<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )*
CHECKERS DRIVE-IN RESTAURANTS, INC.
-----------------------------------
(NAME OF ISSUER)
COMMON STOCK, PAR VALUE $.001 PER SHARE
---------------------------------------
(TITLE OF CLASS OF SECURITIES)
162809-10-7
-----------
(CUSIP NUMBER)
GARY N. JACOBS, ESQ.
CHRISTENSEN, MILLER, FINK, JACOBS, GLASER, WEIL & SHAPIRO, LLP
2121 AVENUE OF THE STARS, 18TH FLOOR
LOS ANGELES, CALIFORNIA 90067
(310) 553-3000
------------------------------
(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON
AUTHORIZED TO RECEIVE NOTICES AND COMMUNICATIONS)
NOVEMBER 22, 1996
-----------------
(DATE OF EVENT WHICH REQUIRES FILING
OF THIS STATEMENT)
IF THE FILING PERSON HAS PREVIOUSLY FILED A STATEMENT ON SCHEDULE 13G TO REPORT
THE ACQUISITION WHICH IS THE SUBJECT OF THIS SCHEDULE 13D, AND IS FILING THIS
SCHEDULE BECAUSE OF RULE 13d-1(b)(3) OR (4), CHECK THE FOLLOWING BOX [ ].
CHECK THE FOLLOWING BOX IF A FEE IS BEING PAID WITH THE STATEMENT [ ]. (A FEE
IS NOT REQUIRED ONLY IF THE REPORTING PERSON: (1) HAS A PREVIOUS STATEMENT ON
FILE REPORTING BENEFICIAL OWNERSHIP OF MORE THAN FIVE PERCENT OF THE CLASS OF
SECURITIES DESCRIBED IN ITEM 1; AND (2) HAS FILED NO AMENDMENT SUBSEQUENT
THERETO REPORTING BENEFICIAL OWNERSHIP OF FIVE PERCENT OR LESS OF SUCH CLASS.)
(SEE RULE 13d-7.)
NOTE: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are to
be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes.)
(Continued on following page(s))
PAGE 1 OF __ PAGES
<PAGE> 2
CUSIP No. 162809-10-7 13D PAGE 2 OF PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
KCC DELAWARE COMPANY
I.R.S. #23-2360456
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
2,849,002 shares
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY -0-
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 2,849,002 shares
PERSON ----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,849,002 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- --------------------------------------------------------------------------------
13 PERCENTAGE OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.22%(1)
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
(1) Based upon 51,768,480 shares of Common Stock outstanding as of October 24,
1996 as reported by the issuer in its Quarterly Report on Form 10-Q for the
period ended September 9, 1996.
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 3
CUSIP No. 162809-10-7 13D PAGE 3 OF PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
GIANT GROUP, LTD.
I.R.S. #23-0622690
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
200,000 shares (Excluding shares held by KCC Delaware
Company)
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY -0-
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 200,000 shares (Excluding shares held by KCC Delaware
PERSON Company)
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
200,000 shares (Excluding shares held by KCC Delaware Company)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- --------------------------------------------------------------------------------
13 PERCENTAGE OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.39%(1)
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
(1) Based upon 51,768,480 shares of Common Stock outstanding as of October 24,
1996 as reported by the issuer in its Quarterly Report on Form 10-Q for the
period ended September 9, 1996.
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 4
ITEM 1. SECURITY AND ISSUER.
The class of equity securities to which this Statement on Schedule 13D
(this "Statement") relates to the Common Stock, par value $.001 per share (the
"Common Stock"), of Checkers Drive-In Restaurants, Inc., a Delaware corporation
("Checkers"), with its principal executive offices located at Barnett Bank
Building, 600 Cleveland Street, Eighth Floor, Clearwater, Florida 34615.
ITEM 2. IDENTITY AND BACKGROUND.
This Statement is being filed by KCC DELAWARE COMPANY, a Delaware
corporation ("KCC"), and its sole stockholder, GIANT GROUP, LTD., a Delaware
corporation ("GIANT"). KCC and GIANT are making this joint filing because they
may be deemed to constitute a "group" within the meaning of Rule 13d-3 under
the Securities Exchange Act of 1934, as amended.
KCC entered into that certain Amended and Restated Credit Agreement
dated as of November 22, 1996 (the "Credit Agreement") with Checkers, CKE
Restaurants, Inc., a Delaware corporation ("CKE"), as agent, and the other
lenders identified in the Credit Agreement (individually, a "Lender" and
collectively, the "Lenders"). The Lenders have no agreement between or among
themselves to act in concert with respect to securities of Checkers which they
beneficially own (other than certain registration rights granted by Checkers
pursuant to a Registration Rights Agreement dated November 22, 1996 by and among
Checkers and the Lenders); however, the Lenders have acted, and are expected to
continue to act collectively from time to time for purposes related to the
Credit Agreement. The filing of this Statement is not to be construed as an
admission by KCC that the Lenders constitute a "group" for purposes of Section
13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act").
KCC is in the business of acquiring, holding and disposing of
investment securities for its own account. GIANT is a holding company which has
owned both majority and minority interests in various operating subsidiaries.
KCC's and GIANT's principal offices and principal place of business are located
at 150 El Camino Drive, Suite 303, Beverly Hills, California 90212.
The names, present principal occupations and business addresses of the
directors and executive officers of KCC and GIANT, each of whom is a citizen of
the United States, are set forth below. Burt Sugarman is Chairman, President
and Chief Executive Officer of KCC and GIANT and his business address is that of
KCC and GIANT. David Gotterer, Vice Chairman of KCC and GIANT, is a partner of
Mason & Company, LLP, an accounting firm, 400 Park Avenue, New York, New York
10022. Terry Christensen, a director of KCC and GIANT, is a partner of
Christensen, Miller, Fink, Jacobs, Glaser, Weil & Shapiro, LLP, a law firm, 2121
Avenue of the Stars, 18th Floor, Los Angeles, CA 90067. David Malcolm, a
director of KCC and GIANT, is Chairman of the Board of Suncoast Financial
Mortgage Corporation, mortgage banking and real estate
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<PAGE> 5
development company, 750 "B" Street, Suite 3130, San Diego, CA 92101.
Cathy Wood is the Chief Financial Officer, Secretary and Treasurer of KCC
and GIANT and her business address is that of KCC and GIANT.
During the last five years neither KCC, Messrs. Sugarman, Gotterer,
Christensen or Malcolm nor Ms. Wood has been (a) convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanor) or (b) a party
to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
On November 22, 1996, Checkers issued to the Lenders warrants to
purchase an aggregate of 20,000,000 shares of Common Stock, of which warrants
to acquire 2,849,002 shares of Common Stock (the "Warrants") were acquired by
KCC, as consideration for the Lenders' agreement to restructure $38.5 million
aggregate principal amount of secured debt of Checkers pursuant to the Credit
Agreement. The exercise price of the Warrants is $.75 per share, which is
payable in cash or, in certain circumstances, in shares of Common Stock.
In addition, CKE and KCC agreed to make short-term revolving credit
advances in the aggregate amount of $1,000,000, which is outstanding as of the
date hereof. Checkers is obligated to repay such advances in full on or prior
to March 22, 1997; however, Checkers has the right to extend the maturity date
for such advances for up to three 30-day extension periods. For each such
extension, Checkers has agreed to issue to CKE and KCC additional warrants to
purchase 333,333 shares of Common Stock, on a pro rata basis, at an exercise
price to be determined in accordance with the provisions of the Credit
Agreement.
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<PAGE> 6
ITEM 4. PURPOSE OF TRANSACTION.
KCC acquired the Warrants for the purpose of facilitating an
investment in Checkers. In connection with the restructuring of Checkers' debt
pursuant to the Credit Agreement, William P. Foley, II and C. Thomas Thompson
(who are each Lenders) and Terry Christensen (as designee of KCC) were elected
to the Board of Directors of Checkers. Mr. Thompson was subsequently appointed
as the Vice Chairman of the Board and Chief Executive Officer of Checkers.
KCC has, and understands that certain of the Lenders (including CKE)
have also, given consideration on a preliminary basis to (but have reached no
conclusion as to) various courses of action with respect to Checkers, including
(i) causing a Lender or a subsidiary or affiliate of a Lender to acquire
additional shares in a cash tender offer or exchange offer, (ii) proposing a
merger or similar transaction between a Lender or an affiliate of a Lender and
Checkers, (iii) seeking additional representation on Checkers' Board of
Directors, and (iv) further integrating certain operations and personnel of
Checkers and CKE.
KCC holds the Warrants as an investment but intends continuously to
review its investment in Checkers and may in the future change its present
course of action. In reaching any such decision, KCC will consider various
factors, including but not limited to the circumstances of Checkers, its Board
of Directors and management, other available business opportunities,
developments in the business of KCC and its affiliates, general economic
conditions and money and stock market conditions.
