Document:

Exhibit 10.71

EXECUTION COPY

 

REGISTRATION
RIGHTS AGREEMENT

between

NEXTEL PARTNERS, INC.

as Issuer,

and

WACHOVIA CAPITAL MARKETS, LLC

and

CREDIT SUISSE FIRST BOSTON LLC

as Initial Purchasers

Dated as of August 6, 2003

 

 

 

REGISTRATION
RIGHTS AGREEMENT (the “Agreement”)
dated as of August 6, 2003 between Nextel Partners, Inc., a Delaware
corporation (the “Company”), and Wachovia Capital Markets,
LLC and Credit Suisse First Boston LLC (collectively, the “Initial Purchasers”) pursuant
to the Purchase Agreement dated July 29, 2003 (the “Purchase Agreement”), between
the Company and the Initial Purchasers. 
In order to induce the Initial Purchasers to enter into the Purchase
Agreement, the Company has agreed to provide the registration rights set forth
in this Agreement.  The execution of
this Agreement is a condition to the closing under the Purchase Agreement.

 

The
Company agrees with the Initial Purchasers, (i) for their benefit as Initial
Purchasers and (ii) for the benefit of the beneficial owners (including the
Initial Purchasers) from time to time of the Securities (as defined herein) and
the beneficial owners from time to time of the Underlying Securities (as
defined herein) issued upon conversion of the Securities (each of the foregoing
a “Holder” and together the “Holders”), as follows:

 

SECTION 1.           Definitions.  Capitalized terms used herein without definition shall have their
respective meanings set forth in the Purchase Agreement.  As used in this Agreement, the following
terms shall have the following meanings:

 

“Affiliate” means with respect to any
specified person, an “affiliate,” as defined in Rule 144, of such person.

 

“Amendment Effectiveness Deadline Date” has
the meaning set forth in Section 2(d) hereof.

 

“Business Day” means each Monday, Tuesday,
Wednesday, Thursday and Friday that is not a day on which banking institutions
in The City of New York are authorized or obligated by law or executive order
to close.

 

“Common Stock” means the shares of class A
common stock, par value $.001 per share, of the Company and any other shares of
common stock as may constitute “Common Stock” for purposes of the Indenture,
including the Underlying Securities.

 

“Conversion Price” has the meaning assigned
such term in the Indenture.

 

“Damages Accrual Period” has the meaning set
forth in Section 2(e) hereof.

 

“Damages Payment Date” means each
May 15 and November 15.

 

“Deferral Notice” has the meaning set forth
in Section 3(h) hereof.

 

“Deferral Period” has the meaning set forth
in Section 3(h) hereof.

 

“Effectiveness Deadline Date” has the
meaning set forth in Section 2(a) hereof.

 

“Effectiveness Period” means the period
commencing on the date hereof and ending on the date that all Registrable
Securities have ceased to be Registrable Securities; provided that in 

 

2

 

no event shall the Effectiveness Period exceed two years after the
Registration Statement is initially declared effective by the SEC.

 

“Event” has the meaning set forth in Section
2(e) hereof.

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations of the SEC promulgated
thereunder.

 

“Filing Deadline Date” has the meaning set
forth in Section 2(a) hereof.

 

“Holder” has the meaning set forth in the second
paragraph of this Agreement.

 

“Indenture” means the Indenture, dated as of
August 6, 2003, between the Company and The Bank of New York, as trustee,
pursuant to which the Securities are being issued.

 

“Initial Purchasers” means Wachovia Capital
Markets, LLC and Credit Suisse First Boston LLC.

 

“Initial Shelf Registration Statement”  has the meaning set forth in Section 2(a)
hereof.

 

“Issue Date” means August 6, 2003.

 

“Liquidated Damages Amount” has the meaning
set forth in Section 2(e) hereof.

 

 “Material
Event” has the meaning set forth in Section 3(h) hereof.

 

“Notice and Questionnaire” means a written
notice delivered to the Company containing substantially the information called
for by the Selling Securityholder Notice and Questionnaire attached as Annex A
to the Offering Memorandum of the Company dated July 29, 2003 relating to
the Securities.

