Document:

Ex-4.7

 

EXHIBIT 4.7

FOURTH SUPPLEMENTAL INDENTURE

     This Fourth Supplemental Indenture is dated as of June 20, 2006 (this “Fourth
Supplemental Indenture”), among R.J. Reynolds Tobacco Holdings, Inc., a Delaware corporation
(together with its successors and assigns, the “Company”); Reynolds American Inc., a North
Carolina corporation (“RAI”), R. J. Reynolds Tobacco Company, a North Carolina corporation
(“RJRT”), RJR Acquisition Corp., a Delaware corporation, GMB, Inc., a North Carolina
corporation, FHS, Inc., a Delaware corporation, R. J. Reynolds Tobacco Co., a Delaware corporation,
(collectively, the “Guarantors”); and The Bank of New York Trust Company, N.A., as trustee
under the Indenture referred to below (the “Trustee”).

WITNESSETH:

     WHEREAS, the Company, R. J. Reynolds Tobacco Company, a New Jersey corporation which was a
predecessor—in-interest of RJRT, and the Trustee have heretofore executed and delivered an
Indenture, dated as of May 20, 2002, providing for the issuance of, among other series, an
aggregate principal amount of $300,000,000 of the Company’s 6.500% Notes due 2007, an aggregate
principal amount of $300,000,000 of the Company’s 6.500% Secured Notes due 2010, an aggregate
principal amount of $450,000,000 of the Company’s 7.250% Notes due 2012, and an aggregate principal
amount of $200, 000,000 of the Company’s 7.300% Secured Notes due 2015 (collectively, the
“Notes”); and

     WHEREAS, RAI has solicited consents (the “Consent Solicitation”) from the Holders of
the Notes to certain proposed amendments to the Indenture (the “Proposed Amendments”) as
set forth in Article II hereof, in accordance with the terms of an Offer to Exchange and Consent
Solicitation Statement dated May 19, 2006 (the “Offer to Exchange”); and

     WHEREAS, pursuant to Section 9.2 of the Indenture, with the consent of the Holders of
not less than a majority in aggregate principal amount of the Notes at the time outstanding (voting
as one class), the Company, RAI, the Guarantors and the Trustee may enter into a supplemental
indenture for the purpose of adopting the Proposed Amendments;

     WHEREAS, pursuant to the Consent Solicitation, the Holders of a majority in aggregate
principal amount of the outstanding Notes have consented in writing to the adoption of the Proposed
Amendments; and

     WHEREAS, the Notes are the only series of notes currently outstanding under the Indenture;

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto mutually covenant
and agree as follows:

 

 

ARTICLE I

Definitions

     SECTION 1.1 Defined Terms. As used in this Fourth Supplemental Indenture, terms
defined in the Indenture or in the preamble or recitals hereto are used herein as therein defined,
except that the term “Holders” in this Fourth Supplemental Indenture shall refer to the
“Holders” as defined in the Indenture and to the Trustee acting on behalf or for the benefit of
such Holders. The words “herein”, “hereof” and “hereby” and other words of similar import used in
this Fourth Supplemental Indenture refer to this Fourth Supplemental Indenture as a whole and not
to any particular section hereof.

ARTICLE II

Indenture Amendments

     SECTION 2.1 Deletion of Certain Articles, Sections and Clauses from the Indenture.
The text of the following articles and sections of the Indenture shall be deleted from the
Indenture:

     Section 3.5            Negative Pledge

     Section 3.6            Certain Sale and Lease-back Transactions

     Section 3.7            Corporate Existence

     Section 3.8            Payment of Taxes and Other Claims

     Section 3.9            Waiver of Stay, Extension or Usury Laws

     Article IV
               Consolidation, Merger, Sale or Conveyance

     In addition, the text set forth in clause (f) of Section 6.1, “Event of Default Defined;
Acceleration of Maturity; Waiver of Default,” shall be deleted.

     In place of the deleted text of the foregoing articles, sections and clauses, the following
text shall be inserted immediately after the section or article number or clause letter:
"[Reserved].”

     Any and all references to the foregoing articles, sections and clauses and any and all
obligations thereunder related solely to such articles, sections and clauses throughout the
Indenture shall be of no further force or effect. All definitions in the Indenture which are used
exclusively in the articles, sections and clauses deleted pursuant to this Section 2.1 shall be of
no further force or effect.

     SECTION 2.1 Amendment of Clause (e) of Section 6.1. The following proviso shall be
inserted immediately after the existing text that precedes the semicolon in clause (e) of Section
6.1, “Event of Default Defined; Acceleration of Maturity; Waiver of Default”:

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“provided, however, that it shall not be an Event of Default if the Company or any Guarantor
that is a Subsidiary of the Company, as applicable, consents to the entry of such a decree
or order”

ARTICLE III

Effectiveness of Supplemental Indenture; Operativeness of Amendments

     SECTION 3.1 Effectiveness of Supplemental Indenture. This Fourth Supplemental
Indenture shall become effective upon the due execution and delivery by the Company, the
Guarantors, RAI and the Trustee of this Fourth Supplemental Indenture.

     SECTION 3.2 Operativeness of Amendments. Notwithstanding Section 3.1 of this Fourth
Supplemental Indenture, the Proposed Amendments set forth in Article II of this Fourth Supplemental
Indenture shall become operative when, and only when, all of the following shall have been
satisfied: RAI shall have accepted the Notes validly tendered and not validly withdrawn in the
exchange offer described in the Offer to Exchange.

ARTICLE IV

Miscellaneous

     SECTION 4.1 Parties. Nothing expressed or mentioned herein is intended or shall be
construed to give any Person, firm or corporation, other than the Holders and the Trustee, any
legal or equitable right, remedy or claim under or in respect of this Fourth Supplemental Indenture
or the Indenture or any provision herein or therein contained.

     SECTION 4.2 Governing Law. This Fourth Supplemental Indenture shall be governed by
the laws of the State of New York.

     SECTION 4.3 Severability Clause. In any case any provision in this Fourth
Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby and
such provision shall be ineffective only to the extent of such invalidity, illegality and
unenforceability.

     SECTION 4.4 Ratification of Indenture; Fourth Supplemental Indenture Part of
Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and
confirmed and all the terms, conditions and provisions thereof shall remain in full force and
effect. This Fourth Supplemental Indenture shall form a part of the Indenture for all purposes,
and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound
hereby.

     SECTION 4.5 Counterparts. The parties hereto may sign one or more copies of this
Fourth Supplemental Indenture in counterparts, all of which together shall constitute one and the
same agreement

     SECTION 4.6 Headings. The headings of the Articles and the sections in this Fourth
Supplemental Indenture are for convenience of reference only and shall not be deemed to alter or
affect the meaning or interpretation of any provisions hereof.

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     SECTION 4.7 Trustee. The Trustee makes no representations as to the validity or
sufficiency of this Fourth Supplemental Indenture. The recitals and statements herein are deemed to
be those of the Company, the guarantors and RAI and not of the Trustee.

