Document:

Exhibit
4.3

EXECUTION
COPY

 

REGISTRATION
RIGHTS AGREEMENT

(NASD Affiliated)

 

This REGISTRATION RIGHTS
AGREEMENT, dated as of October    , 2003 (this “Agreement”),
is made by and among Magnetek, Inc., a Delaware corporation, with headquarters
located at 10900 Wilshire Boulevard, Suite 850, Los Angeles, California 90024
(the “Company”), and the investors named on the signature pages hereto
(together with their eligible transferees or assignees who agree to become
bound by the provisions of this Agreement in accordance with Article IX
hereof, the “Riley Investors”).

 

RECITALS:

 

A.                                   In
connection with the Stock Purchase Agreements (the “Purchase Agreements”)
dated October    , 2003 made by and between the Riley Investors
and the other purchasers named therein (the “Other Investors” and,
together with the Riley Investors, the “Investors”), on the one hand, and the
Company, on the other hand, the Company has agreed, upon the terms and subject
to the conditions of the Purchase Agreements, to issue and sell to the Investors
an aggregate of 4,200,000 shares of the Company’s Common Stock.

 

B.                                     In
order to induce the Investors to execute and deliver the Purchase Agreements,
the Company has agreed to provide certain registration rights under the
Securities Act and applicable state securities laws with respect to the Common
Shares.

 

In consideration of the
premises and the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Company and the Investors hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

Capitalized terms used
and not otherwise defined herein have the respective meanings given them set
forth in the Purchase Agreements.  In
addition, as used in this Agreement, the following terms have the following
meanings:

 

1.1                                 “Common
Shares” means the shares of Common Stock sold pursuant to the Purchase
Agreements.

 

1.2                                 “Other
Registration Rights Agreements” means the Registration Rights Agreements
between the Company, on the one hand, and the Other Investors and certain of
the Riley Investors, on the other hand, entered into pursuant to the Purchase
Agreements substantially concurrently herewith.

 

1.3                                 “Registrable
Securities” means the Common Shares sold to the Riley Investors pursuant to
the Purchase Agreements and any shares of capital stock issued or issuable from
time to time (with any adjustments) in exchange for or otherwise with respect
to the Common Shares.

 

1.4                                 “Registration
Period” means the period between the date of this Agreement and the earlier
of (i) the date on which all of the Registrable Securities have been sold
by the Investors, or (ii) the date on which all the Registrable Securities
(in the reasonable opinion of the Investors’

 

 

counsel, and excluding
any Registrable Securities held by an Investor that has become an affiliate of
the Company after the date hereof) may be immediately sold by the Investors
without registration and without restriction (including without limitation as
to volume by each holder thereof) as to the number of Registrable Securities to
be sold, pursuant to Rule 144 or otherwise.

 

1.6                                 “Registration
Statement” means a Registration Statement of the Company filed under the
Securities Act.

 

1.7                                 The
terms “register,” “registered,” and “registration” refer
to a registration effected by preparing and filing a Registration Statement or
statements in compliance with the Securities Act and pursuant to Rule 415
and the declaration or ordering of effectiveness of such Registration Statement
by the SEC.

 

1.8                                 “Rule 415”
means Rule 415 under the Securities Act, or any successor Rule providing
for offering securities on a continuous basis, and applicable rules and
regulations thereunder.

 

ARTICLE II

REGISTRATION

 

2.1                                 Mandatory
Registration.  The Company will use
best efforts to file with the SEC a Registration Statement on Form S-3
registering the Registrable Securities and no other securities for resale
within 20 business days after the Closing Date of the purchase of the Common
Shares under the Purchase Agreements.  If
Form S-3 is not available at that time, then the Company will file a
Registration Statement on such form as is then available to effect a
registration of the Registrable Securities, subject to the consent of the Riley
Investors, which consent will not be unreasonably withheld.  If a Registration Statement registering the
Registrable Securities for resale is not available, then the Company will file
a Registration Statement on such form as is then available to effect a
registration of the Registrable Securities on a primary basis by the Company.

 

2.2                                 Effectiveness
of the Registration Statement.  The
Company will use its best efforts to cause the Registration Statement to be
declared effective by the SEC as soon as practicable after filing, and in any
event no later than the 90th day after the Closing Date (the “Required
Effective Date”).  However, so long
as the Company filed or held itself ready to file the Registration Statement
within 20 business days after the Closing Date, (a) if the SEC takes the
position that registration of the resale of the Registrable Securities by the
Investors is not available under applicable laws, rules and regulations and
that the Company must register the offering of the Registrable Securities as a
primary offering by the Company, or (b) if the Registration Statement
receives SEC review, then the Required Effective Date will be the 120th day
after the Closing Date.  Notwithstanding
the foregoing, if the SEC takes the position described in (a) above and, as to
any particular Riley Investor, requires a delay before permitting the filing or
effectiveness of the registration of such Investor’s Registrable Securities,
then the Required Effective Date for such Riley Investor shall be extended by
the period of time the SEC requires either the filing or the effectiveness of
the Registration Statement so to be delayed, as the case may be.  In the case of an SEC response described in
clause (a), the Company will, within 40 business days after the date the
Company receives such SEC response, file a Registration Statement as a primary
offering.  The Company’s best efforts
will include, but not be limited to, promptly responding to all comments
received from the staff of the SEC.  If
the Company receives notification from the SEC that the Registration Statement
will receive no action or review from the SEC, then the Company will submit a
request for

 

2

 

accelerated effectiveness
of the Registration Statement within five business days after such SEC
notification.  Once the Registration
Statement is declared effective by the SEC, the Company will cause the
Registration Statement to remain effective throughout the Registration Period,
except as permitted under Section 3.

