Document:

Exhibit 10.2

    
      
        

      

    

     

    Exhibit
      10.2

    
       

      VISKASE
        COMPANIES, INC.

      

      REGISTRATION
        RIGHTS AGREEMENT

      

      This
        REGISTRATION RIGHTS AGREEMENT (this “Agreement”)
        dated
        as of November 7, 2006 is made and entered into by and between VISKASE
        COMPANIES, INC., a Delaware corporation (the “Company”)
        and
        the persons identified on Schedule
        I
        hereto
        (each, an “Investor”
and
        collectively, the “Investors”).
        Capitalized terms used but not otherwise defined herein have the meanings
        given
        to them in the Stock Purchase Agreement (defined below). 

      

      WHEREAS,
        the Investors and the Company have entered into that certain Series A Preferred
        Stock Purchase Agreement, dated as of the date hereof, by and between the
        Investors and the Company (the “Stock
        Purchase Agreement”);
        

      

      WHEREAS,
        pursuant to the Stock Purchase Agreement, the Company has agreed to sell
        and the
        Investors have agreed to purchase shares of Series A Preferred
        Stock;

      

      WHEREAS,
        the execution and delivery of this Agreement is a condition to the consummation
        of the transactions contemplated by the Stock Purchase Agreement; and

      

      WHEREAS,
        the Company desires to grant registration rights for the Registrable Securities
        pursuant to this Agreement.

      

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

       

      
        	
                1.

              	
                Requested
                  Registrations.

              

      

       

      1.1  Registration
        Requests.
        Upon
        the written request of one or more Initiating Holders of Registrable Securities
        holding a majority of all then outstanding Registrable Securities requesting
        that the Company effect the registration under the Securities Act of all
        or part
        of such Initiating Holders’ Registrable Securities and specifying the number of
        Registrable Securities to be registered and the intended method of disposition
        thereof, the Company will promptly, and in no event more than ten (10) business
        days after receipt of such request, give written notice (a “Notice
        of Requested Registration”)
        of
        such request to all other holders of Registrable Securities, and thereupon
        will
        use its best efforts to effect the registration under the Securities Act
        of (a)
        the Registrable Securities which the Company has been so requested to register
        by such Initiating Holder or Holders, and (b) all other Registrable Securities
        the holders of which have made written requests to the Company for registration
        thereof within fifteen (15) calendar days after the giving of the Notice
        of
        Requested Registration, all to the extent necessary to permit the disposition
        (in accordance with the intended methods thereof) of the Registrable Securities
        so to be registered. If requested by the holders of a majority of the
        Registrable Securities requested to be included in any Requested Registration,
        the method of disposition of all Registrable Securities and any other securities
        included in such registration shall be an underwritten offering effected
        in
        accordance with Section
        6.1.
        Subject
        to Section
        1.5,
        the
        Company may include in such registration other securities for sale for its
        own
        account or for the account of any other Person.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

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

      

      (a)  In
        the case of a
        Long-Form Registration, the Company has previously effected three Effective
        Long-Form Registrations since the date hereof; provided,
        however,
        that
        there shall be no limit on the number of registrations effected as Short-Form
        Registrations, subject to the other provisions of this Section
        1.2;

      

      (b)  the
        Registrable
        Securities requested by Initiating Holders to be so registered does not
        constitute at least twenty-five percent (25%) of the total Registrable
        Securities then outstanding; or

      

      (c)  such
        request is received
        by the Company less than one hundred eighty (180) calendar days following
        the
        effective date of any previous registration statement filed in connection
        with a
        Requested Registration or a Piggyback Registration unless the holder making
        the
        request had requested inclusion of Registrable Securities in such registration
        statement but was unable to participate fully as a result of Section
        1.5
        or
3.3.

      

      1.3  Registration
        Statement Form.
        Requested Registrations shall be on such appropriate registration form
        promulgated by the Commission as shall be selected by the Company, and shall
        be
        reasonably acceptable to the holders of a majority of the Registrable Securities
        to which such registration relates, and shall permit the disposition of such
        Registrable Securities in accordance with the intended method or methods
        specified in their request for such registration.

      

      1.4  Registration
        Expenses.
        The
        Company will pay all Registration Expenses incurred in connection with any
        Requested Registration.

      

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

       

      2  Shelf
        Registration Statement.
        Upon
        the written request of one or more Initiating Holders of Registrable Securities
        holding a majority of all then outstanding Registrable Securities (such written
        request not to be provided prior to the earlier to occur of (a) (i) thirty
        (30)
        calendar days prior to the scheduled expiration or (ii) the earlier termination
        of the Rights Offering, as applicable, and (b) one hundred fifty (150) calendar
        days from Closing (the “Effective
        Date”)),
        the
        Company shall within thirty (30) calendar days of receipt thereof file with
        the
        Commission, and thereafter use its best efforts to have declared effective
        as
        soon as practicable after the filing thereof, a “shelf” registration statement
        (a “Shelf
        Registration Statement”)
        on
        Form S-1 pursuant to Rule 415 under the Securities Act or on such
        other form as may be appropriate under the Securities Act, in each case,
        covering the resale of all of the Registrable Securities (the “Shelf
        Registration”).
        The
        Company shall, subject to customary terms and conditions, use its best efforts
        to keep the Shelf Registration Statement continuously effective from the
        date
        that such Shelf Registration Statement is declared effective during the
        Effective Period to the extent required to permit the disposition (in accordance
        with the intended method or methods thereof, as aforesaid) of the Registrable
        Securities so registered. The Company will pay all Registration Expenses
        incurred in connection with any Shelf Registration.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	3.	
                Piggyback
                  Registrations.

              

      

       

      3.1  Right
        to Include Registrable Securities.
        Notwithstanding any limitation contained in Section 1
        or
Section
        2,
        if the
        Company at any time on or after the Effective Date proposes to effect a
        Piggyback Registration, it will give written notice (a “Notice
        of Piggyback Registration”),
        at
        least fifteen (15) calendar days prior to the anticipated filing date, to
        all
        holders of Registrable Securities of its intention to do so and of such holders’
rights under this Section 3,
        which
        Notice of Piggyback Registration shall include a description of the intended
        method of disposition of such securities. Upon the written request of any
        such
        holder made within fifteen (15) calendar days after receipt of a Notice of
        Piggyback Registration (which request shall specify the Registrable Securities
        intended to be disposed of by such holder), the Company will, subject to
        the
        other provisions of this Agreement, include in the registration statement
        relating to such Piggyback Registration all Registrable Securities that the
        Company has been so requested to register, all to the extent necessary to
        permit
        the disposition of such Registrable Securities in accordance with the intended
        method of disposition set forth in the Notice of Piggyback Registration.
        Notwithstanding the foregoing, if, at any time after giving a Notice of
        Piggyback Registration and prior to the effective date of the registration
        statement filed in connection with such registration, the Company shall
        determine for any reason not to register or to delay registration of such
        securities, the Company may, at its election, give written notice of such
        determination to each holder of Registrable Securities and, thereupon,
        (a) in the case of a determination not to register, shall be relieved of
        its obligation to register any Registrable Securities in connection with
        such
        registration (but not from its obligation to pay the Registration Expenses
        in
        connection therewith) without prejudice, however, to the rights of any
        Requesting Holder to a Requested Registration under Section
        1
        or a
        Shelf Registration under Section 2,
        and
        (b) in the case of a determination to delay registering, shall be permitted
        to delay registering any Registrable Securities for the same period as the
        delay
        in registering such other securities. No registration effected under this
        Section
        3
        shall
        relieve the Company of its obligations to effect a Requested Registration
        under
Section
        1
        or a
        Shelf Registration under Section
        2.
        