On December 17, 1996, the Board of Directors of Checkers adopted
resolutions approving a private placement of up to $20,000,000 in Checkers'
equity securities at a price per share of Common Stock equal to the
closing price of the Common Stock on December 16, 1996, less an appropriate
discount for restricted shares. The private placement was consummated on
February 19, 1997, and Messrs. Sugarmen, Gotterer, Christensen and Malcolm,
and Ms. Wood, as well as certain Lenders, acquired Common Stock and the
Company's Series A Preferred Stock, $.001 par value per share (the "Series A
Preferred") pursuant thereto. See Item 5(c) hereof which is incorporated
herein by this reference.
Except as otherwise described in this Statement, KCC has no plan or
proposal with respect to the Checkers which relates to or would result in:
(a) The acquisition by any person of additional securities of
Checkers, or the disposition of securities of Checkers;
(b) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving Checkers or any of
its subsidiaries;
(c) A sale or transfer of a material amount of assets of Checkers
or any of its subsidiaries;
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<PAGE> 7
(d) Any change in the present Board of Directors or management of
Checkers, including any plans or proposals to change the
number or term of directors or to fill any existing vacancies
on the Board;
(e) Any material change in the present capitalization or dividend
policy of Checkers;
(f) Any other material change in Checkers' business or corporate
structure;
(g) Changes in Checkers' charter, bylaws or instruments
corresponding thereto or other actions which may impede the
acquisition of control of Checkers by any person;
(h) Causing a class of securities of Checkers to be delisted from
a national securities exchange or to cease to be authorized to
be quoted in an inter-dealer quotation system of a registered
national securities association;
(i) A class of equity securities of Checkers becoming eligible for
termination of registration pursuant to Section 12(g)(4) of
Exchange Act; or
(j) Any action similar to any of those enumerated above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) KCC beneficially owns 2,849,002 shares of Common stock
(approximately 5.22% of the outstanding shares) as a result of its acquisition
of the Warrants pursuant to the Credit Agreement, and GIANT owns 200,000 shares
of Common Stock (less than 1% of the outstanding shares). In addition, Burt
Sugarman may be deemed to be the beneficial owner of 780,231 shares of the
Company's Common Stock (approximately 1.51% of the outstanding shares),
including (i) 712,250 shares underlying warrants acquired by Mr. Sugarman as a
Lender pursuant to the Credit Agreement and (ii) 13,157 shares of Common Stock
held by Mr. Sugarman as custodian for his minor child, as to which he disclaims
beneficial ownership, but excluding 131,578 shares of Common Stock held by his
wife, as to which he disclaims beneficial ownership. KCC and Mr. Sugarman each
disclaim beneficial ownership of any shares of Common Stock beneficially owned
by the other Lenders. David Gotterer, Terry Christensen, David Malcolm, and
Cathy Wood beneficially own 54,824, 21,929, 131,578 and 8,771 shares of Common
Stock, respectively (in each case less than 1% of the outstanding shares).
(b) Each of KCC, GIANT, Messrs. Sugarman, Gotterer, Christensen and
Malcolm and Ms. Wood have sole power to vote, or direct the voting of, and to
dispose, or direct the disposition, of the shares of Common Stock presently held
by them and will have such power with respect to shares which may be acquired
upon exercise of any Warrants held by them.
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<PAGE> 8
(c) The only transactions in the Common Stock effected by any of the
persons identified in Item 2 of this Statement during the past 60 days are as
follows: On February 19, 1997, in a private transaction with the Company,
Messrs. Sugarman, Gotterer, Christensen and Malcolm and Ms. Wood acquired
54,824, 54,824, 21,929, 131,578 and 8,771 shares of the Company's Common stock,
respectively, at a purchase price of $1.14 per share, pursuant to Purchase
Agreements dated February 19, 1997, the form of which is attached hereto as
Exhibit 99.04 and incorporated herein by this reference.
(d) Not applicable.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
KCC is a party to the Credit Agreement and the Registration Rights
Agreement, which are Exhibits 99.01 and 99.02 hereto, respectively, and
incorporated herein by this reference. Messrs. Sugarman, Gotterer, Christensen
and Malcolm and Ms. Wood each entered into a Purchase Agreement with the Company
on February 19, 1997, the form of which is attached hereto as Exhibit 99.04 and
incorporated herein by this reference, whereby they acquired 54,824, 54,824,
21,929, 131,578 and 8,771 shares of the Company's Common Stock, respectively, at
a purchase price of $1.14 per share, and 548, 548, 219, 1,315 and 87 shares of
the Company's Series A Preferred, respectively, at a purchase price of $114.00
per share.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
99.01 Amended and Restated Credit Agreement dated as of November 22, 1996
among Checkers and the Lenders (incorporated by reference to Exhibit
99.02 to the Schedule 13D of CKE dated November 22, 1996, with respect
to the Company's Common Stock (the "CKE 13D").
99.02 Registration Rights Agreement dated as of November 22, 1996 among
Checkers and the Lenders (incorporated by reference to Exhibit 99.03 to
the CKE 13D).
99.03 Press Release issued by Checkers, Fidelity National Financial, Inc. and
CKE on November 22, 1996 (incorporated by reference to Exhibit 99.04 to
the CKE 13D).
99.04 Form of Purchase Agreement, dated as of February 19, 1997, between the
Company and each of Messrs. Sugarman, Gotterer, Christensen and
Malcolm and Ms. Wood.
99.05 Joint Filing Agreement.
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<PAGE> 9
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this Statement is true, complete and
correct.
February 26, 1997 KCC DELAWARE COMPANY
By: /s/ CATHY L. WOOD
--------------------------------
Cathy L. Wood
Chief Financial Officer
Secretary and Treasurer
GIANT GROUP, LTD.
By: /s/ CATHY L. WOOD
--------------------------------
Cathy L. Wood
Chief Financial Officer
Secretary and Treasurer
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<PAGE> 1
EXHIBIT 99.04
PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT, dated as of February 19, 1997, is made by
and between CHECKERS DRIVE-IN RESTAURANTS, INC., a Delaware corporation (the
"Company"), and the Buyer named on Exhibit A attached hereto ("Buyer"), with
reference to the following facts:
RECITALS
A. The Company, specified Lenders (including Buyer) and CKE
RESTAURANTS, INC., a Delaware corporation, as Agent (the "Agent"), have
heretofore entered into that certain Amended and Restated Credit Agreement
dated as of November 22, 1996 (the "Credit Agreement"), which provided for
restructuring of certain loans made to the Company and other transactions
specified therein.
B. Pursuant to the Credit Agreement, the Company issued
Warrants to Purchase Common Stock to Lenders and agreed to register a rights
offering (the "Rights Offering") pursuant to which all holders of the Company's
Common Stock and Warrants would receive rights to purchase additional Common
Stock of the Company at a specified purchase price.
C. Lenders and the Agent desire and intend to waive the
Company's obligation to register the Rights Offering and to substitute in lieu
thereof a right of specified Lenders (including Buyer) (collectively,
"Purchasers") to purchase newly issued shares of the Company's Common Stock,
par value $0.001 (the "Common Stock), and Series A Preferred Stock, par value
$0.001 per share (the "Series A Stock"), having the rights, preferences,
privileges and restrictions set forth in the Company's Certificate of
Designation of Rights, Privileges and Preferences, substantially in the form
attached hereto as Exhibit B (the "Certificate") and incorporated herein by
reference. The Common Stock and the Series A Stock are referred to
collectively herein as the "Stock."
D. At a meeting held on December 17, 1996, the Board of
Directors of the Company approved acceptance of an offer from the Agent with
respect to the transaction, subject to the conditions that (i) the purchase
price for the Common Stock be no less than the closing sales price of the
Company's Common Stock on December 16, 1996, as reported on the NASDAQ National
Market ($1.34 per share), discounted to reflect that the Common Stock will be
"restricted shares" within the meaning of the Securities Act of 1933, as
amended (the "Securities Act"), (ii) the transaction be approved by a committee
of the Board of Directors of the Company, comprised of disinterested directors
(the "Special Committee"), (iii) the Special Committee receives a fairness
opinion with respect to the transaction from a nationally recognized investment
banking firm, (iv) the transaction complies with all applicable laws, rules and
regulations, including those governing securities transactions, and (v) the
Purchasers and the Special Committee negotiate and approve definitive
documentation relating to the transaction.
<PAGE> 2
E. The Company believes that waiver of the obligation to
conduct the Rights Offering, sale of the Stock to be purchased hereunder to
Purchasers and consummation of the other transactions described herein are in
the best interests of the Company.
AGREEMENT
NOW, THEREFORE, the parties agree as follows:
1. Purchase and Sale.
1.1 Purchase and Sale. Subject to the provisions of
this Agreement, on the Closing Date (as defined herein) the Company will sell
to Buyer, and Buyer will purchase from the Company the number of shares of
Common Stock (at a purchase price of $1.14 per share) and the number of shares
of Series A Stock (at a purchase price of $114.00 per share) specified on
Exhibit A attached hereto (collectively, the "Shares").
1.2 Payment of Purchase Price. The Purchase Price
shall be paid by Buyer to the Company on the Closing Date (as defined herein)
by wire transfer of immediately available funds in accordance with the wire
instructions set forth on Exhibit C attached hereto.