 

2.3                                 Liquidated
Damages Payments by the Company.  If
(i) at any time after effectiveness of the Registration Statement, sales
cannot be made thereunder for any reason, including the suspension of
effectiveness of the Registration Statement as described in Section 3.5, for a
period of more than 20 consecutive business days, or 60 days in the aggregate,
during any 12-month period or (ii) the Common Stock is not listed or
included for quotation on the NYSE, Nasdaq National Market, Nasdaq SmallCap, or
AMEX for more than an aggregate of 10 business days in any 12-month period,
then the Company will thereafter make cash payments to each Riley Investor as
compensation for such delay.  The amount
of the cash payment made to each Riley Investor will be equal to 2% of the
purchase price paid for the Common Shares purchased and not previously sold by
the Riley Investor for each 30 day period that sales cannot be made under the
effective Registration Statement or the Common Stock is not listed or included
for quotation on the NYSE, Nasdaq National Market, Nasdaq SmallCap, or AMEX, up
to a maximum of six (6) such thirty (30) day periods.  In each case of such an interruption, the number of days in
clause (iii) of the definition of Registration Period will be extended by the
number of days of such interruption. 
These payments will be prorated on a daily basis during the 30 day
period and will be paid to each applicable Riley Investor in cash within five
business days following the end of each month after the 20th day that sales
could not be made.  The Liquidated
Damages set forth in this Section 2.3 and in Section 2.4 shall be the exclusive
remedy available to the Riley Investors for any late registration described in
Section 2.4 or any suspension of the Registration Statement described in this
Section 2.3.  In no event shall the
Company be required to pay any duplicative liquidated damages (whether under an
Other Registration Rights Agreement or otherwise) in the event any such
suspension or failure to timely register are concurrent of each other.

 

2.4                                 Liquidated
Damages as a result of Late Registration. 
If the Registration Statement has not been declared effective by the
Required Effective Date, then the Company will make cash payments to each
affected Riley Investor as compensation for such delay (the “Late
Registration Payments”).  The Late
Registration Payments will be equal to 2% of the purchase price paid for the
Common Shares purchased by such Investor and not previously sold by such Riley
Investor for each 30 day period after the Required Effective Date, up to a
maximum of six (6) such thirty (30) day periods.  The Late Registration Payments will be prorated on a daily basis
during each 30 day period and will be paid to the Investors in cash within five
business days after the earlier of (i) the end of each such 30 day period
following the Required Effective Date or (ii) the effective date of the
Registration Statement.  As set forth
above, the liquidated damages in this Section 2.4 shall be the exclusive remedy
in the event the Registration Statement has not been declared effective by the
Required Effective Date.

 

2.5                                 Eligibility
to use Form S-3.  The Company will
file all reports required to be filed by the Company with the SEC in a timely
manner so as to preserve its eligibility for the use of Form S-3.

 

3

 

ARTICLE III

ADDITIONAL
OBLIGATIONS OF THE COMPANY

 

3.1                                 Continued
Effectiveness of Registration Statement. 
Subject to the limitations set forth in Section 3.5, the Company
will keep the Registration Statement covering the Registrable Securities
effective under Rule 415 at all times during the Registration Period.

 

3.2                                 Accuracy
of Registration Statement.  Any
Registration Statement (including any amendments or supplements thereto and
prospectuses contained therein) filed by the Company covering Registrable
Securities will not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading.  The Company will prepare
and file with the SEC such amendments (including post-effective amendments) and
supplements to the Registration Statement and the prospectus used in connection
with the Registration Statement as may be necessary to permit sales pursuant to
the Registration Statement at all times during the Registration Period, and,
during such period, will comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities of the Company covered
by the Registration Statement until the termination of the Registration Period,
or if earlier, until such time as all of such Registrable Securities have been
disposed of in accordance with the intended methods of disposition by the
seller or sellers thereof as set forth in the Registration Statement.

 

3.3                                 Furnishing
Documentation.  The Company will
furnish to each Riley Investor whose Registrable Securities are included in a
Registration Statement, or to its legal counsel if it notifies the Company to
do so, (a) promptly after each document is prepared and publicly
distributed, filed with the SEC or received by the Company, one copy of any
Registration Statement filed pursuant to this Agreement and any amendments
thereto, each preliminary prospectus and final prospectus and each amendment or
supplement thereto; and (b) a number of copies of a typed version of the
(i) the prospectus, including a preliminary prospectus, and all amendments and
supplements thereto, and (ii) such other documents as the Riley Investor
may reasonably request in order to facilitate the disposition of the
Registrable Securities owned by the Riley Investor.  The Company will immediately notify by facsimile each Riley
Investor whose Registrable Securities are included in any Registration
Statement of the effectiveness of the Registration Statement and any
post-effective amendment.

