Document:

Exhibit
4.1

 

SUPPLEMENTAL
REGISTRATION RIGHTS AGREEMENT

 

THIS
SUPPLEMENTAL REGISTRATION RIGHTS AGREEMENT (the “Agreement”)
is entered into as of May 24, 2004 by and among THE MILLS
CORPORATION, a Delaware corporation (the “Company”), and WARD W. WOODS (the “Holder”).

 

RECITALS

 

WHEREAS, the Company, The Mills
Limited Partnership, a Delaware limited partnership of which the Company is the
sole general partner (the “Partnership”), the Holder and Nebris Corporation, a
Delaware corporation that is wholly owned by the Holder (“Nebris” and together
with the Holder, the “Original Holders”) are parties to that certain Purchase
Agreement, dated as of March 26, 2003, pursuant to which the Partnership
sold an aggregate of 400,000 preferred units of limited partnership interests
in the Partnership (the “Series D Preferred Units”) to the Original Holders;

 

WHEREAS, pursuant to the terms
of the Amended and Restated Agreement of Limited Partnership of the Partnership
(such agreement, as amended from time to time, is referred to herein as the
“Partnership Agreement”), and subject to the limitations contained therein, the
Original Holders have the right to exchange the Series D Preferred Units for
shares of a new series of preferred stock of the Company with substantially similar
economic terms as the Series D Preferred Units (the “Series D Preferred Stock”)
(such exchange is referred to herein as the “Exchange”);

 

WHEREAS, the Company and the
Original Holders entered into a Registration Rights Agreement, dated
March 26, 2003 (the “Prior Rights Agreement”), providing certain
registration rights with respect to the Series D Preferred Stock that may be
issued in connection with the Exchange (the “Shares”);

 

WHEREAS, on September 30,
2003, the Company filed a Registration Statement (as defined below) on Form S-3
with the SEC (as defined below) pursuant to the Prior Registration Agreement;

 

WHEREAS, the Company had
informed the Original Holders that the SEC will not permit the registration of
the initial issuance of the Shares in connection with the Exchange as
contemplated by the Prior Rights Agreement and the Registration Statement and
thus the Company is unable to comply with its obligations to the Original
Holders under the Prior Rights Agreement;

 

WHEREAS, in response to the SEC’s
comments, and based on discussions with the Holder, the Company filed an
Amendment No. 1 to the Registration Statement with the SEC on December 22,
2003 to register the resale of the Registrable Securities;

 

WHEREAS, on January 9,
2004, the SEC declared the Registration Statement effective and the Company
filed the final prospectus of which the Registration Statement comprises a part
pursuant to Rule 424 of the Securities Act;

 

WHEREAS, effective
January 1, 2004, Nebris transferred all Series D Preferred Units that it
owned to the Holder and the Holder currently is the sole holder of the Series D
Preferred Units; and

 

WHEREAS, the Company and the
Holder have agreed to enter into this Agreement to grant to the Holder
additional registration rights with respect to the Shares, which the Company
may satisfy in lieu of the Holder’s registration rights under the Prior Rights
Agreement.

 

1

 

NOW,
THEREFORE, the parties mutually agree
as follows:

 

ARTICLE 1

 

General

 

1.1                               Definitions.

 

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

 

“Registrable
Securities” means (i) the Shares; and (ii) any Common Stock
issued as (or issuable upon the conversion or exercise of any warrant, right or
other security which is issued as) a dividend or other distribution with
respect to, or in exchange for or in replacement of, the Shares.  Notwithstanding the foregoing, Registrable
Securities shall not include any securities sold by a person to the public
either pursuant to a registration statement or Rule 144 or sold in a private
transaction.

 

“Registration
Statement” shall mean the registration statement filed by the
Company and declared effective by the SEC as set forth above, and shall include
any preliminary prospectus, final prospectus, exhibit or amendment included in
or relating to such registration statement.

 

“SEC”
means the Securities and Exchange Commission.

