Document:

exv4w9

 

Exhibit 4.9

FIRST AMENDMENT TO REGISTRATION RIGHTS AGREEMENT

     THIS FIRST AMENDMENT TO REGISTRATION RIGHTS AGREEMENT, dated as of September 10, 2003 (this “Amendment”), is made by and among (i) IMPSAT FIBER NETWORKS,
INC., a Delaware corporation (the “Company”); (ii) IMPSAT, S.A., a
corporation (sociedad anonima) organized pursuant to the laws of the Republic
of Argentina (“IMPSAT Argentina”) and (iii) the Holders identified on
the signature pages hereto.

RECITALS:

     WHEREAS, the Company and the Holders, including Nortel Networks Limited, a
corporation organized pursuant to the laws of the Province of Ontario, Canada
(“Nortel”), entered into a Registration Rights Agreement dated as of
March 25, 2003 (the “Registration Rights Agreement”), pursuant to which
the Holders were granted specified registration rights (the “Registration
Rights”) with respect to certain securities issued or issuable to them by
the Company, as more particularly described in the Registration Rights
Agreement;

     WHEREAS, the Company and Nortel have entered into an Exchange Agreement
dated as of May 23, 2003, pursuant to which the Company has issued to Nortel
$1,689,000 principal amount of Notes (the “Nortel Additional Notes”) and
101,934 Warrants (the “Nortel Additional Warrants” and, with the Nortel
Additional Notes, the “Nortel Additional Securities”);

     WHEREAS, the Company has agreed to enter into this Amendment to extend the
Registration Rights to the Nortel Additional Securities;

     WHEREAS, the Holders identified on the signature page hereto hold all the
Registrable Securities and, therefore, such Holders, the Company and IMPSAT
Argentina have the power to amend the Registration Rights Agreement pursuant to
Section 6(b) thereof; and

     WHEREAS, terms used but not otherwise defined herein shall have the
respective meanings set forth in the Registration Rights Agreement.

     NOW THEREFORE, in consideration of the mutual promises, representations,
warranties and conditions contained herein, the parties hereto agree as
follows:

     1. Amendment of Registration Rights Agreement.

         (a) The defined term “Registrable Securities” set forth in Section 1 of
the Registration Rights Agreement is hereby amended and replaced in full with
the following:

“Registrable Securities” shall mean (i) the
Securities issued under the Plan and the Nortel
Additional Securities, (ii) the shares of Common
Stock issued or issuable upon

 

 

conversion of the Notes issued under the Plan and
upon the conversion of the Nortel Additional Notes
(the “Conversion Shares”), (iii) any
Purchased Shares included in a Shelf Registration
Statement by a post-effective amendment pursuant to
Rule 462(b) under the 1933 Act in accordance with
Section 2(a), (iv) the shares of Common Stock issued
or issuable upon exercise of the Warrants issued
under the Plan and upon the exercise of the Nortel
Additional Warrants (the “Warrant Shares”),
(v) any shares of capital stock issued or issuable
with respect to any Securities, Conversion Shares or
Warrant Shares referenced in the immediately
preceding clauses (i) through (iv) as a result of
any stock split, stock dividend, recapitalization,
exchange or similar event or otherwise, without
regard to any limitations on conversions of the
Notes or the exercise of the Warrants, and (vi) any
shares of capital stock of any entity issued in
respect of the capital stock referenced in the
immediately preceding clauses (i) through (v) as a
result of a merger, consolidation, sale of assets,
sale or exchange of capital stock or other similar
transaction; provided, however, that
any securities described in the preceding clauses
(i) through (vi) shall not be Registrable Securities
(A) when a Registration Statement with respect to
such securities shall have been declared effective
under the 1933 Act and such securities shall have
been disposed of pursuant to such Registration
Statement, (B) when such securities have been sold
in accordance with Rule 144 (or any successor
provision) promulgated under the 1933 Act, (C) the
Company has delivered a new certificate or other
evidence of ownership for such securities not
bearing a legend restricting further transfer and
such securities may be resold under Rule 144(k)
under the 1933 Act, or (D) when such securities
shall have ceased to be outstanding.

