EchoStar DBS Corporation $1,500,000,000 7-1/8% Senior Notes due 2016 REGISTRATION RIGHTS AGREEMENT
Exhibit 4.2
EchoStar DBS Corporation
$1,500,000,000
7-1/8% Senior Notes due 2016
7-1/8% Senior Notes due 2016
This Registration Rights Agreement (this “Agreement”) is made and entered into as of
February 2, 2006 by and among EchoStar DBS Corporation, a Colorado corporation (the
“Company”), the Guarantors named in the Purchase Agreement (as defined below) (the
“Guarantors”), and Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.
(each, a “Purchaser” and, collectively, the “Purchasers”), who have agreed to
purchase $1,500,000,000 aggregate principal amount of the Company’s 7-1/8% Senior Notes due 2016
(the “Notes”) upon the terms and conditions set forth in the Purchase Agreement, dated as
of January 19, 2006 (the “Purchase Agreement”), among the Company, the Guarantors and the
Purchasers.
This Agreement is made pursuant to the Purchase Agreement. As an inducement to the Purchasers
to purchase the Notes, the Company has agreed to provide the registration rights set forth in this
Agreement. The execution and delivery of this Agreement is a condition to the obligations of the
Purchasers under the Purchase Agreement. Capitalized terms used herein without definition shall
have the meanings assigned to them in the Indenture, of even date herewith, among the Company, the
Guarantors and U.S. Bank National Association, as Trustee, relating to the Notes (the
“Indenture”).
The parties hereby agree as follows:
SECTION 1. DEFINITIONS
As used in this Agreement, the following defined terms shall have the following meanings:
“Affiliate”: As defined in Rule 144(a)(1) under the Securities Act.
“Broker-Dealer”: Any broker or dealer registered as such under the Exchange Act.
“Business Day”: Any day other than a Saturday, Sunday or other day on which commercial banks
in the State of New York or the State of Colorado are authorized or required by law or executive
order to close.
“Closing Date”: The date hereof.
“Commission”: The Securities and Exchange Commission, or any other federal agency at any time
administering the Exchange Act or the Securities Act, whichever is the relevant statute for the
particular purpose.
“Consummate”: The Exchange Offer shall be deemed “Consummated” for purposes of this Agreement
upon the occurrence of (i) the filing and effectiveness under the Securities Act of the Exchange
Offer Registration Statement relating to the Exchange Notes to be issued in the Exchange Offer,
(ii) the maintenance of such Exchange Offer continuously effective and the keeping of the Exchange
Offer open for a period not less than the period required pursuant to Section 3(b) hereof, and
(iii) the delivery by the Company to the Registrar under the Indenture, Exchange Notes in the same
aggregate principal amount as the aggregate principal amount of the Notes that were tendered by
Holders thereof pursuant to the Exchange Offer.
“Consummation Deadline”: As defined in Section 3(b) hereof.
“Effectiveness Deadline”: As defined in Sections 3(a) and 4(a) hereof.
“Exchange Act”: The Securities Exchange Act of 1934, as amended.
“Exchange Notes”: The Company’s 7-1/8% Senior Notes due 2016, guaranteed by the Guarantors to
the same extent as the Notes, to be issued pursuant to the Indenture: (i) in the Exchange Offers or
(ii) as contemplated by Section 6 hereof.
“Exchange Offer”: The exchange and issuance by the Company of a principal amount of Exchange
Notes (which shall be registered, pursuant to the Exchange Offer Registration Statement) equal to
the outstanding principal amount of Notes that are tendered by such Holders in connection with such
exchange and issuance.
“Exchange Offer Registration Statement”: A Registration Statement relating to the Exchange
Offer, including the related Prospectus.
“Filing Deadline”: As defined in Sections 3(a) and 4(a) hereof.
“Holders”: As defined in Section 2 hereof.
“NASD”: National Association of Securities Dealers, Inc.
“Prospectus”: The prospectus included in a Registration Statement at the same time such
Registration Statement is declared effective, as amended or supplemented by any prospectus
supplement and by all other amendments thereto, including post-effective amendments, and all
material incorporated by reference into such Prospectus.
“Recommencement Date”: As defined in Section 6(d) hereof.
“Registration Default”: As defined in Section 5 hereof.
“Registration Statement”: Any registration statement of the Company relating to (a) an
offering of Exchange Notes pursuant to an Exchange Offer or (b) the registration for resale of
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Transfer Restricted Securities pursuant to the Shelf Registration Statement, in each case,
that is filed pursuant to the provisions of this Agreement, including the Prospectus included
therein, all amendments and supplements thereto (including post-effective amendments) and all
exhibits and material incorporated by reference therein.
“Regulation S”: Regulation S promulgated under the Securities Act.
“Rule 144”: Rule 144 promulgated under the Securities Act.
“Securities Act”: The Securities Act of 1933, as amended.
“Shelf Registration Statement”: As defined in Section 4(a) hereof.
“Suspension Notice”: As defined in Section 6(d) hereof.
“TIA”: The Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb) as in effect on the
date of the Indenture.
“Transfer Restricted Securities”: Each Note, until the earliest to occur of (a) the date on
which such Note is exchanged in an Exchange Offer for an Exchange Note which is entitled to be
resold to the public by the Holder thereof without complying with the prospectus delivery
requirements of the Securities Act, (b) the date on which such Note has been disposed of in
accordance with a Shelf Registration Statement, (c) the date on which such Note may be distributed
to the public pursuant to Rule 144(k) under the Securities Act or (d) each Exchange Note until the
date on which such Exchange Note is disposed of by a Broker-Dealer pursuant to the “Plan of
Distribution” contemplated by the Exchange Offer Registration Statement (including the delivery of
the Prospectus contained therein).
“Underwritten Registration or Underwritten Offering”: A registration in which securities of
the Company are sold to an underwriter for reoffering to the public.
SECTION 2. HOLDERS
A person is deemed to be a holder of Transfer Restricted Securities (each, a “Holder”
and, collectively, the “Holders”) whenever such Person owns Transfer Restricted Securities.
