s right to compensation and
participation in AMT Benefit Plans shall end and Employee shall not be entitled
to a severance/separation payment if AMT terminates this Agreement For Cause.

(iii)                               If it is determined that AMT’s
termination under Section 5(b) was undertaken in bad faith or without proper
factual foundation, or that Employee properly remedied any properly noticed and
remediable failure or neglect, as permitted therein, then in addition to any
other damages or claim to which Employee would be entitled under applicable
law, he shall also be entitled to recover the lesser of twelve months’ salary
at his last salary rate or the amount due in base salary to Employee for the
remaining term of the Agreement as though his employment had been involuntarily
terminated as set forth in Section 5(a), subject to the Employee’s signing a 

 

 

general release of any
claims against AMT, known or unknown.

c.                                       Termination Without
Cause.

(i)                                     AMT may terminate this Agreement at any
time “Without Cause,” upon thirty days written notice to Employee. The
termination of Employee’s employment by AMT for any reasons other than those
specified in Section 5(b)(i) shall be deemed a termination Without Cause.

(ii)                                  Upon termination Without Cause, Employee
shall be entitled to severance/separation in the amount of the lesser of twelve
months’ salary or the amount due in base salary to Employee for the remaining
term of the Agreement, payable from the date of the termination in a lump sum,
subject to Employee’s signing a general release of any claims against AMT,
known or unknown.  Such payment shall be
in accordance with the customary payroll practices of AMT . Additionally,
Employee’s stock options (other than the performance options) shall become
automatically vested and exercisable as to that number of shares of Common
Stock as would have become vested and exercisable if Employee’s employment had
continued until the end of the Second Term. Such payments and options are to be
in lieu of and not in addition to any payments or benefits otherwise to be paid
or disbursed over the un-expired term of this Agreement.

d.                                      Resignation.

(i)                                     Employee may terminate this Agreement at
any time through his resignation upon thirty days written notice to AMT.
Employee’s termination pursuant to this Section 5(d) shall be deemed
Resignation for Good Reason if such resignation meets the criteria in part (ii)
below, otherwise it shall be deemed a Voluntary Resignation.

(ii)                                  Resignation for Good Reason is defined as
Employee’s resignation that (x) is not in connection with AMT’s Termination for
Cause, (y) is prior to or because of announcement of a Change of Control of AMT
(as defined below), and (z) is the occurrence of any of the following events
without the Employee’s written consent:

A.                                   Any material diminution of the Employee’s
position, duties and responsibilities;

B.                                     Any reduction in the Employee’s base
salary;

C.                                     Required relocation of the Employee’s
principal place of employment more than 75 miles from the corporate
headquarters of AMT as of the Effective Date for a period of more than 120 days
in any 365 day period, except for strategic relocation of the personnel
reporting to Employee or relocation of AMT’s headquarters

D.                                    Any material diminution in the kind or
level of employee benefits to which Employee was entitled immediately prior to
such reduction, with the result that Employee’s overall benefits package is reduced
by more than ten (10%) percent; or

E.                                    A breach by AMT of any of the provisions
of this Agreement.

(iii)                             If Employee voluntarily resigns for other
than Good Reason, Employee’s

 

 

right to compensation
from AMT and participation in AMT Benefit Plans shall end at the end of the
notice period, and Employee shall not be entitled to a severance/separation
payment.

(iv)                            Upon Employee’s Resignation for Good
Reason, Employee shall be entitled to severance/separation in the amount of the
lesser of twelve months’ salary or the amount due in base salary to Employee
for the remaining term of the Agreement, payable from the date of the
termination in a lump sum, subject to Employee’s signing a general release of
any claims against AMT, known or unknown. 
Such payment shall be in accordance with the customary payroll practices
of AMT .  Additionally, Employee’s stock
options (other than the performance options) shall become automatically vested
and exercisable as to that number of shares of Common Stock as would have
become vested and exercisable if Employee’s employment continued until the date
twelve (12) months following the date of such termination. Such payments and
options are to be in lieu of and not in addition to any payments or benefits
otherwise to be paid or disbursed over the un-expired term of this Agreement.

e.                                       Termination Following a
Change of Control.
The provisions of Section 6 govern employee’s rights following a Change of
Control of AMT.

6.             Change
of Control and Rights Upon Change of Control.

a.                                       Definition of Change of
Control. For
purposes of this Agreement, a Change of Control of AMT shall be deemed to have
taken place if one or more of the following occurs:

(i)                                   Any person or entity, as that term is
used in Section 13(d) and 14 (d)(2) of the Securities Exchange Act of 1934 as
amended (the “Exchange Act”), other than (A) a qualified benefit plan of AMT or
an affiliate of AMT; (B) any person who is a stockholder or beneficial owner of
thirty-five percent (35%) or more of AMT’s stock as of the Effective Date (a “Current
Stockholder”); (C) any successor of a Current Stockholder who acquires his
shares by inheritance, devise, trust, or operation of law directly from such
Current Stockholder (a “Successor”); or (D) any person or group of which
Current Stockholders or Successors hold stock representing an interest of
one-third or more of the person’s or group’s total stock, becomes a beneficial
owner (as defined in Rule 1 3d-3 under the Exchange Act as in effect on the
date hereof), directly or indirectly, of securities of AMT representing
thirty-five percent (35%) or more of the combined voting power of AMT’s then
outstanding securities.

 (ii)                             AMT and its affiliates shall sell or dispose of (in a
single transaction or series of related transactions occurring over a period of
12 months) business operations that generated a majority of the consolidated
revenues (determined on the basis of AMT’s four most recently completed fiscal
quarters) of AMT and its subsidiaries immediately prior thereto.

(iii)                               The Board of Directors of AMT shall
approve the distribution to AMT’s shareholders of all or substantially all of
AMT’s net assets or shall approve the dissolution of AMT, or

(iv)                              Any other transaction or series of
transactions occurring which have substantially the effect of the transactions
specified in any of the preceding clauses in this Section 6.

b.                                      Rights Upon Change of
Control.  Upon a Change of Control, Employee shall have
the 

 

 

option in his sole
discretion to negotiate the terms of an employment agreement with the new
controlling party or resign.  If Employee
resigns, then Employee shall be entitled to a Change of Control payment equal
to the lesser of twelve months of salary at his then effective salary rate or
the remaining compensation due to him for the remaining term of the Agreement,
payable in one lump sum, in accordance with the customary payroll practices of
AMT for compensation of its executives, subject to the Employee’s signing a
general release of any claims against AMT, known or unknown. Such payments and
benefits are to be in lieu of and not in addition to any payments or benefits
otherwise to be paid or disbursed over the un-expired term of this Agreement.
Further, any stock options previously granted to Employee shall be fully vested.

7.             Other
Benefits. Unless otherwise expressly stated in Sections 5 and 6, the
provisions of Sections 5 and 6 shall not affect Employee’s participation in, or
termination of distributions and vested rights under, any AMT Benefit Plans to
which Employee is entitled pursuant to the terms of such plan.