         (b) The Schedule of Holders attached as Exhibit A to the Registration
Rights Agreement is hereby amended and replaced in full by Exhibit A to this
Amendment.

     2. Full Force and Effect. Except as modified hereby, the
Registration Rights Agreement shall remain in full force and effect. The term
“Agreement” used in the Registration Rights Agreement shall for all purposes
therein refer to the Registration Rights Agreement as amended by this
Amendment.

     3. Counterparts. This Amendment may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

 

 

     4. Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to the principles of conflicts of law thereof.

[signature pages follow]

 

 

SIGNATURES TO FIRST AMENDMENT TO

REGISTRATION RIGHTS AGREEMENT

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

	 	IMPSAT FIBER NETWORKS, INC.

	 	By: ____________________________

        Name: Héctor Alonso

        Title: Executive
Vice President
and
                 Chief
Financial Officer

	 	By: _____________________________

        Name: Guillermo
V. Pardo
        Title: Senior Vice President, Corporate
                Finance
and Treasury, and Secretary

	 	IMPSAT S.A.

	 	By: ____________________________

      Name:

      Title:

	 	By: ____________________________

      Name:

      Title:

 

 

SIGNATURES TO FIRST AMENDMENT TO

REGISTRATION RIGHTS AGREEMENT

(Continued)

Confirmed and accepted as of the date first above written:

MORGAN STANLEY & CO. INCORPORATED

	 	 	 
	By: __________________________ 	 	 
	       Name:	 	
 

	       Title:	 	

NORTEL NETWORKS LIMITED

	 	 	 
	By: __________________________ 	 	 
	       Name:	 	
 

	       Title:	 	

WRH PARTNERS GLOBAL SECURITIES, L.P.

	 	 	 
	By:		
WRH Partners Global Securities, Inc.,

its General Partner

	 
	 	By: 	 ______________________________

	 		
Name:
	 	 	
Title:

W.R. HUFF ASSET MANAGEMENT CO., L.L.C.

	 	 	 
	By: __________________________ 	 	 
	       Name:	 	
 

	       Title:	 	

 

 

Exhibit A

SCHEDULE OF HOLDERS

     Date of this Schedule of Holders: September 10, 2003

	 	 	 
	Holder	 	Securities Held
	
	 	

	Morgan Stanley & Co. Incorporated	 	
2,884,659 shares of Common Stock
	 	 	 
	Nortel Networks Limited	 	
$17,627,000 Series B 6% Senior
	 	 	
Guaranteed Convertible Notes due 2011
	 	 	
Warrants exercisable for up to
	 	 	
2,769,909 shares of Common Stock
	 	 	 
	WRH Partners Global Securities, L.P.	 	
Series A 6% Senior Guaranteed
	 	 	
Convertible Notes due 2011 in the
	 	 	
aggregate principal amount received pursuant to the Plan
	W.R. Huff Asset Management Co., L.L.C.exv4w10

 

Exhibit 4.10

REGISTRATION RIGHTS AGREEMENT

Dated as of August 21, 2003

between

IMPSAT FIBER NETWORKS, INC.

and

HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL

 

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and
entered into as of August 21, 2003, between IMPSAT FIBER NETWORKS, INC., a
Delaware corporation (the “Company”), and Houlihan Lokey Howard & Zukin
Capital, a California corporation (the “Holder”).

RECITALS

     A. Pursuant to a Subscription Agreement between the Company and the Holder
dated as of July 18, 2003 (the “Subscription Agreement”), the Holder has
acquired 100,000 shares (the “Shares”) of the Company’s common stock,
par value $0.01 per share (“Common Stock”).

     B. In connection with such purchase of the Shares, the Company has agreed
to enter into this Agreement and to grant to the Holder the rights set forth
herein.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing, the parties hereto
agree as follows:

     1.                Definitions. As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

          “1933 Act” shall mean the Securities Act of 1933, as amended
from time to time.

          “1934 Act” shall mean the Securities Exchange Act of 1934, as
amended from time to time.

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

          “Company” shall have the meaning set forth in the preamble
and shall also include the Company’s successors.

          “Holder” shall have the meaning set forth in the preamble.