 

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

 

ARTICLE 2

 

Registration

 

2.1                               Registration Procedures and Expenses.  The
Company shall:

 

(a)                                  prepare
and file with the SEC such amendments and supplements to such Registration
Statement and the prospectus used in connection therewith as may be necessary
to keep such Registration Statement continuously effective until termination of
such obligation as provided in Section 2.2 below;

 

(b)                                  furnish
to the Holder (and to each underwriter, if any, of such Registrable Securities)
such number of copies of prospectuses in conformity with the requirements of
the Securities Act and such other documents as the Holders may reasonably
request, in order to facilitate the public sale or other disposition of all or
any of the Registrable Securities by the Holder; provided,
however, that the Company’s obligation pursuant to this
section may be satisfied by the electronic delivery of the final
prospectus;

 

(c)                                  file
such documents as may be required of the Company for normal securities law
clearance for the resale of the Registrable Securities in such states of the
United States as may be reasonably requested by each Holder; provided, however, that the Company shall not be required in
connection with this paragraph (c) to (i) qualify generally to do business in
any jurisdiction where it would not otherwise be required to qualify but for
this Agreement, (ii) execute a general consent to service of process in any
jurisdiction, or (iii) take any action that would cause it to become subject to
any taxation in any jurisdiction where it would not otherwise be subject to
such taxation;

 

2

 

(d)                                  advise
the Holder promptly:

 

(i)                                    of
the effectiveness of any post-effective amendments to the Registration
Statement;

 

(ii)                                of
any request by the SEC for amendments to the Registration Statement or
amendments to the prospectus or for additional information relating thereto;

 

(iii)                            of
the issuance by the SEC of any stop order suspending the effectiveness of the
Registration Statement under the Securities Act or of the suspension by any
state securities commission of the qualification of the Registrable Securities
for offering or sale in any jurisdiction, or the initiation of any proceeding
for any of the preceding purposes; and

 

(iv)                               of
the existence of any fact and the happening of any event, of which the Company
has knowledge, that makes any statement of a material fact made in the
Registration Statement, the prospectus and amendment or supplement thereto, or
any document incorporated by reference therein, untrue, or that requires the
making of any additions to or changes in the Registration Statement or the
prospectus in order to make the statements therein not misleading; and

 

(e)                                  bear
all expenses in connection with the procedures in paragraphs (a)
through (d) of this Section 2.1 and the registration of the
Registrable Securities on such Registration Statement and the satisfaction of
the blue sky laws of any state, as applicable.

 

2.2                               Termination
of Obligations.  The obligations of
the Company pursuant to Section 2.1 hereof shall cease and terminate upon
the earlier to occur of (a) such time as all of the Registrable Securities
have been resold, or (b) such time as all of the Registrable Securities
may be resold in a three-month period pursuant to Rule 144.

 

2.3                               Reporting
Requirements.  With a view to making
available the benefits of certain rules and regulations of the Securities Act
that may at any time permit the sale of the Registrable Securities to the
public without registration or pursuant to a registration statement on Form S-3,
the Company agrees to use commercially reasonable efforts to:

 

(a)                                  make
and keep public information available, as those terms are understood and
defined in Rule 144 under the Securities Act; and

 

(b)                                  file
with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act.

 

2.4                               Suspension
of Registration Statement.  Notwithstanding Section 2.1 hereof, the
Company shall be entitled to suspend the offering under the Registration
Statement, if (i) the Company is contemplating an underwritten offering of
equity securities, or (ii) the negotiation or consummation of a transaction by
the Company or its subsidiaries is pending or an event has occurred, which
underwritten offering, negotiation, consummation or event would require
additional disclosure by the Company in the Registration Statement of material
information which the Company has a bona
fide business purpose for keeping confidential and the
non-disclosure of which in the Registration Statement might cause the
Registration Statement to fail to comply with applicable disclosure
requirements; provided, however,
that the Company may not suspend or withdraw the Registration Statement for
more than ninety (90) days at any one time, or more than twice in any twelve
(12) month period.  Upon receipt of any
notice from the

 

3

 

Company of the happening of any event during the period the
Registration Statement is effective that is of a type specified in the
preceding sentence or as a result of which the Registration Statement or
related Prospectus contains any untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made
(in the case of the Prospectus) not misleading, the Holder agrees that (a) it
will not sell any Registrable Securities pursuant to the Registration Statement
until the Holder receives a notice from the Company that the misstatement(s) or
omission(s) referred to above have been corrected and receives notice that any
post-effective amendment has become effective or unless otherwise notified by
the Company, and (b) the Holder will maintain the confidentiality of any
information included in the notice delivered by the Company.