 

“Notice Holder” means, on any date, any
Holder that has delivered a Notice and Questionnaire to the Company on or prior
to such date.

 

“Purchase Agreement” has the meaning set
forth in the preamble hereof.

 

“Prospectus” means the prospectus included
in any Registration Statement (including, without limitation, a prospectus that
discloses information previously omitted from a prospectus filed as part of an
effective registration statement in reliance upon Rule 430A promulgated under
the Securities Act), as amended or supplemented by any amendment or prospectus
supplement, including post-effective amendments, and all materials incorporated
by reference or explicitly deemed to be incorporated by reference in such
Prospectus.

 

“Record Holder” means with respect to any
Damages Payment Date relating to any Securities or Underlying Securities as to
which any Liquidated Damages Amount has accrued, the registered holder of such
Securities or Underlying Securities on May 1 immediately preceding a
Damages Payment Date occurring on May 15, and on November 1
immediately preceding a Damages Payment Date occurring on November 15.

 

3

 

“Registrable Securities” means the
Securities until such Securities have been converted into or exchanged for the
Underlying Securities and, at all times subsequent to any such conversion, the
Underlying Securities and any securities into or for which such Underlying
Securities have been converted or exchanged, and any security issued with
respect thereto upon any stock dividend, split or similar event until, in the
case of any such security, (A) the earliest of (i) its effective registration
under the Securities Act and its resale in accordance with the
Registration Statement covering it; (ii) expiration of the holding period that
would be applicable thereto, under Rule 144(k) or (iii) its sale to the public
pursuant to Rule 144 (or any similar provision then in force, but not Rule
144A) under the Securities Act, and (B) as a result of the event or
circumstance described in any of the foregoing clauses (i) through (iii), the
legend with respect to transfer restrictions required under the Indenture is removed
or removable in accordance with the terms of the Indenture or such legend, as
the case may be.

 

“Registration Statement” means any
registration statement of the Company that covers any of the Registrable
Securities pursuant to the provisions of this Agreement, including the
Prospectus, amendments and supplements to such registration statement,
including post-effective amendments, all exhibits and all materials
incorporated by reference or explicitly deemed to be incorporated by reference
in such registration statement.

 

“Restricted Securities” means “Restricted
Securities” as defined in Rule 144.

 

“Rule 144” means Rule 144 under the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the SEC.

 

“Rule 144A” means Rule 144A under the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the SEC.

 

“SEC” means the Securities and Exchange
Commission.

 

“Securities” means the Company’s
$125,000,000 11⁄2 % convertible senior notes due 2008 and the additional
$25,000,000 11⁄2 % convertible senior notes due 2008, each to be purchased
pursuant to the Purchase Agreement.

 

“Securities Act” means the Securities Act of
1933, as amended, and the rules and regulations promulgated by the SEC
thereunder.

 

“Shelf Registration Statement” has the
meaning set forth in Section 2(a) hereof.

 

“Special Counsel” means Latham & Watkins
LLP or one such other successor counsel as shall be specified by the Holders of
a majority of all Registrable Securities, but which may, with the written
consent of the Initial Purchasers (which shall not be unreasonably withheld),
be another nationally recognized law firm experienced in securities law matters
designated by the Company, the reasonable fees and expenses of which will be
paid by the Company pursuant to Section 5 hereof.  Throughout this Agreement, for purposes of determining the
holders of a majority of Registrable Securities in this definition, Holders of
Securities shall be deemed to be the Holders of the number of shares of
Underlying Securities into which such Securities are or would be convertible as
of the date the consent is requested.

 

4

 

“Subsequent Shelf Registration Statement”
has the meaning set forth in Section 2(b) hereof.

 

“TIA” means the Trust Indenture Act of 1939,
as amended.

 

“Trustee” means The Bank of New York, the
Trustee under the Indenture.

 

“Underlying Securities” means the Common
Stock into which the Securities are convertible or issued upon any such
conversion.