8.             Non-Disclosure
Agreement.

a.             In connection with his employment
with AMT, Employee will have access to and become acquainted with various trade
secrets and other proprietary and confidential information of AMT. “Trade
secrets and other proprietary and confidential information” include but are not
limited to the following: (1) business, pricing, marketing and cost data; (2)
technical information; (3) customer and supplier lists; (4) contents of
contracts and agreements with customers; and (5) customer requirements and
specifications. Employee acknowledges that the trade secrets and other
proprietary and confidential information have been developed and acquired by
AMT through expenditures of substantial time, effort and money and provide
value to AMT with respect to competitors who do not know or use such trade
secrets and other proprietary and confidential information.

b.             In consideration for access to
trade secrets and other proprietary and confidential information, Employee
agrees that during the Non-competition Period (as defined in Section 9)
Employee will not directly or indirectly disclose or use for any reason
whatsoever any trade secrets and other proprietary and confidential information
obtained by Employee by reason of his employment with AMT, except as required
to conduct the business of AMT or as authorized by express written permission
of the Board of Directors or as otherwise required by law.

                c.             Employee confirms that all trade secrets and other
proprietary and confidential information, and all documents reflecting such
information, remain the exclusive properties of AMT. All business record,
papers and documents kept or made by Employee relating to the business of AMT
shall be and remain the property of AMT and shall remain in the possession of
AMT during the term of Employee’s employment and at all times thereafter. Upon
termination of employment with AMT or upon the request of AMT at any time,
Employee shall promptly deliver to AMT, and shall retain no copies of any
materials, records and documents (in whatever form or medium) made by Employee
or coming into his possession concerning the business or affairs of AMT.

9.             Non-Competition
Agreement.  In consideration
for access to trade secrets and other proprietary and confidential information
of AMT, for so long as Employee is employed by AMT and for a period of the
shorter of ONE year thereafter or the date of Employee’s retirement on reaching
age 67, (the “Non-competition Period”) Employee will not:

a.             Accept a position as an officer,
director, employee, agent, consultant, representative of (i) any other entity
that, as of the date of Employee’s termination, competes directly with AMT (an
entity described in either part or (i) is referred to in this Agreement as a “Competitor”);

b.             Acquire or fail to dispose of any
stock or other ownership interest in any Competitor, other than investments
equal to less than five percent of the outstanding stock of any class issued by
any publicly traded company;

c.             Solicit or seek business from any
of AMT customers, prospective customers, suppliers, or prospective suppliers;
or

 

 

d.             Hire or engage any AMT employee or
induce any AMT employee to leave his employment with AMT on behalf of any
Competitor.

                10.           Remedies.

Without intending
to limit the remedies available to AMT, Employee acknowledges that a breach or
threatened breach of any of the covenants contained in Sections 8 and 9 may
result in material irreparable injury to AMT or its subsidiaries for which
there is no adequate remedy at law, that it may not be possible to measure
damages for such injuries precisely, and that in the event of such a breach or
threat thereof, AMT shall be entitled to obtain a temporary restraining order,
a preliminary or permanent injunction, or other comparable provisional or
equitable relief restraining Employee from engaging in activities prohibited by
Sections 8 or 9, and such other relief as may be required to enforce
specifically any of the covenants in such Sections. Employee agrees to personal
jurisdiction of any state or federal court in Nueces or Harris Counties, Texas
in any proceeding brought by AMT to enforce the covenants established in
Sections 8 and 9.

                11.           Arbitration.

a.             Subject to the provisions of
Section 11(b) below, any dispute or controversy arising under or in connection
with this Agreement shall be settled exclusively by arbitration before a single
neutral arbitrator in Nueces or Harris County, Texas, in accordance with the
National Employment Rules of the American Arbitration Association (“AAA”) then
in effect.  Such arbitration shall be
conducted at the AAA office in the designated locale, unless the parties
otherwise mutually agree to a different location.  The parties shall select the arbitrator from
the list of neutral arbitrators maintained by the AAA who have at least 10
years of experience in adjudicating employment disputes and agreements of the
type embodied in this Agreement.  Each
party shall bear its own cost of arbitration, except that if Employee is the prevailing
party in such arbitration, the Employee shall be entitled to recover from AMT
as part of any award entered reasonable expenses for attorneys and expert’s
fees and costs/disbursements.  The
arbitrator shall have no power to award consequential or punitive damages, even
if such damages are permitted under applicable law. The decision of the
arbitrator shall be final and binding and shall not be subject to appeal.
Judgment on the award rendered by the arbitrator may be entered in any court
having jurisdiction and enforcement may be had according to its terms. This
agreement to arbitrate shall be specifically enforceable against each of the
parties and an action to compel arbitration may be brought in any court of
competent jurisdiction.

b.             Notwithstanding the foregoing,
nothing in this Section 11 shall prevent AMT from seeking equitable relief
solely for the purpose of preserving the status quo pending arbitration,
pursuant to Section 10 in a court of law.

12.           Excise
Tax. If any payment or benefit the Employee would receive pursuant
to this Agreement or otherwise shall (i) constitute “parachute payments” within
the meaning of Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”) and (ii) but for this Section 12, would be subject to the excise
tax imposed by Section 4999 of the Code (a “Payment”), then the Employee shall
receive (i) a payment from AMT sufficient to pay the excise tax imposed by
Section 4999 of the Code on such Payment.

13.           Notices.
All notices, request, demands and other communications called for or
contemplated hereunder shall be in writing and shall be deemed to have been
duly given on the date when delivered personally or when transmitted by
facsimile with receipt of delivery; on the next business day when sent by overnight
courier with receipt of delivery; or on the third business day following
mailing by United States certified mall, postage prepaid, addressed to the
parties, their successors in interest or assignees at the following addresses
or such other addresses as the parties may designate by notice in the manner
aforesaid:

If to AMT:

American Medical Technologies

5655 Bear Lane

Corpus Christi, TX
78405

 

 

 

 

If to Employee:

Roger W. Dartt

10919 Meadow Lake Lane

Houston, TX 77042

14.           Governing
Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Texas without giving effect to any principle of
conflict-of-laws that would require the application of the law of any other
jurisdiction.

15.           Validity.
The invalidity or unenforceability of any provision or provisions of this
Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which other provision or provisions shall remain
in full force and effect.

16.           Entire
Agreement. This Agreement constitutes the entire understanding
between the parties with respect to the subject matter hereof. This agreement
may not be amended except in a writing executed by the parties hereto or their
duly authorized representatives.

17.           Effect
on Successors in Interest. This Agreement shall inure to the benefit
of and be binding upon the heirs, administrators, executors and successors of
each of the parties hereto.

18.           Assignment.
This Agreement is personal to the parties and may not be assigned to any other
person or entity without the written consent of the non-assigning party.

19.           Effectiveness.
This Agreement shall be effective upon the Effective Date.

20.           Survival
of Section. The provisions of Sections 8 and 9 of this Agreement
shall survive the termination of the Agreement for the period provided for
therein, and Sections 10 and 11 shall survive for resolution of any dispute
arising out of or relating to this Agreement.

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

	
  AMERICAN MEDICAL TECHNOLOGIES, INC.

  	
  ROGER DARTT

  
	
  Roger W. Dartt

  	
  /s/ Roger Dartt

  
	
  By: Roger W. Dartt, Chairman

  	
  Roger Dartt

  

 

COMPENSATION COMMITTEE

	
  By: /s/ Bertrand R. Williams, Chairman

  	
   

  
	
   

  	
   

  
	
         Bertrand R. Williams

  	
   

  
	
   

  	
   

  
	
  By: /s/ William Maroney

  	
   

  
	
   

  	
   

  
	
         William MaroneyExhibit
10.1

 

 

HARD
ROCK HOTEL, INC.