2. Closing of Purchase and Sale.
2.1 Closing; Closing Date. The purchase and sale of
the Shares pursuant to Section 1 (the "Closing") shall take place at the
offices of Christensen, Miller, Fink, Jacobs, Glaser, Weil & Shapiro, LLP, 2121
Avenue of the Stars, 18th Floor, Los Angeles, CA 90067, or at such other place
as may be agreed upon by the Company and Buyer, at 10:00 a.m. Pacific time on
February 21, 1997 or at such other time as may be agreed upon by both the
Company and Buyer (the "Closing Date").
2.2 Transactions at Closing. At the Closing,
(a) The Company shall deliver to Buyer:
(i) An opinion of Shumaker, Loop
& Kendrick, LLP, substantially in the form of Exhibit D hereto;
(ii) A duly executed Compliance
Certificate, substantially in the form of Exhibit E hereto;
(iii) Certificates representing
the Shares being purchased hereunder and delivered pursuant to
Section 1.1 hereof;
(iv) Evidence of filing of the
Certificate of Designation with the Delaware Secretary of State;
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<PAGE> 3
(v) Evidence that the
Notification of Listing of Additional Shares with respect to the
Common Stock to be purchased pursuant hereto has been received by the
NASDAQ National Market; and
(vi) Such other documents and
instruments as Buyer may reasonably request relating to the
existence, status and capacity of the Company and the corporate
authority for, and the validity, force and effect of this Agreement.
(b) Buyer shall deliver to the Company: (i)
a wire transfer of immediately available funds in the amount of the purchase
price specified on Exhibit A attached hereto; (ii) evidence that waiver of the
Rights Offering has been approved by the Required Lenders (as defined in the
Credit Agreement); and (iii) evidence that the Required Lenders have approved
the execution, delivery and performance of this Agreement by the Company.
(c) The other conditions set forth in
Sections 6 and 7 hereof shall have been satisfied.
3. Representations and Warranties of the Company. The Company
represents and warrants that:
3.1 Organization, Standing and Qualification. The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware and has full corporate power and
authority to own, lease and operate its property and assets and to conduct its
business as presently and proposed to be conducted by it. The Company has all
requisite corporate power and authority to enter into and perform its
obligations under this Agreement and to carry out the transactions contemplated
by this Agreement.
3.2 Credit Agreement Representations and Warranties.
Except as set forth on Schedule 3.2 hereto, the representations and warranties
of the Company set forth in the Credit Agreement are true and correct on and as
of the date hereof as if made on such date.
3.3 Capitalization.
(a) Authorized Capital Stock. Immediately
prior to the Closing, the authorized capital stock of the Company will consist
of:
(i) Common Stock. 100,000,000
shares of Common Stock, par value $0.001 per share (the "Common
Stock"), of which (i) 51,768,480 shares are issued and outstanding as
of the date of this Agreement; (ii) 29,300,000 shares are initially
reserved for issuance upon exercise of the warrants and options
listed in Schedule 3.3 hereof; and (iii) 209,524 shares are initially
reserved for issuance pursuant to certain contracts to issue Common
Stock, as listed in Schedule 3.3 hereto. The Company has a
sufficient number of shares of unissued and
3
<PAGE> 4
unreserved Common Stock to enable it to issue the Common Stock being
sold pursuant hereto, and, upon approval of the Company's
stockholders of the proposal referred to in Section 8.1 hereof, the
Company will have a sufficient number of shares of unissued and
unreserved Common Stock to enable it to issue the Common Stock
issuable upon conversion of the Series A Stock to be purchased by
Buyer and the other Purchasers on the Closing Date.
(ii) Preferred Stock. 2,000,000
shares of Preferred Stock, $0.001 par value per share (the "Preferred
Stock"), of which 87,719 shares have been designated as Series A
Stock and none of which will be issued and outstanding prior to the
Closing Date.
(b) Warrants, Options and Other
Subscription Rights. Except as set forth in Schedule 3.3 hereto and as
contemplated herein, there are (i) no outstanding warrants, options,
convertible securities or rights to subscribe for or purchase any capital stock
or other securities from the Company, (ii) to the best knowledge of the
Company, no voting trusts or voting agreements among, or irrevocable proxies
executed by, shareholders of the Company, (iii) no existing rights of
stockholders to require the Company to register any securities of the Company
or to participate with the Company in any registration by the Company of its
securities, (iv) to the best knowledge of the Company, no agreements among
stockholders providing for the purchase or sale of the Company's capital stock
and (v) no obligations (contingent or otherwise) of the Company to purchase,
redeem or otherwise acquire any shares of its capital stock or any interest
therein or to pay any dividend or make any other distribution in respect
thereof.
(c) Validity of Securities. All
outstanding securities of the Company are duly authorized and validly issued in
accordance with applicable law (including federal and state securities laws),
fully paid and non-assessable. Subject only to approval by the Company's
stockholders of the matters set forth in Section 8.1 hereof, the Shares, when
issued, sold and delivered in accordance with the terms of this Agreement, and
the Common Stock issuable upon conversion of the Series A Stock, when issued
and delivered in accordance with the Certificate of Designation, will be duly
authorized, validly issued, fully paid and non-assessable, and will be free and
clear of all liens and restrictions, other than liens resulting from the
actions of Buyer and restrictions on transfer imposed by the Securities Act,
applicable state securities laws or this Agreement. Subject only to approval
by the Company's shareholders of the matters set forth in Section 8.1 hereof,
the Series A Stock, when issued, sold and delivered in accordance with the
terms of this Agreement, will have the rights, preferences and privileges
specified in the Certificate of Designation. Holders of shares of the
Company's capital stock have no preemptive rights.
3.4 Authorization; Enforceability. Except as set
forth in Schedule 3.4 hereto, all corporate action on the part of the Company
necessary for the authorization, execution, delivery, and performance of all
its obligations under this Agreement, including the authorization, issuance,
and delivery of the Shares being sold under this Agreement and of the Common
Stock issuable upon conversion of the Series A Stock has been taken. This
Agreement, when executed and delivered by or on behalf of the Company, shall
constitute
4
<PAGE> 5
the valid and legally binding obligation of the Company, enforceable against
the Company in accordance with its terms, except as the enforcement hereof may
be limited by bankruptcy, insolvency or other laws affecting the enforcement of
creditors' rights generally.
3.5 Private Offering. Neither the Company nor anyone
acting on its behalf, other than the persons set forth on Schedule 3.5 hereto,
has offered any of the Shares for sale to, or solicited offers to buy any
securities of the Company from, or otherwise approached or negotiated with
respect thereto with any prospective purchaser other than Buyer and the other
Lenders under the Credit Agreement. The Company agrees that neither the
Company nor anyone acting on its behalf, other than the persons set forth on
Schedule 3.5 hereto, has offered or will offer the Shares or any part thereof
or any similar securities for issuance or sale to, or solicit any offer to
acquire any of the same from, anyone so as to make the issuance and sale
hereunder of the Shares not exempt from the registration requirements of
Section 5 of the Securities Act. None of the shares of the Company's capital
stock issued without registration under the Securities Act prior to the date
hereof and presently outstanding has been offered or sold in such a manner as
to make the issuance and sale of such shares not exempt from such registration
requirements, and all such shares of capital stock have been offered and sold
in compliance with all applicable federal and state securities laws.
3.6 Filing of SEC Reports. The Company has filed
with the Securities and Exchange Commission (the "Commission") all reports (the
"SEC Reports") required under the Securities Act and the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), and the rules and regulations
promulgated thereunder. As of their respective dates, the SEC Reports did not
contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements made
therein not misleading.
3.7 Consents and Approvals. Except as set forth on
Schedule 3.7 hereto and for consents that will obtained prior to Closing, the
execution and delivery by the Company of this Agreement and the related
documents and instruments, the offer, issuance and delivery of the Shares, and
the performance by the Company of its obligations under this Agreement and the
related documents and instruments do not require the consent of any person or
entity under any material agreement to which the Company is a party or
otherwise binding on the Company.
3.8 No Conflict with Documents and Instruments.
Except as set forth on Schedule 3.8 hereto, the execution and delivery by the
Company of this Agreement and any related documents and instruments, the offer,
issuance and delivery of the Shares, and the performance by the Company of its
obligations under this Agreement and the related documents and instruments do
not contravene or constitute a default under (a) the charter or by-laws of the
Company, (b) any applicable law or regulation or (c) any agreement, judgment,
injunction, order, decree or other instrument to which the Company is a party
or by which the Company and its assets are otherwise bound.
3.9 Full Disclosure. Neither this Agreement, nor any
certificates
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delivered in connection herewith contains any untrue statement of a material
fact or omits to state a material fact necessary to make the statements herein
or therein not misleading, in view of the circumstances in which they were
made.
3.10 Brokers and Finders. Except for certain fees
payable to Raymond James & Associates under that certain letter agreement dated
February 4, 1997 with the Company and that certain letter agreement dated
January 28, 1997 with the Company, no person or entity has or will have any
valid claim against the Company or any Purchaser as a result of the
transactions contemplated herein for any commission, fee or other compensation
as a broker or finder or in any similar capacity.