          “Person” shall mean an individual, partnership, limited
liability company, corporation, trust or unincorporated organization, or
a government or agency or political subdivision thereof, or any other
entity.

          “Prospectus” shall mean the prospectus included in a
Registration Statement, including any preliminary prospectus, and any
such prospectus as amended or supplemented by any prospectus supplement
(including a prospectus supplement with respect to the terms of the
offering of any portion of the Registrable Securities covered by a Shelf
Registration Statement), and all other amendments and supplements to such
prospectus, in each case, including all material, if any, incorporated by
reference therein.

 

          “Registrable Securities” shall mean (i) the Shares and (ii)
any shares of capital stock issued or issuable with respect to any Shares
as a result of any stock split, stock dividend, recapitalization,
exchange or similar event or otherwise, and (iii) any shares of capital
stock of any entity issued in respect of the capital stock referenced in
the immediately preceding clauses (i) and (ii) as a result of a merger,
consolidation, sale of assets, sale or exchange of capital stock or other
similar transaction; provided, however, that any securities
described in the preceding clauses (i) through (iii) shall not be
Registrable Securities (A) when a Registration Statement with respect to
such securities shall have been declared effective under the 1933 Act and
such securities shall have been disposed of pursuant to such Registration
Statement, (B) when such securities have been sold in accordance with
Rule 144 (or any successor provision) promulgated under the 1933 Act, (C)
when such securities may be resold under Rule 144(k) under the 1933 Act,
or (D) when such securities shall have ceased to be outstanding.

          “Registration Expenses” shall mean the following expenses
incident to performance of or compliance by the Company with this
Agreement: (i) all SEC, stock exchange or National Association of
Securities Dealers, Inc. registration, listing and filing fees; (ii) all
fees and expenses incurred in connection with compliance with state
securities or blue sky laws; (iii) all expenses of the Company in
preparing or assisting in preparing, word processing, printing and
distributing any Registration Statement, any Prospectus, any amendments
or supplements thereto and other documents relating to the performance of
and compliance with this Agreement; (iv) the fees and disbursements of
the transfer agent, registrar and/or depositary (including the Depository
Trust Company) for the Shares; (v) the fees and disbursements of counsel
for the Company; and (vi) the fees and disbursements of the independent
public accountants of, and any special experts retained by, the Company,
but excluding fees and expenses of counsel to the Holder and underwriting
discounts and commissions and transfer taxes, if any, relating to the
sale or disposition of Registrable Securities by the Holder.

          “Registration Statement” shall mean any registration
statement of the Company that covers any of the Registrable Securities
filed under the 1933 Act, and all amendments and supplements to any such
Registration Statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

          “SEC” shall mean the Securities and Exchange Commission.

          “Shares” shall have the meaning set forth in the recitals.

          “Shelf Registration” shall mean a registration effected
pursuant to Section 2(a) hereof.

          “Shelf Registration Statement” shall mean a “shelf”
registration statement of the Company pursuant to the provisions of
Section 2(a) of this Agreement that covers all of the Registrable
Securities on an appropriate form under Rule 415 under the 1933 Act (or
any similar rule that may be adopted by the SEC) and all amendments and
supplements to such registration statement, including post-effective
amendments, in each case including

2

 

          the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

          “Subscription Agreement” shall have the meaning set forth in
the recitals.

          2. Registration Under the 1933 Act.

     (a) On or before 60 days after the date hereof, the Company shall file or
shall have filed a Shelf Registration Statement (or an amendment thereto)
providing for the sale by the Holder of all of the Registrable Securities and
shall use its best efforts to cause such Shelf Registration Statement to be
declared effective by the SEC as soon as thereafter practicable but in any
event not later than 90 days following such filing. The Company agrees to use
its best efforts to keep the Shelf Registration Statement continuously
effective until the Holder shall no longer hold any Registrable Securities or
such shorter period that will terminate when all of the Registrable Securities
covered by the Shelf Registration Statement have been sold pursuant to the
Shelf Registration Statement. The Company further agrees to supplement or
amend the Shelf Registration Statement if required by the rules, regulations or
instructions applicable to the registration form used by the Company for such
Shelf Registration Statement or by the 1933 Act or by any other rules and
regulations thereunder for shelf registration or if reasonably requested by the
Holder with respect to information relating to the Holder, and to use its best
efforts to cause any such amendment to become effective and such Shelf
Registration Statement to become usable as soon as thereafter practicable. The
Company agrees to furnish to the Holder copies of any such supplement or
amendment promptly after its being used or filed with the SEC.

