Document:

Exhibit 10.1

 

SETTLEMENT AGREEMENT

 

This Settlement Agreement (this “Agreement”) is dated as of November 24, 2014, by and among Clinton Group, Inc., a Delaware corporation, on behalf of itself and its affiliated funds, persons and entities, both current and future (“Clinton”) and Atlantic Power Corporation, a corporation established under the laws of British Columbia, Canada (the “Company”).

 

WHEREAS, Clinton submitted a letter to the board of directors of the Company (the “Board”), dated October 16, 2014, with respect to the Company’s strategic review process; and

 

WHEREAS, the Company and Clinton have agreed that it is in their mutual interests to enter into this Agreement, among other things, to set forth certain agreements concerning the composition of the the Board, as hereinafter described.

 

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

 

Section 1.              Board Size and Management.

 

(a)           Effective as of the date hereof, the Board has (i) subject to the proviso in Section 1(c), increased the size of the Board, in compliance with all applicable laws and the Company’ Articles of Continuance, dated as of June 29, 2010, as amended (the “Constating Documents”), to seven (7) directors; and (ii) concurrently with such increase, appointed Teresa M. Ressel (the “Clinton Nominee”) to the Board to serve until the 2015 annual meeting of shareholders of the Company (the “2015 Annual Meeting”).

 

(b)           On or prior to December 19, 2014, the Board agrees to appoint to the Board an additional individual (the “Additional Nominee” and, together with the Clinton Nominee, the “Nominees”) from a list of potential directors separately and mutually agreed upon prior to the execution of this Agreement by the Company and Clinton, to serve until the 2015 Annual Meeting.

 

(c)           Until the Standstill Termination Date, the Company shall not increase the size of the Board in excess of seven (7) members, and shall not decrease the size of the Board if such decrease would require the resignation of one or more of the Nominees, without the prior written consent of Clinton; provided, that the Board may increase the size of the Board in excess of seven (7) members by one (1) member to appoint any Chief Executive Officer of the Company appointed by the Board as a director of the Board.

 

(d)           The Company and each of the Nominees shall make all necessary filings required in connection with the election of the Nominees with any governmental or regulatory authority or stock exchange that has, or may have, jurisdiction over the Company.

 

(e)           Effective as of the date hereof, the Board has (i) increased the size of each of the Audit Committee, the Compensation Committee and the Nominating and Governance Committee (collectively, the “Board Committees”) by one (1) director and (ii) appointed the Clinton Nominee to each of the Board Committees.

 

 

(f)            The Company shall not increase the size of any of the Board Committees prior to the Standstill Termination Date without the prior written consent of Clinton, which consent shall not be unreasonably withheld, conditioned or delayed; provided, that the Company shall not require Clinton’s prior written consent to increase the size of any of the Board Committees by one (1) additional director in order to appoint the Additional Nominee to such Board Committee. In the event of the replacement of the Clinton Nominee as set forth in Section 1(j), the Substitute Nominee shall be promptly appointed to the committee seat vacated by the Clinton Nominee to serve until the 2015 Annual Meeting.

 

(g)           The Company agrees that the Board shall appoint the Clinton Nominee to any committee of the Board created during the period beginning on the date hereof through the Standstill Termination Date (the “Standstill Period”) for the purpose of identifying and evaluating candidates to serve as Chief Executive Officer of the Company. In the event of the replacement of the Clinton Nominee as set forth in Section 1(j), the Substitute Nominee shall be promptly appointed to the committee seat vacated by the Clinton Nominee to serve until the 2015 Annual Meeting.

 

(h)           The Company agrees that the Board shall appoint the Clinton Nominee to any special committee created during the Standstill Period for the evaluation of strategic alternatives. In the event of the replacement of the Clinton Nominee as set forth in Section 1(j), the Substitute Nominee shall be promptly appointed to the committee seat vacated by the Clinton Nominee to serve until the 2015 Annual Meeting.

 

(i)            Subject to the applicable Nominee’s compliance with all policies, procedures, processes, codes, rules, standards and guidelines applicable to all Board members, the Company agrees to (i) nominate each of the Nominees for election to the Board at the 2015 Annual Meeting, (ii) recommend, and reflect such recommendation in the Company’s definitive proxy statement in connection with the 2015 Annual Meeting, that the shareholders of the Company vote to elect each of the Nominees as a director of the Company at the 2015 Annual Meeting for a term of office expiring at the 2016 annual meeting of the shareholders of the Company, and (iii) solicit, obtain proxies in favor of and otherwise support the election of each of the Nominees at the 2015 Annual Meeting, in a manner no less favorable than the manner in which the Company supports other nominees for election at the 2015 Annual Meeting.

 

(j)            During the Standstill Period, the Company agrees that if the Clinton Nominee resigns as a director or otherwise refuses to or is unable to serve as a director for any reason, including as a result of death or disability, Clinton shall be entitled to designate a replacement director as a substitute director (the “Substitute Nominee”), subject to the reasonable approval of the Board and its Nominating and Corporate Governance Committee. For the avoidance of doubt, the Substitute Director shall thereafter be deemed the Clinton Nominee for purposes of this Agreement and shall be entitled to the same rights and subject to the same requirements under this Agreement applicable to the resigning Clinton Nominee prior to his or her resignation, and such person shall be appointed to the Board to serve the unexpired term, if any, of such Clinton Nominee. The Board shall appoint the Substitute Nominee to the Board no later than ten (10) business days after the Nominating and Corporate Governance Committee’s approval of the Substitute Nominee.

 

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(k)           Notwithstanding anything to the contrary herein, if at any time Clinton receives notice from the Company of a material breach by Clinton of any obligation hereunder, and such material breach has not been cured within ten (10) days after notice of such breach to Clinton, then in each case clause (y) of Section 1(a) and the entirety of Sections 1(b), 1(c), 1(f), 1(g), 1(h), 1(i) and 1(j) shall be void ab initio.

 

Section 2.              Nominee Information.  Clinton shall promptly provide to the Company any information regarding any Nominee reasonably requested by the Company that is required for inclusion in any of the Company’s filings with the SEC or any other governmental or regulatory authority or stock exchange that has, or may have, jurisdiction over the Company and any of its subsidiaries.

 

Section 3.              Additional Agreements.

 

(a)           Standstill Agreement.  During the Standstill Period, and subject to any rights granted to Clinton in this Agreement, Clinton shall not, and shall cause each of its Affiliates and Associates, and Representatives under its control or direction, in each case either directly or indirectly, not to, without the prior written consent of the majority of the Board:

 

(i)            acquire beneficial ownership of Voting Securities representing in excess of 10% of any class of Voting Securities then outstanding (for purposes of computing such percentage, the number of shares of Voting Securities shall be determined at the time of calculation by reference to the latest available Company filing with the SEC containing such information);

 

(ii)           solicit (as such term is used in the proxy rules of the SEC or National Instrument 51-102 — Continuous Disclosure Obligations of the Canadian Securities Administrators) proxies or consents, become a “participant” in a “solicitation,” as such terms are defined in Instruction 3 of Item 4 of Schedule 14A and Rule 14a-1 of Regulation 14A, respectively, under the Exchange Act or form, join or in any way participate in any “group” (within the meaning of Section 13(d)(3) of the Exchange Act) (other than a group comprised solely of Clinton and its Affiliates and Associates) soliciting proxies (or written consents) in each case with respect to any Voting Securities in opposition to the recommendation or proposal of the Board with respect to (A) the election of directors to the Board, (B) any Section 14a-8 shareholder proposals to be voted on at an annual or special meeting of shareholders, or (C) the amendment of any provision of the Constating Documents;

 