SECTION 3. REGISTERED EXCHANGE OFFER
(a) Unless the Company determines, after consultation with counsel, either (x) that
an Exchange Offer with respect to the Notes is not permitted by applicable law or Commission policy
or (y) that such an Exchange Offer is not effective to make Exchange Notes freely tradeable to the
extent contemplated hereby under applicable law or Commission policy (after the procedures set
forth in Section 6(a) below have been complied with), the Company shall: (i) cause an Exchange
Offer Registration Statement to be filed with the Commission as soon as reasonably practicable
after the Closing Date, but in no event later than 180 days after the Closing Date (such 180th day
being the “Filing Deadline”), (ii) use its reasonable best efforts to cause such Exchange
Offer Registration Statement to become effective at the earliest possible time, but in no event
later than 270 days after the Closing Date (such 270th day being the
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“Effectiveness Deadline”), (iii) in connection with the foregoing, (A) file all
pre-effective amendments to such Exchange Offer Registration Statement as may reasonably be
necessary in order to cause it to become effective, (B) file, if applicable, a post-effective
amendment to such Exchange Offer Registration Statement pursuant to Rule 430A under the Securities
Act, and (C) cause all necessary filings, if any, in connection with the registration and
qualification of the Exchange Notes to be made under the Blue Sky laws of such jurisdictions as are
necessary to permit Consummation of the Exchange Offers, and (iv) upon the effectiveness of such
Exchange Offer Registration Statement, use its reasonable best efforts to commence and Consummate
the Exchange Offers such that the Exchange Offers are Consummated not later than the 315th day
after the Closing Date. The Exchange Offers shall be on the appropriate form permitting (i)
registration of the Exchange Notes to be offered in exchange for the Notes that are Transfer
Restricted Securities and (ii) resales of Exchange Notes by Broker-Dealers that tendered the
Exchange Notes that such Broker-Dealer acquired for its own account as a result of market-making
activities or other trading activities (other than Notes acquired directly from the Company or any
of its Affiliates) as contemplated by Section 3(c) below.
(b) The Company shall use its reasonable best efforts to cause an Exchange Offer Registration
Statement with respect to the Exchange Notes to be effective continuously and shall keep the
Exchange Offers open for a period of not less than the minimum period required under applicable
federal and state securities laws to Consummate the Exchange Offers; provided, however, that in no
event shall such period be less than twenty (20) Business Days. The Company shall cause the
Exchange Offers to comply with all applicable federal and state securities laws. No securities
other than Exchange Notes shall be included in any Exchange Offer Registration Statement. The
Company shall use its reasonable best efforts to cause the Exchange Offers to be Consummated not
later than the 315th day after the Closing Date (such 315th day being the “Consummation
Deadline”).
(c) The Company shall include a “Plan of Distribution” section in the Prospectus contained in
each Exchange Offer Registration Statement and indicate therein that any Broker-Dealer who holds
Transfer Restricted Securities that were acquired for the account of such Broker-Dealer as a result
of market-making activities or other trading activities (other than Notes acquired directly from
the Company or any Affiliate of the Company), may exchange such Transfer Restricted Securities
pursuant to the Exchange Offers. Such “Plan of Distribution” section shall also contain all other
information with respect to such sales by such Broker-Dealers that the Commission may require in
order to permit such sales pursuant thereto, but such “Plan of Distribution” shall not name any
such Broker-Dealer or disclose the amount of Transfer Restricted Securities held by any such
Broker-Dealer, except to the extent required by the Commission as a result of a change in policy,
rules or regulations after the date of this Agreement.
Because such Broker-Dealer may be deemed to be an “underwriter” within the meaning of the
Securities Act and must, therefore, deliver a prospectus meeting the requirements of the Securities
Act in connection with any initial sale of any Exchange Notes received by such Broker-Dealer in the
Exchange Offers, the Company shall permit the use of the Prospectus contained in each Exchange
Offer Registration Statement by such Broker-Dealer to satisfy such prospectus delivery requirement.
To the extent necessary to ensure that the Prospectus contained in each Exchange Offer
Registration Statement is available for sales of Exchange Notes by
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Brokers-Dealers, the Company shall use its reasonable best efforts to keep each Exchange Offer
Registration Statement continuously effective, supplemented, amended and current as required by and
subject to the provisions of Sections 6(a) and 6(c) hereof and in conformity with the requirements
of this Agreement, the Securities Act and the policies, rules and regulations of the Commission as
announced from time to time, for a period of six months from the date on which each Exchange Offer
is Consummated or such shorter period as will terminate when all Transfer Restricted Securities
covered by such Registration Statement have been sold pursuant thereto. The Company shall provide
sufficient copies of the latest version of such Prospectus to such Broker-Dealers, promptly upon
request, and in no event later than two Business Days after such request, at any time during such
period.
SECTION 4. SHELF REGISTRATION
(a) Shelf Registration. If (i) the Company determines, after consultation with
counsel, either (x) that an Exchange Offer is not permitted by applicable law or Commission policy
or (y) that such an Exchange Offer is not effective to make Exchange Notes freely tradeable to the
extent contemplated hereby under applicable law or Commission policy (after the Company has
complied with the procedures set forth in Section 6(a) below) or (ii) if any Holder of Transfer
Restricted Securities shall notify the Company within twenty (20) Business Days following the date
on which any Exchange Offer is Consummated that (A) such Holder was prohibited by applicable law or
Commission policy from participating in the Exchange Offer, or (B) such Holder may not resell the
Exchange Notes acquired by it in the Exchange Offer to the public without delivering a prospectus
and that the Prospectus contained in such Exchange Offer Registration Statement is not appropriate
or available for such resales by such Holder, or (C) that such Holder is a Broker-Dealer and holds
Notes acquired directly from the Company or any of its Affiliates, then the Company shall:
(x) cause to be filed a shelf registration statement pursuant to Rule 415 under the
Securities Act (the “Shelf Registration Statement”), relating to all Transfer
Restricted Securities, on or prior to the later of (1) ninety (90) days after the date on
which the Company determines that an Exchange Offer Registration Statement cannot be filed
as a result of clause (a)(i) above, (2) ninety (90) days after the date on which the Company
receives notice specified in clause (a)(ii) above, and (3) the 180th day after the Closing
Date (such later date, the “Filing Deadline”); and
(y) shall use its reasonable best efforts to cause such Shelf Registration Statement to
become effective on or prior to the 270th day after the Filing Deadline (such 270th day, the
“Effectiveness Deadline”). To the extent necessary to ensure that the Shelf
Registration Statement is available for sales of Transfer Restricted Securities by the
Holders thereof entitled to the benefit of this Section 4(a) and other securities required
to be registered therein pursuant to Section 6(b)(ii) hereof, the Company shall use its
reasonable best efforts to keep such Shelf Registration Statement required by this Section
4(a) continuously effective, supplemented, amended and current as required by and subject to
the provisions of Sections 6(b) and (c) hereof and in conformity with the requirements of
this Agreement, the Securities Act and the policies, rules and regulations of the Commission
as announced from time to time, for a period of at least two years (as extended pursuant to
Section 6(d) hereof) following the Closing Date or such shorter
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period as will terminate where all Transfer Restricted Securities covered by such Shelf
Registration Statement have been sold pursuant thereto.