     (b) The Company shall pay all Registration Expenses in connection with the
registration pursuant to Section 2(a). The Holder shall pay all underwriting
discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of the Holder’s Registrable Securities pursuant to the Shelf
Registration Statement.

     (c) A Shelf Registration Statement pursuant to Section 2(a) hereof shall
not be deemed to have become effective unless it has been declared effective by
the SEC; provided, however, that, if, after it has been declared
effective, the offering of Registrable Securities pursuant to a Shelf
Registration Statement is interfered with by any stop order, injunction or
other order or requirement of the SEC or any other governmental agency or
court, such Registration Statement will be deemed not to have become effective
during the period of such interference until the offering of Registrable
Securities pursuant to such Registration Statement may legally resume. The
Company shall be deemed not to have used its best efforts to keep the Shelf
Registration Statement effective during the requisite period if it takes any
action that would result in the Holder not being able temporarily to offer and
sell Registrable Securities during that period, unless (i) such action is
required by applicable law or is taken by the Company in good faith and for
valid business reasons (not including avoidance of the Company’s obligations
hereunder), including the acquisition or divestiture of assets, so long as the
Company promptly thereafter complies with the requirements of Section 3(i) and
(j) hereof, as applicable, and (ii) the Company gives written notice thereof to
the Holder describing in reasonable detail the reasons for and nature of such
action and the period during which the Holder’s ability to offer and sell
Registrable Securities is suspended.

3

 

     3. Registration Procedures. In connection with the obligations of
the Company with respect to the Registration Statement pursuant to Section 2(a)
hereof, the Company shall as expeditiously as possible, as applicable:

          (a) prepare and file with the SEC a Registration Statement (or an
amendment thereto) (i) on the appropriate form under the 1933 Act, which (x)
shall be selected by the Company, (y) shall be available for the sale of the
Registrable Securities by the Holder and (z) shall comply as to form in all
material respects with the requirements of the applicable form and the rules
and regulation of the SEC (including with respect to containing all financial
statements required by the SEC to be filed therewith), and (ii) not containing
any untrue statement of a material fact or omitting to state a material fact
required to be stated therein or necessary to make the statements therein (in
the case of any related Prospectus, in light of the circumstances under which
they were made) not misleading; and use its best efforts to cause such
Registration Statement to become effective and remain effective in accordance
with Section 2 hereof;

          (b) prepare and file with the SEC such amendments, post-effective
amendments and supplements to each Registration Statement as may be necessary
to keep such Registration Statement effective as required under Section 2 and
to comply with the provisions of the 1933 Act with respect to the disposition
of all Registrable Securities covered by such Registration Statement until the
earlier of such time as all of such Registrable Securities have been disposed
of in accordance with the intended methods of disposition by the Holder;

          (c) furnish to the Holder, without charge, as many copies of each
Prospectus, including each preliminary prospectus and any summary prospectus,
and any amendment or supplement thereto and such other documents (including any
documents incorporated by reference therein) as the Holder may reasonably
request, in order to facilitate the public sale or other disposition of the
Registrable Securities; and the Company consents to the use of such Prospectus
and any amendment or supplement thereto and any such document in accordance
with applicable law by the Holder in connection with the offering and sale of
the Registrable Securities covered by and in the manner described in such
Prospectus or any amendment or supplement thereto in accordance with applicable
law;

