EX-10.16 12 a2150504zex-10_16.htm EXHIBIT 10.16

Exhibit 10.16

 

FORM OF AMENDMENT NO. 1 TO REGISTRATION RIGHTS AGREEMENT

THIS AMENDMENT NO. 1 TO REGISTRATION RIGHTS AGREEMENT (this “Amendment”) dated as of February        , 2005, by and among FAIRPOINT COMMUNICATIONS, INC. (formerly named MJD Communications, Inc.), a Delaware corporation (the “Company”), KELSO INVESTMENTS ASSOCIATES V, L.P., a Delaware limited partnership (“KIA V”), KELSO EQUITY PARTNERS V, L.P., a Delaware limited partnership (“KEP V”and, together with KIA V, “Kelso”), THOMAS H. LEE EQUITY FUND IV, L.P., a Delaware limited partnership (“THL Fund IV”), those parties listed on Schedule A to the Agreement (as defined herein) (collectively, the “THL Related Parties” and, together with THL Fund IV, “THL”) and the other undersigned parties hereto (the “Other Stockholders”), amends the Registration Rights Agreement (theAgreement”) dated as of January 20, 2000, by and among the Company and the Stockholders.  THL and Kelso are referred to herein as the “Investor Stockholders”  Capitalized terms used in this Amendment and not otherwise defined herein shall have the meanings assigned to such terms in the Agreement.

WITNESSETH:

WHEREAS, the Stockholders own shares of Common Stock;

WHEREAS, the Company, the Stockholders and certain other signatories thereto have heretofore executed and delivered the Agreement setting forth certain rights and obligations with respect to the registration of the shares of Common Stock under the Securities Act;

WHEREAS, Section 12.4 of the Agreement provides that the Company may amend the Agreement with the written consent of the Investor Stockholders and a majority (by number of shares) of any other holders of Registrable Securities whose interests would be adversely affected by such amendment; and

WHEREAS, in connection with the Company’s initial public offering (the “Offering”) of shares of its common stock, the Company, the Investor Stockholders and certain other signatories hereto wish to amend the Agreement as set forth herein;

NOW THEREFORE, in consideration of the premises and the covenants and agreements contained herein, and for other good and valuable consideration the receipt of which is hereby acknowledged, and for the equal and proportionate benefit of the holders of the Common Stock, the Company, the Stockholders and certain other signatories hereto hereby agree as follows:

 



 

Article I.

Consent

1.1           Consent.  Pursuant to Section 12.4 of the Agreement, the Investor Stockholders and the Other Stockholders hereby consent to the amendment of the Agreement as set forth in Section 2.1 hereof and the execution and delivery of this Amendment.

1.2           Common Stock Ownership.

(a)           Each Investor Stockholder represents and warrants that such Investor Stockholder holds the amount of Registrable Securities listed next to such Investor Stocholder’s name on Schedule A hereto.

(b)           Each Other Stockholder represents and warrants that such Other Stockholder holds the amount of Registrable Securities listed next to such Other Stockholder’s name on Schedule B hereto.

Article II.

Amendment to the Agreement

2.1           Registrable Securities.  The definition of Registrable Securities contained in Section 11 of the Agreement is hereby deleted in its entirety and replaced with the following: “Registrable Securities:  the shares of Common Stock beneficially owned (within the meaning of Rule 13d-3 of the Exchange Act) immediately prior to the consummation of the Offering by Kelso, the Kelso Holders, THL, the THL Holders, the Other Investors, the Management Stockholders or the Permitted Transferees.  As to any particular shares of Common Stock, such securities shall cease to be Registrable Securities when (i) a registration statement with respect to the sale of such securities shall have become effective under the Securities Act and such securities shall have been disposed of in accordance with such registration statement, (ii) in the case of Management Stockholders who hold options to purchase shares of Common Stock, a registration statement on Form S-8 with respect to the sale of the shares of Common Stock into which such options are exercisable shall have become effective under the Securities Act, (iii) they shall have been sold to the public pursuant to Rule 144 under the Securities Act, (iv) they shall have been otherwise transferred other than to a Permitted Transferree, Kelso Holder, or THL Holder and subsequent disposition of them shall not require registration under the Securities Act or an exemption therefrom or any similar state law then in force, (v) they shall have ceased to be outstanding, or (vi) the Offering shall have been consummated.

