EX-4.2



 





Exhibit 4.2




 

 








Registration Rights Agreement




Dated as of October 17, 2007




between




Morgans Hotel Group Co.,




and




Merrill Lynch, Pierce, Fenner & Smith Incorporated




 

 







 









 








REGISTRATION RIGHTS AGREEMENT




          This Registration Rights Agreement (the “Agreement”) is made and entered into this 17th day of
October, 2007, between Morgans Hotel Group Co., a Delaware corporation (the “Company”), and Merrill
Lynch, Pierce, Fenner & Smith Incorporated as the representative of the Initial Purchasers (as
defined below).




          This Agreement is made pursuant to the Purchase Agreement (the “Purchase Agreement”), dated
October 11, 2007, among the Company, the Guarantor (as defined below) and the Initial Purchasers,
which provides for the sale by the Company to the Initial Purchasers of $172,500,000 aggregate
principal amount of the Company’s 2.375% Senior Subordinated Convertible Notes due 2014 (the
“Notes” and together with the shares of Common Stock (as defined below) of the Company into which
the Notes are convertible and the Guarantees (as defined below), the “Securities”). In order to
induce the Initial Purchasers to enter into the Purchase Agreement, the Company has agreed to
provide to the Initial Purchasers and their direct and indirect transferees the registration rights
set forth in this Agreement. The execution of this Agreement is a condition to the closing under
the Purchase Agreement.




          In consideration of the foregoing, the parties hereto agree as follows:




          1. Definitions.




          As used in this Agreement, the following capitalized defined terms shall have the following
meanings:





     “1933 Act” shall mean the Securities Act of 1933, as amended from time to time.




     “1934 Act” shall mean the Securities Exchange Act of l934, as amended from time
to time.




     “1939 Act” shall mean the Trust Indenture Act of 1939, as amended from time to
time.




     “Additional Interest” shall have the meaning set forth in Section 2.4 herein.




     “Agreement” shall have the meaning set forth in the preamble.




     “Closing Date” shall mean the Initial Closing Time as defined in the Purchase
Agreement.




     “Common Stock” shall mean any shares of common stock, $0.01 par value per
share, of the Company and any other shares of common stock as may constitute “Common Stock”
for purposes of the Indenture.




     “Company” shall have the meaning set forth in the preamble and shall also
include the Company’s successors.



 









 






     “Depositary” shall mean The Depository Trust Company, or any other depositary
appointed by the Company, provided, however, that such depositary must have an address in
the Borough of Manhattan, in the City of New York.




     “Effectiveness Period” shall have the meaning set forth in Section 2.1(b)
herein.




     “Guarantor” shall mean Morgans Group LLC, a Delaware limited liability company.




     “Guarantees” means the full and unconditional senior subordinated guarantees by
the Guarantor of the Notes in accordance with the Indenture.




     “Holder” shall mean an Initial Purchaser, for so long as it owns any
Registrable Securities, and each of its successors, assigns and direct and indirect
transferees who become owners, beneficial or otherwise, of Registrable Securities. For the
avoidance of doubt, a Holder of Notes shall be deemed to be a Holder of the number of shares
of Common Stock issuable upon conversion of such Notes.




     “Indenture” shall mean the Indenture relating to the Securities, dated as of
the date hereof, by and among the Company, the Guarantor and The Bank of New York, as
Trustee, as the same may be amended, supplemented, waived or otherwise modified from time to
time in accordance with the terms thereof.




     “Initial Purchasers” shall mean the parties listed on Schedule A to the
Purchase Agreement.




     “Issuer Free Writing Prospectus” shall have the meaning set forth in Section
2.1(f) herein.




     “Majority Holders” shall mean the Holders of a majority of the aggregate
principal amount of outstanding Registrable Securities; provided that, for purposes of this
definition, (1) a Holder of shares of Common Stock that constitute Registrable Securities
which were issued or are issuable upon conversion of the Notes shall be deemed to hold an
aggregate principal amount of Registrable Securities equal to the principal amount of Notes
which were converted into such shares of Common Stock and (2) such Notes which were
converted into such shares of Common Stock shall be deemed to be outstanding; provided
further, that whenever the consent or approval of Holders of a specified percentage of
Registrable Securities is required hereunder, Registrable Securities held by the Company or
any Affiliate (as defined in the Indenture) of the Company shall be disregarded in
determining whether such consent or approval was given by the Holders of such required
percentage amount.




     “Notes” shall have the meaning set forth in the preamble.




     “Offering Memorandum” shall mean the offering memorandum of the Company, dated
October 12, 2007, related to the Securities.



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     “Person” shall mean an individual, partnership (general or limited),
corporation, limited liability company, trust or unincorporated organization, or a
government or agency or political subdivision thereof.




     “Prospectus” shall mean the prospectus included in a Shelf Registration
Statement, including any preliminary prospectus, and any such prospectus as amended or
supplemented by any prospectus supplement, including any such prospectus supplement with
respect to the terms of the offering of any portion of the Registrable Securities covered by
a Shelf Registration Statement, and by all other amendments and supplements to a prospectus,
including post-effective amendments, and in each case including all materials incorporated
by reference therein.




     “Purchase Agreement” shall have the meaning set forth in the preamble.




     “Questionnaire” shall have the meaning set forth in Section 2.1(d) herein.




     “Registrable Securities” shall mean shares of Common Stock into which the Notes
are convertible or have been converted; provided, however, that any such shares of Common
Stock shall cease to be Registrable Securities at the earliest of when (i) a Shelf
Registration Statement with respect to such shares of Common Stock shall have been declared
effective or otherwise become effective under the 1933 Act and such shares of Common Stock
shall have been disposed of pursuant to such Shelf Registration Statement, (ii) such shares
of Common Stock have been sold to the public pursuant to Rule 144 or may be sold or
transferred pursuant to Rule l44(k) (or any similar provision then in force, but not Rule
144A) under the 1933 Act by holders who are not “affiliates” of the Company, or (iii) such
shares of Common Stock shall have ceased to be outstanding.