          (d) use its best efforts to register or qualify the Registrable Securities
under all applicable state securities or “blue sky” laws of such jurisdictions
as the Holder shall reasonably request in writing, to continue such
qualification in effect in such jurisdiction for as long as permissible
pursuant to the laws of such jurisdiction, or for as long as the Holder
requests or until all of such Registrable Securities are sold, whichever is
shortest, to cooperate with the Holder and do any and all other acts and things
that may be reasonably necessary or advisable to enable the Holder to
consummate the disposition in each such jurisdiction of such Registrable
Securities owned by the Holder; provided, however, that the
Company shall not be required to (i) qualify as a foreign corporation or as a
dealer in securities in any jurisdiction where it would not otherwise be
required to qualify but for this Section 3(d), (ii) file any general consent to
service of process or (iii) subject itself to material taxation in any such
jurisdiction if it is not so subject; and use its reasonable best efforts to
obtain all other approvals, consents, exemptions, or authorizations from

4

 

such securities regulatory authorities or governmental agencies as may be
necessary to enable the Holder to consummate the disposition of such
Registrable Securities;

          (e) notify promptly the Holder and, if requested by the Holder, confirm
such advice in writing (i) of the filing of any amendment or supplement to a
Registration Statement or Prospectus, and with respect to a Registration
Statement or any post-effective amendment thereto, when the same has become
effective, (ii) of any comments by the SEC with respect to such Registration
Statement or any request by the SEC or any state securities authority for
amendments or supplements to a Registration Statement and Prospectus or for
additional information after the Registration Statement has become effective,
(iii) of the issuance by the SEC or any state securities authority of any stop
order suspending the effectiveness of a Registration Statement or the
initiation of any proceedings by any Person for that purpose, (iv) if, between
the effective date of a Registration Statement and the closing of any sale of
Registrable Securities covered thereby, the representations and warranties of
the Company contained in any underwriting agreement, securities sales agreement
or other similar agreement, if any, relating to the offering cease to be true
and correct in all material respects or if the Company receives any
notification with respect to the suspension of the qualification of the
Registrable Securities for sale in any jurisdiction or the initiation of any
proceeding for such purpose, (v) upon discovery that, or upon the happening of
any event as a result of which, the Prospectus included in such Registration
Statement contains 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 light of the circumstances under which they were made, not
misleading and (vi) of any determination by the Company that a post-effective
amendment to a Registration Statement would be appropriate;

          (f) make every reasonable effort to obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement (or the lifting of any
suspension of the qualification (or exemption from qualification) of any
Registrable Securities for sale in any jurisdiction) at the earliest possible
moment and provide immediate notice to the Holder of the withdrawal of any such
order (or the lifting of any such suspension);

          (g) furnish to the Holder, without charge, at least one conformed copy of
each Registration Statement and any post-effective amendment thereto (without
documents incorporated therein by reference or exhibits thereto, unless
requested);

          (h) cooperate with the Holder to facilitate the timely preparation and
delivery of certificates representing any Registrable Securities to be sold by
the Holder and not bearing any restrictive legends and enable such Registrable
Securities to be in such denominations and registered in such names as the
Holder may reasonably request at least one business day prior to the closing of
any sale of such Registrable Securities;

          (i) upon the occurrence of any event contemplated by clause (v) of Section
3(e) hereof, use its best efforts promptly (subject to its obligations under
Section 3(j)) to prepare and file with the SEC (and deliver to the Holder) a
supplement, amendment or post-effective amendment to a Registration Statement
or the related Prospectus or any document incorporated therein by reference or
file any other required document so that, as thereafter delivered to any
purchasers of the Registrable Securities, such Prospectus will not contain any

5

 

untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. The Company agrees to notify the Holder
to suspend use of the Prospectus as promptly as practicable after the
occurrence of such an event, and the Holder hereby agrees to suspend use of the
Prospectus immediately thereafter until the Company has amended or supplemented
the Registration Statement or related Prospectus or document to correct such
misstatement or omission and delivered to the Holder the Registration
Statement, Prospectus or document, as then amended and supplemented;

          (j) a reasonable time prior to the filing of any Registration Statement,
any Prospectus, or any document which is to be incorporated by reference into a
Registration Statement or a Prospectus after the initial filing of a
Registration Statement pursuant to Section 2(a), provide copies of such
document to the Holder, provide the Holder with an adequate opportunity to
review and comment on such Registration Statement;

          (k) use its best efforts to cause all Registrable Securities to be listed
on any securities exchange or any automated quotation system on which the
Common Stock is then listed;