4. Representations, Warranties and Covenants of Buyer. Buyer
represents and warrants that:
4.1 Authorization. Buyer has full [corporate] power
and authority to enter into and to perform this Agreement in accordance with
its terms. This Agreement has been duly executed and delivered by it and
constitutes the valid and legally binding obligation of Buyer, except as the
enforcement hereof may be limited by bankruptcy, insolvency or other laws
affecting the enforcement of creditors' rights generally.
4.2 Investment Representations. Buyer is acquiring
the Shares for its own account, for investment purposes and not with a view to,
or for sale in connection with, any distribution of the Shares in violation of
the Securities Act, or any applicable state securities law.
4.3 Investment Experience; Access to Information.
Buyer (a) is an "accredited investor," as that term is defined in Rule 501(a)
promulgated under the Securities Act, (b) is an investor experienced in the
evaluation of businesses similar to the Company, (c) is able to fend for itself
in the transactions contemplated by this Agreement, (d) has such knowledge and
experience in financial, business and investment matters as to be capable of
evaluating the merits and risks of this investment, (e) has the ability to bear
the economic risks of this investment, (f) was not organized or reorganized for
the specific purpose of acquiring the Shares purchased by it, and (g) has been
afforded prior to the Closing Date the opportunity to ask questions of, and to
receive answers from, the Company and to obtain any additional information, to
the extent the Company has such information or could have acquired it without
unreasonable effort or expense, all as necessary for Buyer to make an informed
investment decision with respect to the purchase of the Shares.
4.4 Absence of Registration. Buyer acknowledges and
agrees that:
(a) The Shares to be issued and sold
hereunder are unregistered and may be required to be held indefinitely unless
they are subsequently registered under the Securities Act, or an exemption from
such registration is available.
Except as provided in Section 9 hereof, the Company is under no
obligation to file a registration statement with the Commission with respect to
the Shares.
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4.5 Restrictions on Transfer.
(a) Buyer will not offer, sell, pledge,
hypothecate, or otherwise dispose of the Shares unless such offer, sale,
pledge, hypothecation or other disposition (i) is registered under the
Securities Act or (ii) does not violate the Securities Act or any applicable
state securities laws.
(b) The certificates representing the
Shares shall bear a legend stating in substance:
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE
SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED
UNDER SAID ACT AND LAWS OR, IN THE OPINION OF COUNSEL IN FORM AND
SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER,
SALE OR TRANSFER, PLEDGE OR HYPOTHECATION DOES NOT VIOLATE THE
PROVISIONS THEREOF.
Upon request of a holder of the Shares, the Company shall remove the legend set
forth above from the certificates evidencing such Shares, or issue to such
holder new certificates therefor free of such legend, if with such request the
Company shall have received an opinion of counsel selected by the holder and
reasonably satisfactory to the Company, in form and substance reasonably
satisfactory to the Company, to the effect that such Shares are not required by
the Securities Act to continue to bear the legend.
4.6 Transfer Instructions. Buyer agrees that the
Company may provide for appropriate transfer instructions to implement the
provisions of Section 4.5 hereof.
4.7 Economic Risk. Buyer understands that it must
bear the economic risk of the investment represented by the purchase of Shares
for an indefinite period.
5. Pre-Closing Covenants.
Each of the parties hereby covenants and agrees that it will
take all action reasonably within its power and authority to duly and timely
carry out all of its obligations hereunder, to perform and comply with all of
the covenants, agreements, representations and warranties hereunder applicable
to it and to cause all conditions to the obligations of the other parties to
close the purchase and sale of the Shares pursuant hereto to be satisfied as
promptly as possible.
6. Conditions to Closing of Buyer. The obligation of Buyer on
the Closing Date to purchase the Shares under this Agreement shall be subject
to each of the following conditions precedent, any one or more of which may be
waived by Buyer:
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6.1 Fairness Opinion. The Special Committee shall
have received a fairness opinion from Raymond James & Associates, satisfactory
in form and substance to the Special Committee, to the effect that the
transactions provided for herein and in the agreements of even date herewith
with the other Purchasers are fair to the stockholders of the Company, from a
financial point of view (the "Fairness Opinion").
6.2 Representations and Warranties. The
representations and warranties made by the Company herein and, except as
provided in Schedule 3.2, in the Credit Agreement shall be true and accurate on
and as of the Closing Date as if made on such Closing Date.
6.3 Performance. The Company shall have performed
and complied with all agreements and conditions contained herein or in other
ancillary documents incident to the transactions contemplated by this Agreement
required to be performed or complied with by it prior to or at the Closing.
6.4 Consents, Etc. The Company shall have secured
all permits, consents and authorizations that shall be necessary or required
lawfully to consummate this Agreement and to issue the Shares to be purchased
by Buyer at the Closing, and the Certificate of Designation shall have been
duly filed with the Secretary of State of the State of Delaware.
6.5 Minimum Sale. Concurrently with the Closing
hereof, the Company shall close agreements with Purchasers, in substantially
the form of this Agreement, to purchase an aggregate of $19,999,965.06 in
Shares, including an aggregate of 8,771,929 shares of Common Stock at $1.14 per
share and 87,719 shares of Series A Stock at $114.00 per share.
6.6 Proceedings and Documents. All corporate and
other proceedings in connection with the transactions contemplated by this
Agreement and all documents and instruments incident to such transactions shall
be reasonably satisfactory in substance and form to Buyer and its counsel, and
Buyer and its counsel shall have received all such counterpart originals or
certified or other copies of such documents as Buyer or its counsel may
reasonably request.
7. Conditions to Closing of Company. The obligation of the
Company on the Closing Date to issue and sell the Shares to be purchased under
this Agreement shall be subject each of the following conditions precedent, any
one or more of which may be waived by the Company:
7.1 Fairness Opinion. The Special Committee shall
have received the Fairness Opinion, satisfactory in form and substance to it.
7.2 Representations and Warranties. The
representations and warranties made by Buyer herein being true and accurate on
and as of the Closing Date as if made on such Closing Date.
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7.3 Performance. Buyer shall have performed and
complied with all agreements and conditions contained herein or in other
ancillary documents incident to the transactions contemplated by this Agreement
required to be performed or complied with by it prior to or at the Closing.
7.4 Minimum Sale. Concurrently with the Closing
hereof, the Company shall close agreements with Purchasers, in substantially
the form of this Agreement, to purchase an aggregate of $19,999,965.06 in
Shares, including an aggregate of 8,771,929 shares of Common Stock at $1.14 per
share and 87,719 shares of Series A Stock at $114.00 per share.
7.5 Required Lenders' Approval and Waiver. The
Company shall have received approval of the execution, delivery and performance
of this Agreement from the Required Lenders and a waiver from the Required
Lenders of the requirements of Section 2.03(d) and Section 5.03 of the Credit
Agreement, in the form of Exhibit F hereto.
7.6 Proceedings and Documents. All corporate and
other proceedings in connection with the transactions contemplated by this
Agreement and all documents and instruments incident to such transactions shall
be reasonably satisfactory in substance and form to the Company and its
counsel, and the Company and its counsel shall have received all such
counterpart originals or certified or other copies of such documents as Buyer
or its counsel may reasonably request.
8. Post Closing Covenants.
8.1 Proxy Statement. As soon as practicable after
Closing hereof and in any event no later than at its next annual stockholders
meeting, the Company shall include a proposal in its proxy statement to (i)
amend its Certificate of Incorporation either (a) to reduce the number of
outstanding shares through a reverse stock split so as to ensure that a
sufficient number of shares of Common Stock are available for conversion of all
of the Series A Stock, or (b) to authorize a sufficient number of additional
shares of Common Stock so as to provide for conversion of all of the Series A
Stock and (ii) approve conversion of the Series A Stock to Common Stock in
accordance with the terms of the Certificate. The date of the stockholder
approval of such proposal is referred to as the "Approval Date."
8.2 Reservation of Common Stock. From and after the
Approval Date, the Company shall continuously maintain in reserve a number of
shares of Common Stock equal to the Common Stock issuable upon conversion of
the Series A Preferred Stock.
9. Registration Rights. The following provisions govern the
registration of the Company's Common Stock being purchased hereunder and Common
Stock issuable upon conversion of the Series A Stock being purchased hereunder:
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9.1 Definitions. As used herein, the following terms
have the following meanings:
Forms S-1, S-2 and S-3: The forms so designated,
promulgated by the Commission for registration of
securities under the Securities Act, and any forms
succeeding to the functions of such forms, whether or not
bearing the same designation.
Holder: A holder of Registrable Securities, provided that
anyone who acquires any Registrable Securities in a
distribution pursuant to a registration statement filed by
the Company under the Securities Act shall not thereby be
deemed to be a "Holder."
"Register," "registered" and "registration": A
registration effected by filing a registration statement in
compliance with the Securities Act and the declaration or
ordering by the Commission of effectiveness of such
registration statement.