 

3.4                                 Additional
Obligations.  The Company will use
its best efforts to (a) register and qualify the Registrable Securities
covered by a Registration Statement under such other securities or blue sky
laws of such jurisdictions as each Investor who holds (or has the right to
hold) Registrable Securities being offered reasonably requests, provided that
such jurisdiction has also been the subject of requests from Investors other
than the Riley Investors (b) prepare and file in those jurisdictions any
amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain their
effectiveness during the Registration Period, (c) take any other actions
necessary to maintain such registrations and qualifications in effect at all
times during the Registration Period, and (d) take any other actions reasonably
necessary or advisable to qualify the Registrable Securities for sale in such
jurisdictions.  Notwithstanding the
foregoing, the Company is not required, in connection with such obligations,
to:  (i) qualify to do business in
any jurisdiction where it would not otherwise be required to qualify but for
this Section 3.4, (ii) subject itself to general taxation in any such
jurisdiction, (iii) file a general consent to service of process in any
such jurisdiction, (iv) provide any undertakings that cause material expense
or burden to the Company, or (v) make any change in its charter or bylaws.

 

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3.5                                 Suspension
of Registration.

 

(a)                                  The
Company will notify (by telephone and also by facsimile or electronic mail and
reputable overnight courier) each Investor who holds Registrable Securities
being sold pursuant to a Registration Statement of the happening of any event
of which the Company has knowledge as a result of which the prospectus included
in the Registration Statement as then in effect includes an untrue statement of
a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading. 
The Company will make such notification as promptly as practicable after
the Company becomes aware of the event (but in no event, without the prior
written consent of the applicable Riley Investor, will the Company disclose to
such Riley Investor any of the facts or circumstances regarding the event),
will promptly (but in no event more than ten business days) prepare a
supplement or amendment to the Registration Statement to correct such untrue
statement or omission, and will deliver a number of copies of such supplement
or amendment to each Investor as such Investor may reasonably request.

 

(b)                                 Notwithstanding
the obligations under Section 3.5(a), if in the good faith judgment of the
Company, following consultation with legal counsel, it would be detrimental to
the Company and its stockholders for resales of Registrable Securities to be
made pursuant to the Registration Statement (i) due to the existence of a
material development or potential material development involving the Company
which the Company would be obligated to disclose in the Registration Statement,
which disclosure would be premature or otherwise inadvisable at such time or
would have a Material Adverse Effect upon the Company and its stockholders, or
(ii) because, in the good faith judgment of the Company’s Board of
Directors, it would adversely affect or require premature disclosure of the
filing of a Company-initiated registration of any class of its equity
securities, the Company will have the right to suspend the use of the
Registration Statement for a period of not more than ninety days, provided,
however, that the Company may so defer or suspend the use of the
Registration Statement no more than one time in any twelve-month period, and provided,
further, that, after deferring or suspending the use of the Registration
Statement, the Company may not again defer or suspend the use of the
Registration Statement until a period of thirty days has elapsed after
resumption of the use of the Registration Statement.  The provisions of Section 2.3 will apply to any suspension of the
Registration Statement under this Section 3.5(b).  If the use of the Registration Statement is suspended by the
Company, the Company will promptly give notice of the suspension to all Riley
Investors whose Registrable Securities are covered by the Registration
Statement, and will promptly notify each such Riley Investor as soon as the use
of the Registration Statement may be resumed

 

3.6                                 Review
by the Investors.  The Company will
engage a single firm of legal counsel for the benefit of the Riley Investors
and the Other Investors, reasonably acceptable to the Investors who hold a
majority in interest of the “Registrable Securities” as defined herein and in
the Other Registration Rights Agreements, to review the Registration Statement
and all amendments and supplements thereto (as well as all requests for
acceleration or effectiveness thereof) a reasonable period of time prior to
their filing with the SEC, and will not file any document in a form to which
such counsel reasonably objects, unless otherwise required by law in the
opinion of the Company’s counsel.  The
sections of any such Registration Statement including information with respect
to the Riley Investors, the Riley Investors’ beneficial ownership of securities
of the Company or the Riley Investors’ intended method of disposition of
Registrable Securities must conform to the information provided to the Company
by each of the respective Riley Investors.

 

5

 

3.7                                 Comfort
Letter; Legal Opinion.  At the
request of the Riley Investors who hold a majority in interest of the
Registrable Securities being sold pursuant to a Registration Statement as a
primary offering by the Company, the Company will furnish to the Riley
Investors (i) a letter, dated such date, from the Company’s independent
certified public accountants, in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten
public offering, addressed to the Investors; and (ii) an opinion, dated
such date, from counsel to the Company (which counsel may be an employee of the
Company) for purposes of the Registration Statement, in form and substance as
is customarily given in an underwritten public offering, addressed to the
Investors.

 

3.8                                 Due
Diligence; Confidentiality.

 

(a)                                  The
Company will make available for inspection by any Riley Investor whose
Registrable Securities are being sold pursuant to a Registration Statement as a
primary offering by the Company and any attorney, accountant or other agent
retained by any such Riley Investor (collectively, the “Inspectors”),
all pertinent financial and other records, pertinent corporate documents and
properties of the Company (collectively, the “Records”), as each
Inspector reasonably deems necessary to enable the Inspector to exercise its
due diligence responsibility.  The
Company will cause its officers, directors and employees to supply all
information that any Inspector may reasonably request for purposes of
performing such due diligence.