4

 

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

	 	 	 	 	 	 	 
	Address:	 	R.J. REYNOLDS TOBACCO HOLDINGS, INC.
	401 North Main Street
	 	 	 	 	 	 
	Winston-Salem, N C 27102
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     
/s/ Daniel A. Fawley
 
 Name:
Daniel A. Fawley
	 	 
	 

	 	 	 	 Title:    Senior Vice President & Treasurer	 	 
	 
	 	 	 	 	 	 
	Address:	 	REYNOLDS AMERICAN INC.,
	401 North Main Street	 	as a Guarantor
	Winston-Salem, N C 27102
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     
/s/ Daniel A. Fawley
 
 Name:
Daniel A. Fawley
	 	 
	 

	 	 	 	 Title:    Senior Vice President & Treasurer	 	 
	 
	 	 	 	 	 	 
	Address:	 	RJR ACQUISITION CORP.,
	1007 N. Orange Street	 	as a Guarantor
	Suite 1402
	 	 	 	 	 	 
	Wilmington, DE 19801
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     
/s/ McDara P. Folan, III
 
 Name:
McDara P. Folan, III
	 	 
	 

	 	 	 	 Title:    Vice President & Assistant Secretary	 	 
	 
	 	 	 	 	 	 
	Address:	 	R. J. REYNOLDS TOBACCO COMPANY,
	401 North Main Street	 	as a Guarantor
	Winston-Salem, N C 27102
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     
/s/ Daniel A. Fawley
 
 Name:
Daniel A. Fawley
	 	 
	 

	 	 	 	 Title:    Senior Vice President & Treasurer	 	 
	 
	 	 	 	 	 	 
	Address:	 	R. J. REYNOLDS TOBACCO CO.,
	401 North Main Street	 	as a Guarantor
	Winston-Salem, N C 27102
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     
/s/ Daniel A. Fawley
 
 Name:
Daniel A. Fawley
	 	 
	 

	 	 	 	 Title:    Senior Vice President & Treasurer	 	 

Signature Pages to Fourth Supplemental Indenture to 2002 Indenture

 

 

	 	 	 	 	 	 	 
	Address:	 	FHS, INC.,
	1007 N. Orange Street	 	as a Guarantor
	Suite 1402
	 	 	 	 	 	 
	Wilmington, DE 19801
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     
/s/ Kathryn A. Premo
 
 Name:
Kathryn A. Premo
	 	 
	 

	 	 	 	 Title:    Treasurer	 	 
	 
	 	 	 	 	 	 
	Address:	 	GMB, INC.,
	401 North Main Street	 	as a Guarantor
	Winston-Salem, N C 27102
	 	 	 	 	 	 
	 

	 	By:
	 	     
/s/ Daniel A. Fawley
 
 Name:
Daniel A. Fawley
	 	 
	 

	 	 	 	 Title:    Treasurer	 	 

THE BANK OF NEW YORK TRUST

COMPANY, N.A., as Trustee

	 	 	 	 	 
	By:

	 	     /s/ Sean Julien
 
 Name:
Sean Julien
	 	 
	 

	 	 Title:    Assistant Treasurer	 	 

Signature Pages to Fourth Supplemental Indenture to 2002 IndentureEx-10.1

 

EXHIBIT 10.1

Execution Copy

Dated as of June 20, 2006

REYNOLDS AMERICAN INC.

as Issuer,

the Guarantors listed on Schedule 1 hereto,

and

THE BANK OF NEW YORK TRUST COMPANY, N.A.

as Trustee

REGISTRATION RIGHTS AGREEMENT

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE
	1 Definitions
	 	 	1	 
	 
	2 Registration Under the Securities Act
	 	 	4	 
	 
	3 Registration Procedures
	 	 	8	 
	 
	4 Participation of Broker-Dealers in Exchange Offer
	 	 	13	 
	 
	5 Indemnification and Contribution
	 	 	14	 
	 
	6 General
	 	 	17	 
	 
	SCHEDULE 1 GUARANTORS
	 	 	1	 

 

 

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement dated June 20, 2006 (this “Agreement”) is entered into by
and among REYNOLDS AMERICAN INC., a Delaware corporation (the “Company”), the guarantors listed in
Schedule 1 hereto (the “Guarantors”), and The Bank of New York Trust Company, N.A. (the “Trustee”).

This Agreement is made as contemplated by the Offer to Exchange Notes Issued by R.J. Reynolds
Tobacco Holdings, Inc. and Solicitation of Consents to Amend the Related Indentures dated May 19,
2006 (the “Offer to Exchange”), pursuant to which, among other things the Company has agreed to
exchange (the “Private Exchange”) up to $300 million aggregate principal amount of 6.50% Notes due
2007 of R.J. Reynolds Tobacco Holdings, Inc., a Delaware corporation, (“RJR”) (the “Existing 2007
Notes”) for up to $300 million aggregate principal amount of 6.50% Notes due 2007 of the Company
(the “New 2007 Notes”), (ii) up to $200 million aggregate principal amount of 7.875% Notes due 2009
of RJRTH (the “Existing 2009 Notes”) for up to $200 million aggregate principal amount of 7.875%
Notes due 2009 of the Company (the “New 2009 Notes”), (iii) up to $300 million aggregate principal
amount of 6.50% Notes due 2010 of RJRTH (the “Existing 2010 Notes”) for up to $300 million
aggregate principal amount of 6.50% Notes due 2010 of the Company (the “New 2010 Notes”), (iv) up
to $450 million aggregate principal amount of 7.25% Notes due 2012 of RJRTH (the “Existing 2012
Notes”) for up to $450 million aggregate principal amount of 7.25% Notes due 2012 of the Company
(the “New 2012 Notes”) and (v) up to $200 million aggregate principal amount of 7.30% Notes due
2015 of RJRTH (the “Existing 2015 Notes” and, together with the Existing 2007 Notes, Existing 2009
Notes, Existing 2010 Notes and Existing 2012 Notes, the “Existing Notes”) for up to $200 million
aggregate principal amount of 7.30% Notes due 2015 of the Company (the “New 2015 Notes” and,
together with the New 2007 Notes, New 2009 Notes, New 2010 Notes and New 2012 Notes, the
“Securities”), as provided in the Offer to Exchange. As an inducement to the Holders (as defined
below) to participate in the Private Exchange, the Company and the Guarantors have agreed to
provide the registration rights set forth in this Agreement for the benefit of the Holders. The
execution and delivery of this Agreement is a condition to the closing of the Private Exchange.

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

1 Definitions

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

“Business Day” shall mean any day that is not a Saturday, Sunday or other day on
which commercial banks in New York City are authorized or required by law to remain
closed.

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

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

“Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

“Exchange Offer” shall mean the exchange offer by the Company and the Guarantors of
Exchange Securities for Registrable Securities pursuant to Section 2(a) hereof.

“Exchange Offer Registration” shall mean a registration under the Securities Act
effected pursuant to Section 2(a) hereof.

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“Exchange Offer Registration Statement” shall mean an exchange offer registration
statement on Form S-4 (or, if applicable, on another appropriate form) and all
amendments and supplements to such registration statement, in each case including the
Prospectus contained therein, all exhibits thereto and any document incorporated by
reference therein.

“Exchange Securities” shall mean senior secured notes issued by the Company and
guaranteed by the Guarantors under the Indenture containing terms identical to the
Securities (except that the Exchange Securities will not be subject to restrictions
on transfer or to any increase in annual interest rate for failure to comply with
this Agreement and will otherwise differ from the Securities as described in the
Offer to Exchange) and to be offered to Holders of Securities in exchange for
Securities pursuant to the Exchange Offer.

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

“Holders” shall mean a holder of Registrable Securities, for so long as such holder
owns any Registrable Securities, and each of such holder’s successors, assigns and
direct and indirect transferees who become registered owners of Registrable
Securities under the Indenture or who become beneficial owners of Registrable
Securities, so long as in the case of beneficial owners, such owners have so notified
the Issuer in writing; provided that for purposes of Sections 4 and 5 of this
Agreement, the term “Holder” shall include Participating Broker-Dealers.

“Indenture” shall mean the Indenture relating to the Securities and the Exchange
Securities dated as of May 31, 2006, among the Company, Santa Fe Natural Tobacco
Company, Inc., Lane Limited, R. J. Reynolds Tobacco Company, RJR Acquisition Corp.,
R. J. Reynolds Tobacco Co., FHS, Inc., GMB, Inc. Conwood Holdings, Inc., Conwood
Company, L.P., Conwood Sales Co., L.P. and Rosswil LLC, as guarantors and The Bank of
New York Trust Company, N.A., as trustee, as amended from time to time hereafter in
accordance with the terms thereof.

amended from time to time hereafter in accordance with the terms thereof.