(b) Provision by Holders of Certain Information in connection with the Shelf Registration
Statement. No Holder of Transfer Restricted Securities may include any of its Transfer
Restricted Securities in any Shelf Registration Statement pursuant to this Agreement unless and
until such Holder furnishes to the Company in writing, within twenty (20) days after receipt of a
request therefor, (i) the information specified in Item 507 or 508 of Regulation S-K, as
applicable, of the Securities Act, and any successor provisions, for use in connection with any
Shelf Registration Statement or Prospectus or preliminary Prospectus included therein and (ii) the
undertaking specified in Section 8(b) hereof. No Holder of Transfer Restricted Securities shall be
entitled to liquidated damages pursuant to Section 5 hereof unless and until such Holder shall have
used its reasonable best efforts to provide all such information. Each selling Holder agrees to
furnish promptly to the Company all information required to be disclosed in order to make the
information previously furnished to the Company by such Holder not materially misleading.
SECTION 5. LIQUIDATED DAMAGES
If (i) any Registration Statement required by this Agreement is not filed with the Commission
on or prior to the applicable Filing Deadline, (ii) any such Registration Statement has not been
declared effective by the Commission on or prior to the applicable Effectiveness Deadline, (iii)
any Exchange Offer has not been Consummated on or prior to the Consummation Deadline or (iv) any
Registration Statement required by this Agreement is filed and declared effective but shall
thereafter (and before the second anniversary of the initial sale) cease to be effective or fail to
be usable in connection with resales of the Transfer Restricted Securities without being succeeded
immediately by a post-effective amendment to such Registration Statement that cures such failure
and that is itself immediately declared effective, and only for such time of non-effectiveness or
non-usability (each such event referred to in clauses (i) through (iv), a “Registration
Default”), then the Company hereby agrees to pay (and the Guarantors agree to guarantee such
payments) liquidated damages to each Holder of Transfer Restricted Securities affected thereby for
the first 90-day period immediately following the occurrence of such Registration Default, in an
amount equal to $0.05 per week per $1,000 in principal amount of Transfer Restricted Securities
held by such Holder for each week or portion thereof that the Registration Default continues. The
amount of the liquidated damages shall increase by an additional $0.05 per week per $1,000 in
principal amount of Transfer Restricted Securities with respect to each subsequent 90-day period
until all Registration Defaults have been cured, the Transfer Restricted Securities become freely
tradable without registration under the Securities Act or no Transfer Restricted Securities are
outstanding, up to a maximum amount of liquidated damages of $0.25 per week per $1,000 in principal
amount of Transfer Restricted Securities; provided that the Company shall in no event be required
to pay liquidated damages for more than one Registration Default at any given time. All accrued
liquidated damages shall be paid to the Holders entitled thereto, in the manner provided for the
payment of interest, on each Interest Payment Date, as more fully set forth in the Indenture and
the Notes. Notwithstanding anything to the contrary set forth herein, (1) upon filing of an
Exchange Offer Registration Statement with respect to the Transfer Restricted Securities (and/or,
if applicable, the Shelf Registration Statement), in the case of (i) above, (2) upon the
effectiveness of an Exchange Offer Registration
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Statement with respect to the Transfer Restricted Securities (and/or, if applicable, the Shelf
Registration Statement), in the case of (ii) above, (3) upon Consummation of an Exchange Offer with
respect to the Transfer Restricted Securities, in the case of (iii) above, or (4) upon the filing
of a post-effective amendment to a Registration Statement or an additional Registration Statement
that causes the Exchange Offer Registration Statement with respect to the Transfer Restricted
Securities (and/or, if applicable, the Shelf Registration Statement) to again be declared effective
or made usable in the case of (iv) above, the liquidated damages payable with respect to the
Transfer Restricted Securities as a result of such clause (i), (ii), (iii) or (iv), as applicable,
shall cease.
Notwithstanding the fact that any securities for which liquidated damages are due cease to be
Transfer Restricted Securities, all obligations of the Company to pay liquidated damages with
respect to securities shall survive until such time as such obligations with respect to such
securities shall have been satisfied in full.
SECTION 6. REGISTRATION PROCEDURES
(a) Exchange Offer Registration Statement. In connection with the Exchange Offers,
the Company shall (x) comply with all of the provisions of Section 6(c) below, (y) use its
reasonable best efforts to effect such exchange and to permit the resale of Exchange Notes by
Broker-Dealers that tendered in the Exchange Offers, Notes that such Broker-Dealer acquired for its
own account as a result of its market making activities as other trading activities (other than
Notes acquired directly from the Company or any of its Affiliates) being sold in accordance with
the intended method or methods of distribution thereof, and (z) comply with all of the following
provisions:
(i) If, following the date hereof there has been announced a change in Commission
policy with respect to exchange offers such as the Exchange Offer, that in the reasonable
opinion of counsel to the Company raises a substantial question as to whether any Exchange
Offer is permitted by applicable federal law, the Company hereby agrees to seek a no-action
letter or other favorable decision from the Commission allowing the Company to Consummate
such Exchange Offer for such Transfer Restricted Securities. The Company agrees to pursue
the issuance of such a decision to the Commission staff. In connection with the foregoing,
the Company agrees, to take all such other actions as may be requested by the Commission or
otherwise required in connection with the issuance of such decision, including without
limitation (A) participating in telephonic conferences with the Commission and (B)
delivering to the Commission staff an analysis prepared by counsel to the Company setting
forth the legal bases, if any, upon which such counsel has concluded that such an Exchange
Offer should be permitted.
(ii) As a condition to its participation in the Exchange Offers, each Holder of
Transfer Restricted Securities (including, without limitation, any Holder who is a
Broker-Dealer) shall furnish, upon the request of the Company, prior to the Consummation of
the applicable Exchange Offer, a written representation to the Company (which may be
contained in the letter of transmittal contemplated by the related Exchange Offer
Registration Statement) to the effect that (A) it is not an Affiliate of the Company, (B) it
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is not engaged in, and does not intend to engage in, and has no arrangement or
understanding with any person to participate in, a distribution of the Exchange Notes to be
issued in the Exchange Offer and (C) it is acquiring the Exchange Notes in its ordinary
course of business. Each Holder using an Exchange Offer to participate in a distribution of
the Exchange Notes shall acknowledge and agree that, if the resales are of Exchange Notes
obtained by such Holder in exchange for Notes acquired by such Holder directly from the
Company or an Affiliate thereof, it (1) could not, under Commission policy as in effect on
the date of this Agreement rely on the position of the Commission enunciated in Exxon
Capital Holdings Corporation (available May 13, 1988) and Xxxxxx Xxxxxxx and Co.,
Inc. (available June 5, 1991), as interpreted in the Commission’s letter to Shearman
& Sterling dated July 2, 1993, and similar no-action letters (including, if applicable,
any no-action letter obtained pursuant to clause (i) above), and (2) must comply with the
registration and prospectus delivery requirements of the Securities Act in connection with a
secondary resale transaction and that such a secondary resale transaction should be covered
by an effective registration statement containing the selling security holder information
required by Item 507 or 508, as applicable, of Regulation S-K or any successor provisions.