 

(b)                                 Each
Inspector will hold in confidence, and will not make any disclosure (except to
an Investor) of, any Records or other information that the Company determines
in good faith to be confidential, and of which determination the Inspectors are
so notified, unless (i) the disclosure of such Records is necessary to
avoid or correct a misstatement or omission in any Registration Statement,
(ii) the release of such Records is ordered pursuant to a subpoena or
other order from a court or government body of competent jurisdiction,
(iii) the information in such Records has been made generally available to
the public other than by disclosure in violation of this or any other agreement
(to the knowledge of the relevant Inspector), (iv) the Records or other
information was developed independently by an Inspector without breach of this
Agreement, (v) the information was known to the Inspector before receipt
of such information from the Company, or (vi) the information was
disclosed to the Inspector by a third party without restriction.  The Company is not required to disclose any
confidential information in the Records to any Inspector unless and until such
Inspector has entered into a confidentiality agreement (in form and substance
satisfactory to the Company) with the Company with respect thereto,
substantially in the form of this Section 3.9.  Each Riley Investor will, upon learning that disclosure of
Records containing confidential information is sought in or by a court or
governmental body of competent jurisdiction or through other means, give prompt
notice to the Company and allow the Company, at the Company’s expense, to
undertake appropriate action to prevent disclosure of, or to obtain a
protective order for, the Records or other information deemed
confidential.  Nothing herein will be
deemed to limit any Riley Investor’s ability to sell Registrable Securities in
a manner that is otherwise consistent with applicable laws and regulations.

 

(c)                                  The
Company will hold in confidence, and will not make any disclosure of,
information concerning a Riley Investor provided to the Company under this
Agreement unless (i) disclosure of such information is necessary to comply
with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration
Statement, (iii) the release of such information is ordered pursuant to a
subpoena or other order from a court or governmental body of competent
jurisdiction, (iv) such information has

 

6

 

been made generally available to the public other than by disclosure in
violation of this Agreement or any other agreement (v) the information was
disclosed to the Company by a third party without restriction or (vi) such
Investor consents to the form and content of any such disclosure.  If the Company learns that disclosure of
such information concerning an Investor is sought in or by a court or governmental
body of competent jurisdiction or through other means, the Company will give
prompt notice to such Investor prior to making such disclosure and allow such
Investor, at its expense, to undertake appropriate action to prevent disclosure
of, or to obtain a protective order for, such information.

 

3.9                                 Listing.  The Company will (i) cause all of the
Registrable Securities covered by each Registration Statement to be listed on
each national securities exchange on which securities of the same class or
series issued by the Company are then listed, if any, if the listing of such
Registrable Securities is then permitted under the rules of such exchange, or
(ii) to the extent the securities of the same class or series are not then
listed on a national securities exchange, secure the designation and quotation
of all of the Registrable Securities covered by each Registration Statement on
Nasdaq and, without limiting the generality of the foregoing, arrange for at
least two market makers to register with the National Association of Securities
Dealers, Inc. as such with respect to such Registrable Securities.

 

3.10                           Transfer
Agent; Registrar.  The Company will
provide a transfer agent and registrar, which may be a single entity, for the
Registrable Securities not later than the effective date of the Registration Statement.

 

3.11                           Share
Certificates.  The Company will
cooperate with the Riley Investors who hold Registrable Securities being sold
to facilitate the timely preparation and delivery of certificates (not bearing
any restrictive legends) representing Registrable Securities to be offered
pursuant to a Registration Statement and will enable such certificates to be in
such denominations or amounts as the case may be, and registered in such names
as the Investors may reasonably request, all in accordance with Article V
of the Purchase Agreements.

 

3.12                           Plan
of Distribution.  At the request of
the Riley Investors holding a majority in interest of the Registrable
Securities registered pursuant to a Registration Statement, the Company will
promptly prepare and file with the SEC such amendments (including
post-effective amendments) and supplements to the Registration Statement, and
the prospectus used in connection with the Registration Statement, as may be
necessary in order to change the plan of distribution set forth in such
Registration Statement.

 

3.13                           Securities
Laws Compliance.  The Company will
comply with all applicable laws related to any Registration Statement relating
to the sale of Registrable Securities and to the offering and sale of the
Registrable Securities and with all applicable rules and regulations of
governmental authorities in connection therewith (including, without
limitation, the Securities Act, the Exchange Act and the rules and regulations
promulgated by the SEC).

 

3.14                           Further
Assurances.  The Company will take
all other reasonable actions as any Riley Investor may reasonably request to
expedite and facilitate disposition by such Investor of the Registrable
Securities pursuant to the Registration Statement.

 

3.15                           No
Additional Selling Shareholders. 
The Company will not, and will not agree to, allow the holders of any
securities of the Company to include any of their securities in any

 

7

 

Registration Statement under Section 2.1 hereof, or any amendment
or supplement thereto under Section 3.2 hereof, without the consent of the
Riley Investors holding a majority in interest of the Registrable Securities
then outstanding, except that the Company may include the securities
outstanding to the Flexcare Retirement Plan if the trustee of the Plan requires
the Company to do so.