“Issue Date” shall mean the date the Securities are issued by the Company as
contemplated by the Offer to Exchange.

“Majority Holders” shall mean the Holders of a majority of the aggregate principal
amount of outstanding Registrable Securities; provided that whenever the consent or
approval of Holders of a specified percentage of Registrable Securities is required
hereunder, (i) any Registrable Securities owned directly or indirectly by the Company
or any of its affiliates shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage or amount, and (ii) in
the case of a Shelf Registration Statement, such percentage shall be required from
Holders of Registrable Securities entitled to be covered by such Shelf Registration
Statement; and provided, further, that if the Company shall issue any additional
Securities under the Indenture prior to consummation of the Exchange Offer or, if
applicable, the effectiveness of any Shelf Registration Statement, such additional
Securities and the Registrable Securities to which this Agreement relates shall be
treated together as one class for purposes of determining whether the consent or
approval of Holders of a specified percentage of Registrable Securities has been
obtained.

2

 

“Participating Broker-Dealers” shall have the meaning set forth in Section 4(a)
hereof.

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

“Prospectus” shall mean the prospectus included in a Registration Statement,
including any preliminary prospectus, and any such prospectus as amended or
supplemented by any prospectus supplement, including a 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 such prospectus, and in each case including any document incorporated
by reference therein.

“Registrable Securities” shall mean the Securities; provided that the Securities
shall cease to be Registrable Securities (i) when a Registration Statement with
respect to such Securities has become effective under the Securities Act and such
Securities have been exchanged or disposed of pursuant to such Registration
Statement, (ii) in the case of Securities eligible to be exchanged for Exchange
Securities in the Exchange Offer, upon the closing of the Exchange Offer, (iii) when
such Securities have been transferred pursuant to Rule 144 under the Securities Act
or eligible to be sold pursuant to Rule 144(k) under the Securities Act (or in each
case, any similar provision then in force, but not Rule 144A) under the Securities
Act or (iv) when such Securities cease to be outstanding.

“Registration Default” shall have the meaning set forth in Section 2(d) hereof.

“Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company and the Guarantors with this Agreement, including, without
limitation: (i) all SEC, New York Stock Exchange or National Association of
Securities Dealers, Inc. registration and filing fees, (ii) all fees and expenses
incurred in connection with compliance with state securities or blue sky laws
(including reasonable fees and disbursements of one counsel for all Underwriters or
Holders as a group in connection with blue sky qualification of any of the Exchange
Securities or Registrable Securities) within the United States (x) where the Holders
are located, in the case of the Exchange Securities, or (y) as provided in Section
3(d) hereof, in the case of Registrable Securities to be sold by a Holder pursuant to
a Shelf Registration Statement, (iii) all expenses of any Persons in preparing or
assisting in preparing, word processing, printing and distributing any Registration
Statement, any Prospectus, any amendments or supplements thereto, any underwriting
agreements, securities sales agreements and other documents relating to the
performance of and compliance with this Agreement, (iv) all rating agency fees, (v)
all fees and disbursements relating to the qualification of the Indenture under
applicable securities laws, (vi) the fees and disbursements of the Trustee and its
counsel, (vii) the fees and disbursements of counsel for the Company and the
Guarantors and, in the case of a Shelf Registration Statement, the fees and
disbursements of one counsel for the Holders (which counsel shall be selected by the
Majority Holders) and (viii) the fees and disbursements of the independent public
accountants of the Company and the Guarantors, including the expenses of any special
audits, agreed-upon procedures or “cold comfort” letters required by or incident to
such performance and compliance, but excluding fees and

3

 

expenses of counsel to the Underwriters (other than fees and expenses set forth in
clause (ii) above) or the Holders and underwriting discounts and commissions and
out-of-pocket expenses incurred by the Holders and transfer taxes, if any, relating
to the sale or disposition of Registrable Securities by a Holder.

“Registration Statement” shall mean any registration statement of the Company and the
Guarantors that covers any of the Exchange Securities or Registrable Securities
pursuant to the provisions of this Agreement and all amendments and supplements to
any such registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and any document
incorporated by reference therein.

“SEC” shall mean the Securities and Exchange Commission.

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

“Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

“Shelf Registration” shall mean a registration effected pursuant to Section 2(b)
hereof.

“Shelf Registration Statement” shall mean a “shelf” registration statement of the
Company and the Guarantors that covers all or a portion of the Registrable Securities
(but no other securities unless approved by the Holders of a majority in aggregate
principal amount of the Registrable Securities to be covered by such Shelf
Registration Statement) on an appropriate form under Rule 415 under the Securities
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 any
document incorporated by reference therein.

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

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

“Underwriters” shall have the meaning set forth in Section 3 hereof.

“Underwritten Offering” shall mean an offering in which Registrable Securities are
sold to an Underwriter for reoffering to the public.

	2	 	Registration Under the Securities Act

	 	(a)	 	To the extent not prohibited by any applicable law or applicable interpretations
of the Staff of the SEC, the Company and the Guarantors shall use their reasonable best
efforts to (i) cause to be filed an Exchange Offer Registration Statement covering an
offer to the Holders to exchange all the Registrable Securities for Exchange Securities
and (ii) have such Registration Statement remain effective until the earlier of (A) 180
days after the closing of the Exchange Offer and (B) the first day after the closing of
the Exchange Offer on which Participating Broker-Dealers no longer have a prospectus
delivery obligation under the interpretations of the Staff of the SEC referenced in
Section 4(a). The Company and the Guarantors shall commence the Exchange Offer promptly
after the Exchange Offer Registration Statement is

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	 	 	 	declared effective by the SEC and use their reasonable best efforts to complete the
Exchange Offer not later than 210 days after the Issue Date.
	 
	 	 	 	The Company and the Guarantors shall commence the Exchange Offer by mailing the
related Prospectus, appropriate letters of transmittal and other accompanying
documents to each Holder stating, in addition to such other disclosures as are
required by applicable law, substantially the following:

	 	(i)	 	that the Exchange Offer is being made pursuant to this Agreement
and that all Registrable Securities validly tendered and not properly withdrawn
will be accepted for exchange;
	 
	 	(ii)	 	the dates of acceptance for exchange (which shall be a period of
at least 20 Business Days from the date such notice is mailed) (the “Exchange
Dates”);
	 
	 	(iii)	 	that any Registrable Security not tendered will remain
outstanding and continue to accrue interest but will not retain any rights under
this Agreement;
	 
	 	(iv)	 	that any Holder electing to have a Registrable Security exchanged
pursuant to the Exchange Offer will be required to surrender such Registrable
Security, together with the appropriate letters of transmittal, to the
institution and at the address (located in the Borough of Manhattan, The City of
New York) and in the manner specified in the notice, prior to the close of
business on the last Exchange Date; and
	 
	 	(v)	 	that any Holder will be entitled to withdraw its election, not
later than the close of business on the last Exchange Date, by sending to the
institution and at the address specified in the notice, a telegram, telex,
facsimile transmission or letter setting forth the name of such Holder, the
principal amount of Registrable Securities delivered for exchange and a
statement that such Holder is withdrawing its election to have such Securities
exchanged.