 

REGISTRATION
RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT
dated as of September 17, 2004 is made and entered into by and between BANC OF
AMERICA SECURITIES LLC (“Investor”), and HARD ROCK HOTEL, INC., a Nevada
corporation (the “Company”).  Certain
capitalized terms not otherwise defined herein have the meanings set forth in Section 9.

 

WHEREAS, Investor has on the
date hereof purchased fifteen million eight hundred and ninety-eight thousand
eight hundred and fifty-seven dollars and forty-two cents ($15,898,857.42) in
outstanding principal amount of the junior subordinated notes (the “Purchased
Notes”) from Peter Morton Living Trust, the holder of the Purchased Notes and
an affiliate of the Company (the “Trust”), pursuant to a Purchase Agreement
dated as of September 17, 2004, by and between Investor and the Trust (the “Purchase
Agreement”); and

 

WHEREAS, in order to induce
Investor to purchase the Purchased Notes, and as a condition precedent to such
purchase, the Purchase Agreement requires that the Company enter into this
Agreement with Investor simultaneously with Investor’s purchase of the
Purchased Notes.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.             Requested Registrations.

 

(a)           Registration Requests.  At any time after the date hereof, upon the
written request of one or more Initiating Holders requesting that the Company
effect the registration under the Securities Act of all or part of such
Initiating Holders’ Registrable Securities and specifying the number of
Registrable Securities to be registered and the intended method of disposition
thereof, the Company will promptly, and in no event more than ten (10) Business
Days after receipt of such request, give written notice (a “Notice of
Requested Registration”) of such request to all other holders of Registrable
Securities, and thereupon will use its reasonable best efforts to effect the
registration under the Securities Act of:

 

(i)            the Registrable Securities which the
Company has been so requested to register by such Initiating Holder or Holders,
and

 

(ii)           all other Registrable Securities the
holders of which have made written requests to the Company for registration
thereof within twenty (20) days after the giving of the Notice of Requested
Registration (which requests shall specify the intended method of disposition
thereof),

 

all to the extent requisite
to permit the disposition (in accordance with the intended methods thereof) of
the Registrable Securities so to be registered. 
If requested by the holders of a majority of the Registrable Securities
requested to be included in any Requested Registration, the 

 

 

 

 

method of disposition of all
Registrable Securities included in such registration shall be an underwritten
offering effected in accordance with Section 4(a).  Neither the Company nor any of its securityholders
shall have the right to include any of the Company’s securities (other than
Registrable Securities) in a registration statement to be filed as part of a
Requested Registration unless (i) such securities are of the same class as the
Registrable Securities, (ii) the holders of a majority of the Registrable
Securities covered by such registration statement consent to such inclusion in
writing and (iii) if such Requested Registration is an underwritten offering,
the Company or such securityholders, as applicable, agree in writing to sell,
subject to paragraph (e), their securities on the same terms and
conditions as apply to the Registrable Securities being sold.  If any securityholders of the Company (other
than the holders of Registrable Securities in such capacity) register
securities of the Company in a Requested Registration in accordance with this
Section, such holders shall pay the fees and expenses of their counsel and
their pro  rata share, on the basis of the respective amounts of
the securities included in such registration on behalf of each such holder, of
the Registration Expenses if the Registration Expenses for such registration
are not paid by the Company for any reason.

 

(b)           Limitations on Requested
Registrations.  Notwithstanding
anything herein to the contrary, the Company shall not be required to honor a
request for a Requested Registration if:

 

(i)            the Company has previously effected one
(1) Effective Registration;

 

(ii)           the Registrable Securities requested
by Initiating Holders to be so registered does not constitute a majority of the
total outstanding principal amount of the Registrable Securities; or

 

(iii)          such request is received by the
Company less than ninety (90) days following the effective date of any previous
registration statement filed in connection with a Requested Registration or a
Piggyback Registration, regardless of whether any holder of Registrable
Securities exercised its rights under this Agreement with respect to such
registration, unless such previous registration constituted a Cutback
Registration in which the number of Registrable Securities actually included in
such registration was not at least eighty percent (80%) of the number of
Registrable Securities requested to be included in such registration.

 

(c)           Registration Statement Form.  The Company may, if permitted by law, effect
any Requested Registration by the filing of a registration statement on Form
S-3 unless the holders of a majority of the Registrable Securities to which
such registration relates (or, if such registration involves an underwritten
Public Offering, the Managing Underwriter) shall notify the Company in writing
that, in the judgment of such holders (or, if applicable, such Managing
Underwriter), the use of a more detailed form specified in such notice is of
material importance to the success of the Public Offering of such Registrable
Securities, in which case such registration shall be effected on the form so
specified.  Requested Registrations shall
be on such appropriate registration form promulgated by the Commission as shall
be selected by the Company, and shall be reasonably acceptable to the holders
of a majority of the Registrable Securities to which such registration relates,
and shall permit the disposition of such Registrable 

 

 

2

 

 

Securities in accordance with the intended
method or methods specified in their request for such registration, including
without limitation on a delayed or continuous basis to the extent that the
Company is permitted under applicable law and Commission Rules to effect a
registration permitting such distribution.

 

(d)           Registration Expenses.  The Company will pay all Registration
Expenses incurred in connection with any Requested Registration.

 

(e)           Priority in Cutback Registrations.  If a Requested Registration becomes a Cutback
Registration, the Company will include in any such registration to the extent
of the number which the Managing Underwriter advises the Company can be sold in
such offering (i) first, Registrable Securities requested to be included in
such registration, pro rata on the basis of the number of Registrable
Securities requested to be included by such holders and (ii) second, other
securities of the Company proposed to be included in such registration,
allocated among the holders thereof in accordance with the priorities then
existing among the Company and the holders of such other securities; and any
securities so excluded shall be withdrawn from and shall not be included in
such Requested Registration.

 

2.             Piggyback Registrations.

 

(a)           Right to Include Registrable
Securities.  Notwithstanding any
limitation contained in Section 1, if the Company at any time proposes after
the date hereof to effect a Piggyback Registration, including in accordance
with Section 1(f), it will each such time give prompt written notice (a “Notice
of Piggyback Registration”), at least twenty (20) days prior to the
anticipated filing date, to all holders of Registrable Securities of its
intention to do so and of such holders’ rights under this Section 2, which
Notice of Piggyback Registration shall include a description of the intended
method of disposition of such securities. 
Upon the written request of any such holder made within twenty (20) days
after receipt of a Notice of Piggyback Registration (which request shall
specify the Registrable Securities intended to be disposed of by such holder
and the intended method of disposition thereof), the Company will use its reasonable
best efforts to include in the registration statement relating to such
Piggyback Registration all Registrable Securities which the Company has been so
requested to register.  Notwithstanding
the foregoing, if, at any time after giving a Notice of Piggyback Registration
and prior to the effective date of the registration statement filed in
connection with such registration, the Company shall determine for any reason
not to register or to delay registration of such securities, the Company may,
at its election, give written notice of such determination to each holder of
Registrable Securities and, thereupon, (i) in the case of a determination not
to register, 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) without prejudice,
however, to the rights of any Requesting Holder entitled to do so to request
that such registration be effected as a Requested Registration under Section 1,
and (ii) in the case of a determination to delay registering, shall be
permitted to delay registering any Registrable Securities for the same period
as the delay in registering such other securities.  No registration effected under this Section 2
shall relieve the Company of its obligations to effect a Requested Registration
under Section 1.