     “Registration Default” shall have the meaning set forth in Section 2.4 herein.




     “Registration Expenses” shall mean any and all expenses incident to performance
of or compliance by the Company with this Agreement, whether or not a Shelf Registration
Statement becomes effective, including without limitation: (i) all SEC, stock exchange or
Financial Industry Regulatory Authority (“FINRA”) registration and filing fees, including,
if applicable, the reasonable and documented fees and expenses of any “qualified independent
underwriter” (and its counsel) that is required to be retained by any holder of Registrable
Securities in accordance with the rules and regulations of FINRA, (ii) all fees and expenses
incurred by the Company in connection with compliance with state securities or blue sky laws
and compliance with the rules of FINRA (including reasonable and documented fees and
disbursements of counsel for any underwriters or Holders in connection with blue sky
qualification of any of the Registrable Securities and any filings with FINRA), (iii) all
expenses of the Company in preparing or assisting in preparing, word processing, printing
and distributing any Shelf Registration Statement, any Prospectus, any amendments or
supplements thereto, any securities sales agreements and other documents relating to the
performance of and compliance with this Agreement, (iv) all fees and expenses incurred by
the Company in connection with the listing, if any, of any of the Registrable Securities on
any securities



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exchange or exchanges, (v) all rating agency fees incurred by the Company, if any, (vi)
the fees and disbursements of counsel for the Company and of the independent public
accountants of the Company, including the expenses of any special audits or “comfort”
letters required by or incident to such performance and compliance, (vii) the reasonable and
documented fees and expenses of the Trustee, and any escrow agent or custodian, (viii) the
reasonable and documented fees and expenses of a single counsel to the Holders in connection
with the Shelf Registration Statement, and (ix) any fees and expenses of any special experts
retained by the Company in connection with any Shelf Registration Statement, but excluding
any underwriting discounts and commissions and transfer taxes, if any, relating to the sale
or disposition of Registrable Securities by a Holder and the fees and expenses of any
counsel to the Holders, except as provided for in clause (viii) above.




     “SEC” shall mean the Securities and Exchange Commission or any successor agency
or government body performing the functions currently performed by the United States
Securities and Exchange Commission.




     “Securities” shall have the meaning set forth in the preamble.




     “Shelf Registration” shall mean a registration effected pursuant to Section 2.1
hereof.




     “Shelf Registration Statement” shall mean a “shelf” registration statement of
the Company pursuant to the provisions of Section 2.1 of this Agreement which covers some or
all of the Registrable Securities on an appropriate form under Rule 415 under the 1933 Act,
or any similar rule that may be adopted by the SEC, and all amendments and supplements to
such registration statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all materials incorporated by
reference therein.




     “Suspension Period” shall have the meaning set forth in Section 2.5 herein.




     “Trustee” shall mean the trustee with respect to the Securities under the
Indenture.




     “Underwriter” shall have the meaning set forth in Section 4(a).




     2. Registration Under the 1933 Act.




     2.1 Shelf Registration.



               (a) The Company shall, at its cost, no later than 120 days after the Closing Date, file with
the SEC, and thereafter shall use its commercially reasonable efforts to cause to be declared
effective as promptly as practicable but no later than 210 days after the Closing Date, a Shelf
Registration Statement relating to the offer and sale of the Registrable Securities by the Holders
that have provided the information pursuant to Section 2.1(d).



               (b) The Company shall, at its cost, use its commercially reasonable efforts, subject to
Section 2.5, to keep the Shelf Registration Statement continuously effective in order to permit the
Prospectus forming part thereof to be usable by Holders for the period (the



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“Effectiveness Period”) beginning upon the effective date of the Shelf Registration Statement
until the earliest to occur of (1) the sale pursuant to the Shelf Registration Statement of the
Registrable Securities, (2) the date when the Holders, other than Holders that are “affiliates” (as
defined in Rule 405 under the 1933 Act) of the Company, are able to sell all such Registrable
Securities immediately without restriction pursuant to the volume limitation provisions of Rule 144
under the 1933 Act or any successor Rule thereto or otherwise and (3) the date that is two years
from the Closing Date.




               (c) Notwithstanding any other provisions hereof, the Company shall use its commercially
reasonable efforts to ensure that (i) any Shelf Registration Statement and any amendment thereto
and any Prospectus forming part thereof and any supplement thereto complies in all material
respects with the 1933 Act and the rules and regulations thereunder, (ii) any Shelf Registration
Statement and any amendment thereto does not, when it becomes effective, contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (iii) any Prospectus forming part of
any Shelf Registration Statement, and any supplement to such Prospectus (as amended or supplemented
from time to time), does not include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.