 

ARTICLE 3

 

Miscellaneous

 

3.1                               Integration,
Amendment. This Agreement and the Prior Rights Agreement together
constitute the entire agreement among the parties hereto with respect to the
matters set forth herein and supersede and render of no force and effect any
other prior oral or written agreements, commitments and understandings among
the parties with respect to the matters set forth herein. Except as otherwise
expressly provided in this Agreement, no amendment, modification or discharge
of this Agreement shall be valid or binding unless set forth in writing and
duly executed by each of the parties hereto.

 

3.2                               Waivers.
No waiver by a party hereto shall be effective unless made in a written
instrument duly executed by all of the parties and only to the extent set forth
in such instrument. Neither the waiver by the parties hereto of a breach or a
default under any of the provisions of this Agreement, nor the failure of any
of the parties, on one or more occasions, to enforce any of the provisions of
this Agreement or to exercise any right or privilege hereunder shall thereafter
be construed as a waiver of any subsequent breach or default of a similar
nature, or as a waiver of any such provisions, rights or privileges hereunder.

 

3.3                               Assignment,
Successors and Assigns. This Agreement and the rights granted hereunder may
not be assigned by the Holder without the written consent of the Company; provided, however, that the Holder may assign its rights and
obligations hereunder, following at least ten (10) days prior written notice to
the Company, to a permitted transferee in connection with a transfer of all
(but not less than all) of the Holder’s Series D Preferred Units in accordance
with the terms of the Partnership Agreement (and subject to restrictions on
transfers set forth in the Partnership Agreement relating to the Series D
Preferred Units), if such transferee agrees in writing to be bound by all of
the provisions hereof. This Agreement shall inure to the benefit of and be
binding upon all of the parties hereto and their respective heirs, executors,
personal and legal representatives, successors and permitted assigns.

 

3.4                               Notices.
All notices called for under this Agreement shall be in writing and shall be
deemed given upon receipt if delivered personally or by facsimile transmission
and followed promptly by mail, or mailed by registered or certified mail
(return receipt requested), postage prepaid, to the parties at the addresses
set forth on the signature page hereto, or to any other address or addressee as
any party entitled to receive notice under this Agreement shall designate, from
time to time, to others in the manner provided in this Section 3.4 for the
service of notices; provided, however,
that notices of a change of address shall be effective only upon receipt
thereof. Any notice delivered to the party hereto to whom it is addressed shall
be deemed to have been given and received on the day it was received; provided, however, that if such day is not a Business Day,
then the notice shall be deemed to have been given and received on the Business
Day next following such day and if any party rejects delivery of any notice

 

4

 

attempted to be given hereunder, delivery shall be deemed given on the
date of such rejection. Any notice sent by facsimile transmission shall be
deemed to have been given and received on the Business Day next following the
transmission. As used in this Agreement, a “Business
Day” is any Monday, Tuesday, Wednesday, Thursday or Friday other
than a day on which banks and other financial institutions are authorized or
required to be closed for business in the State of New York.

 

3.5                               Specific
Performance. The parties hereto acknowledge that the obligations undertaken
by them hereunder are unique and that there would be no adequate remedy at law
if any party fails to perform any of its obligations hereunder, and accordingly
agree that each party, in addition to any other remedy to which it may be
entitled at law or in equity, shall be entitled to (a) compel specific
performance of the obligations, covenants and agreements of any other party
under this Agreement in accordance with the terms and conditions of this Agreement
and (b) obtain preliminary injunctive relief to secure specific performance and
to prevent a breach or contemplated breach of this Agreement in any court of
the United States or any State thereof having jurisdiction.

 

3.6                               Governing
Law. This Agreement, the rights and obligations of the parties hereto, and
any claims or disputes relating thereto, shall be governed by and construed in
accordance with the laws of the Commonwealth of Virginia, but not including the
choice of law rules thereof.