(iii)          seek to call, or to request the calling of, a special meeting of the Company’s shareholders (including any meeting of the Company’s shareholders under the Business Corporations Act (British Columbia), including Section 187 thereof), or make a request for a list of the Company’s shareholders or for any books and records of the Company;

 

(iv)          make any “proposal” or encourage or assist any person in making any “proposal” under Section 167 of the Business Corporations Act (British Columbia);

 

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(v)           deposit any Voting Securities in any voting trust or subject any Voting Securities to any agreement with respect to the voting of any Voting Securities, other than any such voting trust, arrangement or agreement solely among Clinton and its affiliated funds, persons and entities;

 

(vi)          nominate persons for election to, or seek to remove any person from, the Board or propose any other business at any annual or special meeting of shareholders, or solicit written consents to take any action pursuant to the Constating Documents;

 

(vii)         directly or indirectly seek, initiate, join in, propose or make any public statement with respect to, or solicit, negotiate with, or provide any information to any person with respect to, any merger, consolidation, amalgamation, arrangement, tender or exchange offer, purchase, disposition, sale or transfer of assets or securities, dissolution, liquidation, reorganization, change in structure and composition of the Board, change in the executive officers of the Company, change in capital structure, recapitalization, dividend, share repurchase or other business combination involving the Company, its subsidiaries or its business, and any other transaction as a result of which the holders of Voting Securities immediately prior to the consummation of such transaction would cease to own at least a majority of the issued and outstanding shares of voting securities of the resulting company (each, an “Extraordinary Transaction”);

 

(viii)        commence, encourage, support or join as a party any litigation, arbitration or other proceeding (including a derivative action) against or involving the Company or any of its current or former directors or officers (including derivative actions) other than to enforce the provisions of this Agreement;

 

(ix)          take any action, alone or in concert with others, to (A) effect or seek, offer or propose (whether publicly or otherwise) to effect, or announce any intention to effect or cause or participate in or in any way assist, facilitate or encourage any other person to effect or seek, offer or propose (whether publicly or otherwise) to effect or participate in such matter in any of the activities set forth in Sections 3(a)(i)-(viii) of this Agreement, (B) form, join or in any way participate in a “group” (as defined under the Exchange Act) (other than a group comprised solely of Clinton and its Affiliates and Associates) with respect to the Company or otherwise act in concert with any person in respect of any such securities, (C) otherwise act, alone or in concert with others, to seek representation on or to control or influence the management, Board or policies of the Company or to obtain representation on the Board of the Company, (D) take any action which would or would reasonably be expected to force the Company to make a public announcement regarding any of the types of matters set forth in Sections 3(a)(i)-(viii) of this Agreement, (E) enter into any discussions or arrangements with any third party with respect to any of the foregoing, (F) waive, modify or amend any provision of this Section 3(a), (G) finance or offer to provide financing for an attempt by any person to engage in any of the activities or actions prohibited or restricted by the terms of this Agreement or (H) take any action challenging the validity or enforceability of any provisions of this Section 3.

 

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Notwithstanding the foregoing, nothing in this Agreement shall prohibit or restrict Clinton or any Nominee, as applicable, from: (A) exercising his or her rights and fiduciary duties as a director of the Company, (B) except as provided by Section 3(a) of this Agreement, voting all of his, her or its voting securities of the Company in his, her or its discretion, (C) communicating privately with the Board or any of the Company’s officers regarding any matter so long as such communications are not intended to, and would not reasonably be expected to, require any public disclosure of such communications, (D) making any public statement or announcement with respect to an Extraordinary Transaction proposed by the Company that requires a vote of the shareholders and that is publicly announced by the Company after the date of this Agreement or (E) taking any action necessary to comply with any law, rule or regulation or any action required by any governmental or regulatory authority or stock exchange that has, or may have, jurisdiction over Clinton, any Nominee or any of their respective Affiliates or Associates.

 

(b)           So long as any Nominee is serving as a director of the Board and is included on the Company’s slate of directors (the “Slate”) nominated for election at the 2015 Annual Meeting or any special meeting of the Company’s shareholders that occurs during the Standstill Period, Clinton shall (i) in the case of all of Voting Securities owned of record by it as of such meeting (the “Record Date”), and (ii) in the case of all of Voting Securities beneficially owned by Clinton as of the Record Date (whether held in street name or by some other arrangement), in each case, instruct the record holder to (A) support and vote for the election of the Slate, (B) vote against (or withhold from voting) any nominees that are not nominated by the Board.

 

(c)           Expenses.  Concurrently with the execution of this Agreement, pursuant to wire instructions provided to the Company prior to the date hereof along with copies of invoices and a certification that the rates charged represent standard rates without premium, the Company shall reimburse Clinton and its service providers for their actual out-of-pocket expenses incurred in connection with, and related to, this Agreement; provided, that such reimbursement shall not exceed $25,000 in the aggregate.  Except as otherwise provided in this section, all attorneys’ fees, costs and expenses incurred by each of the parties hereto shall be borne by such party.

 

(d)           As used in this Agreement:

 

(i)            the terms “Affiliate” and “Associate” shall have the respective meanings set forth in Rule 12b-2 promulgated by the SEC under the Exchange Act;

 

(ii)           the terms “beneficial owner” and “beneficial ownership” shall mean ownership, directly or indirectly, of (1) any Voting Securities and (2) any other security, including any cash settled option or other derivative security, that transfers some or all of the economic risks and/or benefits of ownership of the Voting Securities (whether or not subject to the passage of time or other contingencies);

 

(iii)          the term “business day” shall mean any day other than a Saturday, Sunday or a day on which banks in Toronto, Canada and New York, New York are authorized or obligated by applicable law or executive order to close or are otherwise generally closed;

 

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(iv)          the term “Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended;

 

(v)           the terms “person” or “persons” shall mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization or other entity of any kind or nature;

 

(vi)          the term “Representatives” shall mean, with respect to Clinton, Clinton’s officers, directors, members, general partners, employees, and, with respect to the Company, the Company’s directors, officers and employees;

 

(vii)         the term “SEC” shall mean the U.S. Securities and Exchange Commission.

 

(viii)        the term “Standstill Termination Date” shall mean the earlier of (A) the date that is one year from the date hereof or (B) ten (10) days after the Company receives notice from Clinton of a material breach by the Company of any obligation under this Agreement which has not been cured, provided, that if such material breach cannot be cured, the date on which the Company receives such notice; and

 

(ix)          the term “Voting Securities” shall mean the Common Shares and any other securities of the Company entitled to vote in the election of directors, or securities convertible into, or exercisable or exchangeable for, such Common Shares or other securities (whether or not subject to the passage of time or other contingencies).

 

Section 4.              Representations, Warranties and Covenants.

 

(a)           Clinton represents, warrants and covenants  as follows:

 

(i)            Clinton has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby.

 

(ii)           This Agreement has been duly and validly authorized, executed and delivered by Clinton, constitutes a valid and binding obligation and agreement of each such member and is enforceable against each such member in accordance with its terms.

 

(iii)          The execution by Clinton of this Agreement and the performance by Clinton’s obligations hereunder does not and will not violate any law, any order of any court or any agency of government.

 

(iv)          The Clinton Nominee is not employed by, or an Affiliate or Associate of, Clinton.

 

(b)           The Company hereby represents, warrants and covenants as follows:

 

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(i)            The Company has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby.

 

(ii)           This Agreement has been duly and validly authorized, executed and delivered by the Company, does not require the approval of the shareholders of the Company, constitutes a valid and binding obligation and agreement of the Company and is enforceable against the Company in accordance with its terms.