      

      3.2  Registration
        Expenses.
        The
        Company will pay all Registration Expenses incurred in connection with any
        Piggyback Registration. 

      

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

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (a)  if
        such
        registration as initially proposed by the Company was solely a primary
        registration of its securities, (i) first,
        the
        securities proposed by the Company to be sold for its own account and
        (ii) second,
        (a) any 2003 Securities requested to be included in such registration by
        requesting holders of 2003 Securities, (b) any Registrable Securities
        requested to be included in such registration by Requesting Holders and
        (c) any other securities of the Company proposed to be included in such
        registration, in the case of clauses (a),
        (b)
        and
(c)
        above,
        allocated among the holders thereof in accordance with the priorities then
        existing among such holders; and 

       

      (b)  if
        such
        registration as initially proposed by the Company was in whole or in part
        requested by holders of securities of the Company, other than holders of
        Registrable Securities in their capacities as such, pursuant to demand
        registration rights, (i) first,
        such
        securities held by the holders initiating such registration and, if applicable,
        any securities proposed by the Company to be sold for its own account, allocated
        in accordance with the priorities then existing among the Company and such
        holders, (ii) second,
        if such
        registration was not initially requested by holders of the 2003 Securities
        in
        their capacity as such, any 2003 Securities requested to be included in such
        registration by requesting holders of 2003 Securities, (iii) third,
        any
        Registrable Securities requested to be included in such registration by
        Requesting Holders, pro rata on the basis of the number of Registrable
        Securities requested to be included by such holders, and (iv) fourth,
        any
        other securities of the Company proposed to be included in such registration,
        allocated among the holders thereof in accordance with the priorities then
        existing among the Company and the holders of such other securities;

       

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

       

      4.  Blackout
        Periods.
        The
        Company shall have the right to delay the filing or effectiveness of a
        registration statement required pursuant to Section
        1
        or
Section 2
        hereof
        or suspend sales under such registration statement during no more than three
        (3)
        periods aggregating to not more than ninety (90) calendar days in any
        twelve-month period (a “Blackout
        Period”)
        in the
        event that (a) the Company would, in accordance with the advice of its
        counsel, be required to disclose in the registration statement information
        not
        otherwise then required by law to be publicly disclosed and (b) in the
        reasonable judgment of the Company’s Board of Directors, (i) there is a
        reasonable likelihood that such disclosure, or any other action to be taken
        in
        connection with the prospectus, would materially and adversely affect or
        interfere with any financing, acquisition, merger, disposition of assets
        (not in
        the ordinary course of business), corporate reorganization or other material
        transaction involving the Company or (ii) there is a reasonable likelihood
        that such disclosure would materially and adversely affect or interfere with
        the
        best interests of the Company or its shareholders; provided,
        however,
        that
        the Company shall delay during such Blackout Period the filing or effectiveness
        of, or suspend sales under, any other registration statement required pursuant
        to the registration rights of the holders of any other securities of the
        Company. The Company shall promptly give the holders of Registrable Securities
        written notice of such determination containing a general statement of the
        reasons for such postponement and an approximation of the anticipated delay.
        Notwithstanding anything else herein to the contrary, the Company shall not
        be
        required to disclose to the holders of Registrable Securities any of the
        facts
        or circumstances regarding material non-public information giving rise to
        any
        Blackout Period.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

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

       

      5.1  prepare
        and file with the Commission the requisite registration statement to effect
        such
        registration and to cause such registration statement to become effective;
        

       

       

      5.2  prepare
        and file with the Commission such amendments and supplements to such
        registration statement and any prospectus used in connection therewith as
        may be
        necessary to maintain the effectiveness of such registration statement and
        to
        comply with the provisions of the Securities Act with respect to the disposition
        of all Registrable Securities covered by such registration statement, in
        accordance with the intended methods of disposition thereof, until the earlier
        of (a) such time as all of such securities have been disposed of in
        accordance with the intended methods of disposition by the seller or sellers
        thereof set forth in such registration statement and (b) one hundred twenty
        (120) calendar days after such registration statement becomes effective (such
        period tolled for any period that the registration statement and/or prospectus
        is unavailable to the Requesting Holders as a result of Section
        4,
        Section
        5.3(c)
        or
Section
        5.3(d);
        provided that, with respect to the Shelf Registration Statement, such period
        shall be the Effective Period); 

       

      5.3  promptly
        notify each Requesting Holder and the underwriter or underwriters, if any:
        (a) when such registration statement or any prospectus used in connection
        therewith, or any amendment or supplement thereto, has been filed and, with
        respect to such registration statement or any post-effective amendment thereto,
        when the same has become effective, (b) of any written request by the
        Commission for amendments or supplements to such registration statement or
        prospectus, (c) of the notification to the Company by the Commission of its
        initiation of any proceeding with respect to the issuance by the Commission
        of,
        or of the issuance by the Commission of, any stop order suspending the
        effectiveness of such registration statement and (d) of the receipt by the
        Company of any notification with respect to the suspension of the qualification
        of any Registrable Securities for sale under the applicable securities or
        blue
        sky laws of any jurisdiction;

       

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

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      5.5  register
        or qualify all Registrable Securities covered by such registration statement
        under such other securities or blue sky laws of such jurisdictions as each
        holder thereof shall reasonably request, keep such registration or qualification
        in effect for so long as such registration statement remains in effect, and
        take
        any other action that may be reasonably necessary or advisable to enable
        such
        holder to consummate the disposition in such jurisdictions of the Registrable
        Securities owned by such holder, except that the Company shall not for any
        such
        purpose be required (a) to qualify generally to do business as a foreign
        corporation in any jurisdiction wherein it would not but for the requirements
        of
        this Section 5.5
        be
        obligated to be so qualified, (b) to subject itself to taxation in any such
        jurisdiction or (c) to consent to general service of process in any
        jurisdiction;

      

      5.6  cause
        all
        Registrable Securities covered by such registration statement to be registered
        with or approved by such other governmental agencies or authorities as may
        be
        necessary to enable each holder thereof to consummate the disposition of
        such
        Registrable Securities; 

      

      5.7  furnish
        to each Requesting Holder a signed counterpart, addressed to such holder
        (and
        the underwriters, if any), of (a) an opinion of counsel for the Company,
        dated the effective date of such registration statement (or, if such
        registration includes an underwritten Public Offering, dated the date of
        any
        closing under the underwriting agreement), reasonably satisfactory in form
        and
        substance to such holder, including, to the extent requested, a “10b-5 opinion,”
and (b) a “comfort” letter, dated the effective date of such registration
        statement (and, if such registration includes an underwritten Public Offering,
        dated the date of any closing under the underwriting agreement), signed by
        the
        independent public accountants who have certified the Company’s financial
        statements included in such registration statement, in each case covering
        substantially the same matters with respect to such registration statement
        (and
        the prospectus included therein) and, in the case of the accountants’ letter,
        with respect to events subsequent to the date of such financial statements,
        as
        are customarily covered in opinions of issuer’s counsel and in accountants’
letters delivered to the underwriters in underwritten Public Offerings of
        securities and, in the case of the accountants’ letter, such other financial
        matters, as such holder (or the underwriters, if any) may reasonably
        request;

      

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

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      5.9  provide
        a
        CUSIP number and a transfer agent and registrar for all Registrable Securities
        covered by such registration statement not later than the effective date
        of such
        registration statement; and

      

      5.10   
        cause
        all
        Registrable Securities covered by such registration statement to be listed,
        upon
        official notice of issuance, on any securities exchange on which any of the
        securities of the same class as the Registrable Securities are then listed.
        