 

SECTION 2.           Shelf
Registration.  (a) 
The Company shall use its reasonable best efforts to prepare and file or
cause to be prepared and filed with the SEC, as soon as practicable but in any
event by the date (the “Filing Deadline Date”) ninety (90) days after
the Issue Date, a Registration Statement for an offering to be made on a
delayed or continuous basis pursuant to Rule 415 of the Securities Act (a “Shelf Registration
Statement”)
registering the resale from time to time by Holders thereof of all of the
Registrable Securities (the “Initial Shelf Registration Statement”).  The Initial Shelf Registration Statement
shall be on Form S-3 or another appropriate form permitting registration of
such Registrable Securities for resale by such Holders in accordance with the
methods of distribution elected by the Holders and set forth in the Initial
Shelf Registration Statement.  The
Company shall use its reasonable best efforts to cause the Initial Shelf
Registration Statement to be declared effective under the Securities Act as
promptly as is practicable but in any event by the date (the “Effectiveness Deadline
Date”)
that is one hundred eighty (180) days after the Issue Date, and to keep the
Initial Shelf Registration Statement (or any Subsequent Shelf Registration
Statement) continuously effective under the Securities Act until the expiration
of the Effectiveness Period. At the time the Initial Shelf Registration
Statement is declared effective, each Holder that became a Notice Holder on or
prior to the date ten (10) Business Days prior to such time of effectiveness
shall be named as a selling securityholder in the Initial Shelf Registration
Statement and the related Prospectus. 
Each Holder agrees to deliver such Prospectus to purchasers of
Registrable Securities in accordance with applicable law.  Other than as described in the final
offering memorandum dated July 29, 2003, none of the Company’s security
holders (other than the Holders of Registrable Securities) shall have the right
to include any of the Company’s securities in the Shelf Registration Statement.

 

(b)           If the Initial Shelf
Registration Statement or any Subsequent Shelf Registration Statement ceases to
be effective for any reason at any time during the Effectiveness Period (other
than because all Registrable Securities registered thereunder shall have been
resold pursuant thereto or shall have otherwise ceased to be Registrable
Securities), the Company shall use its reasonable best efforts to obtain the
prompt withdrawal of any order suspending the effectiveness thereof, and in any
event shall within thirty (30) days of such cessation of effectiveness amend
the Shelf Registration Statement in a manner reasonably expected to obtain the withdrawal
of the order suspending the effectiveness thereof, or file an additional Shelf
Registration Statement covering all of the securities that as of the date of
such filing are Registrable Securities (a “Subsequent Shelf Registration Statement”).  If a Subsequent Shelf Registration Statement
is filed, the Company shall use its reasonable best efforts to cause the
Subsequent Shelf Registration Statement to become effective as promptly as is
practicable after such filing and to 

 

5

 

keep such Registration Statement (or subsequent Shelf Registration
Statement) continuously effective until the end of the Effectiveness Period.

 

(c)           The Company shall
supplement and amend the Shelf Registration Statement if required by the rules,
regulations or instructions applicable to the registration form used by the
Company for such Shelf Registration Statement, if required by the Securities
Act or as necessary to name a Notice Holder as a selling securityholder
pursuant to Section 2(d) below.

 

(d)           Each Holder agrees
that if such Holder wishes to sell Registrable Securities pursuant to a Shelf
Registration Statement and related Prospectus, it will do so only in accordance
with this Section 2(d) and Section 3(h). 
Following the date that the Initial Shelf Registration Statement is
declared effective, each Holder wishing to sell Registrable Securities pursuant
to a Shelf Registration Statement and related Prospectus agrees to deliver a
Notice and Questionnaire to the Company at least three (3) Business Days prior
to any intended distribution of Registrable Securities under the Shelf
Registration Statement.  Each holder who
elects to sell Registrable Securities pursuant to a Shelf Registration
Statement agrees, by submitting a Notice and Questionnaire to the Company, it
will be bound by the terms and conditions of the Notice and Questionnaire and
this Agreement.  From and after the date
the Initial Shelf Registration Statement is declared effective, the Company
shall, as promptly as practicable after the date a Notice and Questionnaire is
delivered pursuant to Section 8(c) hereof, and in any event upon the later of
(x) fifteen (15) Business Days after such date or (y) fifteen (15) Business
Days after the expiration of any Deferral Period in effect when the Notice and
Questionnaire is delivered or put into effect within fifteen (15) Business Days
of such delivery date:

 

(i)            if required by
applicable law, file with the SEC a post-effective amendment to the Shelf
Registration Statement or prepare and, if required by applicable law, file a
supplement to the related Prospectus or a supplement or amendment to any
document incorporated therein by reference or file any other required document
so that the Holder delivering such Notice and Questionnaire is named as a
selling securityholder in the Shelf Registration Statement and the related
Prospectus.  Each Holder agrees to
deliver such Prospectus to purchasers of the Registrable Securities in
accordance with applicable law.  If the
Company shall file a post-effective amendment to the Shelf Registration
Statement, the Company shall use its reasonable best efforts to cause such
post-effective amendment to be declared effective under the Securities Act as
promptly as is practicable, but in any event by the date (the “Amendment Effectiveness Deadline Date”) that is sixty (60)
days after the date such post-effective amendment is required by this clause to
be filed;

 

(ii)           provide such Holder
copies of any documents filed pursuant to Section 2(d)(i); and

 

(iii)          notify such Holder
as promptly as practicable after the effectiveness under the Securities Act of
any post-effective amendment filed pursuant to Section 2(d)(i);

 

provided, that if
such Notice and Questionnaire is delivered during a Deferral Period, the
Company shall so inform the Holder delivering such Notice and Questionnaire and
shall take the actions set forth in clauses (i), (ii) and (iii) above upon
expiration of the Deferral Period in 

 

6

 

accordance with Section 3(h).  Notwithstanding anything contained herein to
the contrary, (i) the Company shall be under no obligation to name any Holder
that is not a Notice Holder as a selling securityholder in any Registration
Statement or related Prospectus and (ii) the Amendment Effectiveness Deadline
Date shall be extended by up to ten (10) Business Days from the expiration of a
Deferral Period (and the Company shall incur no obligation to pay Liquidated
Damages during such extension or during such Deferral Period) if such Deferral
Period shall be in effect on the Amendment Effectiveness Deadline Date.

 

(e)           The parties hereto
agree that the Holders of Registrable Securities will suffer damages, and that
it would not be feasible to ascertain the extent of such damages with
precision, if, other than as permitted hereunder,

 

(i)            the Initial Shelf
Registration Statement has not been filed on or prior to the Filing Deadline
Date,

 

(ii)           the Initial Shelf
Registration Statement has not been declared effective under the Securities Act
on or prior to the Effectiveness Deadline Date,

 

(iii)          the Company has
failed to perform its obligations set forth in Section 2(d)(i) within the time
period required therein,

 

(iv)          any post-effective
amendment to a Shelf Registration Statement filed pursuant to Section 2(d)(i)
has not become effective under the Securities Act on or prior to the Amendment
Effectiveness Deadline Date, or

 

(v)           the aggregate
duration of Deferral Periods in any period exceeds the number of days permitted
in respect of such period pursuant to Section 3(h) hereof.

 

Each event described in any of the foregoing clauses
(i) through (v) is individually referred to herein as an “Event.” 
For purposes of this Agreement, each Event set forth above shall begin
and end on the dates set forth in the table set forth below:

 

	
  Type of

  Event by

  Clause

  	
   

  	
  Beginning

  Date

  	
   

  	
  Ending

  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i)

  	
   

  	
  Filing
  Deadline Date

  	
   

  	
  the date the
  Initial Shelf Registration Statement is filed

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  Effectiveness
  Deadline Date

  	
   

  	
  the date the
  Initial Shelf Registration Statement becomes effective under the Securities
  Act

  

 

7

 

	
  Type of

  Event by

  Clause

  	
   

  	
  Beginning

  Date

  	
   

  	
  Ending

  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  the date by
  which the Company is required to perform its obligations under Section 2(d)

  	
   

  	
  the date the
  Company performs its obligations set forth in Section 2(d)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  the
  Amendment Effectiveness Deadline Date

  	
   

  	
  the date the
  applicable post-effective amendment to a Shelf Registration Statement becomes
  effective under the Securities Act

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (v)

  	
   

  	
  the date on
  which the aggregate duration of Deferral Periods in any period exceeds the
  number of days permitted by Section 3(h)

  	
   

  	
  termination
  of the Deferral Period that caused the limit on the aggregate duration of
  Deferral Periods to be exceeded

  

 

For purposes of this Agreement, Events shall begin on
the dates set forth in the table above and shall continue until the ending
dates set forth in the table above.