(iii) Prior to effectiveness of each Exchange Offer Registration Statement, the Company
shall provide a supplemental letter to the Commission (A) stating that the Company is
registering the related Exchange Offer in reliance on the position of the Commission
enunciated in Exxon Capital Holdings Corporation (available May 13, 1988) and
Xxxxxx Xxxxxxx and Co., Inc. (available June 5, 1991), as interpreted in the
Commission’s letter to Shearman & Sterling dated July 2, 1993, and, if applicable,
any no-action letter obtained pursuant to clause (i) above, (B) including a representation
that neither the Company nor any Guarantor has entered into any arrangement or understanding
with any Person to distribute the Exchange Notes to be received in the Exchange Offers and
that, to the best of the Company’s information and belief, each Holder participating in the
Exchange Offers is acquiring the Exchange Notes in its ordinary course of business and has
no arrangement or understanding with any Person to participate in the distribution of the
Exchange Notes received in the Exchange Offers and (C) any other undertaking or
representation required by the Commission as set forth in any no-action letter obtained
pursuant to clause (i) above, if applicable.
(b) Shelf Registration Statement. In connection with each Shelf Registration
Statement, the Company shall: (i) comply with all the provisions of Section 6(c) below and shall
use its reasonable best efforts to effect such registration to permit the sale of the Transfer
Restricted Securities being sold in accordance with the intended method or methods of distribution
thereof (as indicated in the information furnished to the Company pursuant to Section 4(b) hereof),
and pursuant thereto the Company will prepare and file with the Commission, a Registration
Statement relating to the registration on any appropriate form under the Securities Act, which form
shall be available for the sale of the Transfer Restricted Securities in accordance with the
intended method or methods of distribution thereof within the time periods and otherwise in
accordance with the provisions hereof and (ii) issue, upon the request of any Holder or purchaser
of Notes covered by any Shelf Registration Statement contemplated by this Agreement, Exchange Notes
having an aggregate principal amount equal to the aggregate principal amount of Notes sold pursuant
to the Shelf Registration Statement and surrendered to
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the Company for cancellation; the Company shall register Exchange Notes on the Shelf
Registration Statement for this purpose and issue the Exchange Notes to the purchasers of
securities subject to the Shelf Registration Statement in the names as such purchasers shall
designate.
(c) General Provisions. In connection with any Registration Statement and any related
Prospectus required by this Agreement, the Company shall:
(i) use its reasonable best efforts to keep such Registration Statement continuously
effective and provide all requisite financial statements for the period specified in Section
3 or 4 of this Agreement, as applicable. Upon the occurrence of any event that would cause
any such Registration Statement or the Prospectus contained therein (A) to contain an untrue
statement of material fact or omit to state any material fact necessary to make the
statements therein not misleading or (B) not to be effective and usable for resale of
Transfer Restricted Securities during the period required by this Agreement, the Company
shall file promptly an appropriate amendment to such Registration Statement, curing such
defect, and if Commission review is required, use its reasonable best efforts to cause such
amendment to be declared effective as soon as reasonably practicable;
(ii) prepare and file with the Commission such amendments and post-effective amendments
to the Registration Statement as may be necessary to keep such Registration Statement
effective for the applicable period set forth in Section 3 or 4 hereof, as the case may be;
cause the Prospectus to be supplemented by any required Prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 under the Securities Act, and to comply fully
with the applicable provisions of Rules 424 and 430A under the Securities Act in a timely
manner; and comply with the provisions of the Securities Act with respect to the disposition
of all securities covered by such Registration Statement during the applicable period in
accordance with the intended method or methods of distribution by the sellers thereof set
forth in such Registration Statement or supplement to the Prospectus;
(iii) advise the underwriters, if any and each selling Holder promptly, (A) when the
Prospectus or any Prospectus supplement or post-effective amendment has been filed, and,
with respect to any Registration Statement or any post-effective amendment thereto, when the
same has become effective, (B) of any request by the Commission for amendments to the
Registration Statement or amendments or supplements to the Prospectus or for additional
information relating thereto, (C) of the issuance by the Commission of any stop order
suspending the effectiveness of any Registration Statement under the Securities Act or of
the suspension by any state securities commission of the qualification of the Transfer
Restricted Securities for offering or sale in any jurisdiction, or the initiation of any
proceeding for any of the preceding purposes, and (D) of the existence of any fact or the
happening of any event that makes any statement of a material fact made in any Registration
Statement, any Prospectus, any amendment or supplement thereto, or any document incorporated
by reference therein untrue, or that requires the making of any additions to or changes in
any Registration Statement or any Prospectus in order to make the statements therein not
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misleading, or that requires the making of any additions to or changes in any
Prospectus in order to make the statements therein in the light of the circumstances under
which they were made, not misleading. If at any time the Commission shall issue any stop
order suspending the effectiveness of any Registration Statement, or any state securities
commission or other regulatory authority shall issue an order suspending the qualification
or exemption from qualification of the Transfer Restricted Securities under state securities
or Blue Sky laws, the Company shall use its reasonable best efforts to obtain the withdrawal
or lifting of such order at the earliest possible time;
(iv) furnish to each of the underwriters, if any, in connection with such exchange or
sale, if any, before filing with the Commission, copies of any Registration Statement or any
Prospectus included therein or any amendments or supplements to any such Registration
Statement or Prospectus (including all documents incorporated by reference after the initial
filing of such Registration Statement), which documents will be subject to the review and
comment of such underwriter(s), if any, in connection with such sale, if any, for a period
of at least three (3) Business Days, and the Company shall use its reasonable best efforts
to reflect in any such Registration Statement or Prospectus or any amendment or supplement
to any such Registration Statement or Prospectus (including all such documents incorporated
by reference) such comments as the underwriters, if any, reasonably propose;
(v) make available, at reasonable times, for inspection by any underwriter, if any,
participating in any disposition pursuant to such Registration Statement, and any attorney
or accountant retained by any of such underwriters, all financial and other records,
pertinent corporate documents and properties of the Company and cause the Company’s
officers, directors and employees to supply all information reasonably requested by any such
underwriter, attorney or accountant in connection with such Registration Statement or any
post-effective amendment thereto subsequent to the filing thereof and prior to its
effectiveness;
(vi) cause the Transfer Restricted Securities covered by each Registration Statement to
be rated with the appropriate rating agencies, if so requested by the Holders of a majority
in aggregate principal amount of Notes covered thereby;