          (l) if reasonably requested by the Holder, (i) promptly incorporate in a
Prospectus supplement or post-effective amendment relating to Registrable
Securities such information with respect to the Holder as the Holder reasonably
requests to be included therein and (ii) make all required filings of such
Prospectus supplement or such post-effective amendment as soon as the Company
has received notification of the matters to be incorporated in such filing;

          (m) take all reasonable actions in order to expedite or facilitate the
disposition of the Registrable Securities pursuant to a Shelf Registration
Statement, and in such connection, (i) to the extent possible, make such
representations and warranties to the Holder with respect to the business of
the Company and its subsidiaries, the Registration Statement, Prospectus and
documents incorporated by reference or deemed incorporated by reference, if
any, in each case, in form, substance and scope as are customarily made by
issuers to underwriters in underwritten offerings and confirm the same if and
when requested, and (ii) deliver such documents and certificates as may be
reasonably requested by the Holder to evidence the continued validity of the
representations and warranties of the Company made pursuant to clause (i)
above;

          (n) comply with all applicable rules and regulations of the SEC, and make
available to its security holders, as soon as reasonably practicable but no
later than fifteen (15) months after the effective date of the Registration
Statement, an earnings statement covering a period of twelve (12) months
beginning after the effective date of the Shelf Registration Statement, in a
manner which satisfies the provisions of Section 11(a) of the 1933 Act and Rule
158 thereunder; and

          (o) use its best efforts to take all other steps necessary to effect the
registration of such Registrable Securities contemplated hereby.

6

 

     The Company may require the Holder to furnish to the Company such
information regarding the Holder and the proposed distribution by the Holder of
such Registrable Securities as the Company may from time to time reasonably
request in writing.

     The Holder agrees that, upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 3(e)(v) hereof, the
Holder shall forthwith discontinue disposition of Registrable Securities
pursuant to a Shelf Registration Statement until the Holder’s receipt of the
copies of the supplemented or amended Prospectus contemplated by Section 3(i)
hereof, and, if so directed by the Company, the Holder shall deliver to the
Company (at the Company’s expense) all copies in its possession, other than
permanent file copies then in the Holder’s possession, of the Prospectus
covering such Registrable Securities current at the time of receipt of such
notice. The Holder further agrees that, upon receipt of any notice from the
Company of the happening of any event of the kind described in the last
sentence of Section 2(c), the Holder shall forthwith discontinue disposition of
Registrable Securities pursuant to a Registration Statement until expiration of
the suspension period indicated in such notice. The Company may give notice of
any event of the kind described in Section 3(e)(v) and/or in the last sentence
of Section 2(c) not more than three times during any 365-day period and any
such suspensions may not exceed 30 days for each suspension (or 90 days in the
aggregate in any such period).

     The Holder , if it desires to do so, may sell any Registrable Securities
it holds in an underwritten offering. In any such underwritten offering, the
investment banker or investment bankers and manager or managers that will
administer the offering will be selected by the Company.

     4. Indemnification and Contribution.

          (a) The Company agrees to indemnify and hold harmless the Holder and each
Person, if any, who controls the Holder within the meaning of Section 15 of the
1933 Act and Section 20 of the 1934 Act, or is under common control with, or is
controlled by, the Holder, from and against all losses, claims, damages,
liabilities and expenses (including any legal or other expenses reasonably
incurred by the Holder or Person in connection with defending or investigating
any such action or claim, as such expenses are incurred) arising out of or
based on any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement pursuant to which Registrable
Securities were registered under the 1933 Act or in any Prospectus, or in any
amendment or supplement thereto, including all documents (if any) incorporated
therein by reference, or arising out of or based on 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 any such Prospectus,
in light of the circumstances under which they were made) not misleading;
provided, however, that the foregoing indemnity shall not inure
to the benefit of any of the foregoing parties to the extent, but only to the
extent, that such untrue statement or alleged untrue statement or omission or
alleged omission was made (x) in any Prospectus delivered by any such party (1)
if, prior to such delivery by such party, the Company shall have complied with
its obligations under Section 3(c), (e) and (i) of this Agreement, to provide
such party with prompt notification of such untrue statement or omission and to
furnish to such party copies of an amended or supplemented Prospectus, and (2)
if delivered by such

7

 

party (after receipt thereof from the Company) within the time (if any)
required by the 1933 Act, such amended or supplemented Prospectus would have
cured such untrue statement or omission contained in the Prospectus delivered
by such party or (y) in any such Registration Statement or Prospectus (or
amendment or supplement) in reliance upon and in conformity with written
information relating to any such party furnished to the Company by such party
expressly for use therein. This indemnity shall be in addition to any
liability the Company may otherwise have.