 

Commencing
on (and including) any date that an Event has begun and ending on (but
excluding) the next date on which there are no Events that have occurred and
are continuing (a “Damages Accrual Period”),
the Company shall pay, as liquidated damages and not as a penalty, to Record
Holders of Registrable Securities an amount (the “Liquidated Damages Amount”) accruing, for each day in the
Damages Accrual Period, (i) in respect of any Security that is then
outstanding, at a rate per annum equal to 0.5% of the aggregate principal
amount of the Securities outstanding until the Registration Statement is filed
or made effective or during the additional period the Prospectus is unavailable
and (ii) in respect of each share of Underlying Securities that is then
outstanding at a rate per annum equal to 0.5% of the Conversion Price on such
date, as the case may be; provided
that in the case of a Damages Accrual Period that is in effect solely as a
result of an Event of the type described in clause (iii) or (iv) of the
preceding paragraph, such Liquidated Damages Amount shall be paid only to the
Holders (as set forth in the succeeding paragraph) that have delivered Notices
and Questionnaires that caused the Company to incur the obligations set forth
in Section 2(d) the non-performance of which is the basis of such Event.  In calculating the Liquidated Damages Amount
on any date on which no Securities are outstanding, the Conversion Price and
the Liquidated Damages Amount payable with respect to shares of Common Stock
which are Registrable Securities, shall be calculated as if the Securities were
still outstanding.  Notwithstanding the
foregoing, no Liquidated Damages Amount shall accrue as to any Registrable
Security from and after the earlier of (x) the date such security is no longer a
Registrable Security and (y) expiration of the Effectiveness Period.  The rate of accrual of the Liquidated
Damages Amount with respect to any period shall not exceed the rate provided
for in this paragraph notwithstanding the occurrence of multiple concurrent
Events.

 

8

 

The
Liquidated Damages Amount shall accrue from the first day of the applicable
Damages Accrual Period, and shall be payable on each Damages Payment Date
during the Damage Accrual Period (and on the Damages Payment Date next succeeding
the end of the Damages Accrual Period if the Damage Accrual Period does not end
on a Damages Payment Date) to the Record Holders of the Registrable Securities
entitled thereto; provided that
any Liquidated Damages Amount accrued with respect to any Security or portion
thereof redeemed by the Company on a redemption date or converted into
Underlying Securities on a conversion date prior to the Damages Payment Date,
shall, in any such event, be paid instead to the Holder who submitted such
Security or portion thereof for redemption or conversion on the applicable
redemption date or conversion date, as the case may be, on such date (or
promptly following the conversion date, in the case of conversion); provided further that, in the case of an
Event of the type described in clause (iii) or (iv) of the first paragraph of
this Section 2(e), such Liquidated Damages Amount shall be paid only to the
Holders entitled thereto pursuant to such first paragraph by check mailed to
the address set forth in the Notice and Questionnaire delivered by such
Holder.  The Trustee shall be entitled,
on behalf of registered holders of Securities or Underlying Securities, to seek
any available remedy for the enforcement of this Agreement, including for the
payment of such Liquidated Damages Amount. Notwithstanding the foregoing, the
parties agree that the sole damages payable for a violation of the terms of
this Agreement with respect to which liquidated damages are expressly provided
shall be such liquidated damages. 
Nothing shall preclude any Holder from pursuing or obtaining specific
performance or other equitable relief with respect to this Agreement.

 

All of
the Company’s obligations set forth in this Section 2(e) that are outstanding
with respect to any Registrable Security at the time such security ceases to be
a Registrable Security shall survive until such time as all such obligations
with respect to such security have been satisfied in full (notwithstanding
termination of this Agreement pursuant to Section 9(k)).