 

3.7                               Headings.
Section and subsection headings contained in this Agreement are
inserted for convenience of reference only, shall not be deemed to be a part of
this Agreement for any purpose, and shall not in any way define or affect the
meaning, construction or scope of any of the provisions hereof.

 

3.8                               Pronouns.
All pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine, neuter, singular or plural, as the identity of the person
or entity may require.

 

3.9                               Execution
in Counterparts. To facilitate execution, this Agreement may be executed in
as many counterparts as may be required. It shall not be necessary that the
signature of or on behalf of each party appears on each counterpart, but it
shall be sufficient that the signature of or on behalf of each party appears on
one or more of the counterparts. All counterparts shall collectively constitute
a single agreement.

 

3.10                        Severability.
If fulfillment of any provision of this Agreement, at the time such fulfillment
shall be due, shall transcend the limit of validity prescribed by law, then the
obligation to be fulfilled shall be reduced to the limit of such validity; and
if any clause or provision contained in this Agreement operates or would
operate to invalidate this Agreement, in whole or in part, then such clause or
provision only shall be held ineffective, as though not herein contained, and
the remainder of this Agreement shall remain operative and in full force and
effect.

 

5

 

The parties hereto have
executed this Agreement as of the date set forth in the first paragraph hereof.

 

THE MILLS CORPORATION

 

 

	
  By:

  	
  /s/ KENNETH R. PARENT

  	
   

  	
   

  
	
  Name:

  	
  Kenneth R. Parent

  	
   

  
	
  Title:

  	
  Chief Operating Officer

  	
   

  
	
   

  	
   

  
	
  Address/Notice To:

  	
   

  
	
   

  	
   

  
	
  1300 Wilson Boulevard

  	
   

  
	
  Suite 400

  	
   

  
	
  Arlington, VA  2209

  	
   

  
	
  Attention:  Thomas E. Frost, Esq.

  	
   

  
	
  Fax: (703) 526-5198

  	
   

  
	
   

  	
   

  
	
  with
  a copy to:

  	
   

  
	
   

  	
   

  
	
  Hogan & Hartson
  L.L.P.

  	
   

  
	
  555 Thirteenth Street,
  N.W.

  	
   

  
	
  Washington, DC  20004-1109

  	
   

  
	
  Attention:  Bruce W. Gilchrist, Esq.

  	
   

  
	
  Fax: (202) 637-5190

  	
   

  

 

6

 

The parties hereto have
executed this Agreement as of the date set forth in the first paragraph hereof.

 

 

	
   

  	
  /s/ WARD W. WOODS

  	
   

  
	
   

  	
  WARD
  W. WOODS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address/Notice To:

  
	
   

  	
   

  
	
   

  	
  Ward M. Woods

  
	
   

  	
  c/o Bessemer Securities

  
	
   

  	
  630 Fifth Avenue

  
	
   

  	
  New York, New York  10011

  
	
   

  	
   

  
	
   

  	
  with
  a copy to:

  
	
   

  	
   

  
	
   

  	
  Myron G. Sugarman

  
	
   

  	
  Cooley Godward LLP

  
	
   

  	
  One Maritime Plaza,
  Floor 20

  
	
   

  	
  San Francisco,
  California  94111-3580

  

 

7Exhibit 4.2

 

Side Letter re:  Registration of
Shares

 

 

June 14, 2004

 

The A.J. 1989 Trust

c/o Gary R. Siegel, Trustee

Glazer & Siegel, PLLC

5301 Wisconsin Avenue, N.W.

Suite 740

Washington, D.C.  20015

 

The Irrevocable Trust for the
Benefit of the Miller Children

c/o Jason D. Smolen, Trustee

Smolen Plevy

8045 Leesburg Pike, 5th
Floor

Vienna, Virginia  22182

 

Ladies & Gentlemen:

 

Please refer
to that certain Contribution Agreement (the “Contribution
Agreement”) dated as of January 30, 2003 by and among The Mills
Limited Partnership, a Delaware limited partnership (the “Partnership”),
The A.J. 1989 Trust, a grantor trust (the “AJ Trust”), and
the Irrevocable Trust for the Benefit of the Miller Children (the “Miller Trust”). 
Except as otherwise defined herein, capitalized terms used herein shall
have the definitions set forth for such terms in the Contribution
Agreement.  This Side Letter (the “Side Letter”) is given in connection with the Closing
pursuant to the Contribution Agreement.