 

(iii)          The Company’s execution of this Agreement and the performance by the Company of its obligations hereunder does not and will not violate any law, any order of any court or any agency of government, the Constating Documents, or any provision of any indenture, agreement or other instrument to which the Company or any of its properties or assets is bound, or conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument, or result in the creation or imposition of, or give rise to, any lien, charge, restriction, claim, encumbrance or adverse penalty of any nature whatsoever pursuant to any such indenture, agreement or other instrument, except for any such violation, conflict, breach, result or default that could not, individually or in the aggregate, reasonably be expected to adversely affect the Company’s ability to carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby.

 

Section 5.              Specific Performance.  Each of Clinton, on the one hand, and the Company, on the other hand, acknowledges and agrees that irreparable injury to the other party hereto could occur in the event any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached, and that such injury may not be adequately compensable in damages.  It is accordingly agreed that Clinton, on the one hand, and the Company, on the other hand, shall each be entitled to seek specific enforcement of, and injunctive relief to prevent any violation of, the terms hereof and the other party hereto will not take any action, directly or indirectly, in opposition to the party seeking relief on the grounds that any other remedy or relief is available at law or in equity, and each party further agrees to waive any requirement for the security or posting of any bond in connection with such remedy.

 

Section 6.              Press Release and Other Public Disclosures.

 

(a)           Promptly following the execution and delivery of this Agreement, the Company and Clinton shall issue a joint press release, in such form as approved by the Company and Clinton (the “Press Release”) and the Company shall file a Current Report on Form 8-K with the SEC disclosing and attaching as exhibits this Agreement and the Press Release, each in the form attached hereto as Exhibit A.   None of the parties hereto will make any public statements or issue any press release (including in any filings with the SEC or any other regulatory or governmental agency, including any stock exchange) concerning or relating to this Agreement other than the statements in the Press Release and the Form 8-K without (i) in the case of the Company, the prior written approval of Clinton, not to be unreasonably withheld, and (ii) in the case of Clinton, the prior written approval of the Company, not to be unreasonably withheld.  From the date hereof to the Standstill Termination Date and except as otherwise 

 

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permitted under the Agreement, Clinton will not make any public statement or issue any press release concerning or relating to any action or decision taken or made or not taken or made by the Company or the Board.

 

(b)   The foregoing shall not prevent (i) the Company from taking any action necessary or required by any governmental or regulatory authority or stock exchange that has, or may have, jurisdiction over the Company and any of its subsidiaries and (ii) to the extent legally required, the Company or Clinton from making any factual statement in any compelled testimony or production of information, either by legal process, subpoena, or as part of a response to a request for information from any governmental authority with jurisdiction over the party from whom information is sought, applicable listing requirements or otherwise legally required; provided, that the party from which such information is compelled shall provide, to the extent legally permissible, the other party with prior written notice of the making of such compelled disclosure promptly so that such other party may seek a protective order or other remedy and/or waive compliance with the provisions of this Agreement. If such protective order or other remedy is denied, and such party or any of its Representatives are nonetheless legally compelled to disclose such information, such party or its Representative, as the case may be, will furnish only that portion of such information that is legally required, in the advice of counsel, and will exercise best efforts to obtain assurances that confidential treatment will be accorded to such information.

 

Section 7.              Mutual Non-Disparagement.  Each of the Company and Clinton covenants and agrees that, until the Standstill Termination Date, neither it nor any of its respective agents, subsidiaries, Affiliates, successors, assigns, officers or directors, shall in any way, directly or indirectly, alone or in concert with others, cause, express or cause to be expressed in a public manner, orally or in writing, any remarks, statements, comments or criticisms that disparage, call into disrepute, defame, slander or which can reasonably be construed to be defamatory or slanderous to the other parties or such other parties’ subsidiaries, Affiliates, successors, assigns, officers (including any current officer of a party or a parties’ subsidiaries who no longer serves in such capacity following the execution of this Agreement), directors (including any current director of a party or a parties’ subsidiaries who no longer serves in such capacity following the execution of this Agreement), employees, shareholders, agents, attorneys or Representatives, any of their products or services or any action or matter publicly disclosed prior to the date of this Agreement.

 

Section 8.              No Waiver.  Any waiver by any party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement.  The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasion shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

 

Section 9.              Successors and Assigns.  All the terms and provisions of this Agreement shall inure to the benefit of, and shall be enforceable by and binding upon, the successors and permitted assigns of each of the parties hereto.  No party may assign either this Agreement or any of its rights, interest or obligations hereunder without the prior written approval of the other parties.

 

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Section 10.            Entire Agreement; Amendments; Interpretation and Construction.  This Agreement, including the Exhibits hereto, contains the entire understanding of the parties with respect to the subject matter hereof.  There are no restrictions, agreements, promises, representations, warranties, covenants or other undertakings other than those expressly set forth in this Agreement.  This Agreement may be amended only by a written instrument duly executed by the Company and Clinton.  Each of the parties hereto acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement, and that it has executed the same with the advice of such counsel.  Each party and its counsel cooperated and participated in the drafting and preparation of this Agreement and the documents referred to herein.  Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties hereto, and any controversy over interpretations of this Agreement shall be decided without regard to events of drafting or preparation.

 

Section 11.            Headings.  The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

Section 12.            Notices.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

If to the Company:

 

Atlantic Power Corporation

One Federal Street, 30th Floor

Boston, Massachusetts 02110

Attention:  Jeffrey S. Levy

 

with a copy (which shall not constitute notice) to:

 

Goodmans LLP

Bay Adelaide Centre

333 Bay Street, Suite 3400

Toronto, Ontario M5H 2S7

Canada

Attention: Robert Vaux, Bill Gorman

 

with a copy to (which shall not constitute notice):

 

Cleary Gottlieb Steen & Hamilton LLP

One Liberty Plaza

New York, New York 10006

Attention: Craig B. Brod, Benet J. O’Reilly

 

If to Clinton:

 

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Clinton Group, Inc.

601 Lexington Avenue, 51st Floor
 New York, New York 10022

Attention:  Joseph De Perio

 

with a copy (which shall not constitute notice) to:

 

Schulte, Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention:  David E. Rosewater

 

with a copy (which shall not constitute notice) to:

 

Norton Rose Fulbright Canada LLP

Royal Bank Plaza, South Tower, Suite 3800

200 Bay Street, P.O. Box 84

Toronto, Ontario  M5J 2Z4 
 Attention:  Walied Soliman

 

in each case, or to such other address as the person to whom notice is given may have previously furnished to the others in writing in the manner set forth in this section.

 

Section 13.            Governing Law.  This Agreement shall be governed by and construed in accordance with the Laws of the Province of Ontario and the laws of Canada applicable therein. The Parties hereby irrevocably and unconditionally consent to and submit to the courts of the Province of Ontario for any actions, suits or proceedings arising out of or relating to this Agreement or the matters contemplated herein (and agree not to commence any action, suit or proceeding relating hereto except in such courts) and further agree that service of any process, summons, notice or document by registered mail to the addresses of the Parties set forth in this Agreement shall be effective service of process for any action, suit or proceeding brought against any Party in such court. The Parties hereby irrevocably and unconditionally waive any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the matters contemplated herein in the courts of the Province of Ontario and hereby further irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such action, suit or proceeding so brought has been brought in an inconvenient forum.

 

Section 14.            Counterparts.  This Agreement may be executed in counterparts and by facsimile or e-mail in portable documents format (.pdf), each of which shall be an original, but all of which together shall constitute one and the same Agreement.

 

Section 15.            Severability.  If any provision or clause of this Agreement or the application thereof to any person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, such provision or clause shall be deemed amended to conform to applicable laws so as to be valid and enforceable, or, if it cannot be so amended without materially altering the intention of the parties, such provision shall be stricken,

 

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and the remaining provisions hereof will remain in full force and effect and shall in no way be affected, impaired or invalidated thereby so long as the transactions contemplated hereby are not affected in any manner materially adverse to any party.