 

The parties
hereto agree that the liquidated damages provided for in this Section 2(e)
constitute a reasonable estimate of the damages that may be incurred by Holders
of Registrable Securities by reason of the failure of the Shelf Registration
Statement to be filed or declared effective or available for effecting resales
of Registrable Securities in accordance with the provisions hereof.

 

SECTION 3.           Registration
Procedures.  In connection with the registration
obligations of the Company under Section 2 hereof, during the Effectiveness
Period, the Company shall:

 

(a)           Prepare and file
with the SEC a Registration Statement or Registration Statements on any
appropriate form under the Securities Act available for the sale of the
Registrable Securities by the Holders thereof in accordance with the intended
method or methods of distribution thereof, and use its reasonable best efforts
to cause each such Registration Statement to become effective and remain
effective as provided herein; provided
that before filing any Registration Statement or Prospectus or any amendments
or supplements thereto with the SEC (but excluding reports filed with the SEC
under the Exchange Act), furnish to the Initial Purchasers and the Special
Counsel of such offering, if any, copies of all such documents proposed to be
filed at least three (3) Business Days prior to the filing of such Registration
Statement or amendment thereto or Prospectus or supplement thereto.

 

9

 

(b)           Subject to Section
3(h), prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary to keep such
Registration Statement continuously effective for the applicable period
specified in Section 2(a); cause the related Prospectus to be supplemented by
any required prospectus supplement, and as so supplemented to be filed pursuant
to Rule 424 (or any similar provisions then in force) under the Securities Act;
and use its reasonable best efforts to comply with the provisions of the
Securities Act applicable to it with respect to the disposition of all
securities covered by such Registration Statement during the Effectiveness
Period in accordance with the intended methods of disposition by the sellers
thereof set forth in such Registration Statement as so amended or such
Prospectus as so supplemented.

 

(c)           As promptly as
practicable give notice to the Notice Holders, the Initial Purchasers and the
Special Counsel, (i) when any Prospectus, prospectus supplement, Registration Statement
or post-effective amendment to a Registration Statement has been filed with the
SEC and, with respect to a Registration Statement or any post-effective
amendment, when the same has been declared effective, (ii) of any request,
following the effectiveness of the Initial Shelf Registration Statement under
the Securities Act, by the SEC or any other federal or state governmental
authority for amendments or supplements to any Registration Statement or
related Prospectus or for additional information relating to the Shelf
Registration Statement, (iii) of the issuance by the SEC or any other federal
or state governmental authority of any stop order suspending the effectiveness
of any Registration Statement or the initiation or threatening of any proceedings
for that purpose, (iv) of the receipt by the Company of any notification with
respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose, (v) of the
occurrence of, but not the nature of or details concerning, a Material Event
and (vi) of the determination by the Company that a post-effective amendment to
a Registration Statement will be filed with the SEC, which notice may, at the
discretion of the Company (or as required pursuant to Section 3(h)), state that
it constitutes a Deferral Notice, in which event the provisions of Section 3(h)
shall apply.

 

(d)           Use its reasonable
best efforts to obtain the withdrawal of any order suspending the effectiveness
of a Registration Statement or the lifting of any suspension of the
qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction in which they have been qualified for
sale, in either case at the earliest possible moment, and provide immediate
notice to each Notice Holder and the Initial Purchaser of the withdrawal of any
such order.

 

(e)           As promptly as
practicable furnish to each Notice Holder, the Special Counsel and the Initial
Purchaser, upon request and without charge, at least one (1) conformed copy of
the Registration Statement and any amendment thereto, including exhibits and if
requested, all documents incorporated or deemed to be incorporated therein by
reference.

 

(f)            Deliver to each
Notice Holder, the Special Counsel, if any, and the Initial Purchaser, in
connection with any sale of Registrable Securities pursuant to a Registration
Statement, without charge, as many copies of the Prospectus or Prospectuses 

 

10

 

relating to such Registrable Securities (including each preliminary
prospectus) and any amendment or supplement thereto as such Notice Holder may
reasonably request; and the Company hereby consents (except during such periods
that a Deferral Notice is outstanding and has not been revoked) to the use of
such Prospectus or each amendment or supplement thereto by each Notice Holder
in connection with any offering and sale of the Registrable Securities covered
by such Prospectus or any amendment or supplement thereto in the manner set
forth therein.