As a condition to participating in the Exchange Offer, a Holder will be required to
represent to the Company and the Guarantors that (i) any Exchange Securities to be
received by it will be acquired in the ordinary course of its business, (ii) at the
time of the commencement of the Exchange Offer it has no arrangement or understanding
with any Person, or any intention, to participate in the distribution (within the
meaning of the Securities Act) of the Exchange Securities, (iii) it is not an
“affiliate” (within the meaning of Rule 405 under the Securities Act) of the Company
or any Guarantor, (iv) if such Holder is a broker-dealer, it did not purchase the
Securities being tendered in the Exchange Offer directly from the Company for resale
pursuant to (A) Rule 144A under the Securities Act or (B) any other available
exemption from registration under the Securities Act, (v) if such Holder is a
broker-dealer that will receive Exchange Securities for its own account in exchange
for Registrable Securities that were acquired as a result of market-making or other
trading activities, then such Holder will deliver a Prospectus in connection with any
resale of such Exchange Securities, and (vi) it is not acting on behalf of any person
that could not truthfully make the representations set forth in
clauses (i) — (v) of
this paragraph.

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As soon as practicable after the last Exchange Date, the Company and the Guarantors
shall:

	 	(i)	 	accept for exchange Registrable Securities or portions thereof
validly tendered and not properly withdrawn pursuant to the Exchange Offer; and
	 
	 	(ii)	 	deliver, or cause to be delivered, to the Trustee for
cancellation all Registrable Securities or portions thereof so accepted for
exchange by the Company and issue, and cause the Trustee to promptly
authenticate and deliver to each Holder, Exchange Securities equal in principal
amount to the principal amount of the Registrable Securities surrendered by such
Holder.

The Company and the Guarantors shall use their reasonable best efforts to complete the
Exchange Offer as provided above and shall comply with the applicable requirements of the
Securities Act, the Exchange Act and other applicable laws and regulations in connection with
the Exchange Offer. The Exchange Offer shall not be subject to any conditions, other than
that the Exchange Offer does not violate any applicable law or applicable interpretations of
the Staff of the SEC.

	 	(b)	 	In the event that (i) the Company and the Guarantors determine that the Exchange
Offer Registration provided for in Section 2(a) above is not available or may not be
completed as soon as practicable after the last Exchange Date because it would violate
any applicable law or applicable interpretations of the Staff of the SEC, (ii) the
Exchange Offer is not for any other reason completed by the 210th day after the Issue
Date, (iii) any Holder of Securities notifies the Company and the Guarantors after the
commencement of the Exchange Offer that due to a change in applicable law or SEC policy
it is not entitled to participate in the Exchange Offer, or (iv) any Holder that
participates in the Exchange Offer (and tenders its Registrable Securities prior to the
expiration thereof), does not receive Exchange Securities on the date of the exchange
that may be sold without restriction under state and federal securities laws (other than
due solely to the status of such Holder as an affiliate of the Company or any of the
Guarantors), the Company and the Guarantors shall cause to be filed as soon as
practicable a Shelf Registration Statement providing for the sale by the Holders of all
of the Registrable Securities and shall use all their reasonable best efforts to have
such Shelf Registration Statement become effective.
	 
	 	 	 	In the event that the Company and the Guarantors are required to file a Shelf
Registration Statement pursuant to clause (iii) of the preceding sentence, the
Company and the Guarantors shall use their reasonable best efforts to file and cause
to become effective under the Securities Act both an Exchange Offer Registration
Statement pursuant to Section 2(a) with respect to all Registrable Securities and a
Shelf Registration Statement (which may be a combined Registration Statement with the
Exchange Offer Registration Statement) with respect to offers and sales of
Registrable Securities held by such Holders after completion of the Exchange Offer.
	 
	 	 	 	The Company and the Guarantors agree to use their reasonable best efforts to keep the
Shelf Registration Statement continuously effective until the expiration of the
period referred to in Rule 144(k) under the Securities Act with respect to the
Registrable Securities or such shorter period that will terminate when all the
Registrable Securities covered by the Shelf Registration Statement have been sold

6

 

	 	 	 	pursuant to the Shelf Registration Statement or otherwise cease to be Registrable
Securities (the “Shelf Effectiveness Period”). The Company and the Guarantors
further agree to supplement or amend the Shelf Registration Statement and the related
Prospectus if required by the rules, regulations or instructions applicable to the
registration form used by the Company for such Shelf Registration Statement or by the
Securities Act or by any other rules and regulations thereunder for shelf
registration or if reasonably requested by a Holder of Registrable Securities with
respect to information relating to such Holder, and to use their reasonable best
efforts to cause any such amendment to become effective and such Shelf Registration
Statement and Prospectus to become usable as soon as thereafter practicable. The
Company and the Guarantors agree to furnish to the Holders of Registrable Securities
copies of any such supplement or amendment promptly after its being used or filed
with the SEC.
	 
	 	(c)	 	The Company and the Guarantors shall pay all Registration Expenses in connection
with the registration pursuant to Section 2(a) and Section 2(b) hereof. Each Holder
shall pay all underwriting discounts and commissions, brokerage commissions and transfer
taxes, if any, relating to the sale or disposition of such Holder’s Registrable
Securities pursuant to the Shelf Registration Statement or the Exchange Offer
Registration Statement.
	 
	 	(d)	 	An Exchange Offer Registration Statement pursuant to Section 2(a) hereof will not
be deemed to have become effective unless it has been declared effective by the SEC. A
Shelf Registration Statement pursuant to Section 2(b) hereof will not be deemed to have
become effective unless it has been declared effective by the SEC or it has become
effective automatically pursuant to General Instruction I.D of Form S-3 under the
Securities Act..
	 
	 	 	 	In the event that either the Exchange Offer is not completed on or prior to [?],
2006, or the Shelf Registration Statement, if required hereby, does not become
effective on or prior to the 60th day after the Company and Guarantors are first
requested to file the Shelf Registration Statement pursuant to Section 2(b)(iii)
hereof, the interest rate on the Registrable Securities will be increased by 0.5% per
annum until the Exchange Offer is completed or the Shelf Registration Statement, if
required hereby, becomes effective or the Registrable Securities become freely
tradable under the Securities Act.
	 
	 	 	 	If the Shelf Registration Statement has become effective and thereafter either ceases
to be effective or the Prospectus contained therein ceases to be usable at any time
during the Shelf Effectiveness Period, and such failure to remain effective or usable
exists for more than 90 days (whether or not consecutive) in any 12-month period,
then the interest rate on the Registrable Securities will be increased by 0.5% per
annum commencing on the 31st day in such 12-month period and ending on such date that
the Shelf Registration Statement has again become effective or the Prospectus again
becomes usable.
	 
	 	 	 	A circumstance that requires an increase in the interest rate on the Registrable
Securities pursuant to this Section 2(d) is referred to as a “Registration Default.”
	 
	 	(e)	 	Without limiting the remedies available to the Holders, the Company and the
Guarantors acknowledge that any failure by the Company or the Guarantors to comply with
their obligations under Section 2(a) and Section 2(b) hereof may result

7

 

	 	 	 	in material irreparable injury to the the 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, any Holder may obtain such
relief as may be required to specifically enforce the Company’s and the Guarantors’
obligations under Section 2(a) and Section 2(b) hereof. Notwithstanding the
foregoing, the additional interest provided for in Section 2(d) shall be the
exclusive monetary remedy available to holders of Registrable Securities in respect
of Registration Defaults.