 

Section 16.            No Third Party Beneficiaries.  This Agreement is solely for the benefit of the parties hereto and their respective successors and permitted assigns and is not enforceable by any other person.

 

[Remainder of page intentionally left blank]

 

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

 

	
 
    	
ATLANTIC   POWER CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Terrence Ronan
    
	
 
    	
Name:   Terrence Ronan
    
	
 
    	
Title:   Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CLINTON GROUP, INC.
    
	
 
    	
on behalf of itself and its affiliates
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Francis A. Ruchalski
    
	
 
    	
Name:   Francis A. Ruchalski
    
	
 
    	
Title:   Authorized Signatory
    

 

[Signature Page to Settlement Agreement]

 

 

Exhibit A

 

Joint Press Release
 and Form 8-KEX-4.1

 Exhibit 4.1 

FORM OF REGISTRATION RIGHTS AGREEMENT 

by and between 
 EVRAZ
NORTH AMERICA PLC 
 and 

EVRAZ GROUP S.A. 
 Dated
as of                  , 2014 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	 	  	Page	 
			
	1.	 	DEFINITIONS	  	 	1	  
			
	2.	 	REGISTRATION RIGHTS	  	 	2	  
				
		 	2.1	  	Demand Registration	  	 	2	  
				
		 	2.2	  	Piggyback Registration	  	 	4	  
				
		 	2.3	  	Withdrawal Rights	  	 	5	  
				
		 	2.4	  	Underwriting Requirements	  	 	5	  
				
		 	2.5	  	Obligations of the Company	  	 	6	  
				
		 	2.6	  	Furnish Information	  	 	8	  
				
		 	2.7	  	Expenses of Registration	  	 	8	  
				
		 	2.8	  	Indemnification	  	 	9	  
				
		 	2.9	  	Reports Under Exchange Act	  	 	11	  
				
		 	2.10	  	Termination of Registration Rights	  	 	12	  
				
		 	2.11	  	Other Registrations	  	 	12	  
				
		 	2.12	  	Holdback Agreements	  	 	12	  
				
		 	2.13	  	Ceasing to be a Foreign Private Issuer	  	 	12	  
			
	3.	 	MISCELLANEOUS	  	 	13	  
				
		 	3.1	  	Successors and Assigns	  	 	13	  
				
		 	3.2	  	Governing Law and Arbitration	  	 	13	  
				
		 	3.3	  	Effectiveness; IPO; Term	  	 	13	  
				
		 	3.4	  	Counterparts; Facsimile	  	 	14	  
				
		 	3.5	  	Titles and Subtitles	  	 	14	  
				
		 	3.6	  	Notices	  	 	14	  
				
		 	3.7	  	Amendments and Waivers	  	 	14	  
				
		 	3.8	  	Severability	  	 	14	  
				
		 	3.9	  	Aggregation of Stock	  	 	15	  
				
		 	3.10	  	Entire Agreement	  	 	15	  
				
		 	3.11	  	Delays or Omissions	  	 	15	  
				
		 	3.12	  	Equitable Relief	  	 	15	  

  
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 This REGISTRATION RIGHTS AGREEMENT (“Agreement”) is made as of the
     day of             , 2014, by and between EVRAZ NORTH AMERICA PLC, a Company organized under the laws of England (the “Company”) and EVRAZ GROUP
S.A. (“EGSA”). 
 RECITALS 

WHEREAS, the Company has filed a Registration Statement with the Securities and Exchange Commission on
 Form F-1 in connection with the initial
public offering (the “IPO”) of its Ordinary Shares (the “IPO Registration Statement”); 
 WHEREAS, the Company has
agreed to provide EGSA with the registration rights specified in this Agreement with respect to any Registrable Securities (as defined below) held by EGSA or any other Holder on the terms and subject to the conditions set forth herein. 

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

	1.	DEFINITIONS 

 For purposes of this Agreement: 

“Affiliate” means, with respect to any specified Person, any other Person who or which, directly or indirectly,
controls, is controlled by, or is under common control with, such specified Person, including without limitation any general partner, executive officer or director of such Person and any venture capital or other fund now or hereafter existing that
is controlled by one or more general partners or managing members of, or shares the same management company with, such Person. 

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

“Business Day” means any day that is not a Saturday, Sunday or other day on which banking institutions doing business
in New York or London are authorized or obligated by law or required by executive order to be closed. 

“Company” is defined in the preamble and includes any successor thereto. 

“Exchange Act” means the United States Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated by the SEC thereunder. 
 “Excluded Registration” means (i) a registration on Form S-8
relating to the offering of securities to employees of the Company or a subsidiary pursuant to a stock option, stock purchase, or similar plan, or (ii) a registration on Form F-4 relating to a business combination. 

“Form F-1” means such form under the Securities Act as in effect on the date hereof or any successor registration form
under the Securities Act subsequently adopted by the SEC. 
 “Form F-3” means such form under the Securities
Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently adopted by the SEC. 

“Holder” means EGSA and any permitted transferee of Registrable Securities pursuant to Section 3.1.  

“Immediate Family Members” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, of a natural person referred to herein. 

  
 1 

 “IPO” means the initial public offering of the Company’s Ordinary
Shares pursuant to an effective registration statement. 
 “Initiating Holders” means, collectively, Holders
who initiate a registration request pursuant to Section 2.1 of this Agreement. 
 “Ordinary Shares” means
the ordinary shares of the Company with nominal value $0.01 per ordinary share. 
 “Person” means any
individual, corporation, partnership, trust, limited liability company, association or other entity. 
 “Registrable
Securities” means (i) the Ordinary Shares beneficially owned by EGSA during the term of this Agreement and (ii) any Ordinary Shares issued or issuable with respect to such Ordinary Shares as a result of any stock split, stock
dividend, rights offering, recapitalization, merger, exchange or similar event or otherwise. 
 “SEC” means
the United States Securities and Exchange Commission. 
 “SEC Rule 144” means Rule 144 promulgated by the SEC
pursuant to the Securities Act as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule. 

“SEC Rule 415” means Rule 415 promulgated by the SEC pursuant to the Securities Act as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule. 

“SEC Rule 433” means Rule 433 promulgated by the SEC pursuant to the Securities Act as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule. 

“Securities Act” means the United States Securities Act of 1933, as amended, and the rules and regulations promulgated
by the SEC thereunder. 
 “Selling Expenses” means all underwriting discounts, selling commissions, and stock
transfer taxes applicable to the sale of Registrable Securities. 
  

	2.	REGISTRATION RIGHTS 

 The Company covenants and agrees as follows: 

 

	2.1	Demand Registration 

  

	 	(a)	 Underwritten Demands. At any time beginning on the date after the Company’s lock-up as set forth in the IPO Registration Statement
expires, EGSA may request that the Company file a Form F-1 registration statement (unless the Company is then eligible to use Form F-3) or Form F-3 registration statement (if the Company is then eligible to use such form), for an underwritten
offering of Registrable Securities having an anticipated aggregate offering price to the public (and without giving effect to any Selling Expenses) of at least $10.0 million (an “Underwritten Demand”). The Company shall
(i) within five (5) days after receipt of an Underwritten Demand, give written notice thereof (such notice by the Company of a request to file a registration 

  
 2 

	 	
statement pursuant to this Section 2.1(a) being a “Company Notice”) to all Holders other than the Initiating Holders; and (ii) as soon as practicable, and in any event
(A) within forty-five (45) days after receipt of such request, file a Form F-1 registration statement (if so requested by the Initiating Holders), or (B) within twenty (20) days after receipt of such request, file a Form F-3
registration statement under the Securities Act (if so requested by the Initiating Holders, and in the event such form is available to the Company), covering all Registrable Securities that the Initiating Holders requested to be registered and any
additional Registrable Securities requested to be included in such registration by any other Holders, as specified by written notice given by each such Holder to the Company within ten (10) business days of the date of receipt of the Company
Notice, and in each case, subject to the limitations of Section 2.1(c) and Section 2.3. 