      

      The
        Company may require each holder of Registrable Securities as to which any
        registration is being effected to, and each such holder, as a condition to
        including Registrable Securities in such registration, shall, furnish the
        Company with such information and affidavits regarding such holder and the
        distribution of such securities as the Company may from time to time reasonably
        request in writing in connection with such registration. 

      

      Each
        holder of Registrable Securities agrees by acquisition of such Registrable
        Securities that upon receipt of any notice from the Company of the happening
        of
        any event of the kind described in Section 5.8,
        such
        holder will forthwith discontinue such holder’s disposition of Registrable
        Securities pursuant to the registration statement relating to such Registrable
        Securities until such holder’s receipt of the copies of the supplemented or
        amended prospectus contemplated by Section 5.8
        and, if
        so directed by the Company, will deliver to the Company all copies, other
        than
        permanent file copies, then in such holder’s possession of the prospectus
        relating to such Registrable Securities at the time of receipt of such notice.
        In the event the Company shall give any such notice, the period referred
        to in
Section 5.2
        shall be
        extended by a number of days equal to the number of days during the period
        from
        and including the giving of notice pursuant to Section 5.8
        and to
        and including the date when each holder of any Registrable Securities covered
        by
        such registration statement shall receive the copies of the supplemented
        or
        amended prospectus contemplated by Section 5.8.

       

      
        	
                6.

              	
                Underwritten
                  Offerings.
                  

              

      

       

      6.1  Underwritten
        Requested or Shelf Offerings.
        In the
        case of any underwritten Public Offering being effected pursuant to a Requested
        Registration or a Shelf Registration, the Managing Underwriter and any other
        underwriter or underwriters with respect to such offering shall be selected,
        after consultation with the Company, by the holders of a majority of the
        Registrable Securities to be included in such underwritten offering with
        the
        consent of the Company, which consent shall not be unreasonably withheld.
        The
        Company shall enter into an underwriting agreement in customary form with
        such
        underwriter or underwriters, which shall include, among other provisions,
        indemnities to the effect and to the extent provided in Section
        8.
        The
        holders of Registrable Securities to be distributed by such underwriters
        shall
        be parties to such underwriting agreement and may, at their option, require
        that
        any or all of the representations and warranties by, and the other agreements
        on
        the part of, the Company to and for the benefit of such underwriters also
        be
        made to and for their benefit and that any or all of the conditions precedent
        to
        the obligations of such underwriters under such underwriting agreement also
        be
        conditions precedent to their obligations. No holder of Registrable Securities
        shall be required to make any representations or warranties to or agreements
        with the Company or the underwriters other than representations, warranties
        or
        agreements regarding such holder and its ownership of the securities being
        registered on its behalf and such holder’s intended method of distribution and
        any other representation required by law. No Requesting Holder may participate
        in such underwritten offering unless such holder agrees to sell its Registrable
        Securities on the basis provided in such underwriting agreement and completes
        and executes all questionnaires, powers of attorney, indemnities and other
        documents reasonably required under the terms of such underwriting agreement.
        If
        any Requesting Holder disapproves of the terms of an underwriting, such holder
        may elect to withdraw therefrom and from such registration by notice to the
        Company and the Managing Underwriter, and each of the remaining Requesting
        Holders shall be entitled to increase the number of Registrable Securities
        being
        registered to the extent of the Registrable Securities so withdrawn in the
        proportion which the number of Registrable Securities being registered by
        each
        such remaining Requesting Holder bears to the total number of Registrable
        Securities being registered by all such remaining Requesting
        Holders.

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

      6.2  Underwritten
        Piggyback Offerings.
        If the
        Company at any time proposes to register any of its securities in a Piggyback
        Registration and such securities are to be distributed by or through one
        or more
        underwriters, the Company will, subject to the provisions of Section 3.3,
        use its
        best efforts to arrange for such underwriters to include the Registrable
        Securities to be offered and sold by such holder among the securities to
        be
        distributed by such underwriter, and such holders shall be obligated to sell
        their Registrable Securities in such Piggyback Registration through such
        underwriters on the same terms and conditions as apply to the other Company
        securities to be sold by such underwriters in connection with such Piggyback
        Registration. The holders of Registrable Securities to be distributed by
        such
        underwriters shall be parties to the underwriting agreement between the Company
        and such underwriter or underwriters and may, at their option, require that
        any
        or all of the representations and warranties by, and the other agreements
        on the
        part of, the Company to and for the benefit of such underwriters also be
        made to
        and for their benefit and that any or all of the conditions precedent to
        the
        obligations of such underwriters under such underwriting agreement also be
        conditions precedent to their obligations. No holder of Registrable Securities
        shall be required to make any representations or warranties to or agreements
        with the Company or the underwriters other than representations, warranties
        or
        agreements regarding such holder and its ownership of the securities being
        registered on its behalf and any other representation required by law. No
        Requesting Holder may participate in such underwritten offering unless such
        holder agrees to sell its Registrable Securities on the basis provided in
        such
        underwriting agreement, including provisions requiring such holder to refrain
        from selling Registrable Securities for a customary period of time before
        and
        following such offering, and completes and executes all questionnaires, powers
        of attorney, indemnities and other documents reasonably required under the
        terms
        of such underwriting agreement. If any Requesting Holder disapproves of the
        terms of an underwriting, such holder may elect to withdraw therefrom and
        from
        such registration by notice to the Company and the Managing Underwriter,
        and
        each of the remaining Requesting Holders shall be entitled to increase the
        number of Registrable Securities being registered to the extent of the
        Registrable Securities so withdrawn in the proportion that the number of
        Registrable Securities being registered by each such remaining Requesting
        Holder
        bears to the total number of Registrable Securities being registered by all
        such
        remaining Requesting Holders.

       

      
        	
                7.

              	
                Holdback
                  Agreements.
                  

              

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      7.1  Unless
        the Managing Underwriter otherwise agrees, in connection with the first Public
        Offering hereunder, each holder of Registrable Securities, by acquisition
        of
        such Registrable Securities, agrees, and agrees to cause its Affiliates,
        not to
        effect any public sale or distribution (including a sale under Rule 144)
        of such
        securities, or any securities convertible into or exchangeable or exercisable
        for such securities, during the fourteen (14) calendar days prior to and
        the
        ninety (90) calendar days after the date the registration statement is declared
        effective by the SEC (an “Effective
        Registration”)
        in
        connection with such Public Offering (or for such shorter period of time
        as is
        sufficient and appropriate, in the opinion of the Managing Underwriter, in
        order
        to complete the sale and distribution of the securities included in such
        Effective Registration), except as part of such registration statement, whether
        or not such holder participates in such registration. Notwithstanding anything
        to the contrary in this Section
        7
        no
        holder of Registrable Securities, or any of its Affiliates, shall be prohibited
        from any public sale or distribution of such securities in connection with
        any
        Effective Registration unless all officers and directors of the Company agree
        to
        substantially the same limitations on public sale or distribution applicable
        to
        holders of Registrable Securities.