 

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Article III.


Miscellaneous

3.1           Continuing Effect of the Agreement.  Except as expressly provided herein, all of the terms, provisions and conditions of the Agreement thereunder shall remain in full force and effect.

3.2           Reference and Effect on the Agreement.  Upon the execution of this Amendment, each reference in the Agreement to “the Agreement,” “this Agreement,” “hereunder,” “hereof” or “herein” shall mean and be a reference to the Agreement as supplemented by this Amendment, unless the context otherwise requires.

3.3           Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of Delaware but without giving effect to applicable principles of conflicts of law to the extent that the application of the laws of another jurisdiction would be required thereby.

3.4           Counterparts.  This Amendment may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

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

 

FAIRPOINT COMMUNICATIONS, INC.

 

 

 

 

 

 

 

By

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

THE INVESTOR STOCKHOLDERS:

 

 

 

KELSO INVESTMENT ASSOCIATES V, L.P.

 

 

 

 

 

 

 

By Kelso Partners V, L. P.,

 

its general partner

 

 

 

 

 

 

 

By

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

KELSO EQUITY PARTNERS V, L. P.

 

 

 

 

 

 

 

By

 

 

 

Name:

 

 

Title:

 

 

 

 

THOMAS H. LEE EQUITY FUND IV, L. P.

 

 

 

 

 

 

By: THL Equity Advisors IV, LLC,

 

its general partner

 

 

 

 

 

 

 

By

 

 

 

Name:

 

 

Title:

 

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THOMAS H. LEE FOREIGN FUND IV, L. P.

 

 

 

 

 

 

By: THL Equity Advisors IV, LLC,

 

its general partner

 

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

THOMAS H. LEE FOREIGN FUND IV-B, L. P.

 

 

 

 

 

 

 

By:

THL Equity Advisors IV, LLC,

 

 

its general partner

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

1987 THOMAS H. LEE NOMINEE TRUST

 

 

 

 

 

 

 

By:

 

 

 

Trustee:

 

 

 

 

 

 

 

 

 

David V. Harkins

 

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THE HARKINS 1995 GIFT TRUST

 

 

 

 

 

 

 

By:

 

 

 

Trustee:

 

 

 

 

 

 

 

Scott A. Schoen

 

 

 

 

 

 

 

C. Hunter Boll

 

 

 

 

 

 

 

Scott M. Sperling

 

 

 

 

 

 

 

Anthony J. DiNovi

 

 

 

 

 

 

 

Thomas M. Hagerty

 

 

 

 

 

 

 

Warren C. Smith, Jr.

 

 

 

 

 

 

 

Seth W. Lawry

 

 

 

 

 

 

 

Kent R. Weldon

 

 

 

 

 

 

 

Terrence M. Mullen

 

 

 

6



 

 

 

 

 

 

Todd M. Abbrecht

 

 

 

 

 

 

 

Charles A. Brizius

 

 

 

 

 

 

 

Scott Jaeckel

 

 

 

 

 

 

 

Soren Oberg

 

 

 

 

 

 

 

Thomas R. Shephard

 

 

 

 

 

 

 

Joseph Incandela

 

 

 

 

 

 

 

Wendy L. Masler

 

 

 

 

\

 

 

Andrew D. Flaster

 

 

 

 

 

 

 

ROBERT SCHIFF LEE 1988

IRREVOCABLE TRUST

 

 

 

 

 

By:

 

 

 

Trustee:

 

 

 

 

 

Stephen Zachary Lee

 

 

 

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Charles W. Robins as Custodian for Jesse Lee

 

 

 

 

 

 

 

Charles W. Robins as Custodian for Nathan Lee

 

 

 

 

 

 

 

Charles W. Robbins

 

 

 

 

 

 

 

James Westra

 

 

 

 

 

THOMAS H. LEE CHARITABLE INVESTMENT L.P.