	3	 	Registration Procedures
	 
	 	 	In connection with their obligations pursuant to Section 2(a) and Section 2(b) hereof, the
Company and the Guarantors shall as expeditiously as possible, until the last day on which an
Exchange Offer Registration Statement must be kept effective pursuant to Section 2(a) hereof
in the case of an Exchange Registration, or on which a Shelf Registration Statement must be
kept effective pursuant to Section 2(b) hereof in the case of a Shelf Registration:

	 	(a)	 	prepare and file with the SEC a Registration Statement on the appropriate form
under the Securities Act, which form (i) shall be selected by the Company and the
Guarantors, (ii) shall, in the case of a Shelf Registration, be available for the sale
of the Registrable Securities by the selling Holders thereof, or the Holders of
Registrable Securities that are ineligible to be exchanged in the Exchange Offer as set
forth in Section 2(b), and (iii) shall comply as to form in all material respects with
the requirements of the applicable form and include or incorporate by reference, as
appropriate, all financial statements required by the SEC to be filed therewith; and use
their reasonable best efforts to cause such Registration Statement to become effective
and remain effective for the applicable period in accordance with Section 2 hereof;
	 
	 	(b)	 	prepare and file with the SEC such amendments and post-effective amendments to
each Registration Statement as may be necessary under applicable law to keep such
Registration Statement effective for the applicable period in accordance with Section 2
hereof and cause each 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 keep each Prospectus current during the period described in Section
4(3) of and Rule 174 under the Securities Act that is applicable to transactions by
brokers or dealers with respect to the Registrable Securities or Exchange Securities;
	 
	 	(c)	 	in the case of a Shelf Registration, furnish to each Holder of Registrable
Securities, to counsel for such Holders and to each Underwriter of an Underwritten
Offering of Registrable Securities if any, without charge, as many copies of each
Prospectus as such Holder or Underwriter may reasonably request, including each
preliminary Prospectus, and any amendment or supplement thereto, in order to facilitate
the sale or other disposition of the Registrable Securities thereunder; and the Company
and the Guarantors consent to the use of such Prospectus and any amendment or supplement
thereto in accordance with applicable law by each of the selling Holders of Registrable
Securities and any such Underwriters in connection with the offering and sale of the
Registrable Securities covered by and in the manner described in such Prospectus or any
amendment or supplement thereto in accordance with applicable law;

8

 

	 	(d)	 	use their reasonable best efforts to register or qualify the Registrable
Securities under all applicable state securities or blue sky laws of such jurisdictions
in the United States as any Holder of Registrable Securities covered by a Registration
Statement shall reasonably request in writing by the time the applicable Registration
Statement becomes effective; cooperate with the Holders in connection with any filings
required to be made with the National Association of Securities Dealers, Inc. in
connection with the sale of Registrable Securities; and do any and all other acts and
things that may be reasonably necessary or advisable to enable each Holder to complete
the disposition in each such jurisdiction of the Registrable Securities owned by such
Holder; provided that neither the Company nor any Guarantor shall be required to (i)
qualify as a foreign corporation or other entity or as a dealer in securities in any
such jurisdiction where it would not otherwise be required to so qualify, (ii) file any
general consent to service of process in any such jurisdiction or (iii) subject itself
to taxation in any such jurisdiction if it is not so subject;
	 
	 	(e)	 	in the case of a Shelf Registration, notify each Holder of Registrable Securities
and counsel for such Holders promptly (and, if requested by any such Holder or counsel,
confirm such notice in writing) (i) when a Registration Statement has become effective
and when any post-effective amendment thereto has been filed and becomes effective, (ii)
of any request by the SEC or any state securities authority for amendments and
supplements to a Registration Statement and Prospectus or for additional information
after the 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
Registration Statement or the initiation of any proceedings for that 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 or any Guarantor contained in any underwriting agreement, securities sales
agreement or other similar agreement, if any, relating to an offering of such
Registrable Securities cease to be true and correct in all material respects or if the
Company or any Guarantor receives any notification with respect to the suspension of the
qualification of the Registrable Securities for sale in any jurisdiction or the
initiation of any proceeding for such purpose, (v) of the happening of any event during
the period a Shelf Registration Statement is effective that makes any statement made in
such Registration Statement or the related Prospectus untrue in any material respect or
that requires the making of any changes in such Registration Statement or Prospectus in
order to make the statements therein not misleading and (vi) of any determination by the
Company or any Guarantor that a post-effective amendment to a Registration Statement
would be appropriate, and (vii) of any determination by the Company or the Guarantors,
in the exercise of their reasonable judgment, that (A) it is not in the best interests
of the Company and the Guarantors to disclose a possible acquisition or business
combination or other transaction, business development or event involving the Company or
the Guarantors that may require disclosure in the Shelf Registration Statement, or if
required to be kept effective after consummation of the Exchange Offer, the Exchange
Offer Registration Statement, or (B) obtaining any financial statements relating to an
acquisition or business combination required to be included in the Shelf Registration
Statement, or if required to be kept effective after consummation of the Exchange Offer,
the Exchange Offer Registration Statement, would be impracticable;

9

 

	 	(f)	 	use their reasonable best efforts to obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement at the earliest possible moment
and provide immediate notice to each Holder of the withdrawal of any such order;
	 
	 	(g)	 	in the case of a Shelf Registration, furnish to each Holder of Registrable
Securities included in such Shelf Registration, without charge, at least one conformed
copy of each Registration Statement and any post-effective amendment thereto (without
any documents incorporated therein by reference or exhibits thereto, unless requested);
	 
	 	(h)	 	in the case of a Shelf Registration, 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
and enable such Registrable Securities to be issued in such denominations and registered
in such names (consistent with the provisions of the Indenture) as the selling Holders
may reasonably request at least two Business Days prior to the closing of any sale of
Registrable Securities;
	 
	 	(i)	 	in the case of a Shelf Registration, upon the occurrence of any event
contemplated by Section 3(e)(v) hereof, use their reasonable best efforts to prepare and
file with the SEC a supplement or post-effective amendment to a 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 purchasers of the
Registrable Securities, such Prospectus will not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading; and the
Company and the Guarantors shall notify the Holders of Registrable Securities to suspend
use of the Prospectus as promptly as practicable after the occurrence of such an event,
and such Holders hereby agree to suspend use of the Prospectus until the Company and the
Guarantors have amended or supplemented the Prospectus to correct such misstatement or
omission;
	 
	 	(j)	 	in the case of a Shelf Registration, a reasonable time prior to the filing of any
Registration Statement, any Prospectus, any amendment to a Registration Statement or
amendment or supplement to a Prospectus or of any document which is to be incorporated
by reference into a Registration Statement or a Prospectus after initial filing of a
Registration Statement (other than reports and statements filed by the Company or the
Guarantors pursuant to the Exchange Act), provide copies of such document to, the
Holders and their counsel and make such of the representatives of the Company and the
Guarantors as shall be reasonably requested by the Holders or their counsel available
for discussion of such document, and shall not at any time file or make any amendment to
the Registration Statement, any Prospectus or any amendment of or supplement to a
Registration Statement or a Prospectus or any document which is to be incorporated by
reference into a Registration Statement or a Prospectus, of which the Holders and their
counsel shall not have previously been advised and furnished a copy or to which the
Holders or their counsel shall reasonably object on a timely basis, except for any
Registration Statement or amendment thereto or related Prospectus or supplement thereto
(a copy of which has been previously furnished as provided in the preceding sentence)
which counsel to the Company and the Guarantors has advised the Company and the
Guarantors in writing is required to be filed in order to comply with applicable law;

10

 

	 	(k)	 	obtain a CUSIP number for all Exchange Securities or Registrable Securities, as
the case may be, not later than the effective date of a Registration Statement;
	 
