Exhibit A
REGISTRATION RIGHTS AGREEMENT
This Registration Rights Agreement (this "Agreement") is made this _________ day of _________________ 1996, by ACCENT COLOR SCIENCES, INC., a Connecticut corporation (the "Company") for the benefit of each Purchaser (individually a "Purchaser' and collectively, the "Purchasers") entering into a Common Stock
------ Purchase Agreement (the "Purchase Agreement") with the Company of even date herewith.
BACKGROUND - ----------
Pursuant to the Common Stock Purchase Agreement, the Company has offered for sale up to 250,000 shares of the Company's Common Stock (the "Shares"). In order to induce the Purchasers to purchase the Shares, the Company has agreed to provide the registration rights set forth in this Agreement.
1. Securities Laws Representations and Covenants of Purchaser.
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This Agreement is made for the benefit of the Purchasers in reliance upon each Purchaser's representations to the Company, contained in Section 4 of the Common Stock Purchase Agreement.
2. Registration Rights.
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2.1 Certain Definitions. As used in Us Agreement, the following
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terms shall have the following respective meanings:
(a) "Commission" shall mean the Securities and Exchange
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Commission or any other federal agency at the time
administering the Securities Act.
(b) "Common Stock" shall mean the common stock, no par value, of
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the Company.
(c) "Form S-I, Form SB-I, Form S-2, Form SB-2 and Form S-3"
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shall mean Form S-1, Form SB-1, Form S-2, Form SB-2 or Form
S-3, respectively, promulgated by the Commission or any
substantially similar form then in effect.
(d) The terms "Register", "Registered" and "Registration" refer
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to a registration effected by preparing and filing a
Registration Statement in compliance with the Securities
Act, and the declaration or ordering of the effectiveness of
such Registration Statement.
(e) "Registrable Securities" shall mean the Shares so long as
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such shares are ineligible for sale under subparagraph (k)
of Rule 144.
(f) "Registration Expenses" shall mean all expenses incurred by
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the Company in complying with Section 2, including, without
limitation, all federal and state registration,
qualification and filing fees, printing expenses, fees and
disbursements of counsel for the Company, blue sky fees and
expenses, the expense of any special audits incident to or
required by any such Registration and the reasonable fees
and disbursements of counsel for the Selling Shareholders,
as selling shareholders.
(g) "Registration Statement" shall mean Form S-1, Form SB-1,
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Form S-2, Form SB-2 or Form S-3, whichever is applicable.
(h) "Registration Termination Date" shall mean, with respect to
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any Registrable Securities the earliest of (i) the date that
such Registrable Securities shall have been Registered and
sold or otherwise disposed of in accordance with the
intended method of distribution by the seller or sellers
thereof set forth in the Registration Statement covering
such securities or transferred in compliance with Rule 144,
and (ii) the date that an opinion of counsel to the Company
containing reasonable assumptions (which opinion shall be
subject to the reasonable approval of counsel to any
affected purchaser) shall have been rendered to the effect
that the legend referred to in Section 4.3(b) of the Common
Stock Purchase Agreement can be properly removed and such
legend shall have been removed.
(i) "Rule 144" shall mean Rule 144 promulgated by the Commission
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pursuant to the Securities Act.
(j) "Purchasers" shall mean, collectively, the Purchasers,
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their assignees and transferees, and individually, a
Purchaser and any transferee or assignee of such Purchaser.
(k) "Securities Act" shall mean the Securities Act of 1933,
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as amended.
(l) "Selling Expenses" shall mean all underwriting discounts
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and selling commissions applicable to the sale of
Registrable Securities pursuant to this Agreement.
(m) "Selling Shareholders" shall mean a holder of Registrable
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Securities who requests Registration under Section 2
(n) "Shares" shall mean the Common Stock issued to the
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Purchasers pursuant to various Common Stock Purchase
Agreements and warrant purchase agreements.
Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Common Stock Purchase Agreement.