 

ARTICLE IV

OBLIGATIONS
OF THE RILEY INVESTORS

 

4.1                                 Investor
Information.  As a condition to the
obligations of the Company to complete any registration pursuant to this
Agreement with respect to the Registrable Securities of each Riley Investor,
such Riley Investor will furnish to the Company such information regarding
itself, the Registrable Securities held by it and the intended method of
disposition of the Registrable Securities held by it as is reasonably required
by the Company to effect the registration of the Registrable Securities.  At least 5 business days prior to the first
anticipated filing date of a Registration Statement for any registration under
this Agreement, the Company will notify each Riley Investor of the information
the Company requires from that Riley Investor if such Riley Investor elects to
have any of its Registrable Securities included in the Registration
Statement.  If, within two business days
prior to the filing date, the Company has not received the requested
information from a Riley Investor, then the Company may file the Registration
Statement without including the Registrable Securities of that Riley
Investor.  Each Riley Investor shall
promptly notify the Company of any changes in the information provided by such
Riley Investor to the Company.

 

4.2                                 Further
Assurances.  Each Riley Investor
will cooperate with the Company, as reasonably requested by the Company, in
connection with the preparation and filing of any Registration Statement
hereunder, unless such Riley Investor has notified the Company in writing of
such Investor’s election to exclude all of such Riley Investor’s Registrable
Securities from the Registration Statement.

 

4.3                                 Prospectus
Delivery.  In the event of a sale of
Registrable Securities by a Riley Investor pursuant to a Registration
Statement, unless such requirement is waived by the Company in writing, such
Riley Investor shall deliver to the Company’s transfer agent, with a copy to the
Company, a Certificate of Subsequent Sale substantially in the form attached
hereto as Exhibit A, so that such Registrable Securities may be properly
transferred.

 

4.4                                 Suspension
of Sales.  Upon receipt of any
notice from the Company of the happening of any event of the kind described in
Section 3.5, each Riley Investor will immediately discontinue disposition
of Registrable Securities pursuant to the Registration Statement covering such
Registrable Securities until it receives copies of the supplemented or amended
prospectus contemplated by Section 3.5. 
If so directed by the Company, each Riley Investor will deliver to the
Company (at the expense of the Company) or destroy (and deliver to the Company
a certificate of destruction) all copies in such Riley Investor’s possession
(other than a limited number of file copies) of the prospectus covering such
Registrable Securities that is current at the time of receipt of such notice.

 

ARTICLE V

EXPENSES
OF REGISTRATION

 

The Company will bear all reasonable expenses, other
than sales commissions and transfer taxes, if any, incurred in connection with
registrations, filings or qualifications pursuant to Articles II and III of
this Agreement, including, without limitation, all registration, listing and
qualifications

 

8

 

fees, printers and accounting fees, the fees and disbursements of
counsel for the Company, and the reasonable fees and disbursements of one firm
of legal counsel engaged for the combined benefit of the Riley Investors
pursuant to Section 3.6 hereof and the Other Investors pursuant to Section
3.6 of the Other Registration Rights Agreements, not to exceed $10,000 in the
aggregate.

 

ARTICLE VI

INDEMNIFICATION

 

In the event that any Registrable Securities are
included in a Registration Statement under this Agreement:

 

6.1                                 To
the extent permitted by law, the Company will indemnify and hold harmless each
Riley Investor that holds such Registrable Securities, any directors or
officers of such Riley Investor and any person who controls such Riley Investor
within the meaning of the Securities Act or the Exchange Act (each, a “Riley
Indemnified Person”) against any losses, claims, damages, expenses or
liabilities (joint or several) (collectively, and together with actions,
proceedings or inquiries by any regulatory or self-regulatory organization,
whether commenced or threatened in respect thereof, “Claims”) to which
any of them becomes subject under the Securities Act, the Exchange Act or
otherwise, insofar as such Claims arise out of or are based upon any of the
following statements, omissions or violations in a Registration Statement filed
pursuant to this Agreement, any post-effective amendment thereof or any
prospectus included therein: 
(a) any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement or any post-effective amendment
thereof or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, (b) any untrue statement or alleged untrue statement of a
material fact contained in the prospectus (as it may be amended or
supplemented) or the omission or alleged omission to state therein any material
fact necessary to make the statements made therein, in light of the
circumstances under which the statements therein were made, not misleading, or
(c) any violation or alleged violation by the Company of the Securities
Act, the Exchange Act or any other law, including without limitation any state
securities law or any rule or regulation thereunder (the matters in the
foregoing clauses (a) through (c) being, collectively, “Violations”).  Subject to the restrictions set forth in
Section 6.3 with respect to the number of legal counsel, the Company will
reimburse each applicable Riley Indemnified Person promptly as such expenses
are incurred and are due and payable, for any legal fees or other reasonable
expenses incurred by them in connection with investigating or defending any Claim.  Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this
Section 6.1 (i) does not apply to a Claim by a Riley Indemnified
Person arising out of or based upon a Violation that occurs in reliance upon or
in conformity with information furnished in writing to the Company by any such
Riley Indemnified Person expressly for use in connection with the preparation
of, or inclusion in, the Registration Statement or any such amendment thereof
or supplement thereto; and (ii) does not apply to amounts paid in
settlement of any Claim if such settlement is made without the prior written
consent of the Company, which consent will not be unreasonably withheld.  This indemnity obligation will remain in
full force and effect regardless of any investigation made by or on behalf of
the Riley Indemnified Persons and will survive the transfer of the Registrable
Securities by the Riley Investors under Article IX of this Agreement.