	 	(l)	 	cause the Indenture to be qualified under the Trust Indenture Act, if not so
qualified, in connection with the registration of the Exchange Securities or Registrable
Securities, as the case may be; 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 Trust Indenture Act; and execute, and use their
reasonable best 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)	 	in the case of a Shelf Registration, and subject to the execution and delivery by
any Inspector (as defined below), Underwriter, any attorneys and accountants designated
by the Inspector, or other agents of the Holders or any Underwriter, of a customary
confidentiality agreement, make available for inspection, at the offices and locations
where such records, documents and properties are normally kept, by a representative of
the Holders of the Registrable Securities (an “Inspector”), any Underwriter
participating in any disposition pursuant to such Shelf Registration Statement, and
attorneys from no more than one law firm and accountants from no more than one
accounting firm designated by the Inspector, at reasonable times and in a reasonable
manner, all financial and other records, documents and properties of the Company and the
Guarantors pertinent to such Person establishing a due diligence defense under
applicable securities law, and cause the respective officers, directors and employees of
the Company and the Guarantors to supply all information reasonably requested by any
such Inspector, Underwriter, attorney or accountant in connection with a Shelf
Registration Statement; provided that the Company and the Guarantors shall not be
obligated to make available for inspection by any Person any records, documents and
properties if such action may reasonably impair the availability of any claim of legal
privilege for such record, document or property in any proceeding and counsel for any
Underwriter is provided a reasonably satisfactory explanation regarding the risk of such
impairment; provided further that the confidentiality agreement referred to in this
Section 3(m) shall not restrict any Person from disclosing any information in connection
with such Person establishing a due diligence defense, under applicable securities law,
in any proceeding;
	 
	 	(n)	 	in the case of a Shelf Registration, if reasonably requested by any Holder of
Registrable Securities covered by a Shelf Registration Statement, promptly incorporate
in a Prospectus supplement or post-effective amendment such information with respect to
such Holder as such Holder reasonably requests to be included therein and make all
required filings of such Prospectus supplement or such post-effective amendment as soon
as practicable after the Company has received notification of the matters to be
incorporated in such filing; and
	 
	 	(o)	 	in the case of a Shelf Registration, enter into such customary agreements and
take all such other actions in connection therewith (including those reasonably
requested by the Holders of a majority in principal amount of the Registrable Securities
being sold) in order to expedite or facilitate the disposition of such Registrable
Securities including, but not limited to, an Underwritten Offering and in such
connection, (i) to

11

 

	 	 	 	the extent possible, make such representations and warranties to the Holders (if such
Holders may reasonably have a due diligence defense under the Securities Act) and any
Underwriters of such Registrable Securities with respect to the business of the
Company and its subsidiaries, the Registration Statement, Prospectus and documents
incorporated by reference or deemed incorporated by reference, if any, in each case,
in form, substance and scope as are reasonable and customarily made by issuers to
underwriters in underwritten offerings of debt securities similar to the Securities,
and confirm the same if and when requested, (ii) obtain opinions of counsel to the
Company and the Guarantors addressed to each selling Holder (if such Holders may
reasonably have a due diligence defense under the Securities Act) and Underwriter of
Registrable Securities, covering the matters customarily covered in opinions
requested in underwritten offerings of debt securities similar to the Securities
(which opinions and counsel, in form, scope and substance, shall be customary and
reasonably satisfactory to the Holders and such Underwriters and their respective
counsel), (iii) obtain “comfort” letters from the independent certified public
accountants of the Company and the Guarantors (and, if necessary, any other certified
public accountant of any subsidiary of the Company or any Guarantor, or of any
business acquired by the Company or any Guarantor for which financial statements and
financial data are or are required to be included in the Registration Statement)
addressed to each selling Holder (if such Holders may reasonably have a due diligence
defense under the Securities Act) and Underwriter of Registrable Securities, such
letters to be in customary form and covering matters of the type customarily covered
in “comfort” letters in connection with underwritten offerings of debt securities
similar to the Securities and (iv) deliver such documents and certificates as may be
reasonably requested by the Holders of a majority in principal amount of the
Registrable Securities being sold (if such Holders may reasonably have a due
diligence defense under the Securities Act) or the Underwriters, and which are
customarily delivered in underwritten offerings of debt securities similar to the
Securities, to evidence the continued validity of the representations and warranties
of the Company and the Guarantors made pursuant to clause (i) above and to evidence
compliance with any customary conditions contained in an underwriting agreement.
	 
	 	 	 	In the case of a Shelf Registration Statement, the Company may require each Holder of
Registrable Securities to furnish to the Company such information regarding such
Holder and the proposed disposition by such Holder of such Registrable Securities as
the Company and the Guarantors may from time to time reasonably request in writing.
	 
	 	 	 	Notwithstanding anything in this Agreement to the contrary, in the case of a Shelf
Registration Statement, or an Exchange Offer Registration Statement in connection
with which a Participating Broker-Dealer has a prospectus delivery requirement, each
Holder of Registrable Securities agrees that, upon receipt of any notice from the
Company and the Guarantors of the happening of any event of the kind described in
Section 3(e)(iii), 3(e)(v) or 3(e)(vii) hereof, such Holder will forthwith
discontinue disposition of Registrable Securities pursuant to a Registration
Statement until such Holder’s receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 3(i) hereof or notice from the Company or the
Guarantors that dispositions of Registrable Securities pursuant to the Registration
Statement may be resumed and, if so directed by the Company and the Guarantors,

12

 

	 	 	 	such Holder will deliver to the Company and the Guarantors all copies in its
possession, other than permanent file copies then in such Holder’s possession, of the
Prospectus covering such Registrable Securities that is current at the time of
receipt of such notice. Any notice provided pursuant to Section 3(e)(v) or 3(e)(vii)
shall not be required to disclose any possible acquisition, business combination or
other transaction, business development or event if the Company or the Guarantors
determine in the exercise of their reasonable judgment that such acquisition or
business combination or other transaction, business development or event should
remain confidential.
	 
	 	 	 	If the Company and the Guarantors shall give any such notice to suspend the
disposition of Registrable Securities pursuant to a Registration Statement, the
Company and the Guarantors shall extend the period during which the Registration
Statement shall be maintained effective pursuant to this Agreement by the number of
days during the period from and including the date of the giving of such notice to
and including the date when the Holders shall have received copies of the
supplemented or amended Prospectus necessary to resume such dispositions. The Company
and the Guarantors may give any such notice only twice during any 365-day period and
any such suspensions shall not exceed 60 days for each suspension and there shall not
be more than two suspensions in effect during any 365-day period.
	 
	 	 	 	The Holders of Registrable Securities covered by a Shelf Registration Statement who
desire to do so may sell such Registrable Securities in an Underwritten Offering. In
any such Underwritten Offering, the investment banker or investment bankers and
manager or managers (the “Underwriters”) that will administer the offering will be
selected by the Majority Holders of the Registrable Securities included in such
offering.

	4	 	Participation of Broker-Dealers in Exchange Offer

	 	(a)	 	The Staff of the SEC has taken the position that any broker-dealer that receives
Exchange Securities for its own account in the Exchange Offer in exchange for Securities
that were acquired by such broker-dealer as a result of market-making or other trading
activities (a “Participating Broker-Dealer”) may be deemed to be an “underwriter” within
the meaning of the Securities Act and must deliver a prospectus meeting the requirements
of the Securities Act in connection with any resale of such Exchange Securities.
	 
	 	 	 	The Company and the Guarantors understand that it is the Staff’s position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a plan of
distribution containing a statement to the above effect and the means by which
Participating Broker-Dealers may resell the Exchange Securities, without naming the
Participating Broker-Dealers or specifying the amount of Exchange Securities owned by
them, such Prospectus may be delivered by Participating Broker-Dealers to satisfy
their prospectus delivery obligation under the Securities Act in connection with
resales of Exchange Securities for their own accounts, so long as the Prospectus
otherwise meets the requirements of the Securities Act.
	 