      

      7.2  Unless
        the Managing Underwriter, if any, otherwise agrees, in connection with the
        first
        Effective Registration hereunder, the Company agrees, and agrees to cause
        its
        Affiliates, (a) not to effect any public sale or distribution of the Company's
        equity securities, or any securities convertible into or exchangeable or
        exercisable for such securities, during the fourteen (14) calendar days prior
        to
        and the ninety (90) calendar days after the date such registration statement
        is
        declared effective by the SEC (or for such shorter period of time as is
        sufficient and appropriate, in the opinion of the Managing Underwriter, in
        order
        to complete the sale and distribution of the securities included in such
        Effective Registration), except as part of such underwritten registration
        and
        except pursuant to registrations on Form S-4 or Form S-8 promulgated by the
        Commission or any successor or similar forms thereto, and (b) to cause each
        holder of the Company's equity securities, or of any securities convertible
        into
        or exchangeable or exercisable for such securities, in each case purchased
        from
        the Company at any time after the date of this Agreement (other than in a
        Public
        Offering), to agree not to effect any such public sale or distribution of
        such
        securities (including a sale under Rule 144), during such period, except
        as part
        of such underwritten registration. Unless the Managing Underwriter otherwise
        agrees, in connection with any Effective Registration other than the first
        Effective Registration hereunder, the Company agrees, and agrees to cause
        its
        Affiliates, (x) not to effect any public sale or distribution of the Company's
        equity securities, or any securities convertible into or exchangeable or
        exercisable for such securities, during the fourteen (14) calendar days prior
        to
        and the ninety (90) calendar days after the effective date of the registration
        statement filed in connection with an underwritten offering made pursuant
        to a
        Requested Registration or a Piggyback Registration (or for such shorter period
        of time as is `and appropriate, in the opinion of the Managing Underwriter,
        in
        order to complete the sale and distribution of the securities included in
        such
        Effective Registration), except as part of such underwritten registration
        and
        except pursuant to registrations on Form S-4 or Form S-8 promulgated by the
        Commission or any successor or similar forms thereto, and (y) to cause each
        holder of the Company's equity securities, or of any securities convertible
        into
        or exchangeable or exercisable for such securities, in each case purchased
        from
        the Company at any time after the date of this Agreement (other than in a
        Public
        Offering), to agree not to effect any such public sale or distribution of
        such
        securities (including a sale under Rule 144), during such period, except
        as part
        of such underwritten registration.

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        	
                8.

              	
                Indemnification.

              

      

       

      8.1  Indemnification
        by the Company.
        The
        Company shall, to the fullest extent permitted by law, indemnify and hold
        harmless each seller of Registrable Securities included in any registration
        statement filed in connection with a Requested Registration, a Shelf
        Registration or a Piggyback Registration, its directors and officers, and
        each
        other Person, if any, who controls any such seller within the meaning of
        the
        Securities Act, against any losses, claims, damages, expenses or liabilities,
        joint or several (together, “Losses”),
        to
        which such seller or any such director or officer or controlling Person may
        become subject under the Securities Act or otherwise, including but not limited
        to under the Exchange Act and state securities laws, insofar as such Losses
        (or
        actions or proceedings, whether commenced or threatened, in respect thereof)
        arise out of or are based upon any untrue statement or alleged untrue statement
        of any material fact contained in any such registration statement, any
        preliminary prospectus, final prospectus or summary prospectus contained
        therein, or any amendment or supplement thereto, or any omission or alleged
        omission to state therein a material fact required to be stated therein or
        necessary to make the statements therein (in the case of a prospectus, in
        the
        light of the circumstances under which they were made) not misleading, and
        the
        Company will reimburse such seller and each such director, officer and
        controlling Person for any legal or any other expenses reasonably incurred
        by
        them in connection with investigating or defending any such Loss (or action
        or
        proceeding in respect thereof); provided
        that the
        Company shall not be liable in any such case to the extent that any such
        Loss
        (or action or proceeding in respect thereof) arises out of or is based upon
        (a) an untrue statement or alleged untrue statement or omission or alleged
        omission made in any such registration statement, preliminary prospectus,
        final
        prospectus, summary prospectus, amendment or supplement in reliance upon
        and in
        conformity with written information furnished to the Company through an
        instrument duly executed by such seller specifically stating that it is for
        use
        in the preparation thereof, (b) such seller’s failure to send or give a
        copy of the final prospectus to the Persons asserting an untrue statement
        or
        alleged untrue statement or omission or alleged omission at or prior to the
        written confirmation of the sale of Registrable Securities to such Person
        if
        such statement or omission was corrected in such final prospectus, and such
        seller was provided such final prospectus or (c) such seller’s continued
        use of any prospectus, or supplement or amendment thereof, or distribution
        of
        securities therewith, of which such seller was notified to discontinue use
        pursuant to Section 5.8
        hereof.
        Such indemnity shall remain in full force and effect regardless of any
        investigation made by or on behalf of such seller or any such director, officer
        or controlling Person, and shall survive the transfer of such securities
        by such
        seller. The Company shall also indemnify each other Person who participates
        (including as an underwriter) in the offering or sale of Registrable Securities,
        their officers and directors and each other Person, if any, who controls
        any
        such participating Person within the meaning of the Securities Act to the
        same
        extent as provided above with respect to sellers of Registrable
        Securities.

      

      8.2  Indemnification
        by the Sellers.
        Each
        holder of Registrable Securities that are included or are to be included
        in any
        registration statement filed in connection with a Requested Registration,
        a
        Shelf Registration or a Piggyback Registration, as a condition to including
        Registrable Securities in such registration statement, shall, to the fullest
        extent permitted by law, indemnify and hold harmless the Company, its directors
        and officers, and each other Person, if any, who controls the Company within
        the
        meaning of the Securities Act, against any Losses to which the Company or
        any
        such director or officer or controlling Person may become subject under the
        Securities Act or otherwise, insofar as such Losses (or actions or proceedings,
        whether commenced or threatened, in respect thereof) arise out of or are
        based
        upon any untrue statement or alleged untrue statement of any material fact
        contained in any such registration statement, any preliminary prospectus,
        final
        prospectus or summary prospectus contained therein, or any amendment or
        supplement thereto, or any omission or alleged omission to state therein
        a
        material fact required to be stated therein or necessary to make the statements
        therein (in the case of a prospectus, in the light of the circumstances under
        which they were made) not misleading, if such untrue statement or alleged
        untrue
        statement or omission or alleged omission was made in reliance upon and in
        conformity with written information furnished to the Company through an
        instrument duly executed by such seller specifically stating that it is for
        use
        in the preparation of such registration statement, preliminary prospectus,
        final
        prospectus, summary prospectus, amendment or supplement; provided,
        however,
        that
        the obligation to provide indemnification pursuant to this Section 8.2
        shall be
        several, and not joint and several, among such Indemnifying Parties on the
        basis
        of the number of Registrable Securities included in such registration statement,
        and the aggregate amount that may be recovered from any holder of Registrable
        Securities pursuant to the indemnification provided for in this Section 8.2
        in
        connection with any registration and sale of Registrable Securities shall
        be
        limited to the total gross proceeds received by such holder from the sale
        of
        such Registrable Securities. Such indemnity shall remain in full force and
        effect regardless of any investigation made by or on behalf of the Company
        or
        any such director, officer or controlling Person and shall survive the transfer
        of such securities by such seller. Such holders shall also indemnify each
        other
        Person who participates (including as an underwriter) in the offering or
        sale of
        Registrable Securities, their officers and directors and each other Person,
        if
        any, who controls any such participating Person within the meaning of the
        Securities Act to the same extent as provided above with respect to the Company.
        