  

	 	(b)	Shelf Registration. At any time beginning one year after the effective date of the registration statement for the IPO, upon request by any Holder, the Company shall use its commercially reasonable efforts
to file, as soon as reasonably practicable (but in no event more than thirty (30) days following such request), a registration statement on Form F-3 or such other form under the Securities Act then available to the Company (and to the extent
available to the Company, an automatic shelf registration statement on Form F-3), providing for the resale pursuant to Rule 415 of any or all of such Holder’s Registrable Securities; provided that such registration statement shall relate to
Registrable Securities having an anticipated aggregate offering price to the public (without giving effect to any Selling Expenses) of at least $10.0 million taking into account Registrable Securities to be sold by other Holders (such registration
statement, including the Prospectus, amendments and supplements to the shelf registration statement, including pre- and post-effective amendments, all exhibits thereto and all material incorporated by reference or deemed to be incorporated by
reference, if any, in such shelf registration statement, the “Shelf Registration Statement”). 

  

	 	    	The Company shall (i) within ten (10) days after receipt of a Shelf Registration Statement demand, give written notice thereof (such notice by the Company of a request to file a registration statement pursuant
to this Section 2.1(b) being a “Company Shelf Notice”) to all Holders other than the requesting Holders; and (ii) as soon as practicable, and in any event within thirty (30) days after receipt of a Shelf Registration
Statement demand, file a Form F-3 registration statement under the Securities Act covering all Registrable Securities that the Initiating Holders requested to be registered and any additional Registrable Securities requested to be included in such
registration by any other Holders, as specified by written notice given by each such Holder to the Company within ten (10) business days of the date of receipt of the Company Shelf Notice. The Holders shall be entitled to request the Company to
effect underwritten offerings pursuant to the Shelf Registration Statement for offerings having an anticipated aggregate offering price to the public (and without giving effect to any Selling Expenses) of at least $15.0 million (an
“Underwritten Takedown”). Except as provided in Section 2.1(d), there shall be no limitation on the number of takedowns off the Shelf Registration Statement. 

 

	 	(c)	 Black Out Periods. Notwithstanding the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to
this Section 2.1, or to Holders that own Registrable Securities subject to a filed or effective registration statement, a certificate signed by the Company’s chief executive officer stating that in the good faith judgment of the
Company’s Board of Directors it would be materially detrimental to the Company and its stockholders for such registration statement to either be filed or to become effective or remain effective for as long as such registration statement
otherwise would be required to remain effective, because such 

  
 3 

	 	
action would cause a premature disclosure of information that the Board of Directors has determined would not be in the best interest of the Company at such time (a “Suspension
Event”), then the Company shall defer such filing or effectiveness and the Holders shall discontinue disposition of Registrable Securities pursuant to any effective registration statement for a period of not more than thirty
(30) days after the Suspension Event, and any time periods with respect to filing or effectiveness thereof shall be tolled correspondingly; provided, however, that the Company may not invoke this right (i) for more than thirty
(30) consecutive days, (ii) for more than an aggregate of sixty (60) days, or (iii) for more than two (2) separate times in each case, in any twelve (12) month period; and provided further that the Company shall not
register any securities for its own account or that of any other stockholder during such period other than Excluded Registrations. Upon the occurrence of any Suspension Event, with respect to a Shelf Registration Statement, the Company shall use
commercially reasonable efforts to cause such Shelf Registration Statement to become effective or to promptly amend or supplement an effective Shelf Registration Statement so as to permit the holders to resume sales of the Registrable Securities as
soon as practicable following the Company’s determination that the disclosure of such information is no longer premature or if such disclosure has been made in an Excluded Registration or otherwise, or following such thirty (30) day
period. Upon the occurrence of a Suspension Event, the Holder requesting the filing of a registration statement shall be entitled to withdraw such request and, if such request is withdrawn, such demand shall not count as one of the permitted demands
pursuant to Section 2.1(d). 

  

	 	(d)	Limitation on Underwritten Demands and Takedowns. Notwithstanding the foregoing obligations, each Holder will be entitled to request no more than a total of one (1) Underwritten Demand on Form F-1 and
not more than two (2) Underwritten Demands in the aggregate on Form F-3 or Underwritten Takedowns, or a combination thereof, per year pursuant to Section 2.1(a), and Section 2.1(b). A registration shall not count as one of the
permitted Underwritten Demands or Underwritten Takedowns: (i) until the related registration statement has become effective, (ii) if, the Initiating Holders are not able to register and sell at least 50% of the aggregate Registrable
Securities requested to be included in such registration, or (iii) if the Company shall not have complied with its obligations under Section 2.5(i) of this Agreement in connection therewith. The Company shall not be obligated to effect any
Underwriting Demand or Underwritten Takedown during the period that is ninety (90) days after the closing of the last Underwritten Demand or Underwritten Takedown. 

 

	2.2	Piggyback Registration 

 If the Company proposes to register under the Securities Act any
Ordinary Shares or any equity securities convertible into or exchangeable for its Ordinary Shares, whether for its own account or the account of any other securityholder of the Company (other than in an Excluded Registration), the Company shall
promptly give each Holder written notice of such registration. Upon the request of any Holder given within twenty (20) days after such notice is given by the Company, the Company shall, subject to the provisions of Section 2.3, cause to be
registered all of the Registrable Securities that each such Holder has requested to be included in such registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.2 before the
effective date of such registration, whether or not any Holder has elected to include Registrable Securities in such registration. The expenses of such withdrawn registration shall be borne by the Company. A piggyback registration pursuant to this
Section 2.2 shall not be considered an Underwritten Demand, an Underwriting Takedown or a Shelf Registration Statement. The Company may postpone or withdraw the filing or effectiveness of a piggyback registration made for its own account or

  
 4 

 
for the account of any securityholder other than a Holder, without prejudice to a Holder’s right to immediately request an Underwritten Demand, an Underwritten Takedown and/or a Shelf
Registration. 
  

	2.3	Withdrawal Rights 

 Any Holder having notified or directed the Company to include any or
all of its Registrable Securities in a registration statement under the Securities Act shall have the right to withdraw any such notice or direction with respect to any or all of the Registrable Securities designated by it for registration by giving
written notice to such effect to the Company prior to the effective date of such registration statement. In the event of any such withdrawal, the Company shall not include such Registrable Securities in the applicable registration and such
Registrable Securities shall continue to be Registrable Securities for all purposes of this Agreement. In addition, in the event of any such withdrawal by a Holder such Holder will be responsible for its expenses and the Company’s expenses
resulting from such withdrawal. No such withdrawal shall affect the obligations of the Company with respect to the Registrable Securities not so withdrawn; provided, however, that in the case of a Demand Registration, if such withdrawal shall reduce
the number of Registrable Securities sought to be included in such registration below the Registrable Amount, then the Company shall as promptly as practicable give each holder of Registrable Securities sought to be registered notice to such effect
and, within ten (10) days following the mailing of such notice, such holder(s) of Registrable Securities still seeking registration shall, by written notice to the Company, elect to register additional Registrable Securities, when taken
together with elections to register Registrable Securities by its permitted transferees, to satisfy an Underwritten Demand or elect that such registration statement not be filed or, if theretofore filed, be withdrawn. During such ten (10) day
period, the Company shall not file such registration statement if not theretofore filed or, if such registration statement has been theretofore filed, the Company shall not seek, and shall use commercially reasonable efforts to prevent, the
effectiveness thereof. 
  