Registrable Securities: All shares of Common Stock sold
hereunder or issuable upon conversion of the Series A Stock
and held by Buyer or by a person to whom registration
rights have been transferred pursuant to the provisions of
this Section 9; and all shares of Common Stock issued by
the Company in respect of such shares.
Required Demand Amount: The number of Registrable
Securities equal to the lesser of (i) 1% of the total
number of shares of Common Stock then outstanding and (ii)
$2,000,000 divided by the average per share closing price
of the Common Stock for the five trading days prior to the
date of the calculation of the Required Demand Amount.
9.2 Shelf Registration.
(a) Filing; Effectiveness. If, at any time
after the one-year anniversary of the Closing Date, the Company receives a
written demand from the Holders of the Required Demand Amount of the
Registrable Securities, the Company shall prepare and file with the Commission
a "shelf" registration statement (the "Shelf Registration Statement") on the
appropriate form for an offering to be made on a continuous or extended basis
pursuant to Rule 415 under the Securities Act (or such successor rule or
similar provision then in effect) covering all of the Registrable Securities.
The Company shall use its commercially reasonable efforts to have the shelf
registration filed within 60 days after the demand is made (the "Target Filing
Date") and to have the Shelf Registration Statement declared effective within
60 days after the filing is made (the "Target Effective Date") and to keep such
Shelf Registration continuously effective for the period beginning on such date
and ending on the earlier of (i) the date on which the Holders no longer hold
any Registrable Securities and (ii) the first date on which all of the Holders
would be entitled to transfer Shares pursuant to Rule 144(k) under the
Securities Act.
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(b) Effective Registration. A registration
will not be deemed to have been effective as a Shelf Registration Statement
unless a Shelf Registration Statement with respect thereto has been declared
effective by the Commission and the Company has complied in all material
respects with its obligations under this Agreement with respect thereto;
provided, however, that if after it has been declared effective, the offering
of Registrable Securities pursuant to a Shelf Registration Statement is
interfered with by any stop order, injunction or other order or requirement of
the Commission or any other governmental agency or court, such Shelf
Registration Statement will be deemed not to have become effective during the
period of such interference until the offering of Registrable Securities
pursuant to such Shelf Registration Statement may legally resume. If a
registration requested pursuant to this Section 9.2 is deemed not to have been
effected, then the Company shall continue to be obligated to effect a
registration pursuant to this Section 9.2.
(c) Form Used for Registration. In the
event that Form S-3 is not available for use by the Company for a Shelf
Registration Statement pursuant to this Section 9.2, the Company shall prepare
and file a Shelf Registration Statement on such form as shall be available for
use by the Company at the time the Company is obliged to prepare and file a
registration statement hereunder. If the event that Form S-3 thereafter
becomes available for use by the Company, the Company may prepare and file such
Form S-3 in order to comply with its obligations hereunder.
9.3 Demand Registration.
(a) Request for Registration. Subject to
Section 9.7 hereof, from time to time after the Shelf Registration Statement
ceases to be effective, or at any time after the first anniversary of the
Closing Date if the Holders elect to use the form of an underwritten offering,
the Holders of the Required Demand Amount of the Registrable Securities may
make written demand that the Company file a registration statement under the
Securities Act with the Commission to register such number of shares of
Registrable Securities as each such Holder may request (which request shall
specify the number of Registrable Securities intended to be disposed of by such
Holder and the intended method of distribution thereof (a "Demand Registration
Statement"). Within 10 days after receipt of such request, the Company shall
give written notice of such registration request to all other Holders and
thereupon the Company shall effect the filing of such Demand Registration
Statement and shall include therein all Registrable Securities with respect to
which the Company has received written requests for inclusion therein (which
request shall specify the number of Registrable Securities intended to be
disposed of by such Holder and the intended method of distribution thereof)
within 15 business days after the receipt by the applicable Holders of the
notice from the Company of a request for Demand Registration Statement. The
Company shall use commercially reasonable efforts to have the Demand
Registration Statement declared effective on or before the date which is 90
days after receipt by the Company of the applicable request for filing of a
Demand Registration Statement (a "Demand Registration Filing Date").
(b) Effective Registration. The Company's
obligations with respect to a Demand Registration Statement will not be deemed
to have been satisfied unless
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the applicable Demand Registration Statement has been declared effective by the
Commission and the Company has complied in all material respects with its
obligations under this Agreement with respect thereto; provided, however, that
if after it has been declared effective, the offering of Registrable Securities
pursuant to a Demand Registration Statement is interfered with by any stop
order, injunction or other order or requirement of the Commission or any other
governmental agency or court, such Demand Registration Statement will be deemed
not to have become effective during the period of such interference until the
offering of Registrable Securities pursuant to such Demand Registration
Statement may legally resume. If a registration requested pursuant to this
Section 9.3 is deemed not to have been effected, then the Company shall
continue to be obligated to effect a registration pursuant to this Section 9.3.
(c) Selection of Underwriter. If the
Holders elect to conduct an offering pursuant to a Demand Registration
Statement in the form of an underwritten offering, a majority in interest of
the requesting the Holders participating in such Demand Registration Statement
shall have the right to designate and to select one or more nationally
recognized firms of investment bankers reasonably acceptable to the Company to
act as the book-running managing underwriter or underwriters in connection with
such offering and shall select any additional investment bankers and managers
reasonably acceptable to the Company to be used in connection with the
offering.
9.4 Piggy-Back Registration.
(a) Request for Registration. At any time
from and after the Closing Date, each time the Company proposes to file a
registration statement under the Securities Act with respect to an offering by
the Company for its own account or for the account of its security holders of
any class of equity security (other than (A) a registration statement on Form
S-4 or S-8 (or any substitute form that is adopted by the Commission) or (B) a
registration statement filed in connection with an exchange offer or offering
of securities solely to the Company's existing security holders), the Company
shall give written notice of such proposed filing to the Holders of Registrable
Securities as soon as practicable (but in no event less than ten business days
before the anticipated filing date), and such notice shall offer such Holders
the opportunity to register such number of shares of Registrable Securities as
each such Holder may request (which request shall specify the Registrable
Securities intended to be disposed of by such Holder and the intended method of
distribution thereof) (a "Piggy-Back Registration"). The Company shall use
reasonable efforts to cause the managing underwriter or underwriters of a
proposed underwritten offering to permit the Registrable Securities requested
to be included in a Piggy-Back Registration to be included on the same terms
and conditions as any other similar securities of the Company or any other
security holder included therein and to permit the sale or other disposition of
such Registrable Securities in accordance with the intended method of
distribution thereof. Any Holder shall have the right to withdraw its request
for inclusion of its Registrable Securities in any registration statement
pursuant to this Section 9.4(a) by giving written notice to the Company of such
withdrawal. The Company may withdraw a Piggy-Back Registration at any time
prior to the time it becomes effective, provided that the Company shall give
immediate notice of such withdrawal to the Holders of Registrable
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Securities requested to be included in such Piggy-Back Registration.
(b) Reduction of Offering. In connection
with an underwritten offering where Piggy-Back Registration has been requested
as provided in Section 9.4(a), the Company shall use commercially reasonable
efforts to cause all Registrable Securities requested to be included in such
Piggy-Back Registration to be included as provided in Section 9.4(a). If the
managing underwriter or underwriters of any such underwritten offering have
given written notice to the Holders of Registrable Securities requesting
inclusion in such offering that it is their opinion that the total number of
shares which the Company, Holders of Registrable Securities and any other
Persons participating in such registration intend to include in such offering
is such as to materially and adversely affect the success of such offering,
then (i) the number of shares to be offered for the account of all other
Persons (other than the Lenders under the Credit Agreement and the Holders)
participating in such registration other than pursuant to demand registration
rights shall be reduced or limited (to zero if necessary) pro rata in
proportion to the respective number of shares requested to be registered by
such Persons to the extent necessary to reduce the total number of shares
requested to be included in such offering to the number of shares, if any,
recommended by the managing underwriter or underwriters and (ii) if such
managing underwriter or underwriters recommend a further reduction in the
number of shares in the offering, then the number of shares to be offered for
the account of the Holders shall be reduced or limited (to zero if necessary)
pro rata in proportion to the respective number of shares requested to be
registered by such Holders to the extent necessary to reduce the total number
of shares requested to be include in such offering to the number of shares, if
any, recommended by such managing underwriter or underwriters.
(c) In the case of any registration
initiated by the Company, the Company shall have the right to designate the
managing underwriter in any underwritten offering.