 

 

3

 

 

(b)           Registration Expenses.  The
Company will pay all Registration Expenses incurred in connection with each
Piggyback Registration.

 

(c)           Priority in Cutback Registrations.  If a Piggyback Registration becomes a Cutback
Registration, the Company will include in such registration to the extent of
the amount of the securities which the Managing Underwriter advises the Company
can be sold in such offering:

 

(i)            if such registration as initially
proposed by the Company was solely a primary registration of its securities,
(x) first, the securities proposed by the Company to be sold for its own
account, (y) second, any Registrable Securities requested to be included
in such registration by Requesting Holders, pro  rata on the basis
of the number of Registrable Securities requested to be included by such
holders, and (z) third, any other securities of the Company proposed to
be included in such registration, allocated among the holders thereof in
accordance with the priorities then existing among the Company and such holders;
and

 

(ii)           if such registration as initially
proposed by the Company was in whole or in part requested by holders of
securities of the Company, other than holders of Registrable Securities in
their capacities as such, pursuant to demand registration rights, (x) first,
such securities held by the holders initiating such registration and, if
applicable, any securities proposed by the Company to be sold for its own
account, allocated in accordance with the priorities then existing among the
Company and such holders, (y) second, any Registrable Securities
requested to be included in such registration by Requesting Holders, pro
rata on the basis of the number of Registrable Securities requested to
be included by such holders, and (z) third, any other securities of the
Company proposed to be included in such registration, allocated among the
holders thereof in accordance with the priorities then existing among the
Company and the holders of such other securities;

 

and any securities so
excluded shall be withdrawn from and shall not be included in such Piggyback
Registration.

 

3.             Registration Procedures. 
If and whenever the Company is required to use its reasonable best
efforts to effect the registration of any Registrable Securities under the
Securities Act pursuant to Section 1 or Section 2, the Company
will use its reasonable best efforts to effect the registration and sale of
such Registrable Securities in accordance with the intended methods of
disposition thereof specified by the Requesting Holders.  Without limiting the foregoing, the Company
in each such case will, as expeditiously as possible:

 

(a)           prepare and file
with the Commission (in the case of a Requested Registration, not later than
sixty (60) days after the Company’s receipt of the request therefor from the
Initiating Holders or as soon thereafter as possible) the requisite
registration statement to effect such registration and use its reasonable best
efforts to cause such registration statement to become effective, provided
that as far in advance as practical before filing such registration statement
or any amendment thereto, the Company will furnish to the Requesting Holders
copies of reasonably complete drafts of all such documents proposed to be filed
(including exhibits), 

 

4

 

 

and any such holder shall have the
opportunity to object to any information pertaining solely to such holder that
is contained therein and the Company will make the corrections reasonably
requested by such holder with respect to such information prior to filing any
such registration statement or amendment;

 

(b)           prepare and file
with the Commission such amendments and supplements to such registration
statement and any prospectus used in connection therewith as may be necessary
to maintain the effectiveness of such registration statement and to comply with
the provisions of the Securities Act with respect to the disposition of all
Registrable Securities covered by such registration statement, in accordance
with the intended methods of disposition thereof, until the earlier of (i) such
time as all of such securities have been disposed of in accordance with the
intended methods of disposition by the seller or sellers thereof set forth in
such registration statement and (ii) one year after such registration statement
becomes effective;

 

(c)           promptly notify each
Requesting Holder and the underwriter or underwriters, if any:

 

(i)            when such
registration statement or any prospectus used in connection therewith, or any
amendment or supplement thereto, has been filed and, with respect to such
registration statement or any post-effective amendment thereto, when the same
has become effective;

 

(ii)           of any written
comments from the Commission with respect to any filing referred to in
clause (i) and of any written request by the Commission for amendments or
supplements to such registration statement or prospectus;

 

(iii)          of the notification
to the Company by the Commission of its initiation of any proceeding with
respect to the issuance by the Commission of, or of the issuance by the
Commission of, any stop order suspending the effectiveness of such registration
statement; and

 

(iv)          of the receipt by
the Company of any notification with respect to the suspension of the
qualification of any Registrable Securities for sale under the applicable
securities or blue sky laws of any jurisdiction;

 

(d)           furnish to such
holder of Registrable Securities covered by such registration statement such
number of conformed copies of such registration statement and of each amendment
and supplement thereto (in each case including all exhibits and documents
incorporated by reference), such number of copies of the prospectus contained
in such registration statement (including each preliminary prospectus and any
summary prospectus) and any other prospectus filed under Rule 424 promulgated
under the Securities Act relating to such holder’s Registrable Securities, and
such other documents, as such holder may reasonably request to facilitate the
disposition of its Registrable Securities;

 

(e)           use its reasonable best
efforts to register or qualify all Registrable Securities covered by such
registration statement under such other securities or blue sky laws of such
jurisdictions as each holder thereof shall reasonably request in writing, to
keep such registration or qualification in effect for so long as such
registration statement remains in effect, 

 

 

5

 

and take any other action which may be
reasonably necessary or advisable to enable such holder to consummate the
disposition in such jurisdictions of the Registrable Securities owned by such
holder, except that the Company shall not for any such purpose be required to (i)
qualify generally to do business as a foreign corporation in any jurisdiction
wherein it would not but for the requirements of this paragraph (e) be
obligated to be so qualified, (ii) subject itself to taxation in any such
jurisdiction or (iii) consent to general service of process in any
jurisdiction;

 

(f)            use its reasonable best
efforts to cause all Registrable Securities covered by such registration
statement to be registered with or approved by such other governmental agencies
or authorities as may be necessary to enable each holder thereof to consummate
the disposition of such Registrable Securities;

 

(g)           to the extent
reasonably requested by any holder of Registrable Securities, furnish to each
Requesting Holder a signed counterpart, addressed to such holder (and the
underwriters, if any), of

 

(i)            an opinion of
counsel for the Company, dated the effective date of such registration
statement (or, if such registration includes an underwritten Public Offering,
dated the date of any closing under the underwriting agreement), reasonably
satisfactory in form and substance to such holder, and

 

(ii)           a “comfort” letter,
dated the effective date of such registration statement (and, if such registration
includes an underwritten Public Offering, dated the date of any closing under
the underwriting agreement), signed by the independent public accountants who
have certified the Company’s financial statements included in such registration
statement, in each case covering substantially the same matters with respect to
such registration statement (and the prospectus included therein) and, in the
case of the accountants’ letter, with respect to events subsequent to the date
of such financial statements, as are customarily covered in opinions of issuer’s
counsel and in accountants’ letters delivered to the underwriters in
underwritten Public Offerings of securities and, in the case of the accountants’
letter, such other financial matters, as such holder (or the underwriters, if
any) may reasonably request;

 

(h)           notify each holder
of Registrable Securities covered by such registration statement, at any time
when a prospectus relating thereto is required to be delivered under the
Securities Act, of the happening of any event as a result of which any
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading, and
at the request of any such holder promptly prepare and furnish to such holder a
reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such securities, such prospectus shall not include an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading;