2.2. [Intentionally Omitted]
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2.3 Required Registration. If the Company shall be requested by
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holders of at least a majority of the outstanding Shares (other
than Shares which have been previously sold in a public offering)
to effect the Registration of Registrable Securities, then the
Company shall promptly give written notice of such proposed
Registration to all holders of such Shares, and thereupon the
Company shall promptly use its best efforts to effect the
Registration of the Registrable Securities that the Company has
been requested to Register for disposition as described in the
request of such holders of Shares within ten (10) days or such
longer period as shall be set forth in the notice, after the
giving of the written notice by the Company; provided, however,
that the Company shall not be obligated to effect any
Registration except in accordance with the following provisions:
(a) The Company shall not be obligated to file and cause to
become effective more than two (2) registration statements
in which Registrable Securities are Registered pursuant to
this Section 2.3.
(b) Any offering of Registrable Securities in accordance with a
Registration pursuant to this Section 2.3 shall be an
underwritten offering through one or more underwriters
acceptable to the holders of Registrable Securities
requesting such Registration and the Company. The
underwriter or managing underwriter of such Registration
shall be authorized to determine the maximum amount of
Registrable Securities which in the judgment of such
underwriter may be sold at or about the then current market
value of the Common Stock of the Company and such
underwriter shall be empowered to reduce the number of
Registrable Securities which may be sold pursuant to such
Registration if in its judgment such reduction is necessary
in order not to materially and adversely affect the then
prevailing market price of the Common Stock. Any such
reduction shall be applied pro rata to those holders of
Registrable Securities requesting such Registration.
(c) In the event that the managing underwriter determines that
under then prevailing market conditions more shares of
Common Stock may be sold pursuant to such Registration than
the number of Registrable Securities requested to be
included therein, the Company may include in each such
Registration requested pursuant to this Section 2.3 any
authorized but unissued shares of Common Stock (or
authorized treasury shares) for sale by the Company or any
issued and outstanding shares of Common Stock for sale by
others, provided, however, that, if the number of shares of
Common Stock so included pursuant to this clause (b) exceeds
the number of Registrable Securities requested by the
holders of Shares requesting such Registration, then such
Registration shall be deemed to be a Registration in
accordance with and pursuant to Section 2.4; and provided
further, however, that the inclusion of such previously
authorized but unissued shares of Common Stock by others in
such Registration shall not prevent the holders of Shares
requesting such Registration from registering the entire
number of Registrable Securities requested by them.
(d) The Company shall not be required to file a registration
statement pursuant to this Section 2: (i) within six (6)
months after any other registration by the Company (other
than under "Excluded Forms," as defined in Section 2.4(a)
below) or (ii) for six (6) months after the request for
registration under this Section 2.3 if the Company is then
engaged in negotiations regarding a material transaction
which has not otherwise been publicly disclosed, or such
shorter period ending on the date, whichever first occurs,
that such transaction is publicly disclosed, abandoned or
(e) The registration rights granted pursuant to this section
shall have no force or effect until the earlier of the
Company has completed a public offering under the Securities
Act or otherwise become obligated to file periodic or other
reports pursuant to Section 13 of the 1934 Act."
2.4 Piggyback Registration
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(a) Each time that the Company proposes to Register a public
offering solely of its Common Stock (not including an
offering of Common stock issuable upon conversion or
exercise of other securities), other than pursuant to a
Registration Statement on Form S-4 or Form S-8 or similar or
successor forms (collectively, "Excluded Forms"), the
Company shall promptly give written notice of such proposed
Registration to all holders of Shares, which shall offer
such holders the right to request inclusion of any
Registrable Securities in the proposed Registration.
(b) Each holder of Shares shall have ten (10) days or such
longer period as shall be set forth in the notice from the
receipt of such notice to deliver to the Company a written
request specifying the number of shares of Registrable
Securities such holder intends to sell and the holder's
intended plan of disposition.
(c) In the event that the proposed Reg ...
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