	 	(b)	 	In light of the above, and notwithstanding the other provisions of this
Agreement, the Company and the Guarantors agree to amend or supplement the Prospectus
contained in the Exchange Offer Registration Statement, as would otherwise be
contemplated by Section 3(i), for a period ending upon the earlier of (i) 180 days

13

 

	 	 	 	after the closing of the Exchange Offer and (ii) the first day after the consummation
of the Exchange Offer when Participating Broker-Dealers no longer have a prospectus
delivery obligation under the interpretations of the Staff of the SEC referenced in
Section 4(a) (as such period may be extended pursuant to the penultimate paragraph of
Section 3 of this Agreement), if requested by one or more Participating
Broker-Dealers, in order to expedite or facilitate the disposition of any Exchange
Securities by Participating Broker-Dealers consistent with the positions of the Staff
recited in Section 4(a) above. The Company and the Guarantors further agree that
Participating Broker-Dealers shall be authorized to deliver such Prospectus during
such period in connection with the resales contemplated by this Section 4, subject to
the Company’s and the Guarantors’ ability to suspend the disposition of Registrable
Securities as set forth in Section 3.

	5	 	Indemnification and Contribution

	 	(a)	 	The Company and each Guarantor, jointly and severally, agree to indemnify and
hold harmless each Holder, their respective affiliates, directors and officers and each
Person, if any, who controls any Holder within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, from and against any and all losses,
claims, damages and liabilities (including, without limitation, reasonable legal fees
and other expenses incurred in connection with any suit, action or proceeding or any
claim asserted, as such fees and expenses are incurred), joint or several, that arise
out of, or are based upon, any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement or any Prospectus or any omission
or alleged omission to state therein a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading, except insofar as such losses, claims,
damages or liabilities arise out of, or are based upon, any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity with any
information relating to any Holder furnished to the Company in writing through Lehman
Brothers Inc. or any selling Holder expressly for use therein, provided that with
respect to any such untrue statement in or omission from any preliminary prospectus
relating to a Registration Statement, the indemnity agreement contained in this
paragraph (a) shall not inure to the benefit of any Holder to the extent that the sale
to the Person asserting any such loss, claim, damage or liability was an initial resale
by such Holder and any such loss, claim, damage or liability of or with respect to such
Holder results from the fact that both (i) a copy of the final Prospectus was not sent
or given to such Person at or prior to the written confirmation or the sale of such
Securities to such Person and (ii) the untrue statement in or omission from such
preliminary prospectus was corrected in the final Prospectus relating to such
Registration Statement unless, in either case, such failure to deliver the Prospectus
was a result of non-compliance by the Company or any of the Guarantors with the
provisions of Section 3 hereof. In connection with any Underwritten Offering permitted
by Section 3, the Company and the Guarantors, jointly and severally, will also indemnify
the Underwriters, if any, selling brokers, dealers and similar securities industry
professionals participating in the distribution, their respective affiliates and each
Person who controls such Persons (within the meaning of the Securities Act and the
Exchange Act) to the same extent as provided above with respect to the indemnification
of the Holders, if requested in connection with any Registration Statement.

14

 

	 	(b)	 	Each Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, the Guarantors and the other selling Holders, their respective affiliates, the
directors of the Company and the Guarantors, each officer of the Company and the
Guarantors who signed the Registration Statement and each Person, if any, who controls
the Company, the Guarantors and any other selling Holder within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the
indemnity set forth in paragraph (a) above, but only with respect to any losses, claims,
damages or liabilities that arise out of, or are based upon, any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in conformity
with any information relating to such Holder furnished to the Company in writing by such
Holder expressly for use in any Registration Statement and any Prospectus.
	 
	 	(c)	 	If any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any Person in
respect of which indemnification may be sought pursuant to either paragraph (a) or (b)
above, such Person (the “Indemnified Person”) shall promptly notify the Person against
whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided
that the failure to notify the Indemnifying Person shall not relieve it from any
liability that it may have under this Section 5 except to the extent that it has been
materially prejudiced (through the forfeiture of substantive rights or defenses) by such
failure; and provided, further, that the failure to notify the Indemnifying Person shall
not relieve it from any liability that it may have to an Indemnified Person otherwise
than under this Section 5. If any such proceeding shall be brought or asserted against
an Indemnified Person and it shall have notified the Indemnifying Person thereof, the
Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified
Person to represent the Indemnified Person and any others entitled to indemnification
pursuant to this Section 5 that the Indemnifying Person may designate in such proceeding
and shall pay the reasonable fees and expenses of such counsel related to such
proceeding, as incurred upon receipt of appropriate supporting documentation. In any
such proceeding, any Indemnified Person shall have the right to retain its own counsel,
but the fees and expenses of such counsel shall be at the expense of such Indemnified
Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually
agreed in writing to the contrary; (ii) the Indemnifying Person has failed within a
reasonable time to retain counsel reasonably satisfactory to the Indemnified Person;
(iii) the Indemnified Person shall have reasonably concluded that there may be legal
defenses available to it that are different from or in addition to those available to
the Indemnifying Person; or (iv) the named parties in any such proceeding (including any
impleaded parties) include both the Indemnifying Person and the Indemnified Person and
representation of both parties by the same counsel would be inappropriate due to actual
or potential differing interests between them. It is understood and agreed that the
Indemnifying Person shall not, in connection with any proceeding or related proceeding
in the same jurisdiction, be liable for the fees and expenses of more than one separate
firm (in addition to any local counsel) for all Indemnified Persons, and that all such
fees and expenses shall be reasonable and reimbursed as they are incurred upon the
receipt by the Indemnifying Person of an invoice therefor. Any such separate firm for
any Holder, its affiliates, directors and officers and any control Persons of such
Holder shall be designated in writing by the Majority Holders and (z) in all other cases
shall be designated in writing by the Company. The Indemnifying

15

 

	 	 	 	Person shall not be liable for any settlement of any proceeding effected without its
written consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person
from and against any loss or liability by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall
have requested that an Indemnifying Person reimburse the Indemnified Person for
reasonable fees and expenses of counsel as contemplated by this paragraph, the
Indemnifying Person shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more than 30 days
after receipt by the Indemnifying Person of such request and (ii) the Indemnifying
Person shall not have reimbursed the Indemnified Person in accordance with such
request prior to the date of such settlement. No Indemnifying Person shall, without
the written consent of the Indemnified Person, effect any settlement of any pending
or threatened proceeding in respect of which any Indemnified Person is or could have
been a party and indemnification could have been sought hereunder by such Indemnified
Person, unless such settlement (A) includes an unconditional release of such
Indemnified Person, in form and substance reasonably satisfactory to such Indemnified
Person, from all liability on claims that are the subject matter of such proceeding
and (B) does not include any statement as to or any admission of fault, culpability
or a failure to act by or on behalf of any Indemnified Person.
	 
	 	(d)	 	If the indemnification provided for in paragraphs (a) and (b) above is
unavailable to an Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then each Indemnifying Person under such
paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute
to the amount paid or payable by such Indemnified Person as a result of such losses,
claims, damages or liabilities (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company and the Guarantors from the offering of the
Securities and the Exchange Securities, on the one hand, and by the Holders from
receiving Securities or Exchange Securities registered under the Securities Act, on the
other hand, or (ii) if the allocation provided by clause (i) is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) but also the relative fault of the Company and the
Guarantors on the one hand and the Holders on the other in connection with the
statements or omissions that resulted in such losses, claims, damages or liabilities, as
well as any other relevant equitable considerations. The relative fault of the Company
and the Guarantors on the one hand and the Holders on the other 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 and the Guarantors or by the Holders and the
parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.
	 
	 	(e)	 	The Company, the Guarantors and the Holders agree that it would not be just and
equitable if contribution pursuant to this Section 5 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 that does not take account of the equitable considerations
referred to in paragraph (d) above. The amount paid or payable by an Indemnified Person
as a result of the losses, claims, damages and liabilities referred to in paragraph (d)
above shall be deemed to include, subject to the limitations set forth

16

 

	 	 	 	above, any legal or other expenses incurred by such Indemnified Person in connection
with any such action or claim. Notwithstanding the provisions of this Section 5, in
no event shall a Holder be required to contribute any amount in excess of the amount
by which the total price at which the Securities or Exchange Securities sold by such
Holder exceeds the amount of any damages that 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.
	 