(vii) furnish to each of the underwriter(s) (and upon request, any selling Holder), if
any, in connection with such exchange or sale, without charge, at least one copy of each
Shelf Registration Statement, as first filed with the Commission, and of each amendment
thereto, including all documents incorporated by reference therein and all exhibits
(including exhibits incorporated therein by reference);
(viii) deliver to each selling Holder and each of the underwriters, if any, without
charge, as many copies of each Prospectus (including each preliminary prospectus) included
with a Shelf Registration Statement and any amendment or supplement thereto as such Persons
reasonably may request; the Company hereby consents to the use (in accordance with
applicable law) of the Prospectus included with a Shelf Registration Statement and any
amendment or supplement thereto by each selling Holder and each
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underwriter, if any, in connection with the offering and the sale of the Transfer
Restricted Securities covered by each Prospectus or any amendment or supplement thereto;
(ix) upon the request of any selling Holder, enter into such agreements (including
underwriting agreements), and make, such representations and warranties, and take all such
other actions in connection therewith in order to expedite or facilitate the disposition of
the Transfer Restricted Securities pursuant to any Shelf Registration Statement contemplated
by this Agreement, as may be requested by any selling Holder in connection with any sale or
resale pursuant to any Shelf Registration Statement. In such connection, the Company shall:
(A) upon request of the underwriters, if any, furnish to each such requesting
underwriter, in such substance and scope as they may request and as are customarily
made by issuers to underwriters in primary underwritten offerings, upon the
effectiveness of each Shelf Registration Statement, as the case may be:
(1) a certificate, dated such date signed on behalf of the Company by (x) the
President or any Vice President of the Company and (y) a principal financial or
accounting officer of the Company, confirming, as of the date thereof, that the
representations and warranties of the Company contained in any such underwriting
agreement (which shall be of the same tenor as the representations and warranties
contained in the Purchase Agreement, excluding Sections 2(a) (which shall reference
the related Registration Statement and Prospectus instead of the Offering
Memorandum) and (v)) qualified as to materiality are true and correct, and those not
so qualified are true and correct in all material respects, in each case, as of the
date hereof, and confirming such other matters as such parties may reasonably
request;
(2) an opinion, dated the date of effectiveness of each Shelf Registration
Statement, as the case may be, of counsel for the Company, similar to the form set
forth in Schedule II of the Purchase Agreement, and in any event including a
statement to the effect that such counsel has participated in conferences with
officers and other representatives of the Company, representatives of the
independent public accountants for the Company, the Purchasers’ representatives and
the Purchasers’ counsel in connection with the preparation of such Shelf
Registration Statement and the related Prospectus and have considered the matters
required to be stated therein and the statements contained therein, although such
counsel has not independently verified the accuracy, completeness or fairness of
such statements; and that such counsel advises that, on the basis of the foregoing
(relying as to materiality to the extent such counsel deems appropriate upon the
statements of officers and other representatives of the Company and without
independent check or verification), no facts came to such counsel’s attention that
caused such counsel to believe that the applicable Shelf Registration Statement, at
the time such Shelf Registration Statement or any post-effective amendment thereto
became effective, contained an untrue statement of a material fact or omitted to
state a material fact required to
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be stated therein or necessary to make the statements therein not misleading,
or that the related Prospectus contained in such Shelf Registration Statement as of
its date contained an untrue statement of a material fact or omitted to state a
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. Without limiting the
foregoing, such counsel may state further that such counsel assumes no
responsibility for, and has not independently verified, the accuracy, completeness
or fairness of the financial statements, notes and schedules and other financial
data included in any Shelf Registration Statement contemplated by this Agreement or
the related Prospectus; and
(3) a customary comfort letter, dated as of the date of effectiveness of each
Shelf Registration Statement, as the case may be, from the Company’s independent
registered public accounting firm, in the customary form and covering matters of the
type customarily covered in comfort letters to underwriters in connection with
primary underwritten offerings; and
(B) deliver such other documents and certificates as may be reasonably
requested by the underwriters, if any, to evidence compliance with the matters
covered in clause (A) above and with any customary conditions contained in any
agreement or other agreement entered into by the Company pursuant to this clause
(xi), if any.
If at any time the representations and warranties of the Company contemplated in clause (A)(1)
above cease to be true and correct, the Company shall so advise the Purchasers and the
underwriter(s), if any, and each selling Holder promptly and, if requested by such Persons, shall
confirm such advice in writing;
(x) prior to any public offering of Transfer Restricted Securities, cooperate with, the
underwriters, if any, and their respective counsel in connection with the registration and
qualification of the Transfer Restricted Securities under the securities or Blue Sky laws of
such jurisdictions as the underwriters may request and do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the Transfer
Restricted Securities covered by the applicable Registration Statement; provided, however,
that the Company shall not be required to register or qualify as a foreign corporation where
it is not now so qualified or to take any action that would subject it to the service of
process in suits or to taxation, other than as to matters and transactions relating to any
Registration Statement, in any jurisdiction where it is not now so subject;
(xi) shall issue, upon the request of any Holder of Notes covered by each Shelf
Registration Statement, Exchange Notes, having an aggregate principal amount equal to the
aggregate principal amount of Notes surrendered to the Company by such Holder in exchange
therefor or being sold by such Holder; such Exchange Notes to be registered in the name of
such Holder or in the name of the purchaser(s) of such Notes or Exchange Notes, as the case
may be; in return, the Notes held by such Holder shall be surrendered to the Company for
cancellation;
12
(xii) in connection with any sale of Transfer Restricted Securities that will result in
such securities no longer being Transfer Restricted Securities, cooperate with the Holders
and the underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing Transfer Restricted Securities to be sold and not bearing any
restrictive legends; and to register such Transfer Restricted Securities in such
denominations and in such names as the selling Holders or the underwriters, if any, may
request at least five (5) Business Days prior to any such sale of Transfer Restricted
Securities;
(xiii) use its reasonable best efforts to cause the disposition of the Transfer
Restricted Securities covered by each Registration Statement to be registered with or
approved by such other governmental agencies or authorities as may be necessary to enable
the underwriters, if any, to consummate the disposition of such Transfer Restricted
Securities, subject to the proviso contained in clause (xii) above;
(xiv) subject to Section 6(c)(i), if any fact or event contemplated by Section
6(c)(iii)(D) above shall exist or have occurred, prepare a supplement or post-effective