               (d) Notwithstanding any other provision hereof, no Holder of Registrable Securities may
include any of its Registrable Securities in the Shelf Registration Statement pursuant to this
Agreement unless the Holder furnishes to the Company a fully completed notice and questionnaire in
the form attached as Annex A to the Offering Memorandum (the “Questionnaire”) and such other
information in writing as the Company may reasonably request in writing for use in connection with
the Shelf Registration Statement or Prospectus included therein and in any application to be filed
with or under state securities laws. At least 20 days prior to the filing of the Shelf Registration
Statement, the Company will provide notice (which notice may be by means of a press release) to the
Holders of its intention to file the Shelf Registration Statement. In order to be named as a
selling securityholder in the Prospectus at the time of effectiveness of the Shelf Registration
Statement, each Holder must, before the filing of the Shelf Registration Statement and no later
than the 10th day after being notified of the Company’s intention to file, furnish the completed
Questionnaire and such other information that the Company may reasonably request in writing, if
any, to the Company in writing and the Company shall include the information from the completed
Questionnaire and such other information, if any, in the Shelf Registration Statement and the
Prospectus in a manner so that upon effectiveness of the Shelf Registration Statement the Holder
will be permitted to deliver the Prospectus to purchasers of the Holder’s Registrable Securities.
From and after the date that the Shelf Registration Statement is first declared effective by the
SEC or otherwise becomes effective, upon receipt of a completed Questionnaire and such other
information that the Company may reasonably request in writing, if any, the Company will use its
commercially reasonable efforts to file within 20 business days any amendments or supplements to
the Shelf Registration Statement (subject to the Company’s right to suspend the Shelf Registration
Statement as described in Section 2.5 below); provided, however, that the Company shall not be
required to file more than one such amendment or supplement in any calendar quarter for all such
Holders. Holders that do not deliver a completed written Questionnaire and such other information,
as provided for in this Section 2.1(d), will not be named as selling securityholders in



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the Prospectus. Each Holder named as a selling securityholder in the Prospectus agrees to
promptly furnish to the Company all information required to be disclosed in order to make
information previously furnished to the Company by the Holder not materially misleading and any
other information regarding such Holder and the distribution of such Holder’s Registrable
Securities as the Company may from time to time reasonably request in writing.




               (e) During the Effectiveness Period, each Holder agrees not to sell any Registrable Securities
pursuant to the Shelf Registration Statement without delivering, or causing to be delivered, a
Prospectus to the purchaser thereof.



               (f) The Company represents and agrees that, unless it obtains the prior consent of Holders of
a majority in principal amount of the Registrable Securities that are registered under the Shelf
Registration Statement at such time or the approval of counsel to the Holders or the consent of the
managing underwriter in connection with any underwritten offering of Registrable Securities, and
each Holder represents and agrees that, unless it obtains the prior consent of the Company and any
such underwriter, it will not during the Effectiveness Period make any offer relating to the shares
of Common Stock issuable upon conversion of the Notes (which, for the avoidance of doubt, will not
include any shares of Common Stock which are not shares of Common Stock issuable upon conversion of
the Notes) that would constitute an “issuer free writing prospectus,” as defined in Rule 433 under
the 1933 Act (any such issuer free writing prospectus relating to any such offer made by the
Company during the Effectiveness Period, an “Issuer Free Writing Prospectus”), or that would
otherwise constitute a “free writing prospectus,” as defined in Rule 405 under the 1933 Act,
required to be filed with the SEC. The Company represents that any Issuer Free Writing Prospectus
will not include any information that conflicts with the information contained in the Shelf
Registration Statement or Prospectus and that any Issuer Free Writing Prospectus, when taken
together with the information in the Shelf Registration Statement and the Prospectus, will not
include any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in light of the circumstances under which they were made, not
misleading.



          The Company will not permit any securities other than (i) the Company’s issued and outstanding
securities with registration rights pursuant to that certain Registration Rights Agreement by and
between Morgans Hotel Group Co. and NorthStar Partnership L.P., dated February 17, 2006 and (ii)
Registrable Securities to be included in the Shelf Registration Statement. The Company agrees to
supplement or amend the Shelf Registration Statement if required by the rules, regulations or
instructions applicable to the registration form used by the Company if required by the 1933 Act,
or to the extent the Company does not reasonably object, as reasonably requested in writing by any
Holder with respect to information relating to such Holder, and to furnish to the Holders of
Registrable Securities that are covered under such Shelf Registration Statement copies of any such
supplement or amendment promptly after its being used or filed with the SEC in such amounts as they
may reasonably request.




          2.2 Expenses. The Company shall pay all Registration Expenses in connection with the registration pursuant
to Section 2.1. Each Holder shall pay all underwriting discounts and commissions and transfer
taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities
pursuant to the Shelf Registration Statement.




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          2.3 Effectiveness. (a) The Company will be deemed not to have used its commercially reasonable efforts to
cause the Shelf Registration Statement to become, or to remain, effective during the requisite
period (subject to Section 2.5) if the Company voluntarily takes any action that would, or
omits to take any action which omission would, result in any such Shelf Registration Statement
not being declared effective or in the Holders of Registrable Securities covered thereby not
being able to offer and sell such Registrable Securities during that period as and to the
extent contemplated hereby, unless such action or omission is required by applicable law.




               (b) A Shelf Registration Statement will not be deemed to have become effective unless it has
been declared effective by the SEC or has become automatically effective under the 1933 Act;
provided, however, that if, after it has been declared or become 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 SEC 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.