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      8.3  Notices
        of Claims, etc.
        Promptly after receipt by an Indemnified Party of notice of the commencement
        of
        any action or proceeding involving a claim referred to in the preceding
Section 8.1
        or
8.2,
        such
        Indemnified Party will, if a claim in respect thereof is to be made against
        an
        Indemnifying Party pursuant to such paragraphs, give written notice to the
        latter of the commencement of such action, provided that the failure of any
        Indemnified Party to give notice as provided herein shall not relieve the
        Indemnifying Party of its obligations under Section
        8.1
        or 8.2,
        except
        to the extent that the Indemnifying Party is actually prejudiced by such
        failure
        to give notice. In case any such action is brought against an Indemnified
        Party,
        the Indemnifying Party shall be entitled to participate in and, unless, in
        the
        reasonable judgment of any Indemnified Party, a conflict of interest between
        such Indemnified Party and any Indemnifying Party exists with respect to
        such
        claim, to assume the defense thereof, jointly with any other Indemnifying
        Party
        similarly notified to the extent that it may wish, with counsel reasonably
        satisfactory to such Indemnified Party, and after notice from the Indemnifying
        Party to such Indemnified Party of its election so to assume the defense
        thereof, the Indemnifying Party shall not be liable to such Indemnified Party
        for any legal or other expenses subsequently incurred by the latter in
        connection with the defense thereof other than reasonable costs of
        investigation; provided
        that the
        Indemnified Party may participate in such defense at the Indemnified Party’s
        expense; and provided further
        that the
        Indemnified Party or Indemnified Parties shall have the right to employ one
        counsel to represent it or them if, in the reasonable judgment of the
        Indemnified Party or Indemnified Parties, it is advisable for it or them
        to be
        represented by separate counsel by reason of having legal defenses that are
        different from or in addition to those available to the Indemnifying Party,
        and
        in that event the reasonable fees and expenses of such one counsel shall
        be paid
        by the Indemnifying Party. If the Indemnifying Party is not entitled to,
        or
        elects not to, assume the defense of a claim, it will not be obligated to
        pay
        the fees and expenses of more than one counsel for the Indemnified Parties
        with
        respect to such claim, unless in the reasonable judgment of any Indemnified
        Party a conflict of interest may exist between such Indemnified Party and
        any
        other Indemnified Parties with respect to such claim, in which event the
        Indemnifying Party shall be obligated to pay the fees and expenses of such
        additional counsel for the Indemnified Parties. No Indemnifying Party shall
        consent to entry of any judgment or enter into any settlement without the
        consent of the Indemnified Party that does not include as an unconditional
        term
        thereof the giving by the claimant or plaintiff to such Indemnified Party
        of a
        release from all liability in respect to such claim or litigation. No
        Indemnifying Party shall be subject to any liability for any settlement made
        without its consent, which consent shall not be unreasonably
        withheld.

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

      8.4  Contribution.
        If the
        indemnity and reimbursement obligation provided for in this Section 8
        is
        unavailable or insufficient to hold harmless an Indemnified Party in respect
        of
        any Losses (or actions or proceedings in respect thereof) referred to therein,
        then the Indemnifying Party shall contribute to the amount paid or payable
        by
        the Indemnified Party as a result of such Losses (or actions or proceedings
        in
        respect thereof) in such proportion as is appropriate to reflect the relative
        fault of the Indemnifying Party on the one hand and the Indemnified Party
        on the
        other hand in connection with statements or omissions that resulted in such
        Losses, as well as any other relevant equitable considerations; provided,
        however,
        that
        the aggregate amount that may be recovered from any holder of Registrable
        Securities pursuant to this Section 8.4
        in
        connection with any registration and sale of Registrable Securities shall
        be
        limited to the total proceeds received by such holder from the sale of such
        Registrable Securities. The relative fault shall be determined by reference
        to,
        among other things, whether the untrue or alleged untrue statement of a material
        fact or the omission or alleged omission to state a material fact relates
        to
        information supplied by the Indemnifying Party or the Indemnified Party and
        the
        parties’ relative intent, knowledge, access to information and opportunity to
        correct or prevent such untrue statement or omission. The amount paid by
        an
        Indemnified Party as a result of the Losses referred to in the first sentence
        of
        this paragraph shall be deemed to include any legal and other expenses
        reasonably incurred by such Indemnified Party in connection with investigating
        or defending any Loss that is the subject of this paragraph. No Indemnified
        Party guilty of fraudulent misrepresentation (within the meaning of Section
        11(f) of the Securities Act) shall be entitled to contribution from the
        Indemnifying Party if the Indemnifying Party was not guilty of such fraudulent
        misrepresentation.

      

      8.5  Other
        Indemnification.
        Indemnification similar to that specified in the preceding paragraphs of
        this
Section 8
        (with
        appropriate modifications) shall be given by the Company and each seller
        of
        Registrable Securities with respect to any required registration or other
        qualification of securities under any federal or state law or regulation
        of any
        governmental authority other than the Securities Act. The provisions of this
        Section 8
        shall be
        in addition to any other rights to indemnification or contribution that an
        Indemnified Party may have pursuant to law, equity, contract or otherwise.
        To
        the extent that the indemnity provisions contained in any underwriting agreement
        to which the Company is a party conflict with this Section 8,
        such
        underwriting agreement shall control.

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      

      8.6  Indemnification
        Payments.
        The
        indemnification required by this Section 8
        shall be
        made by periodic payments of the amount thereof during the course of the
        investigation or defense, as and when bills are received or Losses are incurred;
        provided
        that the
        Person to whom expenses are paid or advanced provides an undertaking to repay
        such advance if it is ultimately determined that such Person is not entitled
        to
        indemnification hereunder. 

       

      9.  Covenants
        Relating to Rule 144.
        The
        Company will file reports in compliance with the Exchange Act, will comply
        with
        all rules and regulations of the Commission applicable in connection with
        the
        use of Rule 144 and take such other actions and furnish such holder with
        such other information as such holder may request in order to avail itself
        of
        such rule or any other rule or regulation of the Commission allowing such
        holder
        to sell any Registrable Securities without registration, and will, at its
        expense, forthwith upon the request of any holder of Registrable Securities,
        deliver to such holder a certificate, signed by the Company’s principal
        financial officer, stating (a) the Company’s name, address and telephone
        number (including area code), (b) the Company’s Internal Revenue Service
        identification number, (c) the Company’s Commission file number,
        (d) the number of shares of each class of capital stock outstanding as
        shown by the most recent report or statement published by the Company, and
        (e) whether the Company has filed the reports required to be filed under
        the Exchange Act for a period of at least ninety (90) calendar days prior
        to the
        date of such certificate and in addition has filed the most recent annual
        report
        required to be filed thereunder. If at any time the Company is not required
        to
        file reports in compliance with either Section 13 or Section 15(d) of
        the Exchange Act, the Company at its expense will, forthwith upon the written
        request of the holder of any Registrable Securities, make available adequate
        current public information with respect to the Company within the meaning
        of
        paragraph (c)(2) of Rule 144.

       

      10.  
        Other
        Registration Rights.
        The
        Company represents and warrants to the Investors that there is not in effect
        on
        the date hereof any agreement by the Company (other than this Agreement,
        the
        2003 Registration Rights Agreement and the 2004 Registration Rights Agreement)
        pursuant to which any holders of securities of the Company have a right to
        cause
        the Company to register or qualify such securities under the Securities Act
        or
        any securities or blue sky laws of any jurisdiction. The Company shall not
        provide, or agree to provide, any rights to cause the Company to register
        or
        qualify any securities of the Company under the Securities Act or any securities
        or blue sky laws of any jurisdiction which rights are adverse to the rights
        granted to the Investors hereunder.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      11.   
        Definitions;
        Construction.