amendment to each Registration Statement or related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter delivered to
the purchasers of Transfer Restricted Securities, the Prospectus will not contain an untrue
statement of a material fact or omit to state any material fact necessary to make the
statements therein, not misleading;
(xv) provide a CUSIP number for all Transfer Restricted Securities not later than the
effective date of a Registration Statement covering such Transfer Restricted Securities and
provide the Trustee under the Indenture with printed certificates for the Transfer
Restricted Securities which are in a form eligible for deposit with the Depositary Trust
Company;
(xvi) cooperate and assist in any filings required to be made with the NASD and in the
performance of any due diligence investigation by any underwriter, if any, (including any
“qualified independent underwriter”) that is required to be retained in accordance with the
rules and regulations of the NASD, and use its reasonable best efforts to cause such
Registration Statement to become effective and approved by such governmental agencies or
authorities as may be necessary to enable the Holders selling Transfer Restricted Securities
to consummate the disposition of such Transfer Restricted Securities;
(xvii) otherwise use its reasonable best efforts to comply with all applicable rules
and regulations of the Commission, and make generally available to its security holders with
regard to any Registration Statement, as soon as reasonably practicable, a consolidated
earning statement meeting the requirements of Rule 158 under the Securities Act (which need
not be audited) covering a twelve-month period, beginning after the effective date of the
Registration Statement (as such term is defined in paragraph (c) of Rule 158 of the
Securities Act);
13
(xviii) cause the Indenture to be qualified under the TIA not later than the effective
date of the Registration Statement required by this Agreement, and, in connection therewith,
cooperate with the Trustee and the Holders to effect such changes to the Indenture as may be
required for the Indenture to be so qualified in accordance with the terms of the TIA; and
execute, and use its reasonable best efforts to cause the Trustee to execute, all documents
that may be required to effect such changes and all other forms and documents required to be
filed with the Commission to enable such Indenture to be so qualified in a timely manner;
(xix) cause all Transfer Restricted Securities covered by the Registration Statement to
be listed on each securities exchange on which similar securities issued by the Company are
then listed if requested by the Holders of a majority in aggregate principal amount of Notes
or the managing underwriters, if any; and
(xx) provide promptly to each underwriter, if any, upon request, each document filed
with the Commission pursuant to the requirements of Section 13 or Section 15(d) of the
Exchange Act since the Company’s most recent Annual Report on Form 10-K.
(d) Restrictions on Holders. Each Holder agrees by acquisition of a Transfer
Restricted Security that, upon receipt of the notice referenced to in Section 6(c)(iii)(D) or any
notice from the Company of the existence of any fact of the kind described in Section 6(c)(iii)(D)
hereof (in each case, a “Suspension Notice”), such Holder will forthwith discontinue
disposition of Transfer Restricted Securities pursuant to the applicable Registration Statement
until (i) such Holder has received copies of the supplemented or amended Prospectus contemplated by
Section 6(c)(xvi) hereof, or (ii) such Holder is advised in writing by the Company that the use of
the Prospectus may be resumed, and has received copies of any additional or supplemental filings
that are incorporated by reference in the Prospectus (in each case, the “Recommencement
Date”). Each Holder receiving a Suspension Notice hereby agrees that it will either (i)
destroy any Prospectuses, other than permanent file copies then in such Holder’s possession which
have been replaced by the Company with more recently dated Prospectuses, or (ii) will 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 Transfer Restricted Securities that was
current at the time of receipt of such Suspension Notice. The time period regarding the
effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as applicable,
shall be extended by a number of days equal to the number of days in the period from and including
the date of delivery of the Suspension Notice to the date of the Recommencement Date.
SECTION 7. REGISTRATION EXPENSES
Subject to the compliance in all material respects by the Company and the Guarantors with all
of their respective obligations under this Agreement, the Purchasers agree to pay (and, to the
extent not paid by the Purchasers, to reimburse the Company for) all out-of-pocket costs and
expenses reasonably incurred by the Issuers in connection with the registration of the Exchange
Notes in an aggregate amount not to exceed $750,000, including (i) Commission filing fees; (ii)
costs of printing or word processing or other production of documents incurred in connection with
the exchange offer; (iii) fees and expenses of the Trustee, and any transfer or exchange
14
agent; (iv) all fees and expenses of compliance with federal securities and state Blue Sky or
securities laws; (v) all application and filing fees in connection with listing Exchange Notes on a
national securities exchange automated quotation system pursuant to the requirements hereof; (vi)
all fees and disbursements of the Issuers’ counsel and independent accountants incurred in
connection therewith; and (vii) all expenses of printing (including printing certificates for the
Exchange Notes to be issued in the Exchange Offers and printing of Prospectuses), messenger and
delivery services and telephone. To the extent not paid or reimbursed, such expenses shall be
borne by the Company and the Guarantors. The Purchasers’ obligations under this Section 7(a) shall
be subject in each case to the submission by the Company and the Guarantors to the Purchasers of
invoices and other documentation with respect to such costs and expenses. In no event shall the
Purchasers’ obligations under Section this 7(a) limit their rights under Section 8 hereof, whether
by set-off or otherwise by the Company and the Guarantors, and no liability of the Company and the
Guarantors under Section 8 hereof shall be an obligation required to be paid or reimbursed by the
Purchasers pursuant to this Section 7(a).
The Company will, in any event, bear its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or accounting duties), the
expenses of any annual audit and the fees and expenses of any Person, including special experts,
retained by the Company.
SECTION 8. INDEMNIFICATION
(a) The Company and the Guarantors agree to indemnify and hold harmless (i) each Holder and
(ii) each Person, if any, who controls such Holder (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) (any of the persons referred to in this clause
(ii) being hereinafter referred to as a “controlling person”) and (iii) the respective officers,
directors, partners, employees, representatives and agents of any Holder or any controlling person,
from and against any and all losses, claims, damages, liabilities, judgments, actions and expenses
(including, without limitation, any legal or other expenses incurred in connection with,
investigating, preparing, pursuing or defending any claim or action, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, including any action that
could give rise to any such losses, claims, damages, liabilities or judgments) directly or
indirectly caused by, related to, based upon, arising out of or in connection with any untrue
statement or alleged untrue statement of a material fact contained in any Registration Statement,
preliminary prospectus or Prospectus (or any amendment or supplement thereto), provided by the
Company to any Holder or any prospective purchaser of Exchange Notes or registered Notes or caused
by 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, except insofar as such losses, claims,
damages, liabilities, judgments, actions or expenses are caused by an untrue statement or omission
or alleged untrue statement or omission that is based upon information relating to such Holder
furnished in writing to the Company by such Holder.