 

6.2                                 In
connection with any Registration Statement in which an Investor is
participating, each such Riley Investor will jointly and severally indemnify
and hold harmless, to the same extent and in the same manner set forth in
Section 6.1 above, the Company, each of its directors, each of its officers
who signs the Registration Statement, each person, if any, who controls the
Company within

 

9

 

the meaning of the Securities Act or the Exchange Act, and any other
stockholder selling securities pursuant to the Registration Statement or any of
such selling stockholder’s directors or officers or any person who controls
such selling stockholder within the meaning of the Securities Act or the
Exchange Act (each a “Company Indemnified Person” and, together with the
Riley Indemnified Persons, each an “Indemnified Party”) against any
Claim to which any of them may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such Claim arises out of or is based upon
any Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon or in conformity with written information
furnished to the Company by such Investor expressly for use in connection with,
or inclusion in, such Registration Statement. 
Subject to the restrictions set forth in Section 6.3, such Riley
Investor will promptly jointly and/or severally reimburse any legal or other
expenses (promptly as such expenses are incurred and due and payable)
reasonably incurred by the applicable Company Indemnified Persons in connection
with investigating or defending any such Claim.  However, the indemnity agreement contained in this
Section 6.2 does not apply to amounts paid in settlement of any Claim if
such settlement is effected without the prior written consent of the Riley
Investors, which consent will not be unreasonably withheld, and no Riley
Investor will be liable under this Agreement (including this Section 6.2
and Article VII) for the amount of any Claim that exceeds the net proceeds
actually received by such Riley Investor as a result of the sale of Registrable
Securities pursuant to such Registration Statement.  This indemnity will remain in full force and effect regardless of
any investigation made by or on behalf of any Company Indemnified Persons and
will survive the transfer of the Registrable Securities by the Riley Investors
under Article IX of this Agreement.

 

6.3                                 Promptly
after receipt by an Indemnified Party under this Article VI of notice of
the commencement of any action (including any governmental action), such
Indemnified Party will, if a Claim in respect thereof is to be made against any
indemnifying party under this Article VI, deliver to the indemnifying
party a written notice of the commencement thereof.  The indemnifying party may participate in, and, to the extent the
indemnifying party so desires, jointly with any other indemnifying party
similarly given notice, assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying parties and the Indemnified
Party.  In that case, the indemnifying
party will diligently pursue such defense. 
If, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Indemnified Party and the
indemnifying party would be inappropriate due to actual or potential conflicts
of interest between the Indemnified Party and any other party represented by
such counsel in such proceeding or the actual or potential defendants in, or
targets of, any such action including the Indemnified Party, and any such
Indemnified Party reasonably determines that there may be legal defenses
available to such Indemnified Party that are different from or in addition to
those available to the indemnifying party, then the Indemnified Party is entitled
to assume such defense and may retain its own counsel, with the fees and
expenses to be paid by the indemnifying party. 
The Company will pay for only one separate legal counsel for the
Investors subject to the Claim collectively, and such legal counsel will be
selected by the Investors holding a majority in interest of the Registrable
Securities.  The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action does not relieve an indemnifying party of any
liability to an Indemnified Party under this Article VI, except to the
extent that the indemnifying party is prejudiced in its ability to defend such
action.  The indemnification required by
this Article VI will be made by periodic payments of the amount thereof
during the course of the investigation or defense, as such expense, loss,
damage or liability is incurred and is due and payable.

 

10

 

ARTICLE VII

CONTRIBUTION

 

To the extent that any indemnification provided for
herein is prohibited or limited by law, the indemnifying party will make the
maximum contribution with respect to any amounts for which it would otherwise
be liable under Article VI to the fullest extent permitted by law.  However, (a) no contribution will be
made under circumstances where the maker would not have been liable for
indemnification under the fault standards set forth in Article VI,
(b) no seller of Registrable Securities guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) will be
entitled to contribution from any seller of Registrable Securities who was not
guilty of such fraudulent misrepresentation, and (c) contribution
(together with any indemnification or other obligations under this Agreement)
by any seller of Registrable Securities will be limited in amount to the net
amount of proceeds received by such seller from the sale of such Registrable
Securities.

 

ARTICLE VIII

EXCHANGE
ACT REPORTING

 

In order to make available to the Riley Investors the
benefits of Rule 144 or any similar rule or regulation of the SEC that may
at any time permit the Investors to sell securities of the Company to the
public without registration, the Company will:

 

(a)                                  File
with the SEC in a timely manner, and make and keep available, all reports and
other documents required of the Company under the Securities Act and the
Exchange Act so long as the Company remains subject to such requirements (it
being understood that nothing herein limits the Company’s obligations under
Section 4.3 of the Purchase Agreements) and the filing and availability of
such reports and other documents is required for the applicable provisions of
Rule 144; and

 

(b)                                 Furnish
to each Riley Investor, so long as such Investor holds Registrable Securities,
promptly upon the Riley Investor’s request, (i) a written statement by the
Company that it has complied with the reporting requirements of Rule 144,
the Securities Act and the Exchange Act, (ii) a copy of the most recent annual
or quarterly report of the Company and such other reports and documents filed
by the Company with the SEC and (iii) such other information as may be
reasonably requested to permit the Investors to sell such securities pursuant
to Rule 144 without registration.