	2.4	Underwriting Requirements 

  

	 	(a)	In connection with any offering involving an underwriting of Registrable Securities pursuant to Section 2.1, all Holders proposing to distribute their securities through such underwritten offering shall (together
with the Company) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting. In the event of any underwritten offering that is an Underwritten Demand or Underwritten Takedown, the Company shall
select and appoint the underwriter(s). Notwithstanding any other provision of this Section 2.4, if the managing underwriter(s) in any underwritten offering of Registrable Securities pursuant to Section 2.1 advise(s) the Initiating Holders
that a limitation on the number of shares to be underwritten is necessary in order to sell the shares in an orderly manner at a price that is acceptable to the Initiating Holders, then the number of Registrable Securities that may be included in the
underwriting shall be allocated (i) first, to the Registrable Securities requested to be included in such registration by the Holders, pro rata among the Holders or in such other manner as they may agree; and (ii) second, to any other
holder, if any, of the Company’s equity securities with registration rights which is entitled to be included in such registration. 

  

	 	(b)	 In connection with any offering involving an underwriting of shares of the Company’s Ordinary Shares pursuant to Section 2.2, the Company
shall not be required to include any of the Holders’ Registrable Securities in such underwriting unless the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters. If the managing underwriter(s) in
connection with such offering advise the Company that a limitation on the number of shares to be underwritten is necessary in order to sell the shares in an orderly manner at a price that is acceptable

  
 5 

	 	
to the Company, then the number of securities to be included in such offering shall be allocated (i) first, to the securities that the Company proposes to sell; (ii) second, to
Registrable Securities requested to be included in such registration by Holders of Registrable Securities pro rata among such Holders or in such other manner as they may agree; and (iii) third, to any other holder, if any, of the Company’s
equity securities with registration rights which is entitled to be included in such registration, pro rata among such other holders, if any, or in such other manner as they may agree. 

 

	 	(c)	In order to facilitate the allocation of shares in accordance with the provisions of this Section 2.4, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest 100
shares. 

  

	2.5	Obligations of the Company 

 Whenever required under this Section 2 to effect the
registration of any Registrable Securities, the Company shall: 
  

	 	(a)	prepare and file, in the time periods specified herein, with the SEC a registration statement, with respect to such Registrable Securities and use commercially reasonable efforts to cause such registration statement to
be declared effective by the SEC as promptly as reasonably practicable following filing and to keep such registration statement effective until the date on which all the Registrable Securities included in such registration statement have been sold
pursuant to such registration statement or another Company registration statement, or distributed to the public pursuant to SEC Rule 144; 

  

	 	(b)	as far in advance as practicable before publicly filing such registrations statement or any amendment thereto, furnish to the Holders participating in such registration and the underwriter or underwriters, if any,
copies of all such documents proposed to be filed, including documents incorporated by reference in the prospectus and, if requested by any Holder, the exhibits incorporated by reference, and such Holders (and the underwriter(s), if any) shall have
the opportunity to review and comment thereon, and the Company will make such changes and additions thereto as reasonably requested by such Holders or their counsel (and the underwriter(s) or their counsel, if any) prior to filing any registration
statement, or amendment thereto or any prospectus or any supplement thereto; 

  

	 	(c)	prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the Securities Act
in order to enable the disposition of all securities covered by such registration statement; 

  

	 	(d)	furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act and such other documents as the Holders may reasonably request in order to
facilitate their disposition of their Registrable Securities; 

  

	 	(e)	 cooperate with the underwriters to qualify the Registrable Securities for offering and sale under the applicable securities laws of such states and
provinces as the underwriters may designate, and to maintain such qualifications in effect during the period any registration statement is required to be kept effective pursuant to Section 2.5(a); provided, however, that the Company shall not
be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified, or to subject itself to taxation in respect of doing business in
any jurisdiction in which it is not otherwise so 

  
 6 

	 	
subject. In each jurisdiction in which the Registrable Securities have been so qualified, the Company will cooperate with the underwriters to file such statements and reports as may be required
by the laws of such jurisdiction to continue such qualification in effect during the period any registration statement is required to be kept effective pursuant to Section 2.5(a); 

 

	 	(f)	notify such Holders and any underwriter(s), at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the occurrence of any event as a result of which the prospectus included
in such registration statement contains an untrue statement of a material fact or omits any material fact necessary to make the statements therein not misleading, and, at the request of any Holder or any underwriter(s), the Company shall prepare a
supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not contain an untrue statement of a material fact or omit to state any material fact necessary to
make the statements therein not misleading; 

  

	 	(g)	in the case of an underwritten offering, (i) enter into such agreements (including underwriting agreements in customary form), (ii) take all such other actions as any Holder or the underwriter(s) reasonably
request in order to expedite or facilitate the disposition of such Registrable Securities (including, without limitation, causing senior management and other Company personnel to cooperate with such Holders and the underwriter(s) in connection with
performing due diligence) and (iii) cause its counsel to issue opinions of counsel in form, substance and scope as are customary in secondary underwritten offerings, addressed and delivered to the underwriter(s); 

 

	 	(h)	if requested by the underwriters, cause to be delivered, immediately prior to the pricing of any underwritten offering letters from the Company’s independent registered public accountants addressed to the
underwriters in such underwritten offering, stating that such accountants are independent public accountants within the meaning of the Securities Act and the applicable rules and regulations adopted by the SEC, thereunder, and otherwise in customary
form and covering such financial and accounting matters as are customarily covered by letters of the independent registered public accountants delivered in connection with secondary underwritten public offerings; and at the time of closing of any
underwritten offering (i) an opinion and/or disclosure letter of counsel to the Company from each relevant jurisdiction, addressed to the underwriters in such underwritten offering, in such form, substance and scope as are customarily given in
opinions of the Company’s counsel to underwriters in underwritten public offerings; and (ii) bring-down letters from the Company’s independent registered public accountants addressed to the underwriters in such underwritten offering
in customary form; 

  

	 	(i)	in the case of an underwritten offering, in addition to the cooperation otherwise required by this Agreement, cause (a) members of senior management of the Company (including the chief executive officer and chief
financial officer) reasonably to cooperate with the underwriter(s) in connection therewith and make themselves available to participate in “roadshow” and other customary marketing activities in such locations (domestic and foreign) as
reasonably recommended by the underwriter(s) (including one-on-one meetings with prospective purchasers of the Registrable Securities) and (b) the Company to prepare preliminary and final prospectuses (preliminary and final prospectus
supplements in the case of an offering pursuant to the Shelf Registration Statement) for use in connection therewith containing such additional information as reasonably requested by the underwriter(s) (in addition to the minimum amount of
information required by law, rule or regulation). 

  
 7 

	 	(j)	use commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and
trading system (if any) on which similar securities issued by the Company are then listed; 

  

	 	(k)	provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date
of such registration; 

  

	 	(l)	promptly make available for inspection by the selling Holders, any managing underwriter(s) participating in any disposition pursuant to such registration statement, and any attorney or accountant or other agent retained
by any such underwriter or selected by the selling Holders, at reasonable times and upon reasonable notice, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company’s officers,
directors, employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in
such registration statement and to conduct appropriate due diligence in connection therewith; 

  

	 	(m)	make generally available a consolidated earnings statement (which need not be audited) for the 12 months beginning after the effective date of a registration statement as soon as reasonably practicable after the end of
such period, which earnings statement shall satisfy the requirements of an earnings statement under Section 11(a) of the Securities Act; and 

  

	 	(n)	promptly notify the Holders and the underwriter or underwriters, if any: (i) when the registration statement, any pre-effective amendment, the prospectus or any prospectus supplement or post-effective amendment to
the registration statement has been filed and, with respect to the registration statement or any post-effective amendment, when the same has become effective; (ii) of any written request by the SEC for amendments or supplements to the
registration statement or prospectus; (iii) of the notification to the Company by the SEC of its initiation of any proceeding with respect to the issuance by the SEC of any stop order suspending the effectiveness of the registration statement;
and (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the applicable securities or blue sky laws of any jurisdiction. 