(b) The Company may require, as a condition to including any Transfer Restricted Securities
held by any Holder in a Registration Statement, that the Company shall have received an undertaking
reasonably satisfactory to it from such Holder that such Holder agrees, severally and not jointly,
to indemnify and hold harmless the Company and the Guarantors, and their respective directors and
officers, and each person, if any, who controls (within the meaning of
15
Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company or the
Guarantors, as the case may be, to the same extent as the foregoing indemnity from the Company set
forth in Section 8(a) above, but only with reference to information relating to such Holder
furnished in writing to the Company by such Holder expressly for use in any Registration Statement.
In no event shall any Holder, its directors, officers, or any person who controls such Holder be
liable or responsible for any amount in excess of the amount by which the entire amount received by
such Holder with respect to its sale of the Transfer Restricted Securities pursuant to a
Registration Statement exceeds (i) the amount paid by such Holder for such Transfer Restricted
Securities and (ii) the amount of any damages that such Holder, its directors, officers or any
Person who controls such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.
(c) In case any action shall be commenced involving any person in respect of which indemnity
may be sought pursuant to Section 8(a) or 8(b) (the “Indemnified Party”), the Indemnified
party shall promptly notify the person against whom such indemnity may be sought (the
“Indemnifying Party”) in writing and the Indemnifying Party shall assume the defense of
such action, including the employment of counsel reasonably satisfactory to the Indemnified Party
and the payment of all fees and expenses of such counsel, as incurred (except that in the case of
any action in respect of which indemnity may be sought pursuant to both Sections 8(a) and 8(b), a
Holder shall not be required to assume the defense of such action pursuant to this Section 8(c),
but may employ separate counsel and participate in the defense thereof, but the fees and expenses
of such counsel, except as provided below, shall be at the expense of the Holder). Any Indemnified
Party shall have the right to employ separate counsel in any such action and participate in the
defense thereof, but the fees and expenses of such counsel shall be at the expense of the
Indemnified Party unless (i) the employment of such counsel shall have been specifically authorized
in writing by the Indemnifying Party, (ii) the Indemnifying Party shall have failed to assume the
defense of such action or employ counsel reasonably satisfactory to the Indemnified Party or (iii)
the named parties to any such action (including any impleaded parties) include both the Indemnified
Party and the Indemnifying Party, and the Indemnified Party shall have been advised by such counsel
that there may be one or more legal defenses available to it which are different from or additional
to those available to the Indemnifying Party (in which case the Indemnifying Party shall not have
the right to assume the defense of such action on behalf of the Indemnified Party). In any such
case, the Indemnifying Party shall not, in connection with any one action or separate but
substantially similar or related actions in the same jurisdiction arising out of the same general
allegations or circumstances, be liable for the fees and expenses of more than one separate firm of
attorneys (in addition to any local counsel) for all indemnified parties and all such fees and
expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by a
majority of the Holders, in the case of the parties indemnified pursuant to Section 8(a), and by
the Company, in the case of parties indemnified pursuant to Section 8(b). The Indemnifying Party
shall indemnify and hold harmless the Indemnified Party from and against any and all losses,
claims, damages, liabilities, judgments and expenses by reason of any settlement of any action (i)
effected with its written consent or (ii) effected without its written consent if the settlement is
entered into more than twenty (20) Business Days after the Indemnifying Party shall have received a
request from the Indemnified Party for reimbursement for the fees and expenses of counsel (in any
case where such fees and expenses are at the expense of the Indemnifying Party) and, prior to the
date of such settlement, the Indemnifying Party shall have failed to comply with such reimbursement
request. No Indemnifying Party
16
shall, without the prior written consent of the Indemnified Party, effect any settlement or
compromise of, or consent to the entry of judgment with respect to, any pending or threatened
action in respect of which the Indemnified Party is or could have been a party and indemnity or
contribution may be or could have been sought hereunder by the Indemnified Party, unless such
settlement, compromise or judgment (i) includes an unconditional release of the Indemnified Party
from all liability on claims that are or could have been the subject matter of such action and (ii)
does not include a statement as to or an admission of fault, culpability or a failure to act, by or
on behalf of the Indemnified Party.
(d) To the extent that the indemnification provided for in this Section 8 is unavailable to an
Indemnified Party under Section 8(a) or Section 8(b) hereof in respect of any losses, claims,
damages, liabilities, judgments or expenses referred to therein, then each Indemnifying Party, in
lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such losses, claims, damages, liabilities, judgments or expenses
(i) in such proportion as is appropriate to reflect the relative benefits received by the Company,
on the one hand, and the Holders, on the other hand, from their sale of Transfer Restricted
Securities or (ii) if the allocation provided by clause 8(d)(i) is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause 8(d)(i) above but also the relative fault of the Company, on the one hand, and of the
Holder, on the other hand, in connection with the statements or omissions which resulted in such
losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant
equitable considerations. The relative fault of the Company, on the one hand, and of the Holder,
on the other hand, shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by the Company, on the one hand, or by such Holder, on the
other hand, and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.
The Company, the Guarantors and each Holder agree that it would not be just and equitable if
contribution pursuant to this Section 8(d) were determined by pro rata allocation (even if the
Holders were treated as one entity for such purpose) or by any other method of allocation which
does not take account of the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an Indemnified Party as a result of the losses, claims,
damages, liabilities, judgments or expenses referred to in the immediately preceding paragraph
shall be deemed to include, subject to the limitations set forth above, any legal or other expenses
incurred by such Indemnified Party in connection with investigating or defending any such action or
claim including any action that could have given rise to such losses, claims, damages, liabilities,
judgments or expenses. Notwithstanding the provisions of this Section 8, no Holder shall be
required to contribute, in the aggregate, any amount in excess of the amount by which the total
received by such Holder with respect to the sale of Transfer Restricted Securities pursuant to a
Registration Statement exceeds (i) the amount paid by such Holder for such Transfer Restricted
Securities and (ii) the amount of any damages which such Holder has otherwise been required to pay
by reason of such untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Holders’ obligations to
17
contribute pursuant to this Section 8(d) are several in proportion to the respective principal
amount of Transfer Restricted Securities held by each Holder hereunder and not joint.
SECTION 9. RULE 144A
The Company hereby agrees with each Holder, for so long as any Transfer Restricted Securities
remain outstanding and during any period in which the Company (i) is not subject to Section 13 or
15(d) of the Exchange Act, to make available, upon request of any Holder, to such Holder or
beneficial owner of Transfer Restricted Securities in connection with any sale thereof and any
prospective purchaser of such Transfer Restricted Securities designated by such Holder or
beneficial owner, the information required by Rule 144A(d)(4) under the Securities Act in order to
permit resales of such Transfer Restricted Securities pursuant to Rule 144A, and (ii) is subject to
Section 13 or 15(d) of the Exchange Act, to make all filings required thereby in a timely manner in
order to permit resales of such Transfer Restricted Securities pursuant to Rule 144.