9.5 Registration Procedures.
(a) In connection with the obligations of
the Company to effect or cause the registration of any Registrable Securities
pursuant to the terms and conditions of this Agreement, the Company shall use
its best efforts to effect the registration and sale of such Registrable
Securities in accordance with the intended method of distribution, and in
connection therewith, the Company will:
(i) prepare and file with the
Commission a registration statement with respect to such shares and
use commercially reasonable efforts to cause such registration
statement to become and remain effective as provided herein;
(ii) prepare and file with the
Commission such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be
necessary to keep such registration statement effective and current
and to comply with the provisions of the Securities Act with
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respect to the disposition of all shares covered by such registration
statement, including such amendments and supplements as may be
necessary to reflect the intended method of disposition from time to
time of the prospective seller or sellers of such shares;
(iii) furnish to each prospective
seller such number of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Securities
Act, and such other documents, as such seller may reasonably request
in order to facilitate the public sale or other disposition of the
shares owned by such seller;
(iv) use commercially reasonable
efforts to register or qualify the shares covered by such
registration statement under such other securities or blue sky or
other applicable laws of such jurisdiction within the United States
as each prospective seller shall reasonably request, to enable such
seller to consummate the public sale or other disposition in such
jurisdictions of the shares owned by such seller; provided, however,
that in no event shall the Company be obligated to qualify to do
business in any jurisdiction where it is not at the time so qualified
or to take any action which would subject it to service of process in
suits other than those arising out of the offer or sale of the
Registrable Securities covered by such registration statement in any
jurisdiction where it is not at the time so subject;
(v) furnish to each prospective
seller a signed counterpart, addressed to the prospective sellers, of
an opinion of counsel for the Company, dated the effective date of
the registration statement, covering substantially the same matters
with respect to the registration statement (and the prospectus
included therein) as are customarily covered (at the time of such
registration) in opinions of issuer's counsel delivered to the
underwriters in underwritten public offerings of securities;
(vi) in the event of any
underwritten public offering, enter into and perform its obligations
under an underwriting agreement, in usual and customary form, with
the managing underwriter of such offering; each Holder participating
in such underwriting shall also enter into and perform its
obligations under such an agreement;
(vii) notify each Holder of
Registrable Securities covered by such registration statement at any
time when a prospectus relating thereto is required to be delivered
under the Securities Act or the happening of any event as a result of
which the prospectus included in such registration statement, as then
in effect, includes an untrue statement of a material fact or omits
to state a material fact required to be stated therein or necessary
to make the statements therein not misleading in the light of the
circumstances then existing;
(viii) apply for listing and use
its best efforts to list the Registrable Securities being registered
on any national securities exchange on which
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a class of the Company's equity securities are listed or, if the
Company does not have a class of equity securities listed on a
national securities exchange, apply for qualification and use its
best efforts to qualify the Registrable Securities being registered
for inclusion on the automated quotation system of the National
Association of Securities Dealers, Inc. or on a national securities
exchange; and
(ix) Provide a transfer agent and
registrar for all Registrable Securities registered hereunder and a
CUSIP number for all such Registrable Securities, in each case not
later than the effective date of such registration.
(b) Upon receipt of a notice (a "Suspension
Notice") from the Company of the happening of any event of the kind described
in Section 9.5(a)(vii) hereof, each Holder shall forthwith discontinue
disposition of the Registrable Securities until such Holder's receipt of copies
of a supplemented or amended Prospectus or until it is advised in writing (the
"Advice") by the Company that the use of the Prospectus may be resumed, and has
received copies of any additional or supplemental filings which are
incorporated by reference in the Prospectus, and, if so directed by the
Company, such Holder will or will request the managing underwriter or
underwriters, if any, to deliver to the Company (at the Company's expense) all
copies, other than permanent file copies then in such Holder's possession, of
the Prospectus covering such Registrable Shares current at the time of receipt
of such notice. In the event that the Company shall give any Suspension
Notice, (A) the Company shall use commercially reasonable efforts and take such
actions as are reasonably necessary to render the Advice and to end the
Suspension Period as promptly as practicable and (B) with respect to a Shelf
Registration pursuant to Section 9.2 hereof, the time periods for which the
Shelf Registration Statement is required to be kept effective pursuant to
Section 9.2 hereof shall be extended by the number of days of the Suspension
Period unless (x) such extension would result in the Company's inability to use
the financial statements in the registration statement initially filed pursuant
to the Holder or Holders' request and (y) such correction or update did not
result from the Company's acts or failures to act.
9.6 Information by Holder.
(a) Each Holder of Registrable Securities
and each underwriter designated by a majority in interest of the requesting
Holders, will furnish to the Company such information as the Company may
reasonably require from such seller or underwriter in connection with the
registration statement (and the prospectus included therein).
(b) Failure of a prospective seller of
Registrable Securities to furnish the information and agreements described in
this Section 9.6 shall not affect the obligations of the Company under this
Section 9 to Holders who furnish such information and agreements unless, in the
reasonable opinion of counsel to the Company or the underwriters, such failure
impairs or may impair the viability of the offering or the legality of the
registration statement or the underlying offering.
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9.7 Limitations on Required Registrations.
(a) The Company shall not be required to
effect more than two registrations pursuant to Section 9.3 hereof in any
twelve-month period for all Holders on a combined basis.
(b) If at the time of any demand to
register Registrable Securities pursuant to Section 9.3 hereof, the Company is
engaged, or has fixed plans to engage within 90 days of the time of the
request, in a registered public offering as to which the Holders may include
such Stock pursuant to Section 9.4 hereof or is engaged in any other activity
that, in the good faith determination of the Company's Board of Directors,
would be adversely affected by the demanded registration to the material
detriment of the Company, then the Company may at its option direct that such
demand be delayed for a period not in excess of six months from the effective
date of such offering, or the date of commencement of such other material
activity, as the case may be, such right to delay a demand to be exercised by
the Company not more than once in each 12-month period while the rights set
forth in Section 9.3 are in effect.
9.8 Expenses of Registration. All expenses incurred
in effecting any registration pursuant to Sections 9.2, 9.3 and 9.4 including,
without limitation, all registration and filing fees, printing expenses,
expenses of compliance with blue sky laws, fees and disbursements of counsel
for the Company, and expenses of any audits incidental to or required by any
such registration, shall be borne by the Company, except:
(a) all expenses, fees and disbursements of
any counsel retained by the Holders, and all underwriting discounts and
commissions shall be borne by the Holders of the securities registered pursuant
to such registration, pro rata according to the quantity of their securities so
registered;
(b) the Company shall not be required to
pay for any expenses of any registration proceeding begun pursuant to Section
9.2 or 9.3 if the registration request is subsequently withdrawn at the request
of the Holders of a majority of the Registrable Securities to be registered (in
which case all participating Holders shall bear such expenses); and
(c) a Holder who withdraws from an
underwritten registration pursuant to Section 9.3 shall be required to pay the
percentage of the expenses of such registration which is equal to the
percentage that the number of shares such Holder requested to be registered
bears to the total number of shares to be registered.
9.9 Indemnification.
(a) Indemnification by Company. To the extent
permitted by law, the Company will indemnify each Holder requesting or joining
in a registration, each agent, officer and director of such Holder, each person
controlling such Holder and each underwriter and selling broker of the
securities so registered (each, an "Indemnitee" and
16
<PAGE> 17
collectively, "Indemnitees") against all claims, losses, damages and
liabilities (or actions in respect thereof) arising out of or based on any
untrue statement (or alleged untrue statement) of a material fact contained in
any prospectus, offering circular or other document incident to any
registration, qualification or compliance (or in any related registration
statement, notification or the like) or any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, or any violation by the Company of
the Securities Act, the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), or state securities laws or any rule or regulation promulgated
under the Securities Act, the Exchange Act or a state securities law, in each
case applicable to the Company, and will reimburse each such Indemnitee for any
legal and any other fees and expenses reasonably incurred in connection with
investigating or defending any such claim, loss, damage, liability or action,
provided, however, that the Company will not be liable to any Indemnitee in any
such case to the extent that any such claim, loss, damage or liability is
caused by any untrue statement or omission so made in strict conformity with
written information furnished to the Company by an instrument duly executed by
such Indemnitee and stated to be specifically for use therein and except that
the foregoing indemnity agreement is subject to the condition that, insofar as
it relates to any such untrue statement (or alleged untrue statement) or
omission (or alleged omission) made in the preliminary prospectus but
eliminated or remedied in the amended prospectus on file with the Commission at
the time the registration statement becomes effective or in the amended
prospectus filed with the Commission pursuant to Rule 424(b) (the "Final
Prospectus"), such indemnity agreement shall not inure to the benefit of any
underwriter, or any Indemnitee if there is no underwriter, if a copy of the
Final Prospectus was not furnished to the person or entity asserting the loss,
liability, claim or damage at or prior to the time such furnishing is required
by the Securities Act; provided, further, that this indemnity shall not be
deemed to relieve any underwriter of any of its due diligence obligations;
provided, further, that the indemnity agreement contained in this Section
9.9(a) shall not apply to amounts paid in settlement of any such claim, loss,
damage, liability or action if such settlement is effected without the consent
of the Company, which consent shall not be unreasonably withheld.