 

(g)           Prior to any public
offering of the Registrable Securities pursuant to a Registration Statement,
use its reasonable best efforts to register or qualify or cooperate with the
Notice Holders and the Special Counsel in connection with the registration or
qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or Blue Sky laws
of such jurisdictions within the United States as any Notice Holder reasonably
requests in writing (which request may be included in the Notice and
Questionnaire); prior to any public offering of the Registrable Securities
pursuant to the Shelf Registration Statement, use its reasonable best efforts
to keep each such registration or qualification (or exemption therefrom)
effective during the Effectiveness Period in connection with such Notice
Holder’s offer and sale of Registrable Securities pursuant to such registration
or qualification (or exemption therefrom) and do any and all other acts or
things reasonably necessary or advisable to enable the disposition in such
jurisdictions of such Registrable Securities in the manner set forth in the
relevant Registration Statement and the related Prospectus; provided that the Company will 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 Agreement or (ii) take any action that would subject it to general service
of process in suits or to taxation in any such jurisdiction where it is not
then so subject.

 

(h)           Upon (A) the
issuance by the SEC of a stop order suspending the effectiveness of the Shelf
Registration Statement or the initiation of proceedings with respect to the
Shelf Registration Statement under Section 8(d) or 8(e) of the Securities Act,
(B) the occurrence of any event or the existence of any fact (a “Material Event”) as a result of which any Registration
Statement shall contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading, or any Prospectus shall contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or (C) the occurrence
or existence of any pending corporate development that, in the reasonable
discretion of the Company, makes it appropriate to suspend the availability of
the Shelf Registration Statement and the related Prospectus:

 

(i) 
in the case of clause (B) above, subject to the next sentence, as
promptly as practicable prepare and file, if necessary pursuant to applicable
law, a post-effective amendment to such Registration Statement or a supplement
to the related Prospectus or any document incorporated therein by reference or
file any other required document that would be incorporated by reference into
such 

 

11

 

Registration Statement and Prospectus so that such Registration
Statement does not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading, and such Prospectus does not contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading, as thereafter
delivered to the purchasers of the Registrable Securities being sold
thereunder, and, in the case of a post-effective amendment to a Registration
Statement, subject to the next sentence, use its reasonable best efforts to
cause it to be declared effective as promptly as is practicable, and

 

(ii) 
give notice to the Notice Holders, and the Special Counsel, if any, that
the availability of the Shelf Registration Statement is suspended (a “Deferral Notice”) and, upon receipt of any Deferral Notice,
each Notice Holder agrees not to sell any Registrable Securities pursuant to
the Registration Statement until such Notice Holder’s receipt of copies of the
supplemented or amended Prospectus provided for in clause (i) above, or until
it is advised in writing by the Company that the Prospectus may be used, and
has received copies of any additional or supplemental filings that are
incorporated or deemed incorporated by reference in such Prospectus.

 

The Company will use its reasonable best efforts to
ensure that the use of the Prospectus may be resumed (x) in the case of clause
(A) above, as promptly as is practicable, (y) in the case of clause (B) above,
as soon as, in the sole judgment of the Company, public disclosure of such
Material Event would not be prejudicial to or contrary to the interests of the
Company or, if necessary to avoid unreasonable burden or expense, as soon as
practicable thereafter and (z) in the case of clause (C) above, as soon as in
the reasonable discretion of the Company, such suspension is no longer
appropriate.  The Company shall be
entitled to exercise its right under this Section 3(h) to suspend the
availability of the Shelf Registration Statement or any Prospectus, without
incurring or accruing any obligation to pay liquidated damages pursuant to
Section 2(e) (the “Deferral Period”);
provided that the aggregate
duration of any Deferral Periods shall not exceed 30 days in any three month
period (or 60 days in any three month period in the event of a Material Event
pursuant to which the Company has delivered a second notice as required below)
or 90 days in any twelve (12) month period; provided
that in the case of a Material Event relating to an acquisition or a probable
acquisition or financing, recapitalization, business combination or other
similar transaction, the Company may, without incurring any obligation to pay
liquidated damages pursuant to Section 2(e), deliver to Notice Holders a second
notice to the effect set forth above, which shall have the effect of extending
the Deferral Period by up to an additional 30 days, or such shorter period of
time as is specified in such second notice.

