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Document Preview Co-Sale Agreement [Amended and Restated] |
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Title: |
Co-Sale Agreement [Amended and Restated] |
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Entities: |
General Electric Capital Corp.; PrimeSource Healthcare Inc.; Gibson, Dunn & Crutcher; Skadden, Arps, Slate, Meagher & Flom LLP |
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Date: |
2001 |
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Size: |
Preview shows 6KB of 26KB total |
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Price: |
$37 |
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ID: |
#356840 |
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AMENDED AND RESTATED CO-SALE AGREEMENT
THIS CO-SALE AGREEMENT is amended and restated as of this 28th day of
June, 2001, by and among PrimeSource Healthcare, Inc., a Massachusetts
corporation (the "COMPANY"), and the persons listed as Stockholders on the
signature pages hereto (collectively, the "STOCKHOLDERS" and individually, a
"STOCKHOLDER").
WHEREAS, on March 2, 2001, the Company entered into a Co-Sale Agreement
with the Stockholders set forth therein (the "EXISTING CO-SALE AGREEMENT");
WHEREAS, pursuant to a Unit Purchase Agreement, dated as of the date
hereof (the "UNIT PURCHASE AGREEMENT"), by and among the Company and the
investors listed on the signature pages thereto, the Company will issue
shares of Series E Preferred Stock and certain warrants exercisable for
Common Stock;
WHEREAS, it is a condition precedent to the closing of the transactions
contemplated by the Unit Purchase Agreement that the Existing Co-Sale
Agreement be amended and restated as set forth herein; and
WHEREAS, the parties hereto are willing to execute this Agreement and to
be bound by the provisions hereof;
NOW, THEREFORE, in consideration of the premises, the agreements set
forth below, and the parties' desire to further their interests, the parties
agree as follows:
1. CERTAIN DEFINITIONS.
All terms not otherwise defined herein shall have the meanings set forth
in the Amended and Restated Registration Rights Agreement, dated as of the
date hereof (the "REGISTRATION RIGHTS AGREEMENT"), by and among the Company
and the stockholders signatories thereto.
"PREFERRED STOCK" shall mean the Alternative Equity Financing Stock,
Qualified Equity Financing Stock, Future Preferred Stock, Series C Preferred
Stock of the Company and Series E Preferred Stock of the Company.
"PREFERRED STOCKHOLDER" shall mean the Stockholders of Preferred Stock.
{Page}
2. "TAG-ALONG" RIGHTS FOR SALES BY ROONEY, BAYLEY OR HERSMA.
(a) If Rooney, Bayley or James L. Hersma ("HERSMA," and for purposes
of this SECTION 2, the "PROPOSED TRANSFEROR") at any time or from time to
time, in one transaction or in a series of related transactions, desires to
sell, transfer or otherwise dispose of (collectively, "TRANSFER") (for
purposes of this SECTION 2, a "TAG-ALONG SALE") shares of Common Stock and/or
Preferred Stock to any Person (including the Company or any Subsidiary of the
Company) (for purposes of this SECTION 2, the "PROPOSED TRANSFEREE"), then
each of the Preferred Stockholders shall have the right, but not the
obligation, to elect that the Proposed Transferor be obligated to require, as
a condition to such Tag-Along Sale, that the Proposed Transferee purchase
from each such electing Preferred Stockholder:
(i) up to the number of shares of Common Stock derived by
multiplying the total number of shares of Common Stock owned by or
issuable to such electing Preferred Stockholder by a fraction, the
numerator of which is equal to the number of shares of Common Stock
then owned by or issuable to the Proposed Transferor that are to be
purchased by the Proposed Transferee (without giving effect to any
reduction in such number of shares by reason of any Preferred
Stockholder's election to exercise the "tag-along" rights provided
in this SECTION 2 in connection with such transaction) and the
denominator of which is the total number of shares of Common Stock
owned by or issuable to the Proposed Transferor prior to such sale;
and
(ii) up to the number of shares of Preferred Stock having a
value equal to the amount derived by multiplying the stated
purchase price upon the first sale (the "Stated Purchase Price") of
the shares of Preferred Stock owned by or issuable to such electing
Preferred Stockholder by a fraction, the numerator of which is the
aggregate Stated Purchase Prices of the shares of Preferred Stock
then owned by or issuable to the Proposed Transferor that are to be
purchased by the Proposed Transferee (without giving effect to any
reduction in such number of shares by reason of any Preferred
Stockholder's election to exercise the "tag-along" rights provided
in this SECTION 2 in connection with such transaction) and the
denominator of which is the aggregate Stated Purchase Prices of the
shares of Preferred Stock owned by or issuable to the Proposed
Transferor prior to such sale;
PROVIDED, HOWEVER, that if any Preferred Stockholder chooses not to sell any
or all shares which such Preferred Stockholder may be entitled to sell under
this SECTION 2(a), and one or more of the Preferred Stockholders is
exercising its right to
2
{Page}
sell the maximum number of shares permissible (for purposes of this SECTION 2,
each, a "REOFFER STOCKHOLDER"), then each Reoffer Stockholder and each of
the Proposed Transferors shall have the option to sell such shares as to
which the option to sell has not been exercised (for purposes of this SECTION 2,
the "REOFFER SHARES"), subject to allocation among them PRO RATA based on
their respective ownership of shares of Common Stock or Preferred Stock, as
the case may be.
Any such sales by any Preferred Stockholder shall be on the same terms
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