          2.4 Interest. In the event that (a) a Shelf Registration Statement is not filed with the SEC on or before
the 120th calendar day following the Closing Date, (b) a Shelf Registration Statement is not
declared effective or otherwise becomes effective on or prior to the 210th calendar day
following the Closing Date, (c) after effectiveness, subject to Section 2.5, the Shelf
Registration Statement ceases to be effective or fails to be usable by the Holders without
being succeeded within 10 business days by a post-effective amendment or a report filed with
the SEC pursuant to the 1934 Act that immediately cures the failure to be effective or usable,
or (d) any Suspension Period (as defined in Section 2.5 hereof) exceeds the number of days set
forth in Section 2.5 (each such event being a “Registration Default”), additional
interest (“Additional Interest”) will accrue at a rate per annum of one-quarter of one
percent (0.25%) of the principal amount of the Notes for the first 90 day period from the day
following the Registration Default, and thereafter at a rate per annum of one-half of one
percent (0.50%) of the principal amount of the Notes; provided that in no event shall
Additional Interest accrue at a rate per annum exceeding one half of one percent (0.50%) of
the principal amount of the Notes; provided further that no Additional Interest shall accrue
after the second anniversary of the Closing Date; provided further that Additional Interest
shall not accrue under clause (c) and (d) above with respect to any Holder that (x) does not
submit a properly completed Questionnaire, and (y) is not named as a selling securityholder in
the Shelf Registration Statement. Upon the cure of all Registration Defaults then continuing,
the accrual of Additional Interest will automatically cease and the interest rate borne by the
Notes will revert to the original interest rate at such time. Additional Interest shall be
computed based on the actual number of days elapsed in each 90-day period in which the Shelf
Registration Statement or the Prospectus is not effective or is unusable. Holders who have
converted Notes into Common Stock will not be entitled to receive any Additional Interest with
respect to such Common Stock or the principal amount of the Notes converted.




               The Company shall notify the Trustee within three business days after each and every date on
which an event occurs in respect of which Additional Interest is required to be paid. Additional
Interest shall be paid by depositing with the Trustee, in trust, for the benefit of



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the Holders of Registrable Securities, on or before the applicable semiannual interest payment
date, in immediately available funds in sums sufficient to pay the Additional Interest then due.
The Additional Interest due shall be payable in arrears on each interest payment date to the record
Holder of Notes convertible into Registrable Securities entitled to receive the interest payment to
be paid on such date as set forth in the Indenture. Each obligation to pay Additional Interest
shall be deemed to accrue from and including the day following the Registration Default to but
excluding the day on which the Registration Default is cured.




          A Registration Default under clause (a) above shall be cured on the date that the Registration
Statement is filed with the SEC. A Registration Default under clause (b) above shall be cured on
the date that the Shelf Registration Statement is declared effective by the SEC or deemed to become
automatically effective under the 1933 Act. A Registration Default under clauses (c) or (d) above
shall be cured on the date an amended Shelf Registration Statement is declared effective by the SEC
or deemed to become automatically effective under the 1933 Act, or the Company otherwise declares
the Shelf Registration Statement and the Prospectus useable or the Suspension Period concluded, as
applicable. The Company will have no liabilities for monetary damages other than the Additional
Interest with respect to any Registration Default.




          2.5 Suspension. Notwithstanding any other provision hereof, the Company may suspend the use of any
Prospectus, without incurring or accruing any obligation to pay Additional Interest pursuant
to Section 2.4 hereof or being deemed in violation of any other provision hereof, for a period
or periods (each, a “Suspension Period”) not to exceed an aggregate 30 calendar days in any
three-month period, or an aggregate of 90 calendar days in any twelve-month period, if
management of the Company shall have determined in good faith that because of valid business
reasons (not including avoidance of the Company’s obligations hereunder), including without
limitation proposed or pending corporate developments and similar events or because of filings
with the SEC, it is in the best interests of the Company to suspend such use, and prior to
suspending such use the Company provides the Holders with written notice of such suspension,
which notice need not specify the nature of the event giving rise to such suspension. Each
Holder shall keep confidential any communications received by it from the Company regarding
the suspension of the use of the Prospectus, except as required by applicable law.




          3. Registration Procedures.




          In connection with the obligations of the Company with respect to the Shelf Registration, the
Company shall, subject to the rights of the Company to invoke and maintain a Suspension Period in
accordance with Section 2.5 without being in violation of any of the provisions hereunder:




               (a) prepare and file with the SEC a Shelf Registration Statement, within the relevant time
period specified in Section 2, on the appropriate form under the 1933 Act, which form (i) shall be
selected by the Company, (ii) shall be available for the sale of the Registrable Securities by the
selling Holders thereof, (iii) shall comply as to form in all material respects with the
requirements of the applicable form and include or incorporate by reference all financial
statements required by the SEC to be filed therewith or incorporated by reference therein, and (iv)
shall comply in all respects with the applicable requirements of Regulation S-T



8









 




under the 1933 Act, if any, and use commercially reasonable efforts to cause such Shelf
Registration Statement to become effective and remain effective in accordance with Section 2
hereof;




               (b) prepare and file with the SEC such amendments and post-effective amendments to the Shelf
Registration Statement as may be necessary under applicable law to keep the Shelf Registration
Statement effective for the Effectiveness Period, subject to Section 2.5; and cause each Prospectus
to be supplemented, if so determined by the Company or requested by the SEC by any required
prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar
provision then in force) under the 1933 Act and comply during the Effectiveness Period with the
provisions of the 1933 Act, the 1934 Act and the rules and regulations thereunder required to
enable the disposition of all Registrable Securities covered by the Shelf Registration Statement in
accordance with the intended method or methods of distribution by the selling Holders thereof;



               (c) (i) furnish to each Holder of Registrable Securities that has provided the information
required by Section 2.1(d) and to each underwriter of an underwritten offering of Registrable
Securities, if any, without charge, as many copies of each Prospectus, including each preliminary
Prospectus, and any amendment or supplement thereto and such other documents as such Holder or
underwriter may reasonably request, including financial statements and schedules and, if the Holder
so requests, all exhibits in order to facilitate the public sale or other disposition of the
Registrable Securities; and (ii) subject to Section 2.5 hereof, consents to the use of the
Prospectus or any amendment or supplement thereto by each of the selling Holders of Registrable
Securities that has provided the information required by Section 2.1(d) in connection with the
offering and sale of the Registrable Securities;