 

	2.6	Furnish Information 

 It shall be a condition precedent to the obligations of the Company
to take any action pursuant to this Section 2 with respect to the Registrable Securities of any selling Holder that (i) such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and
the intended method of disposition of such securities as is reasonably required to effect the registration of such Holder’s Registrable Securities and (ii) in the case of any underwritten offering, such Holder shall enter into any
reasonable and customary agreements requested by the underwriters thereof, including with respect to indemnification and “holdback” arrangements. 
  

	2.7	Expenses of Registration 

 All expenses incurred in connection with registrations,
filings, or qualifications pursuant to Section 2 initiated by a Holder, including all registration, filing, and qualification fees; printers’ and accounting fees; and fees and disbursements of counsel for the Company shall be borne by the
selling Holders. All expenses incurred in connection with registration, filings, or 

  
 8 

 
qualifications pursuant to Section 2 initiated by the Company, including all registration, filing, and qualification fees; printers and accounting fees; and fees and disbursements of counsel
for the Company shall be borne by the Company. All expenses of the selling Holders, including their portion of the Selling Expenses and the fees and disbursements of counsel for the selling Holder(s), shall be borne and paid for by the selling
Holder(s). 
  

	2.8	Indemnification 

 If any Registrable Securities are included in a registration statement
under this Section 2: 
  

	 	(a)	Indemnification by Company. The Company agrees to indemnify and hold harmless, to the full extent permitted by law, each Holder, such Holder’s Affiliates and their respective officers, directors,
employees, advisors, and agents and each Person who controls (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) such Persons from and against any and all losses, claims, damages, liabilities (or
actions in respect thereof, whether or not such indemnified party is a party thereto) and expenses, joint or several (including reasonable costs of investigation and legal expenses) (each, a “Loss” and collectively
“Losses”) arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement under which the sale of such Registrable Securities was registered under the
Securities Act (including any final or preliminary Prospectus contained therein or any amendment thereof or supplement thereto or any documents incorporated by reference therein), or any such statement made in any free writing prospectus (as defined
in Rule 405 under the Securities Act) that the Company has filed or is required to file pursuant to Rule 433(d) of the Securities Act, (ii) any omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that the Company shall not be liable to any particular indemnified party in any such case to the extent that any
such Loss arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any such Registration Statement (i) in reliance upon and in conformity with written information furnished to the
Company by such indemnified party expressly for use in the preparation thereof or (ii) which has been corrected in a subsequent applicable filing with the SEC but such indemnified party nonetheless failed to provide such corrected filing to the
Person asserting such Loss, in breach of the indemnified party’s obligations under applicable law. This indemnity shall be in addition to any liability the Company may otherwise have. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of such Holder or any indemnified party and shall survive the transfer of such securities by such Holder. 

  

	 	(b)	 Indemnification by the Selling Holder. Each selling Holder agrees (severally and not jointly) to indemnify and hold harmless, to the
full extent permitted by law, the Company, its directors, officers, employees, advisors, and agents and each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) from
and against any Losses arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement under which the sale of such Registrable Securities was registered under the Securities
Act (including any final or preliminary Prospectus contained therein or any amendment thereof or supplement thereto or any documents incorporated by reference therein), or any such statement made in any free writing prospectus that the Company has
filed or is required to file pursuant to Rule 433(d) of the Securities Act, or (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading to the extent, but, 

  
 9 

	 	
in each case (i) or (ii), only to the extent, that such untrue statement or omission is contained in any information furnished in writing by such selling Holder to the Company specifically
for inclusion in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus and has not been corrected in a subsequent applicable filing with the SEC provided to the Person asserting such Loss prior to or concurrently
with the sale of the Registrable Securities to such Person. The obligation to indemnify hereunder shall be several, not joint and several, for each Holder, and in no event shall the liability of any selling Holder hereunder be greater in amount than
the dollar amount of the net proceeds received by such Holder under the sale of the Registrable Securities giving rise to such indemnification obligation. This indemnity shall be in addition to any liability the selling Holder may otherwise have.
Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Company or any indemnified party. 

  

	 	(c)	 Conduct of Indemnification Proceedings. Any Person entitled to indemnification hereunder will (i) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification (provided that any delay or failure to so notify the indemnifying party shall relieve the indemnifying party of its obligations hereunder to the extent that it is
materially prejudiced by reason of such delay or failure) and (ii) permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided, however, that any Person entitled to
indemnification hereunder shall have the right to select and employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such Person unless (i) the indemnifying
party has agreed in writing to pay such fees or expenses, (ii) the indemnifying party shall have failed to assume the defense of such claim within a reasonable time after receipt of notice of such claim from the Person entitled to
indemnification hereunder and employ counsel reasonably satisfactory to such Person, (iii) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties
that are different from or in addition to those available to the indemnifying party, or (iv) in the reasonable judgment of any such Person, based upon advice of its counsel, a conflict of interest may exist between such Person and the
indemnifying party with respect to such claims (in which case, if the Person notifies the indemnifying party in writing that such Person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not
have the right to assume the defense of such claim on behalf of such Person). If such defense is not assumed by the indemnifying party, the indemnifying party will not be subject to any liability for any settlement made without its consent, but such
consent may not be unreasonably withheld, conditioned or delayed. If the indemnifying party assumes the defense, the indemnifying party shall not have the right to settle such action without the consent of the indemnified party, which consent may
not be unreasonably withheld, conditioned or delayed. No indemnifying party or indemnified party shall consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant
or plaintiff to such indemnified party or indemnifying party (as appropriate) of an unconditional release from all liability in respect to such claim or litigation. It is understood that the indemnifying party or parties shall not, in connection
with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time from all such
indemnified party or parties unless (x) the employment of more than one counsel has been authorized in writing by the indemnified party or parties, (y) an indemnified party has reasonably concluded (based on advice of counsel) that there
may be legal defenses available to it that are different from or in addition to those available to the other indemnified parties or (z) a conflict or potential conflict 

  
 10 

	 	
exists or may exist (based on advice of counsel to an indemnified party) between such indemnified party and the other indemnified parties, in each of which cases the indemnifying party shall be
obligated to pay the reasonable fees and expenses of such additional counsel or counsels. 

  

	 	(d)	Contribution. If for any reason the indemnification provided for in Section 2.8(a) or Section 2.8(b) is unavailable to an indemnified party or insufficient to hold it harmless as contemplated by
Section 2.8(a) or Section 2.8(b), then the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such Loss 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. 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. Notwithstanding anything in this Section 2.8(d) to the contrary, no indemnifying party (other than the Company) shall be required pursuant to this Section 2.8(d) to contribute any amount in excess of the amount by which the
net proceeds received by such indemnifying party from the sale of Registrable Securities in the offering to which the Losses of the indemnified parties relate (before deducting expenses, if any) exceeds the amount of any damages which such
indemnifying party has otherwise been required to pay by reason of such untrue statement or omission. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 2.8(d) were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable considerations referred to in this Section 2.8(d). No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The amount paid or payable by an indemnified party hereunder shall be deemed to include, for purposes of this
Section 2.8(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating, preparing to defend or defending against or appearing as a third party witness in respect of, or otherwise incurred in
connection with, any such loss, claim, damage, expense, liability, action, investigation or proceeding. 