(b) Indemnification by Holders. To the
extent permitted by law, each Holder (severally and not jointly) requesting or
joining in a registration and each underwriter and selling broker of the
securities so registered will indemnify the Company and its officers and
directors and each person, if any, who controls any thereof within the meaning
of Section 15 of the Securities Act, and their respective successors against
all claims, losses, damages and liabilities (or actions in respect thereof)
arising out of or based on any untrue statement (or alleged untrue statement)
of a material fact contained in any prospectus, offering circular or other
document incident to any registration, qualification or compliance (or in any
related registration statement, notification or the like) or any omission (or
alleged omission) to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading and will
reimburse the Company and each other person indemnified pursuant to this
paragraph (b) for any legal and any other fees and expenses reasonably incurred
in connection with investigating or defending any such claim, loss, damage,
liability or action, provided, however, that this paragraph (b) shall apply
only if (and only to the extent that) such statement or omission was made in
reliance upon and in strict conformity with written information (including,
without limitation, written negative
17
<PAGE> 18
responses to inquiries) furnished to the Company by an instrument duly executed
by such Holder, underwriter or selling broker and stated to be specifically for
use in such prospectus, offering circular or other document (or related
registration statement, notification or the like) or any amendment or
supplement thereto; provided, that the indemnity agreement contained in this
Section 9.9(b) shall not apply to amounts paid in settlement of any such claim,
loss, damage, liability or action if such settlement is effected without the
consent of the Holder or underwriter, as the case may be, which consent shall
not be unreasonably withheld; and provided, further, that the obligations of
such Holders shall be limited to an amount equal to the net proceeds received
by such Holder from the sale of Subject Stock in such offering as contemplated
herein, unless such claim, loss, damage, liability or action resulted from such
Holder's fraudulent misconduct.
(c) Each party entitled to indemnification
hereunder (the "indemnified party") shall give notice to the party required to
provide indemnification (the "indemnifying party") promptly after such
indemnified party has actual knowledge of any claim as to which indemnity may
be sought, and shall permit the indemnifying party (at its expense) to assume
the defense of any claim or any litigation resulting therefrom, provided that
counsel for the indemnifying party, who shall conduct the defense of such claim
or litigation, shall be reasonably satisfactory to the indemnified party, and
the indemnified party may participate in such defense at such party's expense,
and provided further that the omission by any indemnified party to give notice
as provided herein shall not relieve the indemnifying party of its obligations
under this Section 9.9 except to the extent that the omission results in a
failure of actual notice to the indemnifying party and such indemnifying party
is damaged solely as a result of the failure to give notice. No indemnifying
party, in the defense of any such claim or litigation, shall consent, except
with the consent of each indemnified party, 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 of a release from
all liability in respect to such claim or litigation.
(d) If the indemnification provided for in
this Section 9.9 is held by a court of competent jurisdiction to be unavailable
to an indemnified party with respect to any loss, liability, claim, damage or
expense referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such loss, liability,
claim, damage, or expense in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand and of the indemnified
party on the other in connection with the statements or omissions that resulted
in such loss, liability, claim, damage, or expense as well as any other
relevant equitable considerations. This relative fault of the indemnifying
party and of the indemnified party shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative
intent, knowledge, access to information, and opportunity to correct or prevent
such statement or omission.
(e) Notwithstanding the foregoing, to the
extent that the provisions on indemnification and contribution contained in the
underwriting agreement
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<PAGE> 19
entered into in connection with the underwritten public offering are in
conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control.
(f) The reimbursement required by this
Section 9.9 shall be made by periodic payments during the course of the
investigation or defense, as and when bills are received or expenses incurred.
(g) The obligation of the Company under
this Section 9.9 shall survive the conversion, if any, of the Series A Stock,
the completion of any offering of Registrable Securities in a registration
statement under this Section 9, or otherwise.
9.10 Transfer of Registration Rights. The
registration rights granted to Buyer under this Section 9 may be transferred
but only to (i) a transferee who shall acquire not less than 50% of the
outstanding shares of Registrable Securities held by Buyer, and (ii) affiliates
of Buyer.
9.11 "Stand-Off" Agreement. In consideration for the
Company performing its obligations under this Section 9, Buyer agrees as
follows:
(a) For a period of one year from the date of
this Agreement, Buyer shall not sell or otherwise transfer any Registrable
Securities, other than in connection with a corporate reorganization, tender or
exchange offer or other similar circumstances or in a transaction exempt from
the registration requirements of the Securities Act.
(b) For a period of time (not to exceed 120
days) from the effective date of any registration of an underwritten public
offering of securities of the Company (upon request of the Company or of the
underwriters managing such underwritten offering) , Buyer shall not sell, make
any short sale of, loan, grant any option for the purchase of, or otherwise
dispose of any Registrable Securities or any other stock of the Company held by
Buyer, other than shares of Registrable Securities included in the
registration, without the prior written consent of the Company or such
underwriters, as the case may be.
9.11 Delay of Registration. Buyer shall have no right
to take any action to restrain, enjoin, or otherwise delay any registration as
the result of any controversy that might arise with respect to the
interpretation or implementation of this Section 9.
9.12 Reports Under Securities Exchange Act of 1934.
With a view to making available to the Holders the benefits of Rule 144
promulgated under the Securities Act and any other rule or regulation of the
Commission 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 S-3, the Company agrees to file with the Commission in a timely manner all
reports and other documents required of the Company under the Securities Act
and the Exchange Act.
10. Miscellaneous.
19
<PAGE> 20
10.1 Expenses. Each party to this Agreement shall
bear its own expenses relating to the preparation, execution, delivery and
performance of this Agreement and all transactions contemplated thereby.
10.2 Survival of Agreements. All agreements,
presentations and warranties and covenants contained herein or made in writing
by or on behalf of the Company in connection with the transactions contemplated
hereby shall survive the execution and delivery of this Agreement (despite any
investigation at any time made by Buyer or on their behalf). All statements
contained in any certificate or other instrument executed and delivered by the
Company or its duly authorized officers or representatives pursuant hereto in
connection with the transactions contemplated hereby shall be deemed
representations by the Company hereunder.
10.3 Notices. All notices, requests, consents and
other communications herein shall be in writing and shall be deemed to be
delivered (i) on the date delivered, if personally delivered or transmitted via
facsimile with return confirmation of such transmission; (ii) on the business
day after the date sent, if sent by recognized overnight courier service and
(iii) on the fifth day after the date sent, if mailed by first-class certified
mail, postage prepaid and return receipt requested, as follows:
If to the Company: Checkers Drive-In Restaurants, Inc.
600 Cleveland Street, Eighth Floor
Clearwater, Florida 34617-1079
Attention: Joseph Stein
Facsimile No: (813) 298-2125
Telephone No: (813) 441-3500
with a copy to: Shumaker, Loop & Kendrick, LLP
101 E. Kennedy Blvd., Suite 2800
Tampa, FL 33602
Attention: Darrell C. Smith, Esq.
Facsimile No: (813) 229-1660
Telephone No.: (813) 229-7600
If to Buyer: To the parties listed on Exhibit A
attached hereto.
with a copy to: The counsel listed on Exhibit A
or other such addresses as each of the parties hereto may provide from time to
time in writing to the other parties.
10.4 Modifications; Waiver. Neither this Agreement
nor any provision hereof may be changed, waived, discharged or terminated
orally or in writing, except that any provision of this Agreement may be
amended and the observance of any such provision
20
<PAGE> 21
may be waived (either generally or in a particular instance and either
retroactively or prospectively) with (but only with) the written consent of the
Company and Buyer.
10.5 Entire Agreement. This Agreement, together with
the schedules and exhibits attached hereto and made a part hereof, contains the
entire agreement between the parties with respect to the transactions
contemplated hereby, and supersedes all negations, agreements, representations,
warranties, commitments, whether in writing or oral, prior to the date hereof.
10.6 Successors and Assigns. Except as otherwise
expressly provided in this Agreement, all of the terms of this Agreement shall
be binding upon and inure to the benefit of and be enforceable by the
respective successors and transferees of the parties hereto.
10.7 Enforcement.
(a) Remedies at Law or in Equity. If
either party hereto shall default in any of its obligations under this
Agreement or if any representation or warranty made by or on behalf of it in
this Agreement or in any certificate, report or other instrument delivered by
it under or pursuant to any term hereof shall be untrue or misleading in any
material respect as of the date of this Agreement or as of the Closing Date or
as of the date it was made, furnished or delivered, the other party may proceed
to protect and enforce its rights by suit in equity or action at law, whether
for the specific performance of any term contained in this Agreement or the
Certificate of Designation, injunction against the breach of any such term or
in furtherance of the exercise of any power granted in this Agreement or the
Certificate of Designation, or to enforce any other legal or equitable right of
such party or to take any one of more of such actions. In the event either
party brings such an action against the other, the prevailing party in such
dispute shall be entitled to recover from the losing party all fees, costs and
expenses enforcing any right of such prevailing party under or with respect to
this Agreement or the Certificate of Designation, including without limitation
such reasonable fees and expenses of attorneys and accountants, which shall
include, without limitation, all fees, costs and expenses of appeals.
(b) Remedies Cumulative; Waiver. No
remedy referred to herein is intended to be exclusive, but each shall be
cumulative and in addition to any other remedy referred to above or otherwise
available at law or in equity. No express or implied waiver by Buyer of any
default shall be a waiver of any future or subsequent default. The failure or
delay of Buyer in exercising any rights granted hereunder shall not constitute
a waiver of any such right and any single or partial exercise of any particular
right by Buyer shall not exhaust the same or constitute a waiver of any other
right provided herein.