       

      11.1    Definitions.
        Except
        as otherwise specifically indicated, the following terms will have the following
        meanings for all purposes of this Agreement: 

       

      
        “2003
          Securities”
shall
          mean any outstanding capital stock of the Company that constitutes a
“Registrable Security,” as such term is defined in the 2003 Registration Rights
          Agreement; provided, however, that if such capital stock also constitutes
          Registrable Securities hereunder, such capital stock shall be deemed to
          be
          Registrable Securities and not 2003 Securities for all purposes
          hereunder.

         

        “2003
          Registration Rights Agreement”
shall
          mean that certain Registration Rights Agreement dated April 15, 2003 by and
          among High River Limited Partnership, Debt Strategies Fund, Inc., Northeast
          Investors Trust and the Company.

        

        “2004
          Registration Rights Agreement”
shall
          mean that certain Registration Rights Agreement, dated as of June 29, 2004,
          by
          and between Jefferies & Company, Inc. and the Company.

        

        “Affiliate,”
as
          applied to any Person, shall mean any other Person directly or indirectly
          controlling, controlled by, or under common control with, that Person.
          For
          purposes of this definition, “control” (including, with correlative meanings,
          the terms “controlling,” “controlled by” and “under common control with”), as
          applied to any Person, means the possession, directly or indirectly, of
          the
          power to direct or cause the direction of the management and policies of
          that
          Person, whether through the ownership of voting securities, by contract
          or
          otherwise.

        

        “Agreement”
has
          the
          meaning set forth in the preamble.

        

        “Blackout
          Period”
has
          the
          meaning set forth in Section 4.

        

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

        

        “Common
          Stock”
means
          shares of common stock, par value $0.01 per share, of the Company, as
          constituted on the date hereof, and any stock into which such common stock
          shall
          have been changed or any stock resulting from any reclassification of such
          common stock.

        

        “Company”
has
          the
          meaning set forth in the preamble. 

        

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

        

        “Effective
          Date”
has
          the
          meaning set forth in Section 2.

        

        “Effective
          Long-Form Registration”
means
          a
          Long-Form Registration with respect to a Requested Registration which has
          been
          (a) declared or ordered effective in accordance with the rules of the
          Commission, and (b) kept effective for the period of time contemplated
          by
Section
          5.2.

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

        “Effective
          Period”
shall
          mean the period commencing with the effective date of the Shelf Registration
          Statement and ending at such time as no more Registrable Securities are
          outstanding.

        

        “Effective
          Registration”
has
          the
          meaning set forth in Section
          7.1.

        

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

        

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

        

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

        

        “Form
          S-4”
means
          Form S-4 promulgated by the Commission under the Securities Act, or any
          successor or similar registration statement for the registration of securities
          issued in business combination transactions.

        

        “Form
          S-8”
means
          Form S-8 promulgated by the Commission under the Securities Act, or any
          successor or similar registration statement for the registration of securities
          to be offered to employees pursuant to employee benefit plans.

        

        “Indemnified
          Party”
means
          a
          party entitled to indemnity in accordance with Section 8.

        

        “Indemnifying
          Party”
means
          a
          party obligated to provide indemnity in accordance with Section 8.

        

        “Initiating
          Holders”
means
          any holder or holders of Registrable Securities making a written request
          pursuant to Section
          1
          or
Section
          2
          for the
          registration of Registrable Securities.

        

        “Investor”
and
          “Investors”
have
          the meaning set forth in the preamble.

        

        “Key
          Investor”
means
          Koala Holding LLC.

        

        “Long-Form
          Registration”
means
          a
          Requested Registration effected by the filing of a registration statement
          on
          Form S-1 with the Commission.

        

        “Losses”
has
          the
          meaning set forth in Section 8.1.

        

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

        

        “NASD”
means
          the National Association of Securities Dealers.

        

        “Notice
          of Piggyback Registration”
has
          the
          meaning set forth in Section 3.1.

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

        

        “Notice
          of Requested Registration”
has
          the
          meaning set forth in Section
          1.1.

        

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

        

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

        

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

        

        “Registrable
          Securities”
means
          (a) the Shares, (b) the Common Stock received upon conversion of the
          Shares, (c) the Option Shares, (d) any additional shares of Common Stock
          issued or distributed by way of a dividend, stock split or other distribution
          in
          respect of the Shares and Option Shares, or acquired by way of any rights
          offering or similar offering made in respect of the Shares and Option Shares
          and
          (e) in the case of a Key Investor, any Common Stock acquired by the Key
          Investor
          prior to the date hereof and any additional shares of Common Stock issued
          or
          distributed by way of a dividend, stock split or other distribution in
          respect
          of such Common Stock. As to any particular Registrable Securities, once
          issued
          such securities shall cease to be Registrable Securities when (x) a
          registration statement with respect to the sale of such securities shall
          have
          become effective after the date hereof under the Securities Act and such
          securities shall have been disposed of in accordance with such registration
          statement, (y) they shall have been distributed to the public pursuant to
          Rule 144 or (z) they shall have ceased to be outstanding.

        

        “Registration
          Expenses”
means
          all reasonable expenses incident to the Company’s performance of or compliance
          with its obligations under this Agreement to effect the registration of
          Registrable Securities in a Requested Registration, a Shelf Registration
          or a
          Piggyback Registration, including, without limitation, all registration,
          filing,
          securities exchange listing and NASD fees, all registration, filing,
          qualification and other fees and expenses of complying with securities
          or blue
          sky laws, all word processing, duplicating and printing expenses, messenger
          and
          delivery expenses, the fees and disbursements of counsel for the Company
          and of
          its independent public accountants, including the expenses of any special
          audits
          or “cold comfort” letters required by or incident to such performance and
          compliance, premiums and other costs of policies of insurance against
          liabilities arising out of the Public Offering of the Registrable Securities
          being registered and any fees and disbursements of underwriters customarily
          paid
          by issuers or sellers of securities, but excluding underwriting discounts
          and
          commissions and transfer taxes, if any, in respect of Registrable Securities,
          which shall be payable by each holder thereof; provided
          that the
          Company will not pay the fees, expenses and disbursements of any counsel,
          accountants or advisors (financial or otherwise) of any Person on whose
          behalf
          securities of the Company are included in such registration, except one
          special
          counsel to all holders of such securities.

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

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

        

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

        

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

        

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

        

        “Shares”
means
          shares of Series A Preferred Stock issued by the Company pursuant to the
          Stock Purchase Agreement and any additional shares of Series A Preferred
          Stock
          issued or distributed by way of a dividend, stock split or other distribution
          in
          respect of shares of Series A Preferred Stock.

        

        “Shelf
          Registration”
has
          the
          meaning set forth in Section 2.

        

        “Shelf
          Registration Statement”
has
          the
          meaning set forth in Section 2.

        

        “Short-Form
          Registration”
means
          a
          Requested Registration effected by the filing of a registration statement
          on
          Form S-3 with the Commission.

        

        “Stock
          Purchase Agreement”
has
          the
          meaning set forth in the recitals. 

         

      

      
        	
                12.

              	
                Miscellaneous.