               (d) use its commercially reasonable efforts to register or qualify the Registrable Securities
for exemptions under all applicable state securities or “blue sky” laws of such jurisdictions as
any Holder of Registrable Securities covered by a Shelf Registration Statement and each underwriter
of an underwritten offering of Registrable Securities shall reasonably request in writing, and do
any and all other acts and things which may be reasonably necessary or advisable to enable each
such Holder and underwriter to consummate the disposition in each such jurisdiction of such
Registrable Securities owned by such Holder; provided, however, that the Company shall not be
required to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction
where it would not otherwise be required to qualify but for this Section 3(d), or (ii) take any
action which would subject it to general service of process or taxation in any such jurisdiction
where it is not then so subject;



               (e) notify promptly each Holder of Registrable Securities under a Shelf Registration Statement
that has provided the information required by Section 2.1(d) and, if requested by such Holder,
confirm such advice in writing promptly (i) when a Shelf Registration Statement has become
effective and when any post-effective amendments thereto have become effective, (ii) of any request
by the SEC or any state securities authority for post-effective amendments and supplements to a
Shelf Registration Statement and Prospectus or for additional information relating thereto after
the Shelf Registration Statement has become effective, (iii) of the issuance by the SEC or any
state securities authority of any stop order suspending the effectiveness of a Shelf Registration
Statement or the initiation of any proceedings for that



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purpose, (iv) if, between the effective date of a Registration Statement and the closing of
any sale of Registrable Securities covered thereby, the representations and warranties of the
Company contained in any underwriting agreement, securities sales agreement or other similar
agreement, if any, relating to the offering cease to be true and correct in all material respects,
(v) of the happening of any event or the discovery of any facts during the period a Shelf
Registration Statement is effective which makes any statement made in such Shelf Registration
Statement or the related Prospectus untrue in any material respect or which requires the making of
any changes in such Shelf Registration Statement or Prospectus in order to make the statements
therein (in the case of the Prospectus in light of the circumstances under which they were made)
not misleading, (vi) of the receipt by the Company of any notification with respect to the
suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose and (vii) of any determination by the
Company that a post-effective amendment to such Shelf Registration Statement would be appropriate,
other than a post-effective amendment solely to add selling Holders;




               (f) furnish to the counsel to the Holders on behalf of the Holders of Registrable Securities,
if requested, (i) copies of any comment letters received from the SEC with respect to a Shelf
Registration Statement, and with respect to any documents incorporated therein and (ii) any other
request by the SEC or any state securities authority for amendments or supplements to a Shelf
Registration Statement and Prospectus or for additional information with respect to the Shelf
Registration Statement and Prospectus;



               (g) make commercially reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Shelf Registration Statement at the earliest possible moment and provide prompt
notice to each Holder of the withdrawal of such order;



               (h) furnish, upon request, to each Holder of Registrable Securities that has provided the
information required by Section 2.1(d), and each underwriter, if any, without charge, at least one
conformed copy of each Shelf Registration Statement and any post-effective amendment thereto,
including financial statements and schedules (without documents incorporated therein by reference
and all exhibits thereto, unless requested);



               (i) if electronic global certificates for the Registrable Securities are not then available,
cooperate with the selling Holders of Registrable Securities to facilitate the timely preparation
and delivery of certificates representing Registrable Securities to be sold and not bearing any
restrictive legends (other than as required by applicable law); and enable such Registrable
Securities to be in such denominations and registered in such names as the selling Holders or the
underwriters, if any, may reasonably request at least three business days prior to the closing of
any sale of Registrable Securities;



               (j) upon the occurrence of any event or the discovery of any facts, each as contemplated by
Sections 3(v) and (vi) hereof, as promptly as practicable after the occurrence of such an event,
use commercially reasonable efforts to prepare a supplement or post-effective amendment to the
Shelf Registration Statement or the related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered to the purchasers of
the Registrable Securities, such Prospectus will not contain at the time of such delivery any
untrue statement of a material fact or omit to state a



10









 




material fact necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading or will remain so qualified. At such time as such public
disclosure is otherwise made or the Company determines that such disclosure is not necessary, in
each case to correct any misstatement of a material fact or to include any omitted material fact,
the Company agrees promptly to notify each Holder of Registrable Securities covered by such Shelf
Registration Statement of such determination and to furnish each Holder such number of copies of
the Prospectus as amended or supplemented, as such Holder may reasonably request;




               (k) a reasonable time prior to the filing of any Shelf Registration Statement, any Prospectus,
any amendment to a Shelf Registration Statement or amendment or supplement to a Prospectus or any
document which is to be incorporated by reference into a Shelf Registration Statement or a
Prospectus after initial filing of a Shelf Registration Statement, provide copies of such document
to the Initial Purchasers on behalf of such Holders; and make representatives of the Company as
shall be reasonably requested by the Holders of Registrable Securities, or the Initial Purchasers
on behalf of such Holders, available for discussion of such document;



               (l) if required, (i) cause the Indenture to be qualified under the 1939 Act in connection with
the registration of the Registrable Securities, (ii) 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 1939 Act, and (iii) execute, and use its commercially reasonable
efforts to cause the Trustee to execute, all documents as may be required to effect such changes,
and all other forms and documents required to be filed with the SEC to enable the Indenture to be
so qualified in a timely manner;



               (m) enter into customary agreements (including underwriting agreements, if requested by the
Holders of at least 25% in aggregate principal amount of the Registrable Securities then covered by
the Shelf Registration Statement) and take all other customary and appropriate actions in order to
expedite or facilitate the disposition of such Registrable Securities and in such connection:




               (i) make such representations and warranties to the Holders of such Registrable
Securities and the underwriters, if any, in form, substance and scope as are customarily
made by issuers to underwriters in similar underwritten offerings as may be reasonably
requested by them;