10.8 Execution and Counterparts; Facsimile Execution.
This Agreement may be executed in any number of counterparts, each of which
when so executed and delivered shall be deemed an original, and all such
counterparts together shall constitute one instrument. In addition, to the
extent that receipt is confirmed, this Agreement may be executed and sent by
telecopy with the original to follow by a nationally recognized
21
<PAGE> 22
overnight delivery service. Each party shall receive a duplicate original of
the counterpart copy or copies executed by it and by the Company.
10.9 Governing Law; Jurisdiction; and Severability.
This Agreement shall be governed by the internal laws of the State of Delaware,
without regard to principles of conflicts of law. Each party hereto consents
to the jurisdiction of any court located in the State of California, County of
Los Angeles for the purpose of any action, suit or proceeding arising out of or
based on this Agreement or any provision hereof. In the event any provision of
this agreement of the application of any such provision to any party shall be
held by a court of competent jurisdiction to be contrary to law, the remaining
provisions of this agreement shall remain in full force and effect.
10.10 Headings. The descriptive headings of the
Sections hereof and the Schedules and Exhibits hereto are inserted only and do
not constitute a part of this Agreement.
22
<PAGE> 23
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
by their duly authorized officers as of the date first written above.
THE COMPANY CHECKERS DRIVE-IN RESTAURANTS, INC.
By:__________________________
Name:________________________
Title:_______________________
BUYER _____________________________
By:__________________________
Name:________________________
Title:_______________________
23
<PAGE> 24
EXHIBIT A
BUYER ___________________________________
Common Stock
Purchased _____________________________ shares
($1.14 per share or an aggregate purchase
price of $ ________________________)
Series A Preferred
Stock Purchased _____________________________ shares
($114.00 per share or an aggregate purchase
price of $ _________________________)
24
<PAGE> 25
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their
duly authorized officers as of the date first written above.
THE COMPANY CHECKERS DRIVE-IN RESTAURANTS, INC.
By: /s/ Joseph N. Stein
---------------------------------
Name: Joseph N. Stein
-------------------------------
Title: Executive Vice President
------------------------------
BUYER BURT SUGARMAN
/s/ Burt Sugarman
------------------------------------
<PAGE> 26
EXHIBIT A
BUYER BURT SUGARMAN
150 El Camino Drive
Suite 303
Beverly Hills, CA 90212
Common Stock
Purchased 54,824 shares
($1.14 per share or an aggregate purchase
price of $ 62,499.36)
Series A Preferred
Stock Purchased 548 shares
($114.00 per share or an aggregate purchase
price of $ 62,472.00)
BUYER'S Counsel CHRISTENSEN, MILLER, FINK, JACOBS,
GLASER, WEIL & SHAPIRO, LLP
2121 Avenue of the Stars, 1800
Los Angeles, CA 90067
Attention: Terry N. Christensen, Esq.
<PAGE> 27
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their
duly authorized officers as of the date first written above.
THE COMPANY CHECKERS DRIVE-IN RESTAURANTS, INC.
By: /s/ Joseph N. Stein
---------------------------------
Name: Joseph N. Stein
-------------------------------
Title: Executive Vice President
------------------------------
BUYER DAVID GOTTERER
/s/ David Gotterer
-----------------------------
<PAGE> 28
EXHIBIT A
BUYER DAVID GOTTERER
425 E. 58th Street
New York, NY 10022
Common Stock
Purchased 54,824 shares
($1.14 per share or an aggregate purchase
price of $ 62,499.36)
Series A Preferred
Stock Purchased 548 shares
($114.00 per share or an aggregate purchase
price of $ 62,472.00)
BUYER'S Counsel CHRISTENSEN, MILLER, FINK, JACOBS,
GLASER, WEIL & SHAPIRO, LLP
2121 Avenue of the Stars, 1800
Los Angeles, CA 90067
Attention: Terry N. Christensen, Esq.
<PAGE> 29
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their
duly authorized officers as of the date first written above.
THE COMPANY CHECKERS DRIVE-IN RESTAURANTS, INC.
By: /s/ Joseph N. Stein
---------------------------------
Name: Joseph N. Stein
-------------------------------
Title: Executive Vice President
------------------------------
BUYER TERRY N. CHRISTENSEN, as Trustee for
the Retirement Plan for the Employees
of Terry Christensen, a Professional
Corporation
By: /s/ Terry N. Christensen
---------------------------------
Name: Terry N. Christensen
-------------------------------
Title: Trustee
------------------------------
<PAGE> 30
EXHIBIT A
BUYER TERRY N. CHRISTENSEN, as Trustee for the
Retirement Plan for the Employees of
Terry Christensen, a Professional Corp.
2121 Avenue of the Stars, 1800
Los Angeles, CA 90067
Common Stock
Purchased 14,473 shares
($1.14 per share or an aggregate purchase
price of $ 16,499.22)
Series A Preferred
Stock Purchased 144 shares
($114.00 per share or an aggregate purchase
price of $ 16,416.00)
BUYER'S Counsel CHRISTENSEN, MILLER, FINK, JACOBS,
GLASER, WEIL & SHAPIRO, LLP
2121 Avenue of the Stars, 1800
Los Angeles, CA 90067
Attention: Terry N. Christensen, Esq.
<PAGE> 31
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their
duly authorized officers as of the date first written above.
THE COMPANY CHECKERS DRIVE-IN RESTAURANTS, INC.
By: /s/ Joseph N. Stein
---------------------------------
Name: Joseph N. Stein
-------------------------------
Title: Executive Vice President
------------------------------
BUYER TERRY N. CHRISTENSEN
/s/ Terry N. Christensen
-----------------------------
<PAGE> 32
EXHIBIT A
BUYER TERRY N. CHRISTENSEN
2121 Avenue of the Stars, 1800
Los Angeles, CA 90067
Common Stock
Purchased 7,456 shares
($1.14 per share or an aggregate purchase
price of $8,499.84)
Series A Preferred
Stock Purchased 75 shares
($114.00 per share or an aggregate purchase
price of $8,550.00)
BUYER'S Counsel CHRISTENSEN, MILLER, FINK, JACOBS,
GLASER, WEIL & SHAPIRO, LLP
2121 Avenue of the Stars, 1800
Los Angeles, CA 90067
Attention: Terry N. Christensen, Esq.
<PAGE> 33
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their
duly authorized officers as of the date first written above.
THE COMPANY CHECKERS DRIVE-IN RESTAURANTS, INC.
By: /s/ Joseph N. Stein
-------------------------------
Name: Joseph N. Stein
-------------------------------
Title: Executive Vice President
-------------------------------
BUYER DAVID MALCOLM
/s/ David Malcolm
------------------------------
<PAGE> 34
EXHIBIT A
BUYER DAVID MALCOLM
509 Beacon Place
Chula Vista, CA 91910
Common Stock
Purchased 131,578 shares
($1.14 per share or an aggregate purchase
price of $149,998.92)
Series A Preferred
Stock Purchased 1,315 shares
($114.00 per share or an aggregate purchase
price of $149,910.00)
BUYER'S Counsel CHRISTENSEN, MILLER, FINK, JACOBS,
GLASER, WEIL & SHAPIRO, LLP
2121 Avenue of the Stars, 1800
Los Angeles, CA 90067
Attention: Terry N. Christensen, Esq.
<PAGE> 35
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their
duly authorized officers as of the date first written above.
THE COMPANY CHECKERS DRIVE-IN RESTAURANTS, INC.
By: /s/ Joseph N. Stein
-------------------------------
Name: Joseph N. Stein
-------------------------------
Title: Executive Vice President
-------------------------------
BUYER CATHY L. WOOD
/s/ Cathy L. Wood
------------------------------
<PAGE> 36
EXHIBIT A
BUYER CATHY L. WOOD
150 El Camino Drive
Suite 303
Los Angeles, CA 90212
Common Stock
Purchased 8,771 shares
($1.14 per share or an aggregate purchase
price of $9,998.94)
Series A Preferred
Stock Purchased 87 shares
($114.00 per share or an aggregate purchase
price of $9,918.00)
BUYER'S Counsel CHRISTENSEN, MILLER, FINK, JACOBS,
GLASER, WEIL & SHAPIRO, LLP
2121 Avenue of the Stars, 1800
Los Angeles, CA 90067
Attention: Terry N. Christensen, Esq.
<PAGE> 1
EXHIBIT 99.05
JOINT FILING AGREEMENT
This will confirm the agreement by and among all the undersigned
that the Schedule 13D, and any amendments thereto with respect to the
beneficial ownership by the undersigned of shares of Checkers Drive-In
Restaurants, Inc., is being filed by GIANT GROUP, LTD. on behalf of each of
the undersigned. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.
Dated: February 24, 1997
GIANT GROUP, LTD.
By: /s/ CATHY WOOD
-------------------------------------
Cathy Wood, Chief Financial Officer,
Secretary and Treasurer
KCC DELAWARE COMPANY
By: /s/ CATHY WOOD
-------------------------------------
Cathy Wood, Chief Financial Officer,
Secretary and Treasurer