              

      

       

      12.1   
        Notices.
        All
        notices, requests and other communications hereunder must be in writing and
        will
        be deemed to have been duly given only if delivered personally or by facsimile
        transmission or mailed (first class postage prepaid) to the parties at the
        addresses or facsimile numbers set forth on the signature pages hereto. All
        such
        notices, requests and other communications will (a) if delivered
        personally, be deemed given upon delivery, (b) if delivered by facsimile
        transmission, be deemed given upon receipt and (c) if delivered by mail in
        the manner described, be deemed given upon receipt (in each case regardless
        of
        whether such notice, request or other communication is received by any other
        Person to whom a copy of such notice is to be delivered pursuant to this
        Section 12.1).
        Any
        party from time to time may change its address, facsimile number or other
        information for the purpose of notices to that party by giving notice specifying
        such change to the other parties hereto.

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      12.2   
        Entire
        Agreement.
        This
        Agreement supersedes all prior discussions and agreements between the parties
        with respect to the subject matter hereof, and contains the sole and entire
        agreement between the parties hereto with respect to the subject matter
        hereof.

      

      12.3   
        Amendment.
        This
        Agreement may be amended, supplemented or modified only by a written instrument
        (which may be executed in any number of counterparts) duly executed by or
        on
        behalf of each of the Company and Persons owning a majority of the Registrable
        Securities.

      

      12.4   
        Waiver.
        Subject
        to Section 12.5,
        any
        term or condition of this Agreement may be waived at any time by the party
        that
        is entitled to the benefit thereof, but no such waiver shall be effective
        unless
        set forth in a written instrument duly executed by or on behalf of the party
        waiving such term or condition. No waiver by any party of any term or condition
        of this Agreement, in any one or more instances, shall be deemed to be or
        construed as a waiver of the same term or condition of this Agreement on
        any
        future occasion.

      

      12.5   
        Consents
        and Waivers by Holders of Registrable Securities.
        Any
        consent of the holders of Registrable Securities pursuant to this Agreement,
        and
        any waiver by such holders of any provision of this Agreement, shall be in
        writing (which may be executed in any number of counterparts) and may be
        given
        or taken by Persons owning a majority of
        the
        Registrable Securities, and any such consent or waiver so given or taken
        will be
        binding on all the holders of Registrable Securities.

      

      12.6   
        No
        Third Party Beneficiary.
        The
        terms and provisions of this Agreement are intended solely for the benefit
        of
        each party hereto, their respective successors or permitted assigns and any
        other holder of Registrable Securities, and it is not the intention of the
        parties to confer third-party beneficiary rights upon any other Person other
        than any Person entitled to indemnity under Section 8.

      

      12.7   
        Successors
        and Assigns; Assignment.
        All
        covenants and agreements in this Agreement by or on behalf of any of the
        parties
        hereto shall bind and inure to the benefit of the respective successors and
        assigns of the parties hereto whether so expressed or not. In addition, this
        Agreement may be assigned in whole or from time to time in part by the Investors
        in connection with the sale or other transfer of any or all of the Investors’
Registrable Securities, including sales or transfers to Affiliates.

      

      12.8   
        Headings.
        The
        headings used in this Agreement have been inserted for convenience of reference
        only and do not define or limit the provisions hereof.

      

      12.9   
        Invalid
        Provisions.
        If any
        provision of this Agreement is held to be illegal, invalid or unenforceable
        under any present or future law, and if the rights or obligations of any
        party
        hereto under this Agreement will not be materially and adversely affected
        thereby, (a) such provision will be fully severable, (b) this
        Agreement will be construed and enforced as if such illegal, invalid or
        unenforceable provision had never comprised a part hereof and (c) the
        remaining provisions of this Agreement will remain in full force and effect
        and
        will not be affected by the illegal, invalid or unenforceable provision or
        by
        its severance herefrom.

      

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      12.10 
        Remedies.
        Except
        as otherwise expressly provided for herein, no remedy conferred by any of
        the
        specific provisions of this Agreement is intended to be exclusive of any
        other
        remedy, and each and every remedy shall be cumulative and shall be in addition
        to every other remedy given hereunder or now or hereafter existing at law
        or in
        equity or by statute or otherwise. The election of any one or more remedies
        by
        any party hereto shall not constitute a waiver by any such party of the right
        to
        pursue any other available remedies. Damages in the event of breach of this
        Agreement by a party hereto or any other holder of Registrable Securities
        would
        be difficult, if not impossible, to ascertain, and it is therefore agreed
        that
        each such Person, in addition to and without limiting any other remedy or
        right
        it may have, will have the right to an injunction or other equitable relief
        in
        any court of competent jurisdiction, enjoining any such breach, and enforcing
        specifically the terms and provisions hereof, and the Company and each holder
        of
        Registrable Securities, by its acquisition of such Registrable Securities,
        hereby waives any and all defenses it may have on the ground of lack of
        jurisdiction or competence of the court to grant such an injunction or other
        equitable relief. The existence of this right will not preclude any such
        Person
        from pursuing any other rights and remedies at law or in equity that such
        Person
        may have. 

      

      12.11  Governing
        Law.
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Delaware applicable to a contract executed and performed in such
        State,
        without giving effect to the conflicts of laws principles thereof.

      

      12.12  
        Counterparts.
        This
        Agreement may be executed in any number of counterparts, each of which will
        be
        deemed an original, but all of which together will constitute one and the
        same
        instrument.

      

      [THIS
        SPACE LEFT BLANK INTENTIONALLY]

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      

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

       

      
        	 	 	
                COMPANY:

              	 
	 	 	 	 	 
	 	 	
                VISKASE
                  COMPANIES, INC.

              	 
	 	 	 	 	 
	 	 	
                By:

              	
                /s/

              	 
	 	 	 	
                Robert
                  L. Weisman, President and Chief Executive Officer

              	 
	 	 	 	 	 
	 	 	
                8205
                  South Cass Avenue, Suite 115

              	 
	 	 	
                Darien,
                  Illinois 60561

              	 
	 	 	
                Fax:
                  (630) 874-0700

              	 
	 	 	
                 

              	 	 
	 	 	
                For
                  notice purposes, with a copy to:

              	 
	 	 	
                 

              	 	 
	 	 	
                Thomas
                  A. Monson

              	 
	 	 	
                Jenner
                  & Block LLP

              	 
	 	 	
                One
                  IBM Plaza

              	 
	 	 	
                Chicago,
                  IL 60611

              	 
	 	 	
                Fax:
                  (312) 840-8711

              	 

      

       

      Signature
        Page to Registration Rights Agreement

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	 	
                INVESTOR:

              	 
	 	 	
                 

              	 	 
	 	 	
                KOALA
                  HOLDING LLC

              	 
	 	 	
                 

              	 	 
	 	 	
                 

              	 	 
	 	 	
                By:

              	
                /s/

              	 
	 	 	
                 

              	 	 
	 	 	
                c/o 
                  Icahn Associates Corp.

              	 
	 	 	
                767
                  5th Avenue, 47th Floor

              	 
	 	 	
                New
                  York, New York 10153

              	 
	 	 	
                Facsimile:
                  (212) 688-1158

              	 
	 	 	
                 

              	 	 
	 	 	
                For
                  notice purposes, with a copy to:

              	 
	 	 	
                 

              	 	 
	 	 	
                Icahn
                  Associates Corp.

              	 
	 	 	
                767
                  5th Avenue, 47th Floor

              	 
	 	 	
                New
                  York, New York 10153

              	 
	 	 	
                Attn:
                  Keith Schaitkin

              	 
	 	 	
                Facsimile:
                  (212) 688-1158

              	 
	 	 	
                 

              	 	 
	 	 	
                INVESTOR:

              	 
	 	 	
                 

              	 	 
	 	 	
                GRACE
                  BROTHERS, LTD.