               (ii) obtain opinions of counsel to the Company and updates thereof (which counsel and
opinions (in form, scope and substance) shall be reasonably satisfactory to the managing
underwriters, if any, and the holders of a majority in principal amount of the Registrable
Securities being sold) addressed to each selling Holder and the underwriters, if any,
covering the matters customarily covered in opinions requested in sales of securities or
underwritten offerings and such other matters as may be reasonably requested by such Holders
and underwriters;




               (iii) obtain “cold comfort” letters and updates thereof from the Company’s independent
certified public accountants (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any



11









 






business acquired by the Company for which financial statements are, or are required to
be, included in the Shelf Registration Statement) addressed to the underwriters, if any, and
use reasonable efforts to have such letter addressed to the selling Holders of Registrable
Securities (to the extent consistent with Statement on Auditing Standards No. 72 of the
American Institute of Certified Public Accountants), such letters to be in customary form
and covering matters of the type customarily covered in “cold comfort” letters to
underwriters in connection with similar underwritten offerings;




               (iv) if an underwriting agreement is entered into, cause the same to set forth
indemnification provisions and procedures substantially equivalent to the indemnification
provisions and procedures set forth in Section 4 hereof with respect to the underwriters and
all other parties to be indemnified pursuant to said Section or, at the request of any
underwriters, in the form customarily provided to such underwriters in similar types of
transactions; and




               (v) deliver such documents and certificates as may be reasonably requested and as are
customarily delivered in similar offerings to the Holders of a majority in principal amount
of the Registrable Securities being sold and the managing underwriters, if any.


The above shall be done at (i) the effectiveness of such Shelf Registration Statement (and each
post-effective amendment thereto) and (ii) each closing under any underwriting or similar
agreement as and to the extent required thereunder;




               (n) make available for inspection by representatives of the Holders of the Registrable
Securities, any underwriters participating in any disposition pursuant to a Shelf Registration
Statement and any counsel or accountant retained by any of the foregoing (the “Inspectors”), all
financial and other records, pertinent corporate documents and properties of the Company and its
subsidiaries reasonably requested by any such persons, and cause the respective officers,
directors, employees, and any other agents of the Company and its subsidiaries to supply all
information reasonably requested by any such representative, underwriter, special counsel or
accountant in connection with a Shelf Registration Statement, and make such representatives of the
Company and its subsidiaries available for discussion of such documents as shall be reasonably
requested by the Initial Purchasers; provided, however, that all records, information and documents
that are designated in writing by the Company, in good faith, as confidential shall be kept
confidential by such Inspectors, unless disclosure of such confidential records, information or
documents is required by law, or such records, information or documents become available to the
public generally;



               (o) a reasonable time prior to filing the Shelf Registration Statement, any Prospectus forming
a part thereof, any amendment to the Shelf Registration Statement or amendment or supplement to
such Prospectus, (i) provide copies of such document to the Holders of Registrable Securities that
have provided the information required by Section 2.1(d), to counsel to the Holders and to the
underwriter or underwriters of an underwritten offering of Registrable Securities, if any, (ii)
make such changes in any such document prior to the filing thereof as the Initial Purchasers,
counsel to the Holders or the underwriter or underwriters reasonably request and not file any such
document in a form to which the Majority Holders, the



12









 




Initial Purchasers on behalf of the Holders of Registrable Securities, counsel for the Holders
of Registrable Securities or any underwriter shall not have previously been advised and furnished a
copy of or to which the Majority Holders, the Initial Purchasers on behalf of the Holders of
Registrable Securities, counsel for the Holders of Registrable Securities or any underwriter shall
reasonably object and make the representatives of the Company available for discussion of such
document as shall be reasonably requested by the Holders of Registrable Securities, the Initial
Purchasers on behalf of the Holders of Registrable Securities, counsel for the Holders of
Registrable Securities or any underwriter;




               (p) if requested by any selling Holder or the underwriters, if any, incorporate in the Shelf
Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if
necessary, such information as such selling Holder or underwriter, if any, may reasonable request
in writing to have included therein with respect to the name or names of such selling Holder, the
number of shares of Common Stock or principal amount of Securities owned by such Holder, the plan
of distribution of the Registrable Securities (as required by Item 508 of Regulation S-K), the
principal amount of Securities or number of shares of Common Stock being sold, the purchase price
being paid therefor, and any other terms of the offering of the Registrable Securities to be sold
in such offering;



               (q) use its commercially reasonable efforts to cause all Registrable Securities to be listed
on any securities exchange or inter-dealer quotation system on which shares of Common Stock are
then listed;



               (r) comply with all applicable rules and regulations of the SEC so long as any provision of
this Agreement shall be applicable and make generally available to its security holders, as soon as
reasonably practicable, an earnings statement covering at least 12 months satisfying the provisions
of Section 11(a) of the 1933 Act and Rule 158 thereunder; and



               (s) cooperate and assist in any filings required to be made with FINRA and in the performance
of any due diligence investigation by any underwriter and its counsel (including any “qualified
independent underwriter” that is required to be retained in accordance with the rules and
regulations of FINRA).



          Without limiting the provisions of Section 2.1(d), the Company may (as a condition to such
Holder’s participation in the Shelf Registration) require each Holder of Registrable Securities to
furnish to the Company such information regarding the Holder and the proposed distribution by such
Holder of such Registrable Securities as the Company may from time to time reasonably request in
writing.




          Each Holder agrees that, upon receipt of any notice from the Company of the happening of any
event or the discovery of any facts, each of the kind described in Section 3(e)(ii), 3(e)(iii) and
3(e)(v) hereof, such Holder will forthwith discontinue disposition of Registrable Securities
pursuant to the Prospectus included in the Shelf Registration Statement until (i) such Holder’s
receipt of the copies of the supplemented or amended Prospectus contemplated by Section 3(j) hereof
or (ii) notice that the Prospectus is again useable, and, if so directed by the Company in the case
of clause (i), such Holder will deliver to the Company (at its expense) all copies in such Holder’s
possession, other than permanent file copies then in such




13









 




Holder’s possession, of the Prospectus covering such Registrable Securities current at the
time of receipt of such notice.