 

6

 

(i)            otherwise use its reasonable
best efforts to comply with all applicable rules and regulations of the Commission,
and make available to its securityholders, as soon as reasonably practicable,
an earnings statement covering the period of at least twelve (12) months, but
not more than eighteen (18) months, beginning with the first full calendar
month after the effective date of such registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act
and Rule 158 promulgated thereunder;

 

(j)            make reasonably available
for inspection by any Requesting Holder, any underwriter participating in any
disposition pursuant to such registration statement and any attorney,
accountant or other agent retained by any such seller or underwriter
(collectively, the “Inspectors”), all financial and other records,
pertinent corporate documents and properties of the Company (collectively, the “Records”)
as shall be reasonably necessary to enable them to conduct a “reasonable”
investigation for purposes of Section 11(a) of the Securities Act, and cause
the Company’s officers, directors and employees to supply all information
reasonably requested by any such Inspector in connection with such registration
statement, in each case, as is customary for similar due diligence
investigations.  Records which the
Company determines, in good faith, to be confidential and which it notifies the
Inspectors are confidential shall not be disclosed by the Inspectors unless (i)
the disclosure of such Records is necessary to avoid or correct a misstatement
or omission in the registration statement, (ii) the release of such Records is
ordered pursuant to a subpoena or other order from a court of competent
jurisdiction or (iii) the information in such Records has been made generally
available to the public.  The seller of Registrable
Securities agrees by acquisition of such Registrable Securities that it will,
upon learning that disclosure of such Records is sought in a court of competent
jurisdiction, give prompt notice to the Company and allow the Company, at the
Company’s expense, to undertake appropriate action to prevent disclosure of the
Records deemed confidential; and

 

(k)           provide a transfer
agent and registrar for all Registrable Securities covered by such registration
statement not later than the effective date of such registration statement.

 

The Company may require each
holder of Registrable Securities as to which any registration is being effected
to, and each such holder, as a condition to including Registrable Securities in
such registration, shall, furnish the Company with such information and affidavits
regarding such holder and the distribution of such securities as the Company
may from time to time reasonably request in writing in connection with such
registration.  Each holder further agrees
to furnish as soon as reasonably practicable to the Company all information
required to be disclosed in order to make information previously furnished to
the Company by such holder not materially misleading.

 

Each holder of Registrable
Securities agrees by acquisition of such Registrable Securities that upon receipt
of any notice from the Company of the happening of any event of the kind
described in paragraph (h), such holder will forthwith discontinue such
holder’s disposition of Registrable Securities pursuant to the registration
statement relating to such Registrable Securities until such holder’s receipt
of the copies of the supplemented or amended prospectus contemplated by paragraph
(h) and, if so directed by the Company, will deliver to the Company (at the
Company’s expense) all copies, other than permanent file copies then in such
holder’s 

 

 

7

 

 

possession
of the prospectus relating to such Registrable Securities current at the time
of receipt of such notice.  In the event
the Company shall give any such notice, the period referred to in paragraph
(b) shall be extended by a number of days equal to the number of days
during the period from and including the giving of notice pursuant to paragraph
(h) and to and including the date when each holder of any Registrable
Securities covered by such registration statement shall receive the copies of
the supplemented or amended prospectus contemplated by paragraph (h).

 

4.             Underwritten Offerings.

 

(a)           Underwritten Requested Offerings.  In the case of any underwritten Public
Offering being effected pursuant to a Requested Registration, the Managing
Underwriter and any other underwriter or underwriters with respect to such
offering shall be selected, after consultation with the holders of the
Registrable Securities to be included in such underwritten offering, by the
Company with the consent of the holders of a majority of the Registrable
Securities to be included in such underwritten offering, which consent shall
not be unreasonably withheld.  The
Company shall enter into an underwriting agreement in customary form with such
underwriter or underwriters, which shall include, among other provisions,
indemnities to the effect and to the extent provided in Section 6.  The holders of Registrable Securities to be
distributed by such underwriters shall be parties to such underwriting
agreement and may, at their option, require that any or all of the
representations and warranties by, and the other agreements on the part of, the
Company to and for the benefit of such underwriters also be made to and for
their benefit and that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement also be
conditions precedent to their obligations. 
No holder of Registrable Securities shall be required to make any
representations or warranties to or agreements with the Company other than
representations, warranties or agreements regarding such holder, its ownership
of the securities being registered on its behalf and such holder’s intended
method of distribution or any other representation required by law.  No Requesting Holder may participate in such
underwritten offering unless such holder agrees to sell its Registrable
Securities on the basis provided in such underwriting agreement and completes
and executes all questionnaires, powers of attorney, indemnities and other
documents reasonably required under the terms of such underwriting
agreement.  If any Requesting Holder
disapproves of the terms of an underwriting, such holder may elect to withdraw
therefrom and from such registration by notice to the Company and the Managing
Underwriter, and each of the remaining Requesting Holders shall be entitled to
increase the number of Registrable Securities being registered to the extent of
the Registrable Securities so withdrawn in the proportion which the number of
Registrable Securities being registered by such remaining Requesting Holder
bears to the total number of Registrable Securities being registered by all
such remaining Requesting Holders.

 

(b)           Underwritten Piggyback Offerings.  If the Company at any time proposes to
register any of its securities in a Piggyback Registration and such securities
are to be distributed by or through one or more underwriters, the Company will,
subject to the provisions of Section 2(c), use its reasonable best efforts, if
requested by any holder of Registrable Securities, to arrange for such
underwriters to include the Registrable Securities to be offered and sold by
Requesting Holders among the securities to be distributed by such underwriters,
and such holders shall be obligated to sell their Registrable Securities in
such Piggyback Registration through such underwriters on the same terms and
conditions as apply to the other Company 

 

 

8

 

 

securities to be sold by such underwriters in
connection with such Piggyback Registration. 
The holders of Registrable Securities to be distributed by such
underwriters shall be parties to the underwriting agreement between the Company
and such underwriter or underwriters and may, at their option, require that any
or all of the representations and warranties by, and the other agreements on
the part of, the Company to and for the benefit of such underwriters also be
made to and for their benefit and that any or all of the conditions precedent
to the obligations of such underwriters under such underwriting agreement also
be conditions precedent to their obligations. 
No holder of Registrable Securities shall be required to make any
representations or warranties to or agreements with the Company other than
representations, warranties or agreements regarding such holder, its ownership
of the securities being registered on its behalf and such holder’s intended
method of distribution or any other representation required by law.  No Requesting Holder may participate in such
underwritten offering unless such holder agrees to sell its Registrable
Securities on the basis provided in such underwriting agreement and completes
and executes all questionnaires, powers of attorney, indemnities and other
documents reasonably required under the terms of such underwriting
agreement.  If any Requesting Holder
disapproves of the terms of an underwriting, such holder may elect to withdraw
therefrom and from such registration by notice to the Company and the Managing
Underwriter, and each of the remaining Requesting Holders shall be entitled to
increase the number of Registrable Securities being registered to the extent of
the Registrable Securities so withdrawn in the proportion which the number of
Registrable Securities being registered by such remaining Requesting Holder
bears to the total number of Registrable Securities being registered by all
such remaining Requesting Holders.