	 	(f)	 	The remedies provided for in this Section 5 are not exclusive and shall not limit
any rights or remedies that may otherwise be available to any Indemnified Person at law
or in equity.
	 
	 	(g)	 	The indemnity and contribution provisions contained in this Section 5 shall
remain operative and in full force and effect regardless of (i) any termination of this
Agreement, (ii) any investigation made by or on behalf of any Holder, their respective
affiliates or any Person controlling any Holder, or by or on behalf of the Company or
the Guarantors, their respective affiliates or the officers or directors of or any
Person controlling the Company or the Guarantors, (iii) acceptance of any of the
Exchange Securities and (iv) any sale of Registrable Securities pursuant to a Shelf
Registration Statement.

	6	 	General

	 	(a)	 	No Inconsistent Agreements The Company and the Guarantors represent, warrant and
agree that (i) 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 any other
outstanding securities issued or guaranteed by the Company or any Guarantor under any
other agreement and (ii) neither the Company nor any Guarantor has entered into, or on
or after the date of this Agreement will enter into, any agreement that is inconsistent
with the rights granted to the Holders of Registrable Securities in this Agreement or
otherwise conflicts with the provisions hereof.
	 
	 	(b)	 	Amendments and Waivers The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers
or consents to departures from the provisions hereof may not be given unless the Company
and the Guarantors have obtained the written consent of Holders of at least a majority
in aggregate principal amount of the outstanding Registrable Securities affected by such
amendment, modification, supplement, waiver or consent; provided that no amendment,
modification, supplement, waiver or consent to any departure from the provisions of
Section 5 hereof shall be effective as against any Holder of Registrable Securities
unless consented to in writing by such Holder. Any amendments, modifications,
supplements, waivers or consents pursuant to this Section 6(b) shall be by a writing
executed by each of the parties hereto.
	 
	 	(c)	 	Notices All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, registered first-class mail, telex,
telecopier, or any courier guaranteeing overnight delivery (i) if to a Holder, at the
most current

17

 

	 	 	 	address given by such Holder to the Company by means of a notice given in accordance
with the provisions of this Section 6(c); (ii) if to the Company and the Guarantors,
initially at the Company’s address set forth in the Offer to Exchange and thereafter
at such other address, notice of which is given in accordance with the provisions of
this Section 6(c); and (iii) if to the Trustee, initially at the Trustee’s address
set forth in the Indenture and thereafter at such other address, notice of which is
given in accordance with the provisions of this Section 6(c). 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 answered back, if telexed; when receipt is
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.
	 
	 	(d)	 	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 Indenture. 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 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 and such Person shall be entitled to
receive the benefits hereof.
	 
	 	(e)	 	Third Party Beneficiaries Other than the agreements made pursuant to Section 5
hereto, each Holder shall be a third party beneficiary to the agreements made hereunder
between the Company and the Guarantors, on the one hand, and the Trustee, 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 or the rights of
other Holders hereunder.
	 
	 	(f)	 	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.
	 
	 	(g)	 	Headings The headings in this Agreement are for convenience of reference only,
are not a part of this Agreement and shall not limit or otherwise affect the meaning
hereof.
	 
	 	(h)	 	Governing Law This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.
	 
	 	(i)	 	Miscellaneous This Agreement contains the entire agreement between the parties
relating to the subject matter hereof and supersedes all oral statements and prior
writings with respect thereto. If any term, provision, covenant or restriction
contained in this Agreement is held by a court of competent jurisdiction to be invalid,
void or unenforceable or against public policy, the remainder of the terms,

18

 

	 	 	 	provisions, covenants and restrictions contained herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated. The Company,
the Guarantors and the Trustee shall endeavor in good faith negotiations to replace
the invalid, void or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, void or
unenforceable provisions.

19

 

In Witness Whereof, the parties have executed this Agreement as of the date first written above.

Very truly yours,

	 	 	 	 
	REYNOLDS AMERICAN INC.

 	 
	By:  	/s/ Daniel A. Fawley
 	 
	 	Name:  	Daniel A. Fawley 	 
	 	Title:  	Senior Vice President and Treasurer 	 
	 
	R. J. REYNOLDS TOBACCO COMPANY, as Guarantor

 	 
	By:  	/s/ Daniel A. Fawley
 	 
	 	Name:  	Daniel A. Fawley 	 
	 	Title:  	Senior Vice President and Treasurer 	 
	 
	CONWOOD HOLDINGS, INC., as Guarantor

 	 
	By:  	/s/ Daniel A. Fawley
 	 
	 	Name:  	Daniel A. Fawley 	 
	 	Title:  	Vice President and Treasurer 	 
	 
	SANTA FE NATURAL TOBACCO COMPANY, INC. , as Guarantor

 	 
	By:  	/s/ Daniel A. Fawley
 	 
	 	Name:  	Daniel A. Fawley 	 
	 	Title:  	Assistant Treasurer 	 
	 
	LANE LIMITED, as Guarantor

 	 
	By:  	/s/ Daniel A. Fawley
 	 
	 	Name:  	Daniel A. Fawley 	 
	 	Title:  	Assistant Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 
	CONWOOD COMPANY, L.P., as Guarantor

 	 
	By:  	/s/ Daniel A. Fawley
 	 
	 	Name:  	Daniel A. Fawley 	 
	 	Title:  	Vice President and Treasurer 	 
	 
	CONWOOD SALES CO., L.P., as Guarantor

 	 
	By:  	/s/ Daniel A. Fawley
 	 
	 	Name:  	Daniel A. Fawley 	 
	 	Title:  	Vice President and Treasurer 	 
	 
	ROSSWIL LLC, as Guarantor

 	 
	By:  	/s/ Daniel A. Fawley
 	 
	 	Name:  	Daniel A. Fawley 	 
	 	Title:  	Vice President and Treasurer 	 
	 
	RJR ACQUISITION CORP., as Guarantor

 	 
	By:  	/s/ McDara P. Folan, III
 	 
	 	Name:  	McDara P. Folan, III 	 
	 	Title:  	Vice President and Assistant Secretary 	 
	 
	FHS, INC., as Guarantor

 	 
	By:  	/s/ Kathryn A. Premo
 	 
	 	Name:  	Kathryn A. Premo 	 
	 	Title:  	Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 
	R. J. REYNOLDS TOBACCO CO., as Guarantor

 	 
	By:  	/s/ Daniel A. Fawley
 	 
	 	Name:  	Daniel A. Fawley 	 
	 	Title:  	Vice President and Treasurer 	 
	 
	GMB, INC., as Guarantor

 	 
	By:  	/s/ Daniel A. Fawley
 	 
	 	Name:  	Daniel A. Fawley 	 
	 	Title:  	Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 
	THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee

 	 
	By:  	/s/ Sean Julien
 	 
	 	Name:  	Sean Julien 	 
	 	Title:  	Assistant Treasurer 	 

 

 

	 	 	 	 	 

SCHEDULE 1

GUARANTORS

R.J. Reynolds Tobacco Company, a North Carolina corporation

Conwood Holdings, Inc., a Delaware corporation

Santa Fe Natural Tobacco Company, Inc. a New Mexico corporation

Lane Limited, a New York corporation

Conwood Company, LP, a Delaware limited partnership

Conwood Sales Co., LP, a Delaware limited partnership

Rosswil LLC, a Delaware limited liability company

RJR Acquisition Corp., a Delaware corporation

FHS, Inc., a Delaware corporation

R. J. Reynolds Tobacco Co., a Delaware corporation

GMB, Inc., a North Carolina corporation

S-1

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