          If any of the Registrable Securities covered by any Shelf Registration Statement are to be
sold in an underwritten offering, the underwriter or underwriters and manager or managers that will
manage such offering will be selected by the Majority Holders of such Registrable Securities
included in such offering provided that such underwriters and managers must be reasonably
satisfactory to the Company. No Holder of Registrable Securities may participate in any
underwritten registration hereunder unless such Holder (a) agrees to sell such Holder’s Registrable
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 questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents required under the terms of such
underwriting arrangements.




          4. Indemnification; Contribution.




               (a) The Company agrees to indemnify and hold harmless the Initial Purchasers, each Holder,
each Person who participates as an underwriter, if any (any such Person being an “Underwriter”) and
each Person, if any, who controls any such Holder or Underwriter within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act as follows:




               (i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in any Shelf Registration Statement (or any amendment or supplement thereto)
pursuant to which Registrable Securities were registered under the 1933 Act, including all
documents incorporated therein by reference, or the omission or alleged omission therefrom
of a material fact required to be stated therein or necessary to make the statements therein
not misleading, or arising out of any untrue statement or alleged untrue statement of a
material fact contained in any Prospectus (or any amendment or supplement thereto) or any
Issuer Free Writing Prospectus (or any amendment or supplement thereto) or the omission or
alleged omission therefrom of a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading;




               (ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such
settlement is effected with the written consent of the Company; and




               (iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel chosen by any indemnified party), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission,



14









 






or any such alleged untrue statement or omission, to the extent that any such expense
is not paid under subparagraph (i) or (ii) above;


provided, however, that this indemnity agreement shall not apply to any loss, liability, claim,
damage or expense to the extent arising out of any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with written information furnished to
the Company by or on behalf of the Holder or Underwriter, if any, expressly for use in a Shelf
Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement
thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto).




               (b) Each Holder, severally, but not jointly, agrees to indemnify and hold harmless the
Company, the Initial Purchasers, each Underwriter, if any, and the other selling Holders, and each
of their respective directors and officers, and each Person, if any, who controls the Company, the
Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of
the 1933 Act or Section 20 of the 1934 Act, against any and all loss, liability, claim, damage and
expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with
respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the
Shelf Registration Statement (or any amendment thereto) or any Prospectus included therein (or any
amendment or supplement thereto) or any Issuer Free Writing Prospectus in reliance upon and in
conformity with written information with respect to such Holder furnished to the Company by or on
behalf of such Holder expressly for use in the Shelf Registration Statement (or any amendment
thereto) or such Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing
Prospectus; provided, however, that no such Holder shall be liable for any claims hereunder in
excess of the amount of net proceeds received by such Holder from the sale of Registrable
Securities pursuant to such Shelf Registration Statement.



               (c) Each indemnified party shall give notice as promptly as reasonably practicable to each
indemnifying party of any action or proceeding commenced against it in respect of which indemnity
may be sought hereunder, but failure so to notify an indemnifying party shall not relieve such
indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it may have otherwise
than on account of this indemnity agreement. An indemnifying party may participate at its own
expense in the defense of such action; provided, however, that counsel to the indemnifying party
shall not (except with the consent of the indemnified party) also be counsel to the indemnified
party. In no event shall the indemnifying party or parties be liable for the fees and expenses of
more than one counsel (in addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar or related actions in
the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying
party shall, without the prior written consent of the indemnified parties, settle or compromise or
consent to the entry of any judgment with respect to any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in
respect of which indemnification or contribution could be sought under this Section 4 (whether or
not the indemnified parties are actual or potential parties thereto), unless such settlement,
compromise or consent (i) includes an unconditional release of each indemnified party from all
liability arising out of such litigation,



15









 




investigation, proceeding or claim 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 any indemnified party.




               (d) If at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees
that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected
without its written consent if (i) such settlement is entered into more than 45 days after receipt
by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have
received notice of the terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.



               (e) If the indemnification provided for in this Section 4 is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims,
damages or expenses referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect the relative fault
of the Company on the one hand and the Holders and the Initial Purchasers on the other hand in
connection with the statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.



          The relative fault of the Company on the one hand and the Holders and the Initial Purchasers
on the other hand shall be determined by reference to, among other things, whether any such untrue
or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Company, or by the Holders or the Initial Purchasers
and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.




          The Company, the Holders and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even
if the Initial Purchasers 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 above in this
Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by
an indemnified party and referred to above in this Section 4 shall be deemed to include any legal
or other expenses reasonably incurred by such indemnified party in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.




          Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to
contribute any amount in excess of the amount by which the total price at which the Securities sold
by it were offered exceeds the amount of any damages which such Initial Purchaser has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.




16









 





          No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.




          For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or
Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have
the same rights to contribution as such Initial Purchaser or Holder, and each director of the
Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company.
The Initial Purchasers’ respective obligations to contribute pursuant to this Section 4 are several
in proportion to the principal amount of Securities set forth opposite their respective names in
Schedule A to the Purchase Agreement and not joint..