 

Concurrently
with the delivery of this Side Letter, the Partnership has issued to each of
the AJ Trust and the Miller Trust 85,241 Units (i.e., an aggregate of 170,482
Units) (the “Contribution Units”)
in satisfaction of the Partnership’s obligations under the Contribution Agreement.  The Contribution Units may be redeemed in
accordance with the provisions of Article IX of the Limited Partnership
Agreement of the Partnership, as amended, beginning on the later to occur of
the first anniversary of the issuance of the Contribution Units and the date on
which a registration statement under the Securities Act of 1933 relating to the
issuance by The Mills Corporation, a Delaware corporation (“TMC”), of shares of its common stock upon redemption of and
in exchange for Contribution Units is declared effective.

 

The
Partnership hereby covenants and agrees that on or before June 14, 2005, it
shall cause TMC to file with the Securities and Exchange Commission (the “SEC”), at no cost to the AJ Trust or the Miller Trust, a
registration statement (the “Registration
Statement”) on Form S-3 (or any successor form that TMC is eligible
to file) registering that number of shares of Common Stock of TMC then
deliverable on redemption of the Contribution Units held by AJ Trust and the
Miller Trust, and shall make all reasonable efforts to have such shelf
registration statement made effective within sixty days after filing.  Following such time as such registration
statement shall have been declared effective, the Partnership shall cause TMC
to maintain its effectiveness until all Contribution Units shall have been
redeemed.

 

 

TMC shall be
entitled to postpone the filing of the Registration Statement, or suspend the
offering under the Registration Statement, if (i) TMC is contemplating an
underwritten offering of equity securities, or (ii) the negotiation or
consummation of a transaction by TMC or its subsidiaries is pending or an event
has occurred, which underwritten offering, negotiation, consummation or event
would require additional disclosure by TMC in the Registration Statement of
material information which TMC has a bona
fide business purpose for keeping confidential and the
non-disclosure of which in the Registration Statement might cause the
Registration Statement to fail to comply with applicable disclosure
requirements; provided, however, that TMC may not delay, suspend
or withdraw the Registration Statement for more than 90 days at any one time,
or more than twice in any 12-month period. 
The Partnership shall cause TMC to advise the AJ Trust and the Miller
Trust of any such postponement or suspension.

 

This Side
Letter contains the entire agreement among the parties with respect to the
matters set forth herein.  This Side
Letter shall be governed by the laws of the United States of America and of the
State of Delaware.  This Side Letter,
when executed by both Partners, shall be legally binding on such Partners.  This Side Letter may be executed in two or
more counterparts, each of which shall be deemed to be an original and all of
which taken together shall constitute one and the same instrument.  This Side Letter may be transmitted and
delivered via facsimile and, if so transmitted and delivered, shall be treated
in all manners and respects as an original document and any signature thereon
shall be considered an original signature and shall have the same binding legal
effect as the original document.

 

Please execute
this Side Letter to confirm your agreement to the matters set forth herein.

 

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  THE MILLS
  LIMITED PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  The Mills
  Corporation, its General Partner,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ NICHOLAS
  MCDONOUGH

  	
   

  
	
   

  	
  Name:

  	
  Nicholas
  McDonough

  
	
   

  	
  Title:

  	
  Executive
  Vice President, Asset Management

  
	
   

  	
   

  
	
  ACCEPTED AND
  AGREED:

  	
   

  
	
   

  	
   

  
	
  THE A.J.
  1989 TRUST

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ GARY R.
  SIEGEL

  	
   

  	
   

  
	
  Name:

  	
  Gary R.
  Siegel

  	
   

  
	
  Title:

  	
  Trustee

  	
   

  
						

 

 

THE IRREVOCABLE TRUST FOR THE
BENEFIT OF

THE MILLER CHILDREN

 

 

	
  By:

  	
  /s/ JASON D.
  SMOLEN

  	
   

  
	
  Name:

  	
  Jason D.
  Smolen

  
	
  Title:

  	
  Trustee

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