          (b) The Holder agrees to indemnify and hold harmless the Company and the
Company’s directors, officers who sign the Registration Statement and each
Person, if any, who controls the Company within the meaning of Section 15 of
the 1933 Act and Section 20 of the 1934 Act to the same extent as the foregoing
indemnity from the Company to the Holder, but only with reference to
information relating to the Holder furnished to the Company in writing by the
Holder expressly for use in any Registration Statement (or any amendment
thereto) or any Prospectus (or any amendment or supplement thereto).

          (c) In case any proceeding (including any governmental investigation)
shall be instituted involving any Person in respect of which indemnity may be
sought pursuant to either paragraph (a) or paragraph (b) above, such Person
(the “indemnified party”) shall promptly notify the Person against whom
such indemnity may be sought (the “indemnifying party”) in writing and
the indemnifying party, upon request of the indemnified party, shall retain
counsel reasonably satisfactory to the indemnified party to represent the
indemnified party and any others the indemnifying party may designate in such
proceeding and shall pay the fees and disbursements of such counsel related to
such proceeding; provided, however, that the failure to notify
the indemnifying party shall not relieve the indemnifying party of any
liability that it may have to the indemnified party hereunder (except to the
extent that the indemnifying party is materially prejudiced or otherwise
forfeits substantive rights or defenses by reason of such failure). In any
such proceeding, any indemnified party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such indemnified party unless (i) the indemnifying party and the indemnified
party shall have mutually agreed to the retention of such counsel, (ii) the
named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of
both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them or (iii) the indemnifying party
fails to assume the defense of such action reasonably promptly with counsel
reasonably satisfactory to the indemnified party. It is understood that the
indemnifying party shall not, in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for (A) the fees and expenses
of more than one separate firm (in addition to any local counsel) for the
Holder and all Persons, if any, who control the Holder within the meaning of
Section 15 of the 1933 Act and Section 20 of the 1934 Act, and (B) the fees and
expenses of more than one separate firm (in addition to any local counsel) for
the Company, its directors, its officers who sign the Registration Statement
and each Person, if any, who controls the Company within the meaning of such
Sections, and that all such fees and expenses shall be reimbursed as they are
incurred. In such case involving the Holder and such Persons who control the
Holder, such firm shall be designated in writing by the Holder. In all other
cases, such firm shall be designated by the Company. The indemnifying party
shall not be liable for any settlement of any proceeding effected without its
written consent (which shall not be unreasonably withheld), but if settled with
such consent or if there be a final

8

 

judgment adverse to the indemnified party, the indemnifying party agrees
to indemnify the indemnified party from and against any loss or liability by
reason of such settlement or judgment. Notwithstanding the foregoing sentence,
if at any time an indemnified party shall have requested an indemnifying party
to reimburse the indemnified party for fees and expenses of counsel as
contemplated by this Section 4(c), the indemnifying party agrees that it shall
be liable for any settlement of any proceeding effected without its written
consent if (i) such settlement is entered into more than 30 days after receipt
by such indemnifying party of the aforesaid request and (ii) such indemnifying
party shall not have reimbursed the indemnified party for such fees and
expenses of counsel in accordance with such request prior to the date of such
settlement. No indemnifying party shall, without the prior written consent of
the indemnified party (which shall not be unreasonably withheld), effect any
settlement of any pending or threatened proceeding in respect of which such
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.

          (d) Notwithstanding any other provision of this Section 4, the Holder
shall not be required to indemnify or contribute with respect to any sale of
any of Registrable Securities any amount in excess of the total amount received
by the Holder from the sale of such Registrable Securities. The remedies
provided for in this Section 4 are not exclusive and shall not limit any rights
or remedies which may otherwise be available to any indemnified party at law or
in equity.