 

ARTICLE IX

ASSIGNMENT
OF REGISTRATION RIGHTS

 

The rights of the Riley Investors hereunder, including
the right to have the Company register Registrable Securities pursuant to this
Agreement to the extent the nature of the transferee requires or may require a
primary registration under applicable securities law, will be automatically
assigned by the Investors to transferees or assignees of all or any portion of
the Registrable Securities, but only if (a) the transferring Riley
Investor agrees in writing with the transferee or assignee to assign such
rights, and a copy of such agreement is furnished to the Company within a
reasonable time after such assignment, (b) the Company is, within a
reasonable time after such transfer or assignment, furnished with written
notice of the name and address of such transferee or assignee and the
Registrable Securities with respect to which such registration rights are being
transferred or assigned, (c) after such transfer or assignment, the
further disposition of such Registrable Securities by the transferee or

 

11

 

assignee is restricted
under the Securities Act and applicable state securities laws, (d) at or
before the time the Company received the written notice contemplated by
clause (b) of this sentence, the transferee or assignee agrees in writing
with the Company to be bound by all of the provisions contained herein,
(e) such transfer is made in accordance with the applicable requirements
of the Purchase Agreements, and (f) the transferee is an “accredited
investor” as that term is defined in Rule 501 of Regulation D and is
not, and will not become as a result of the transfer, an affiliate of the
Company.  If a transferee of Registrable
Securities hereunder would be similarly situated to the Other Investors with
regard to a secondary registration of Registrable Securities, the Company will
have no obligation to such transferee other than to provide it with the rights
it would have had as a transferee under the Other Registration Rights
Agreements.

 

ARTICLE X

AMENDMENT
OF REGISTRATION RIGHTS

 

This Agreement may be amended and the obligations
hereunder may be waived (either generally or in a particular instance, and
either retroactively or prospectively) only with the written consent of the
Company and of the Riley Investors who then hold a two-thirds (2/3) interest of
the Registrable Securities (but not including any Investor who is not affected
by such amendment or waiver).  Any
amendment or waiver effected in accordance with this Article X is binding
upon each Investor and the Company. 
Notwithstanding the foregoing, no amendment or waiver will retroactively
affect any Investor without its consent, or will prospectively adversely affect
any Investor who no longer owns any Registrable Securities without its
consent.  Neither Article VI nor
Article VII hereof may be amended or waived in a manner adverse to an
Investor without its consent.

 

ARTICLE XI

MISCELLANEOUS

 

11.1                           Conflicting
Instructions.  A person or entity is
deemed to be the registered owner of Registrable Securities whenever such
person or entity owns of record such Registrable Securities.  If the Company receives conflicting
instructions, notices or elections from two or more persons or entities with
respect to the same Registrable Securities, the Company will act upon the basis
of instructions, notice or election received from the registered owner of such
Registrable Securities.

 

11.2                           Notices.  Any notices required or permitted to be
given under the terms of this Agreement will be given as set forth in the
Purchase Agreements entered into by the applicable Riley Investors.

 

11.3                           Waiver.  Failure of any party to exercise any right
or remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, does not operate as a waiver thereof.

 

11.4                           Governing
Law; Attorneys’ Fees.  This
Agreement will be governed by and interpreted in accordance with the laws of
the State of California without regard to the principles of conflict of laws.  The parties hereto hereby submit to the
exclusive jurisdiction of the United States federal and state courts located in
the State of California with respect to any dispute arising under this
Agreement, the agreements entered into in connection herewith or the
transactions contemplated hereby or thereby. 
In the event of any action or proceeding arising from or relating to
this Agreement, the prevailing party shall be entitled to recover its
attorneys’ fees.

 

12

 

11.5                           Severability.  If any provision of this Agreement is
invalid or unenforceable under any applicable statute or rule of law, then such
provision will be deemed modified in order to conform with such statute or rule
of law.  Any provision hereof that may
prove invalid or unenforceable under any law will not affect the validity or
enforceability of any other provision hereof.

 

11.6                           Entire
Agreement; No Duplicative Rights. 
This Agreement and the Purchase Agreements entered into by the
applicable Riley Investors (including the respective schedules and exhibits
thereto) constitute the entire agreement among the parties hereto with respect
to the subject matter hereof and thereof. 
There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein or therein.  This Agreement supersedes all prior agreements or understandings
among the parties hereto with respect to the subject matter hereof.  No Riley Investor is entitled to duplicative
rights hereunder and under any Other Registration Rights Agreements and,
therefore, to the extent and so long as a specific right is available or
afforded to a Riley Investor under any Other Registration Rights Agreements
(including, without limitation, with respect to registration of Registrable
Securities, rights to indemnification or contribution or otherwise), such right
shall not be available to such Riley Investor hereunder.