 

5.             Holdback Agreement.  If
and to the extent requested by the Managing Underwriter (or, in the case of a
non-underwritten Public Offering, the Company), each holder of Registrable
Securities, by acquisition of such Registrable Securities, agrees, to the
extent permitted by law, not to effect any public sale or distribution
(including a sale under Rule 144) of such securities, during the ten (10) days
prior to and the ninety (90) days after the effective date of any registration
statement filed by the Company in connection with an underwritten Public
Offering (or for such shorter period of time as is sufficient and appropriate,
in the opinion of the Managing Underwriter (or, in the case of a
non-underwritten Public Offering, the Company), in order to complete the sale
and distribution of the securities included in such registration), except as
part of such registration statement, whether or not such holder participates in
such registration.

 

6.             Indemnification.

 

(a)           Indemnification by the Company.  The Company shall, to the full extent permitted
by law, indemnify and hold harmless each holder of Registrable Securities
included in any registration statement filed in connection with a Requested
Registration or a Piggyback Registration, its directors and officers, and each
other Person, if any, who controls any such holder within the meaning of the
Securities Act and, unless indemnification of such Persons is otherwise
provided for in the applicable underwriting agreement, each underwriter, its
directors, officers and each Person, if any, who controls such underwriter
within the meaning of the Securities Act, against any losses, claims, damages,
expenses (including reasonable costs of investigation and reasonable legal fees
and expenses) or liabilities, joint or several (together, “Losses”), to
which such holder or any such director or officer or controlling Person may
become subject under the Securities Act or otherwise, insofar as such Losses
(or actions or 

 

 

9

 

 

proceedings, whether commenced or threatened, in respect thereof) arise
out of or are based upon any untrue statement or alleged untrue statement of
any material fact contained in any such registration statement, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any
amendment or supplement thereto, or any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein (in the case of a prospectus, in the light of the
circumstances under which they were made) not misleading; provided that
the Company shall not be liable in any such case to the extent that any such
Loss (or action or proceeding in respect thereof) arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged
omission made in any such registration statement, preliminary prospectus, final
prospectus, summary prospectus, amendment or supplement in reliance upon and in
conformity with written information or affadavit furnished to the Company
through an instrument duly executed by such seller specifically stating that it
is for use in the preparation thereof. 
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of such holder or any such director, officer
or controlling Person, and shall survive the transfer of such securities by
such holder.

 

(b)           Indemnification by the Sellers.  Each holder of Registrable Securities which
are included or are to be included in any registration statement filed in
connection with a Requested Registration or a Piggyback Registration, as a
condition to including Registrable Securities in such registration statement,
shall, to the full extent permitted by law, indemnify and hold harmless the
Company, its directors and officers, and each other Person, if any, who
controls the Company within the meaning of the Securities Act and, unless
indemnification of such Persons is otherwise provided for in the applicable
underwriting agreement, each underwriter, its directors, officers and each
Person, if any, who controls such underwriter within the meaning of the
Securities Act, against any Losses to which the Company or any such director or
officer or controlling Person may become subject under the Securities Act or otherwise,
insofar as such Losses (or actions or proceedings, whether commenced or
threatened, in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in any
such registration statement, any preliminary prospectus, final prospectus or
summary prospectus contained therein, or any amendment or supplement thereto,
or any omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein (in the case
of a prospectus, in the light of the circumstances under which they were made)
not misleading, if such untrue statement or alleged untrue statement or
omission or alleged omission was made in reliance upon and in conformity with
written information or affidavit furnished to the Company through an instrument
duly executed by such seller specifically stating that it is for use in the
preparation of such registration statement, preliminary prospectus, final
prospectus, summary prospectus, amendment or supplement; provided, however,
that the obligation to provide indemnification pursuant to this Section 6(b)
shall be several, and not joint and several, among such Indemnifying Parties on
the basis of the number of Registrable Securities included in such registration
statement and the aggregate amount which may be recovered from any holder of
Registrable Securities pursuant to the indemnification provided for in this Section 6(b)
in connection with any registration and sale of Registrable Securities shall be
limited to the total proceeds received by such holder from the sale of such Registrable
Securities.  Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf
of the 

 

 

10

 

 

Company or any such director, officer or controlling Person and shall
survive the transfer of such securities by such seller.

 

(c)           Notices of Claims, etc.  Promptly after receipt by an Indemnified
Party of notice of the commencement of any action or proceeding involving a
claim referred to in the preceding paragraph (a) or (b) of this Section
6, such Indemnified Party will, if a claim in respect thereof is to be made
against an Indemnifying Party pursuant to such paragraphs, give written notice
to the latter of the commencement of such action, provided that the
failure of any Indemnified Party to give notice as provided herein shall not
relieve the Indemnifying Party of its obligations under the preceding
paragraphs of this Section 6, except to the extent that the Indemnifying
Party is actually prejudiced by such failure to give notice.  In case any such action is brought against an
Indemnified Party, the Indemnifying Party shall be entitled to participate in
and, unless, in the reasonable judgment of any Indemnified Party, a conflict of
interest between such Indemnified Party and any Indemnifying Party exists with
respect to such claim, to assume the defense thereof, 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 shall 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; provided that the Indemnified Party may participate in
such defense at the Indemnified Party’s expense; and provided  further
that the Indemnified Party or Indemnified Parties shall have the right to
employ one counsel to represent it or them if, in the reasonable judgment of
the Indemnified Party or Indemnified Parties, it is advisable for it or them to
be represented by separate counsel by reason of having legal defenses which are
different from or in addition to those available to the Indemnifying Party, and
in that event the reasonable fees and expenses of such one counsel shall be
paid by the Indemnifying Party.  If the
Indemnifying Party is not entitled to, or elects not to, assume the defense of
a claim, it will not be obligated to pay the fees and expenses of more than one
counsel for the Indemnified Parties with respect to such claim, unless in the
reasonable judgment of any Indemnified Party a conflict of interest may exist
between such Indemnified Party and any other Indemnified Parties with respect
to such claim, in which event the Indemnifying Party shall be obligated to pay
the fees and expenses of such additional counsel for the Indemnified
Parties.  No Indemnifying Party shall
consent to entry of any judgment or enter into any settlement without the consent
of the Indemnified Party.  No
Indemnifying Party shall be subject to any liability for any settlement made
without its consent, which consent shall not be unreasonably withheld.

 

(d)           Contribution. 
If the indemnity and reimbursement obligation provided for in Sections 6(a)
or Section 6(b) is unavailable or insufficient to hold harmless an
Indemnified Party in respect of any Losses (or actions or proceedings in
respect thereof) referred to therein, then the Indemnifying Party shall
contribute to the amount paid or payable by the Indemnified Party as a result of
such Losses (or actions or proceedings in respect thereof) in such proportion
as is appropriate to reflect the relative fault of the Indemnifying Party on
the one hand and the Indemnified Party on the other hand in connection with
statements or omissions which resulted in such Losses, as well as any other
relevant equitable considerations.  The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Indemnifying Party or the Indemnified Party and the parties’ relative 

 

 

11

 

 

intent,
knowledge, access to information and opportunity to correct or prevent such
untrue statement or omission.  The
parties hereto agree that it would not be just and equitable if contributions
pursuant to this paragraph were to be determined by pro  rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in the first sentence of this
paragraph.  The amount paid by an
Indemnified Party as a result of the Losses referred to in the first sentence
of this paragraph shall be deemed to include any legal and other expenses
reasonably incurred by such Indemnified Party in connection with investigating
or defending any Loss which is the subject of this paragraph.