     The indemnity and contribution provisions contained in this Section 4
shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of
the Holder or any Person controlling the Holder, or by or on behalf of the
Company, its officers or directors or any Person controlling the Company, and
(iii) any sale of Registrable Securities pursuant to Section 2.

     5. Rule 144. The Company covenants that so long as any Registrable
Securities remain outstanding it shall (a) file any reports required to be
filed by it under the 1934 Act and (b) take such further action as the Holder
may reasonably request (including providing any information necessary to comply
with Rule 144 under the 1933 Act), all to the extent required from time to time
to enable the Holder to sell Registrable Securities without registration under
the 1933 Act within the limitation of the exemptions provided by (i) Rule 144
under the 1933 Act, as such rule may be amended from time to time, or
Regulation S under the 1933 Act or (ii) any similar rules or regulations
hereafter adopted by the Commission. The Company shall, upon the request of
the Holder, deliver to the Holder a written statement as to whether it has
complied with such requirements. The Company shall not, after the date hereof,
grant any registration rights which conflict with or impair, or have any
priority over, the registration rights granted herein.

     6. Miscellaneous.

          (a) No Inconsistent Agreements. The Company has not entered into,
and on or after the date of this Agreement shall not enter into, any agreement
that is inconsistent with the

9

 

rights granted to the Holder in this Agreement or otherwise conflicts with
the provisions hereof. The rights granted to the Holder hereunder do not in
any way conflict with and are not inconsistent with the rights granted to the
holders of the Company’s other issued and outstanding securities under any such
agreements.

          (b) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given without the written consent of the Company and the Holder.

          (c) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, telex, telecopier, or any courier guaranteeing overnight
delivery (i) if to the Holder, at the most current address given by the Holder
to the Company by means of a notice given in accordance with the provisions of
this Section 6(c), which address initially is, with respect to the Holder, the
address set forth in the Subscription Agreement, and (ii) if to the Company,
initially at the Company’s address set forth in the Subscription Agreement and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 6(c).

     All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five business
days after being deposited in the mail, postage prepaid, if mailed; when
answered back, if telexed; when receipt is acknowledged, if telecopied; and on
the second succeeding business day if timely delivered to an air courier
guaranteeing overnight delivery.

          (d) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors, assigns and transferees of each
of the parties.

          (e) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

          (f) Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.
In this Agreement, the words “include”, “includes”, and “including” shall be
deemed to be followed by the phrase “without limitation” and the words
“herein”, “hereof”, and “hereunder”, and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular
provision hereof unless the context otherwise requires.

          (g)
GOVERNING LAW; CONSENT TO JURISDICTION. THIS AGREEMENT SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. The
parties hereto irrevocably submit to the exclusive jurisdiction of any state or
federal court sitting in the County of New York, in the State of New York over
any suit, action or proceeding arising out of or relating to this Agreement or
the affairs of the Company. To the fullest extent they may effectively do so
under applicable

10

 

law, the parties hereto irrevocably waive and agree not to assert, by way
of motion, as a defense or otherwise, any claim that they are not subject to
the jurisdiction of any such court, any objection that they may now or
hereafter have to the laying of the venue of any such suit, action or
proceeding brought in any such court and any claim that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient
forum.

          (h) Remedies. Without limiting the remedies available to the
Holder, the Company acknowledges that any failure by the Company to comply with
its obligations under this Agreement may result in material irreparable injury
to the Holder for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Holder shall be entitled to injunctive relief or the
enforcement of other equitable remedies, without bond or other security, to
compel performance and to prevent breaches of this Agreement by the Company and
specifically to enforce the terms and provisions hereof (including Section 2),
in addition to any other remedy to which it may be entitled, at law or in
equity.

          (i) Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired
thereby.

[remainder of page blank; signature page follows]

11

 

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

	 	IMPSAT FIBER NETWORKS, INC.

	 	By:                                              
            
      Name:
Héctor Alonso
      Title:
  Executive Vice President and
                
  Chief
Financial Officer

	 	HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL

	 	By:                                              
            

      Name:

      Title:

12

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