          5. Miscellaneous.




          5.1 Rule 144 and Rule 144A. For so long as it is subject to the reporting requirements of Section 13 or 15(d) of the
1934 Act, the Company will file the reports required to be filed by them under Section 13 or
15(d) of the 1934 Act and the rules and regulations adopted by the SEC thereunder; provided
however, that if the Company ceases to be so required to file such reports, the Company will
upon the reasonable request of any Holder of Registrable Securities (a) make publicly
available such information as is necessary to permit sales pursuant to Rule 144 under the 1933
Act, (b) deliver such information to a prospective purchaser as is necessary to permit sales
pursuant to Rule 144A under the 1933 Act and will take such further action as any Holder of
Registrable Securities may reasonably request, and (c) take such further action that is
reasonable in the circumstances, in each case, to the extent required from time to time to
enable such Holder to sell its Registrable Securities without registration under the 1933 Act
within the limitation of the exemptions provided by (i) Rule 144 under the 1933 Act, as such
Rule may be amended from time to time, (ii) Rule 144A under the 1933 Act, as such Rule may be
amended from time to time, or (iii) any similar rules or regulations hereafter adopted by the
SEC. Upon the request of any Holder of Registrable Securities, the Company will deliver to
such Holder a written statement as to whether it has complied with such requirements.




          5.2 No Inconsistent Agreements. The Company has not entered into and the Company will not, after the date of this Agreement,
enter into any agreement which is inconsistent with the rights granted to the Holders of
Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof.
The rights granted to the Holders hereunder do not and will not for the term of this Agreement
in any way conflict with the rights granted to the holders of the Company’s other issued and
outstanding securities under any such agreements.




          5.3 No Adverse Actions Affecting Registration Rights. Subject to the rights of the Company to invoke and maintain a Suspension Period, the Company
shall not, directly or indirectly, intentionally take any action with respect to the
Registrable Securities as a class that would adversely affect the ability of the Holders of
Registrable Securities to include such Registrable Securities in a registration undertaken
pursuant to this Agreement.




          5.4 Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be
amended, modified or supplemented, and waivers or




17









 




consents to departures from the provisions hereof may not be given unless the Company has obtained
the written consent of Holders of at least a majority of the shares of Common Stock issued upon
conversion of the Notes (with Holders of Notes convertible into Registrable Securities deemed to be
the Holders, for purposes of this Section 5.4, of the number of outstanding shares of Common Stock
into which such Notes are or could be convertible on the date that consent would be required)
affected by such amendment, modification, supplement, waiver or departure. Notwithstanding the
foregoing, this Agreement may be amended by a written agreement between the Company and the Initial
Purchasers, without the consent of the Holders of the Registrable Securities, in order to cure any
ambiguity or to correct or supplement any provision contained herein, provided that no such
amendment shall adversely affect in any material respect the interest of the Holders of Registrable
Securities.




          5.5 Notices. All notices and other communications provided for or permitted hereunder shall be made in
writing by hand delivery, registered first-class mail, facsimile, or any courier guaranteeing
overnight delivery (a) if to a Holder, at the most current address given by such Holder to the
Company in a Questionnaire or by means of a notice given in accordance with the provisions of
this Section 5.5, which address initially is the address set forth in the Purchase Agreement
with respect to Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative of the
Initial Purchasers (the “Representative”); and (b) if to the Company, initially at the
Company’s address set forth in the Purchase Agreement, and thereafter at such other address of
which notice is given in accordance with the provisions of this Section 5.5.




          All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged, if sent by facsimile; 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 under the Indenture, at the address specified in such
Indenture.




          5.6 Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors, assigns and
transferees 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 Registrable Securities in violation of the
terms of the Purchase Agreement, the Indenture or the Company’s certificate of incorporation.
If any transferee of any Holder shall acquire Registrable Securities, in any manner, whether
by operation of law or otherwise, such Registrable Securities shall be held subject to all of
the terms of this Agreement, and by taking and holding such Registrable 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.




          5.7 Third Party Beneficiaries. The Initial Purchasers (even if the Initial Purchasers are not Holders of Registrable
Securities) shall be third party beneficiaries to the agreements made hereunder between the
Company, on the one hand, and the Holders, on the




18









 




other hand, and shall have the right to enforce such agreements directly to the extent they deem
such enforcement necessary or advisable to protect their rights or the rights of Holders hereunder.
Each Holder of Registrable Securities shall be a third party beneficiary to the agreements made
hereunder between the Company, on the one hand, and the Initial Purchasers, on the other hand, and
shall have the right to enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder.




          5.8 Specific Enforcement. Without limiting the remedies available to the Initial Purchasers and the Holders, the
Company acknowledges that any failure by the Company to comply with its obligations under
Section 2.1 hereof may result in material irreparable injury to the Initial Purchasers or the
Holders for which there is no adequate remedy at law, that it may not be possible to measure
damages for such injuries precisely and that, in the event of any such failure, the Initial
Purchasers or any Holder may seek such relief as may be required to specifically enforce the
Company’s obligations under Section 2.1 hereof.




          5.9 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.




          5.10 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof.




          5.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF
NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF
ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.




          5.12 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.




          5.13 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 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 by the Company with respect to the Registrable
Securities. This Agreement supersedes all prior agreements and understandings between the
parties with respect to such subject matter.




19









 





          IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.




	 	 	 	 	 
	 	MORGANS HOTEL GROUP CO.

 	 
	 	By	       /s/ Marc S. Gordon
 	 
	 	Name:  	Marc S. Gordon 	 
	 	Title:  	Chief Investment Officer &

Executive Vice President of Capital Markets 	 
	 














 





Confirmed and accepted as
  of
the date first above written:




MERRILL LYNCH, PIERCE,

FENNER & SMITH INCORPORATED




	 	 	 	 
	 	 
	By:  	/s/ Jack Vissicchio 	 
	 	Name:  	Jack Vissicchio 	 
	 	Title:  	Managing Director 	 
	 



As Representative of the Initial Purchasers

listed on Schedule A to the Purchase Agreement