 

No Indemnified Party guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from the Indemnifying
Party if the Indemnifying Party was not guilty of such fraudulent
misrepresentation.

 

(e)           Other Indemnification.  Indemnification similar to that specified in
the preceding paragraphs of this Section 6 (with appropriate
modifications) shall be given by the Company and each seller of Registrable
Securities with respect to any required registration or other qualification of
securities under any federal or state law or regulation of any governmental
authority other than the Securities Act. 
The provisions of this Section 6 shall be in addition to any
other rights to indemnification or contribution which an Indemnified Party may
have pursuant to law, equity, contract or otherwise.

 

(f)            Indemnification Payments.  The indemnification required by this Section
6 shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as and when bills are received or
Losses are incurred.

 

7.             Covenants Relating to Rule 144.  The Company will file reports in compliance
with the Exchange Act, will comply with all rules and regulations of the
Commission applicable in connection with the use of Rule 144 and take such
other actions and furnish such holder with such other information as such
holder may reasonably request in order to avail itself of such rule or any
other rule or regulation of the Commission allowing such holder to sell any
Registrable Securities without registration. 
If at any time the Company is not required to file reports in compliance
with either Section 13 or Section 15(d) of the Exchange Act, the
Company at its expense will, forthwith upon the written request of the holder
of any Registrable Securities, make available adequate current public
information with respect to the Company within the meaning of
paragraph (c)(2) of Rule 144.

 

8.             Other Registration Rights.

 

(a)           No Existing Agreements.  The Company represents and warrants to the
Investor that there is not in effect on the date hereof any agreement by the
Company (other than this Agreement) pursuant to which any holders of securities
of the Company have a right to cause the Company to register or qualify such
securities under the Securities Act or any securities or blue sky laws of any
jurisdiction that would conflict or be inconsistent with any provision of this
Agreement.

 

(b)           Future Agreements.  The Company shall not hereafter agree with
the holders of any securities issued or to be issued by the Company to register
or qualify such 

 

 

12

 

 

securities under the Securities Act or any securities or blue sky laws
of any jurisdiction if the exercise of such registration rights conflict with
the exercise of the registration rights granted hereunder.

 

9.             Definitions.

 

(a)           Except as otherwise
specifically indicated, the following terms will have the following meanings
for all purposes of this Agreement:

 

“Agreement” means
this Registration Rights Agreement, as the same shall be amended from time to
time.

 

“Business Day” means
a day other than Saturday, Sunday or any other day on which banks located in
the State of New York are authorized or obligated to close.

 

“Commission” means
the United States Securities and Exchange Commission, or any successor
governmental agency or authority.

 

“Company” has the
meaning ascribed to it in the preamble.

 

“Cutback Registration”
means any Requested Registration or Piggyback Registration to be effected as an
underwritten Public Offering in which the Managing Underwriter with respect
thereto advises the Company and the Requesting Holders in writing that, in its
opinion, the number of securities requested to be included in such registration
(including securities of the Company which are not Registrable Securities)
exceed the number which can be sold in such offering without a material
reduction in the selling price anticipated to be received for the securities to
be sold in such Public Offering.

 

“Effective Registration”
means, subject to the last sentence of Section 1(f), a Requested
Registration which (a) has been declared or ordered effective in accordance with
the rules of the Commission, (b) has been kept effective for the period of time
contemplated by Section 3(b) and (c) has resulted in the
Registrable Securities requested to be included in such registration actually
being sold (except by reason of some act or omission on the part of the
Requesting Holders); provided that a Cutback Registration shall not be
an Effective Registration for purposes of this Agreement.

 

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

 

“Form S-1” means
Form S-1 promulgated by the Commission under the Securities Act, or any
successor or similar long-form registration statement.

 

“Form S-3” means
Form S-3 promulgated by the Commission under the Securities Act, or any
successor or similar short-form registration statement.

 

“Indemnified Party”
means a party entitled to indemnity in accordance with Section 6.

 

“Indemnifying Party”
means a party obligated to provide indemnity in accordance with Section 6.

 

 

13

 

 

“Initiating Holders”
means any holder or holders of Registrable Securities making a written request
pursuant to Section 1 for the registration of Registrable Securities.

 

“Inspectors” has the
meaning ascribed to it in Section 3(i).

 

“Losses” has the
meaning ascribed to it in Section 6(a).

 

“Managing Underwriter”
means, with respect to any Public Offering, the underwriter or underwriters
managing such Public Offering.

 

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

 

“Notice of Piggyback
Registration” has the meaning ascribed to it in Section 2(a).

 

“Notice of Requested
Registration” has the meaning ascribed to it in Section 1(a).

 

“Person” means any
natural person, corporation, general partnership, limited partnership,
proprietorship, other business organization, trust, union or association.

 

“Piggyback Registration”
means any registration of junior subordinated notes of the Company under the
Securities Act (other than a registration in respect of a dividend reinvestment
or similar plan for stockholders of the Company or on Form S-4 or
Form S-8 promulgated by the Commission, or any successor or similar forms
thereto), whether for sale for the account of the Company or for the account of
any holder of securities of the Company (other than Registrable Securities),
including a registration by the Company under the circumstances described in Section 1(f).

 

“Public Offering”
means any offering of securities to the public, either on behalf of the Company
or any of its securityholders, pursuant to an effective registration statement
under the Securities Act.

 

“Purchase Agreement”
has the meaning ascribed to it in the preamble.

 

“Records” has the
meaning ascribed to it in Section 3(i).

 

“Registrable Securities”
means (i) the Purchased Notes and (ii) any additional junior subordinated notes
distributed to or acquired by any holder of Registrable Securities, including
in payment of any accrued interest in respect of any Junior Subordinated Notes.  As to any particular Registrable Securities,
once issued such securities shall cease to be Registrable Securities when (i) a
registration statement with respect to the sale 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, (ii) they shall
have been distributed to the public pursuant to Rule 144 or (iii) they shall
have ceased to be outstanding.

 

 

14

 

“Registration Expenses”
means all expenses incident to the Company’s performance of or compliance with
its obligations under this Agreement to effect the registration of Registrable
Securities in a Requested Registration or a Piggyback Registration, including,
without limitation, all registration, filing, securities exchange listing and
NASD fees, all registration, filing, qualification and other fees and expenses
of complying with securities or blue sky laws, all word processing, duplicating
and printing expenses, messenger and delivery expenses, the fees and
disbursements of counsel for the Company and of its independent public
accountants, including the expenses of any special audits or “cold comfort”
letters required by or incident to such performance and compliance, the
reasonable fees and disbursements of a single counsel and single firm of
accountants retained by the holders of a majority of the Registrable Securities
being registered, premiums and other costs of policies of insurance against
liabilities arising out of the Public Offering of the Registrable Securities
being registered and any fees and disbursements of underwriters customarily
paid by issuers or sellers of securities, but excluding underwriting discounts
and commissions and transfer taxes, if any, in respect of Registrable
Securities, which shall be payable by each holder thereof.

 

“Requesting Holders”
means, with respect to any Requested Registration or Piggyback Registration,
the holders of Registrable Securities requesting to have Registrable Securities
included in such registration in accordance with this Agreement.