 

 

 

 

By:

Thomas H. Lee,

 

 

its general partner

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

THL-CCI INVESTORS LIMITED PARTNERSHIP

 

 

 

 

By:

THL Investment Management Corp.,

 

 

its general partner

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

8



 

 

 

 

 

PUTNAM HOLDINGS, INC.

 

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

THE OTHER STOCKHOLDERS

 

 

 

 

JED COMMUNICATIONS ASSOCIATES, INC.

 

 

 

 

 

 

 

By

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

Daniel G. Bergstein

 

 

 

 

 

 

 

Joel Bergstein

 

 

 

 

 

 

 

 

 

 

Michael Bergstein

 

 

 

 

 

 

 

 

 

 

Lindy Sobel Bergstein

 

 

 

 

 

 

 

 

 

 

Meyer Haberman

 

 

 

 

 

 

 

 

 

 

John P. Duda

 

 

 

 

 

9



 

 

 

 

 

 

 

Lisa R. Hood

 

 

 

 

 

 

 

 

 

 

Eugene B. Johnson

 

 

 

 

 

 

 

 

 

 

Walter E. Leach, Jr.

 

 

 

 

 

 

 

 

 

 

Peter G. Nixon

 

 

 

 

 

 

 

 

 

Michael J. Stein

 

 

 

 

 

 

 

 

 

 

Jack H. Thomas

 

 

 

 

 

 

 

 

 

 

Tim Henry

 

 

 

 

 

 

 

 

 

 

Pat Morse

 

 

 

 

 

 

 

 

 

 

Pat Eudy

 

 

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SCHEDULE A

 

INVESTOR STOCKHOLDER

NUMBER OF REGISTRABLE SECURITIES

Kelso Equity Partners V, L.P.

1,771,770

Kelso Investment Associates V, L.P.

16,427,726

Thomas H. Lee Equity Fund IV, L.P.

17,927,740

Thomas H. Lee Foreign Fund IV, L.P.

613,540

Thomas H. Lee Foreign Fund IV-B, L.P.

1,741,200

Putnam Holdings, Inc.

294,820

Thomas H. Lee Charitable Investment Limited Partnership

116,560

THL-CCI Investors Limited Partnership

6,300

1997 Thomas H. Lee Nominee Trust

276,540

David V. Harkins

63,140

The 1995 Harkins Gift Trust

7,080

Scott A. Schoen

52,660

C. Hunter Boll

52,660

Scott M. Sperling

52,660

Anthony J. DiNovi

52,660

Thomas M. Hagerty

52,660

Warren C. Smith, Jr.

52,660

Seth W. Lawry

21,940

Kent R. Weldon

14,660

Terrence M. Mullen

11,680

Todd M. Abbrecht

11,680

Charles A. Brizius

8,780

Scott L. Jaeckel

3,320

Soren L. Oberg

3,320

Thomas R. Shepherd

6,140

Wendy L. Masler

1,520

Andrew D. Flaster

1,320

RSL Trust

3,820

Stephen Zachary Lee

3,820

Charles W. Robins as Custodian for Nathan Lee

1,900

Charles W. Robins as Custodian for Jesse Lee

1,900

Charles W. Robins

1,520

James Westra

1,520

 

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SCHEDULE B

 

OTHER STOCKHOLDER

NUMBER OF REGISTRABLE SECURITIES

JED Communications, Inc.

2,150,388

Daniel G. Bergstein

0

Joel Bergstein

62,200

Michael & Lindy Bergstein

102,800

Meyer Haberman

648,834

John P. Duda

0

Lisa R. Hood

7,500

Eugene B. Johnson

427,180

Walter E. Leach, Jr.

0

Peter G. Nixon

9,200

Michael J. Stein

60,000

Jack H. Thomas

1,473,390

Tim Henry

17,800

Pat Morse

22,000

Pat Eudy

127,200

 

 

 

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