  

	2.9	Reports Under Exchange Act 

 With a view to making available to the Holders the benefits
of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form F-3, the Company shall: 

 

	 	(a)	make and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144; 

  

	 	(b)	timely file with the SEC all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and

  

	 	(c)	 furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a written
statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and
the Exchange Act (at any time after the 

  
 11 

	 	
Company has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form F-3 (at any time after the Company so qualifies);
(ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company; and (iii) such other information as may be reasonably requested in availing any Holder of any rule or
regulation of the SEC that permits the selling of any such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant to Form F-3 (at any time after the Company
so qualifies to use such form). 

  

	2.10	Termination of Registration Rights 

 The right of any Holder to request registration or
inclusion of Registrable Securities in any registration pursuant to Section 2.1 or Section 2.2 shall terminate upon the earlier to occur of: 
  

	 	(a)	all of such Holder’s Registrable Securities are registered and sold pursuant to an effective registration statement filed with the SEC; or 

 

	 	(b)	all of such Holder’s Registrable Securities are sold pursuant to SEC Rule 144 and the restrictive legend (or stop transfer restrictions) on such Registrable Securities has been removed. 

 

	2.11	Other Registrations 

 The Company shall not grant to any Person the right, other than as
set forth herein and except to employees of the Company with respect to registrations on Form S-8 (or any successor forms thereto), to request the Company to register any Ordinary Shares of the Company except such rights as do not adversely affect
the priorities or other rights set forth herein of the Holders under this Agreement. 
 The Company shall not grant to any Person the right
to register any Ordinary Shares of the Company. 
  

	2.12	Holdback Agreements 

 The Company agrees not to, and shall exercise commercially
reasonable efforts to obtain agreements (in the underwriters’ customary form) from its directors, executive officers not to, directly or indirectly offer, sell, pledge, contract to sell, (including any short sale), grant any option to purchase
or otherwise dispose of any equity securities of the Company or enter into any hedging transaction relating to any equity securities of the Company during the 180 days, or any longer period reasonably requested by the underwriter(s), beginning on
the pricing date of any Underwritten Demand, any underwritten piggyback registration pursuant to Section 2.2 or any underwritten offering pursuant to a Shelf Registration Statement, unless the underwriter managing the offering otherwise agrees
to a shorter period. 
  

	2.13	Ceasing to be a Foreign Private Issuer 

 If the Company ceases to be a foreign private
issuer (as defined in Rule 405 promulgated by the SEC under the Securities Act) able to use a registration statement on Form F-1, F-3 or F-4, as the case may be, and continuous to be a SEC registrant, then all references in this Agreement to any
such form shall be deemed to be references to Form S-1, S-3 or S-4, as appropriate. 

  
 12 

	3.	MISCELLANEOUS 

  

	3.1	Successors and Assigns 

 The rights under this Agreement may be assigned (but only with
all related obligations) in whole or in part by a Holder to a transferee of Registrable Securities that agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement. The terms and
conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. If the outstanding Ordinary Shares are converted into or
exchanged or substituted for other securities issued by any other Person, as a condition to the effectiveness of the merger, consolidation, reorganization, reclassification, share exchange or other transaction pursuant to which such conversion,
exchange, substitution or other transaction takes place, such other Person shall automatically become bound hereby with respect to such other securities constituting Registrable Securities and, if requested by the Holders or a permitted transferee,
shall further evidence such obligation by executing and delivering to the Holders and such transferee of any Holder a written agreement to such effect in form and substance satisfactory to such Holder. 

 

	3.2	Governing Law and Arbitration 

 This Agreement will be governed by and construed in
accordance with the laws of the State of New York. 
 Any dispute, controversy or claim arising out of or in connection with this
Agreement, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by binding arbitration under the Rules of Arbitration of the International Chamber of Commerce (the “ICC
Rules”), which Rules are deemed to be incorporated by reference into this clause. There shall be three arbitrators, and the parties agree that one arbitrator shall be nominated by each party for confirmation by the ICC Court in
accordance with the ICC Rules. The third arbitrator, who shall act as the chairman of the tribunal, shall be nominated by agreement of the two party-appointed arbitrators within fourteen days of the confirmation of the appointment of the second
arbitrator, or in default of such agreement, appointed by the ICC Court. The seat or place of arbitration shall be New York, USA. The language to be used in the arbitral proceedings shall be English. The award shall be final and
binding on the parties and may be entered and enforced in any court having jurisdiction. 
  

	3.3	Effectiveness; IPO; Term 

 This Agreement will come into full force and effect upon (and
only upon) the closing of the IPO; provided such closing occurs no later than thirty (30) days after the execution of this Agreement. If the closing of the IPO does not occur on or before the thirtieth (30th) day after the execution of this Agreement, this Agreement shall be null and void and of no force or effect. The Company intends to publicly file the IPO Registration Statement with respect to
its IPO. In no event shall the IPO be considered an Underwritten Demand, an Underwritten Takedown or a Shelf Registration Statement. 
 This
Agreement shall terminate upon such time as there are no Registrable Securities, except for the provisions of Section 2.9 and this Section 3 which shall survive any such termination. 

  
 13 

	3.4	Counterparts; Facsimile 

 This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may also be executed and delivered by facsimile signature and in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument. 
  

	3.5	Titles and Subtitles 

 The titles and subtitles used in this Agreement are for
convenience only and are not to be considered in construing or interpreting this Agreement. 
  

	3.6	Notices 

 Any demand, notice or other communication (collectively, a
“notice”) given in connection with this Agreement will be given in writing and will be given by personal delivery, by registered mail or by facsimile addressed to the recipient as follows: 

 

	 	(a)	To EGSA 

 Evraz Group S.A. 

46a, avenue J.F. Kennedy 
 L01885
Luxembourg 
 Attention: 

Facsimile: + 
  

	 	(b)	To the Company: 

 EVRAZ NORTH AMERICA LIMITED 

20-22 Bedford Row 
 London WC1R
4JS 
 England 
 Attention: 

Facsimile: + 
  

	3.7	Amendments and Waivers 

 No modification of or amendment to this Agreement will be valid
or binding unless it is set forth in writing and duly executed by the Company and the Holders of 75%] of the Registrable Securities then outstanding, and no waiver of any breach of any term or provisions of this Agreement will be effective or
binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided, will be limited to the specific breach waived; provided, however, that any amendment, modification, supplement, waiver or consent to
departures from the provisions of this Agreement that provides for different treatment with respect to any individual Holder or one or more of Holders, but less than all the Holders, shall require the written consent of the Company and all affected
Holders. 
  

	3.8	Severability 

 If any term, provision, covenant or restriction of this Agreement is held
by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected,
impaired or invalidated so long as the 

  
 14 

 
economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such a determination, the parties shall negotiate in good
faith to modify this Agreement so as to affect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent
possible. 
  

	3.9	Aggregation of Stock 

 All shares of Registrable Securities held or acquired by
Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 
  

	3.10	Entire Agreement 

 This Agreement (including any Schedules hereto) constitutes the full
and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled. 

 

	3.11	Delays or Omissions 

 No delay or omission to exercise any right, power, or remedy
accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such non-breaching or non-defaulting party, nor shall it be construed to be a waiver of
or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. All
remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 
  

	3.12	Equitable Relief 

 The parties hereto agree that legal remedies may be inadequate to
enforce the provisions of this Agreement and that equitable relief, including specific performance and injunctive relief, may be used to enforce the provisions of this Agreement. 

[Remainder of This Page Intentionally Left Blank] 

  
 15 

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

 

					
		 	EVRAZ NORTH AMERICA PLC
			
		 	By	 	  

		 	Name:	 	
		 	Title: :	 	
		
		 	EVRAZ GROUP S.A.
			
		 	By	 	  

		 	Name:	 	
		 	Title: :	 	

  
 16

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