 

“Requested Registration”
means any registration of Registrable Securities under the Securities Act
effected in accordance with Section 1.

 

“Rule 144” means
Rule 144 promulgated by the Commission under the Securities Act, and any
successor provision thereto.

 

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

 

(b)           Unless the context
of this Agreement otherwise requires, (i) words of any gender include each
other gender; (ii) words using the singular or plural number also include
the plural or singular number, respectively; (iii) the terms “hereof,” “herein,”
“hereby” and derivative or similar words refer to this entire Agreement; and
(iv) the term “Section” refers to the specified Section of this Agreement.  Whenever this Agreement refers to a number of
days, such number shall refer to calendar days unless Business Days are
specified.

 

10.           Miscellaneous.

 

(a)           Notices.  All
notices, requests and other communications hereunder must be in writing and
will be deemed to have been duly given only if delivered personally or by
facsimile transmission or mailed (first class postage prepaid) to the parties
at the following addresses or facsimile numbers:

 

If to Investor, to:

 

Banc of America Securities
LLC

9 West 57th Street, 6th Floor

New York, NY 10019

Facsimile No.: (704) 387-3621

Attn:  Leon Bourn

 

 

15

 

with a copy to:

 

Milbank Tweed Hadley &
McCloy LLP

601 S. Figueroa St., 31st Floor

Los Angeles, CA 90017

Facsimile No.:  (213) 892-4771

Attn:  Deborah J. Ruosch

 

If to the Company, to:

 

Hard Rock Hotel, Inc

4455 Paradise Road

Las Vegas, Nevada 89109

Facsimile No.:  (310) 652-8747

Attn:  Brian Ogaz

 

with a copy to:

 

Skadden, Arps, Slate,
Meagher & Flom LLP

300 South Grand Avenue

Los Angeles, CA 90071

Facsimile No.:  (213) 687-5600

Attn: Gregg A. Noel

 

All such notices, requests
and other communications will (i) if delivered personally to the address as
provided in this Section, be deemed given upon delivery, (ii) if delivered by
facsimile transmission to the facsimile number as provided in this Section, be
deemed given upon receipt, and (iii) if delivered by mail in the manner
described above to the address as provided in this Section, be deemed given
upon receipt (in each case regardless of whether such notice, request or other communication
is received by any other Person to whom a copy of such notice is to be
delivered pursuant to this Section).  Any
party from time to time may change its address, facsimile number or other
information for the purpose of notices to that party by giving notice
specifying such change to the other parties hereto.

 

(b)           Entire Agreement.  This Agreement supersedes all prior
discussions and agreements between the parties with respect to the subject
matter hereof, and contains the sole and entire agreement between the parties
hereto with respect to the subject matter hereof.

 

(c)           Amendment.  This
Agreement may be amended, supplemented or modified only by a written instrument
(which may be executed in any number of counterparts) duly executed by or on
behalf of each of the Company and Persons owning a majority of the Registrable
Securities.

 

 

16

 

 

(d)           Waiver.  Subject
to paragraph (e) of this Section, any term or condition of this
Agreement may be waived at any time by the party that is entitled to the
benefit thereof, but no such waiver shall be effective unless set forth in a
written instrument duly executed by or on behalf of the party waiving such term
or condition.  No waiver by any party of
any term or condition of this Agreement, in any one or more instances, shall be
deemed to be or construed as a waiver of the same term or condition of this
Agreement on any future occasion.

 

(e)           Consents and Waivers by Holders of
Registrable Securities.  Any
consent of the holders of Registrable Securities pursuant to this Agreement,
and any waiver by such holders of any provision of this Agreement, shall be in
writing (which may be executed in any number of counterparts) and may be given
or taken by Persons owning a majority of the Registrable Securities, and any
such consent or waiver so given or taken will be binding on all the holders of
Registrable Securities.

 

(f)            No Third Party Beneficiary.  The terms and provisions of this Agreement
are intended solely for the benefit of each party hereto, their respective
successors or permitted assigns and any other holder of Registrable Securities,
and it is not the intention of the parties to confer third-party beneficiary
rights upon any other Person other than any Person entitled to indemnity under Section
6.

 

(g)           Successors and Assigns.  This Agreement is binding upon, inures to the
benefit of and is enforceable by the parties hereto and their respective
successors and assigns.  This Agreement
is not assignable by Company without the prior written consent of Investor.  The rights of any holder hereunder may be
assigned to any transferee of Registrable Securities.

 

(h)           Headings.  The
headings used in this Agreement have been inserted for convenience of reference
only and do not define or limit the provisions hereof.

 

(i)            Invalid Provisions.  If any provision of this Agreement is held to
be illegal, invalid or unenforceable under any present or future law, and if
the rights or obligations of any party hereto under this Agreement will not be
materially and adversely affected thereby, (i) such provision will be fully
severable, (ii) this Agreement will be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part hereof,
(iii) the remaining provisions of this Agreement will remain in full force and
effect and will not be affected by the illegal, invalid or unenforceable
provision or by its severance herefrom and (iv) in lieu of such illegal,
invalid or unenforceable provision, there will be added automatically as a part
of this Agreement a legal, valid and enforceable provision as similar in terms
to such illegal, invalid or unenforceable provision as may be possible.

 

(j)            Remedies.  Except
as otherwise expressly provided for herein, no remedy conferred by any of the
specific provisions of this Agreement is intended to be exclusive of any other
remedy, and each and every remedy shall be cumulative and shall be in addition
to every other remedy given hereunder or now or hereafter existing at law or in
equity or by statute or otherwise.  The
election of any one or more remedies by any party hereto shall not constitute a
waiver by any such party of the right to pursue any other available remedies.

 

 

17

 

 

Damages in the event of
breach of this Agreement by a party hereto or any other holder of Registrable
Securities would be difficult, if not impossible, to ascertain, and it is
therefore agreed that each such Person, in addition to and without limiting any
other remedy or right it may have, will have the right to an injunction or
other equitable relief in any court of competent jurisdiction, enjoining any
such breach, and enforcing specifically the terms and provisions hereof and the
Company and each holder of Registrable Securities, by its acquisition of such
Registrable Securities, hereby waives any and all defenses it may have on the
ground of lack of jurisdiction or competence of the court to grant such an
injunction or other equitable relief.  The
existence of this right will not preclude any such Person from pursuing any
other rights and remedies at law or in equity which such Person may have.

 

(k)           Governing Law. 
This Agreement shall be governed by and construed in accordance with the
laws of the State of New York applicable to a contract executed and performed
in such State, including, without limitation, Section 5-1401 of the New York
General Obligations Law.

 

(l)            Counterparts. 
This Agreement may be executed in any number of counterparts, each of
which will be deemed an original, but all of which together will constitute one
and the same instrument.

 

 

 

18

 

 

IN WITNESS WHEREOF, this
Agreement has been duly executed and delivered by the duly authorized officer
of each party hereto as of the date first above written.

 

	
   

  	
  BANC OF AMERICA SECURITIES LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Bruce
  R. Thompson

  
	
   

  	
   

  	
  Name: Bruce R. Thompson

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HARD ROCK HOTEL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Brian
  Ogaz

  
	
   

  	
   

  	
  Name: Brian Ogaz

  
	
   

  	
   

  	
  Title: Senior Vice President

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