 

11.7                           Successors
and Assigns.  Subject to the
requirements of Article IX hereof, this Agreement inures to the benefit of
and is binding upon the successors and assigns of each of the parties
hereto.  Notwithstanding anything to the
contrary herein, including, without limitation, Article IX, the rights of
an Investor hereunder are assignable to and exercisable by a bona fide pledgee
of the Registrable Securities in connection with an Investor’s margin or
brokerage accounts.

 

11.8                           Use
of Pronouns.  All pronouns refer to
the masculine, feminine or neuter, singular or plural, as the context may
require.

 

11.9                           Headings.  The headings of this Agreement are for
convenience of reference only, are not part of this Agreement and do not affect
its interpretation.

 

11.10                     Counterparts.  This Agreement may be executed in two or
more counterparts, each of which is deemed an original but all of which
constitute one and the same agreement. 
This Agreement, once executed by a party, may be delivered to the other
party hereto by facsimile transmission, and facsimile signatures are binding on
the parties hereto.

 

11.11                     Further Assurances.  Each party will do and perform, or cause to
be done and performed, all such further acts and things, and will execute and
deliver all other agreements, certificates, instruments and documents, as
another party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

 

11.12                     Consents.  Except as set forth in Articles V, X or
otherwise provided herein, all consents and other determinations to be made by
the Riley Investors pursuant to this Agreement will be made by the Riley
Investors holding a majority in interest of the Registrable Securities held by
all Riley Investors.

 

11.13                     No Strict Construction.  The language used in this Agreement is
deemed to be the language chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied against any party.

 

13

 

IN WITNESS WHEREOF, the undersigned Investors and the
Company have caused this Agreement to be duly executed as of the date first
above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  MAGNETEK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RILEY INVESTORS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:

  
					

 

14

 

EXHIBIT A

 

MAGNETEK, INC.

CERTIFICATE OF SUBSEQUENT SALE

 

 

 

 

 

RE:                              Sale
of Shares of Common Stock of Magnetek, Inc. (the “Company”) pursuant to the
Company’s Prospectus dated
                        ,
2003 (the “Prospectus”)

 

Dear Sir/Madam:

 

The undersigned hereby certifies, in connection with
the sale of shares of Common Stock of the Company included in the table of
Selling Stockholders in the Prospectus, that the undersigned has sold the
Shares pursuant to the Prospectus and in a manner described under the caption
“Plan of Distribution” in the Prospectus and that such sale complies with all
applicable securities laws, including, without limitation, the Prospectus
delivery requirements of the Securities Act of 1933, as amended.

 

	
  Selling Stockholder
  (the beneficial owner):

  
	
   

  
	
  Record Holder (e.g., if
  held in name of nominee):

  
	
   

  
	
  Restricted Stock
  Certificate No.(s):

  
	
   

  
	
  Number of Shares Sold:

  
	
   

  
	
  Date of Sale:

  

 

In the event that you receive a stock certificate(s)
representing more shares of Common Stock than have been sold by the
undersigned, then you should return to the undersigned a newly issued
certificate for such excess shares in the name of the Record Holder and BEARING
A RESTRICTIVE LEGEND.  Further, you
should place a stop transfer on your records with regard to such certificate.

 

	
  Dated:

  	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
							

 

cc:                                 Investor
Relations

Magnetek, Inc.

10900 Wilshire Boulevard,
Suite 850

Los Angeles

 

 

Exhibit A-1BP (52893) 21st Century S-3

Exhibit 4.3

AMENDMENT

TO

WARRANT AGREEMENT

THIS AMENDMENT TO WARRANT AGREEMENT (the “Amendment”) is made and entered into on this 1st day of October, 2003 by and among 21st Century Holding Company, a Florida corporation (the “Company”) and Gilford Securities Incorporated (“Gilford”).

WHEREAS, the Company and Gilford entered into a Warrant Agreement (the “Warrant Agreement”) dated as of November 10, 1998.

WHEREAS, Section 14 of the Agreement and Plan of Merger provides that the Company and Gilford may amend the Warrant Agreement.

WHEREAS, the Company and Gilford desire to amend the terms of the Warrant Agreement in the manner set forth in this Amendment.

NOW, THEREFORE, the parties agree as follows:

1. 

Section 1 of the Warrant Agreement is hereby amended by replacing “November 10, 2003” therein with “December 31, 2003”.

2.

Exhibit A of the Warrant Agreement is hereby amended by replacing each reference to “November 10, 2003” therein with “December 31, 2003”. 

3.

The Warrant Certificate No.W-1 attached to the Warrant Agreement is hereby amended by replacing each reference to “November 10, 2003” therein with “December 31, 2003”. 

4.

The Company represents and warrants that all corporate action on the part of the Company, its officers and directors necessary for the authorization, execution and delivery of, and the performance of all obligations of the Company under, this Amendment has been taken. This Amendment is a valid and binding obligation of the Company enforceable in accordance with its terms

[Signature Page Follows]

IN WITNESS WHEREOF, each of the parties has caused this Amendment to be executed on its behalf by its duly authorized officers as of the day and year first above written.

21st CENTURY HOLDING COMPANY

By

/s/ EDWARD J. LAWSON                  

Name: Edward J. Lawson

 

Title: President

GILFORD SECURITIES INCORPORATED

By:

/s/ ROBERT A. MALEY                      

Name: Robert A. Maley

Title: Senior Vice-President

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