SECTION 10. PARTICIPATION IN UNDERWRITTEN REGISTRATIONS
No Holder may participate in any Underwritten Registration hereunder unless such Holder (a)
agrees to sell such Holder’s Transfer Restricted Securities on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements
and (b) completes and executes all reasonable questionnaires, powers of attorney, indemnities,
underwriting agreements, lock-up letters and other documents required under the terms of such
underwriting arrangements.
SECTION 11. SELECTION OF UNDERWRITERS
The Holders of Transfer Restricted Securities covered by the Shelf Registration Statement who
desire to do so may sell such Transfer Restricted Securities in an Underwritten Offering. In any
such Underwritten Offering, the investment banker or investment bankers and manager or managers
that will administer the offering will be selected by the Holders of a majority in aggregate
principal amount of the Transfer Restricted Securities included in such offering; provided that
such investment bankers and managers must be reasonably satisfactory to the Company.
SECTION 12. MISCELLANEOUS
(a) Remedies. The Company and the Guarantors acknowledge and agree that any failure
by the Company to comply with its obligations under Sections 3 and 4 hereof may result in material
irreparable injury to the Purchasers or Holders for which there is no adequate remedy at law, that
it will not be possible to measure damages for such injuries precisely and that, in the event of
any such failure, the Purchasers or any Holder may obtain such relief as may be required to
specifically enforce the Company’s obligations under Sections 3 and 4 hereof. The Company and the
Guarantors further agree to waive the defense in any action for specific performance that a remedy
at law would be adequate.
(b) No Inconsistent Agreements. The Company will not, on or after the date of this
Agreement, enter into any agreement with respect to its securities that is inconsistent with the
18
rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. The rights granted to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of the Company’s securities under any agreement
in effect on the date hereof.
(c) Adjustments Affecting the Notes or Exchange Notes. The Company will not take any
action, or permit any change to occur, with respect to the Notes or the Exchange Notes that would
materially and adversely affect the ability of the Holders to Consummate any Exchange Offer.
(d) Amendments and Waivers. The provisions of this Agreement may not be amended,
modified or supplemented, and waivers or consents to or departures from the provisions hereof may
not be given unless (i) in the case of Section 5 hereof and this Section 12(d)(i), the Company has
obtained the written consent of Holders of all outstanding Transfer Restricted Securities and (ii)
in the case of all other provisions hereof, the Company has obtained the written consent of Holders
of a majority of the outstanding principal amount of Transfer Restricted Securities (excluding
Transfer Restricted Securities held by the Company or its Affiliates). Notwithstanding the
foregoing, a waiver or consent to departure from the provisions hereof that relates exclusively to
the rights of Holders whose Transfer Restricted Securities are being tendered pursuant to the
Exchange Offer and that does not affect directly or indirectly the rights of other Holders whose
Transfer Restricted Securities are not being tendered pursuant to such Exchange Offer may be given
by the Holders of a majority of the outstanding principal amount of Transfer Restricted Securities
subject to such Exchange Offer.
(e) Third Party Beneficiary. The Holders shall be third party beneficiaries to the
agreements made hereunder between the Company, on the one hand, and the Purchasers, on the other
hand, and shall have the right to enforce such agreements directly to the extent they may deem such
enforcement necessary or advisable to protect its rights or the rights of Holders hereunder.
(f) Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, first-class mail (registered or certified, return
receipt requested), telex, telecopier, or air courier guaranteeing overnight delivery:
(i) if to a Holder, at the address set forth on the records of the Registrar under the
Indenture, with a copy to the Registrar under the Indenture; and
(ii) if to the Company or the Guarantors:
| EchoStar DBS Corporation | ||
| 0000 X. Xxxxxxxx Xxxxx | ||
| Xxxxxxxxx, Xxxxxxxx 00000 | ||
| Telecopier No.: (000) 000-0000 | ||
| Attention: Xxxxx X. Xxxxxxxxx, Esq. |
19
| With a copy to: |
| Xxxxxxxx & Xxxxxxxx LLP | ||
| 0000 Xxxxxxxxxxx Xxxx | ||
| Xxxx Xxxx, Xxxxxxxxxx 00000 | ||
| Telecopier No.: (000) 000-0000 | ||
| Attention: Xxxxx X. Xxxxxx, Esq. |
All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five (5) Business Days after being deposited in the
mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied; and on the next
Business Day, if timely delivered to an air courier guaranteeing overnight delivery.
Copies of all such notices, demands or other communications shall be concurrently delivered by
the Person giving the same to the Trustee at the address specified in the Indenture.
(g) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties, including without limitation and
without the need for an express assignment, subsequent Holders; provided, that nothing herein shall
be deemed to permit any assignment, transfer or other disposition of Transfer Restricted Securities
in violation of the terms hereof or of the Purchase Agreement or the Indenture. If any transferee
of any Holder shall acquire Transfer Restricted Securities in any manner, whether by operation of
law or otherwise, such Transfer Restricted Securities shall be held subject to all of the terms of
this Agreement, and by taking and holding such Transfer Restricted Securities such Person shall be
conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of
this Agreement, including the restrictions on resale set forth in this Agreement and, if
applicable, the Purchase Agreement, and such Person shall be entitled to receive the benefits
hereof.
(h) Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement.
(i) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.
(j) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAW RULES THEREOF.
(k) Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.
(l) Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the agreement and
20
understanding of the parties hereto in respect of the subject matter contained herein. There
are no restrictions, promises, warranties or undertakings, other than those set forth or referred
to herein with respect to the registration rights granted with respect to the Transfer Restricted
Securities. This Agreement supersedes all prior agreements and understandings between the parties
with respect to such subject matter.
21
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.
| ECHOSTAR DBS CORPORATION | ||||||
| By: | ||||||
| Name: | Xxxxx X. Xxxxxxxxx | |||||
| Title: | Executive Vice President, General | |||||
| Counsel and Secretary | ||||||
S-1
| ECHOSTAR SATELLITE L.L.C. | ||
| ECHOSTAR SATELLITE OPERATING CORP | ||
| ECHOSTAR TECHNOLOGIES | ||
| CORPORATION | ||
| ECHOSPHERE L.L.C. | ||
| DISH NETWORK SERVICE | ||
| ECHOSTAR INTERNATIONAL | ||
| CORPORATION | ||
| as Guarantors |
| By: | ||||||
| Name: | Xxxxx X. Xxxxxxxxx | |||||
| Title: | Executive Vice President, General | |||||
| Counsel and Secretary |
| CREDIT SUISSE SECURITIES (USA) LLC | ||||||
| DEUTSCHE BANK SECURITIES INC. | ||||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
S-2