              	 
	 	 	
                 

              	 	 
	 	 	
                 

              	 	 
	 	 	
                By:

              	
                /s/

              	 
	 	 	
                 

              	 	 
	 	 	
                1560
                  Sherman Avenue, Suite 900

              	 
	 	 	
                Evanston,
                  Illinois 60201

              	 
	 	 	
                Attn:
                  Bradford Whitmore

              	 
	 	 	
                Facsimile:
                  (847) 733-0339

              	 
	 	 	
                 

              	 	 
	 	 	
                For
                  notice purposes, with a copy to:

              	 
	 	 	
                 

              	 	 
	 	 	
                Evelyn
                  Arkebauer

              	 
	 	 	
                Sachnoff
                  and Weaver

              	 
	 	 	
                30
                  S. Wacker Drive, 29th Floor

              	 
	 	 	
                Chicago,
                  IL 60606

              	 
	 	 	
                 

              	 	 
	 	 	
                INVESTOR:

              	 
	 	 	
                 

              	 	 
	 	 	
                NORTHEAST
                  INVESTORS TRUST

              	 
	 	 	
                 

              	 	 
	 	 	
                 

              	 	 
	 	 	
                By:

              	
                /s/

              	 
	 	 	
                 

              	 	 
	 	 	
                150
                  Federal Street, Suite 1000

              	 
	 	 	
                Boston,
                  Massachusetts 02110-1745

              	 
	 	 	
                Attn:
                  Bruce Monrad

              	 
	 	 	
                Facsimile:
                  (617) 523-5412

              	 

      

      

      Signature
        Page to Registration Rights
        Agreement

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        I

       

      INVESTORS

       

      
        	
                Koala
                  Holding LLC

              
	 
	
                Grace
                  Brothers, Ltd.

              
	 
	
                Northeast
                  Investors TrustExhibit 10.3

    
      
        

      

    

     

    Exhibit
      10.3

    FIRST
      AMENDMENT TO

    SECURITY
      AGREEMENT

    

    This
      First Amendment to Security Agreement (this “Amendment”),
      dated
      as of November 7, 2006, is made by and between VISKASE COMPANIES,
      INC., a
      Delaware corporation (the “Company”), and each
      of
      its Domestic Restricted Subsidiaries hereafter party hereto (such Subsidiaries,
      together with Company, each a “Debtor”
and,
      collectively, the “Debtors”),
      and
      LASALLE BANK NATIONAL ASSOCIATION (“LaSalle”),
      as
      collateral agent (together with its successor(s) thereto in such capacity,
      “Collateral
      Agent”)
      for
      the Trustee and Holders, and amends that certain Security Agreement, dated
      as of
      June 29, 2004, by the Company in favor of the Collateral Agent (the
“Original
      Security Agreement”).
      Terms
      capitalized herein and not otherwise defined herein shall have the meanings
      ascribed to such terms in the Original Security Agreement.

    

    WHEREAS,
      the
      parties hereto desire to amend certain of the terms and provisions of the
      Original Security Agreement as provided herein.

    

    NOW,
      THEREFORE,
      in
      consideration of the premises herein contained, and for other good and valuable
      consideration (the receipt, sufficiency and adequacy of which are hereby
      acknowledged), the parties hereto (intending to be legally bound) hereby agree
      as follows:

    

    1.    Amendments
      to Original Security Agreement.
      Subject
      to the terms and conditions contained herein, the parties hereto hereby amend
      the Original Security Agreement as follows:

    

    (a)    Section
      4.3
      of the
      Original Security Agreement is hereby amended and restated in its entirety
      as
      follows:

    

    “4.3 Location
      of Inventory and Equipment.
      Keep
      such Debtor’s Inventory and Equipment only at the locations identified on
Schedule
      3.4
      and its
      chief executive offices only at the locations identified on Schedule
      3.6(b);
      provided, however, that such Debtor may amend Schedule
      3.4
      and
Schedule
      3.6(b)
      so long
      as such amendment occurs by prompt written notice to the Collateral Agent,
      and
      so long as, at the time of such written notification, such Debtor provides
      to
      the Collateral Agent a Collateral Access Agreement to the extent required under
      Section
      4.20
      of the
      Indenture.”

    

    (b)    Schedule
      3.4
      of the
      Original Security Agreement is hereby amended by adding the following location
      for Inventory and Equipment of the Company:

    

    
      	 	 	
              Viskase
                del Norte, S.A. de C.V.

            

    

    
      	 	 	
              Avenida
                Nexxus 125

            

    

    
      	 	 	
              Parque
                Industrial Nexxus XXI

            

    

    
      	 	 	
              Escobedo,
                N.L. 66055

            

    

    
      	 	 	
              Mexico

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.    Miscellaneous.

    

    (a)    Amendment.
      No
      amendment, modification, termination or waiver of any provision of this
      Amendment, or consent to any departure therefrom, shall be effective without
      the
      prior written consent of each of the parties.

    

    (b)    Notices.
      Any
      notice under this Amendment shall be given in accordance with Section 9 of
      the
      Original Security Agreement.

    

    (c)    Successors
      and Assigns.
      This
      Amendment shall be binding upon and for the benefit of the parties hereto and
      their respective, permitted successors and assigns.

    

    (d)    Severability.
      Wherever possible, each provision of this Amendment shall be interpreted in
      such
      manner as to be effective and valid under applicable law, but if any provision
      of this Amendment shall be prohibited by or invalid under such law, such
      provision shall be ineffective to the extent of such prohibition or inability,
      without invalidating the remainder of such provision or the remaining provisions
      of this Amendment.

    

    (e)    Captions.
      The
      captions and headings of this Amendment are for convenience of reference only
      and shall not affect the interpretation of this Amendment.

    

    (f)    Governing
      Law.
      This
      Amendment shall be governed by and construed in accordance with the internal
      laws of the State of New York without regard to the conflicts of law provisions
      thereof.

    

    (g)    References.
      On or
      after the date hereof, each reference in the Original Security Agreement or
      to
      this “Agreement” or words of like import, shall unless the context otherwise
      requires, be deemed to refer to the Original Security Agreement as amended
      hereby. 

    

    (h)    Reaffirmation.
      The
      Company hereby expressly reaffirms and assumes (on the same basis as set forth
      in the Original Security Agreement as amended hereby) all of the Company’s
      obligations and liabilities to LaSalle, as Collateral Agent as set forth in
      the
      Original Security Agreement, as such obligations and liabilities may be
      increased or amended by this Amendment, and hereby reaffirms and agrees to
      be
      bound by and abide by and operate and perform under and pursuant to and comply
      fully with all of the terms, conditions, provisions, agreements,
      representations, undertakings, warranties, guarantees, indemnities and covenants
      contained in the Original Security Agreement.

    

    (i)    
Counterparts.
      This
      Amendment may be executed in any number of counterparts, each of which shall
      constitute an original and all of which when taken together shall constitute
      one
      and the same agreement.

    

    [Signature
      page follows]

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

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

    

      
        	 	
                VISKASE
                  COMPANIES, INC.

              	 
	 	
                a
                  Delaware corporation

              	 
	 	 	 	 
	 	
                By:

              	
                /s/ 
                  

              	 
	 	
                Title:

              	  
	 
	 	 	 	 
	 	
                LASALLE
                  BANK NATIONAL ASSOCIATION,

              	 
	 	
                as
                  Collateral Agent 

              	 
	 	 	 	 
	 	
                By:

              	
                /s/ 
                  

              	 
	 	
                Title:

              	  
	 

      

       

       

      Signature
        Page to First Amendment to the Security Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]