 

(i)            If reasonably
requested in writing in connection with a disposition of Registrable Securities
pursuant to a Registration Statement, make reasonably available for inspection
during normal business hours by a representative for the Notice Holders of such
Registrable Securities, any broker-dealers, underwriters, attorneys and
accountants retained by such Notice Holders, and any attorneys or other agents
retained by a broker-

 

12

 

dealer or underwriter engaged by such Notice Holders, all relevant
financial and other records and pertinent corporate documents and properties of
the Company and its subsidiaries, and cause the appropriate officers, directors
and employees of the Company and its subsidiaries to make reasonably available
for inspection during normal business hours on reasonable notice all relevant
information reasonably requested by such representative for the Notice Holders,
or any such broker-dealers, underwriters, attorneys or accountants in connection
with such disposition, in each case as is customary for similar “due diligence”
examinations; provided that such
persons shall first agree in writing with the Company that any information that
is reasonably designated by the Company as confidential at the time of delivery
of such information shall be kept confidential by such persons and shall be
used solely for the purposes of exercising rights under this Agreement, unless
(i) disclosure of such information is required by court or administrative order
or is necessary to respond to inquiries of regulatory authorities, (ii)
disclosure of such information is required by law (including any disclosure
requirements pursuant to federal securities laws in connection with the filing
of any Registration Statement or the use of any prospectus referred to in this
Agreement), (iii) such information becomes generally available to the public
other than as a result of a disclosure or failure to safeguard by any such
person or (iv) such information becomes available to any such person from a
source other than the Company and such source is not bound by a confidentiality
agreement or other duty of confidentiality, and provided further that the foregoing inspection and
information gathering shall, to the greatest extent possible, be coordinated on
behalf of all the Notice Holders and the other parties entitled thereto by the
counsel referred to in Section 5.  Any
person legally compelled to disclose any such confidential information made
available for inspection shall provide the Company with prompt prior written
notice of such requirement so that the Company may seek a protective order or
other appropriate remedy.

 

(j)            Comply with all
applicable rules and regulations of the SEC and make generally available to its
securityholders earning statements (which need not be audited) satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or
any similar rule promulgated under the Securities Act) for a 12-month period
commencing on the first day of the first fiscal quarter of the Company
commencing after the effective date of a Registration Statement, which
statements shall be made available no later than 45 days after the end of the
12-month period or 90 days if the 12-month period coincides with the fiscal
year of the Company.

 

(k)           Cooperate with each
Notice Holder to facilitate the timely preparation and delivery of certificates
representing Registrable Securities sold or to be sold pursuant to a
Registration Statement, which certificates shall not bear any restrictive
legends, other than those legends required by the Certificate of Incorporation,
and cause such Registrable Securities to be in such denominations as are
permitted by the Indenture and registered in such names as such Notice Holder may
request in writing at least two (2) Business Days prior to any sale of such
Registrable Securities.

 

(l)            Provide a CUSIP
number for all Registrable Securities covered by each Registration Statement
not later than the effective date of such Registration Statement and provide
the Trustee and the transfer agent for the Common Stock with printed 

 

13

 

certificates for the Registrable Securities that are in a form eligible
for deposit with The Depository Trust Company.

 

(m)          Cooperate and assist
in any filings required to be made with the National Association of Securities
Dealers, Inc.

 

(n)           In the case of a
Shelf Registration Statement involving an underwritten offering, the Company
shall enter into such customary agreements (including, if requested, an
underwriting agreement in customary form) and take all such other action, if
any, as Holders of a majority of the Registrable Securities being sold or any
managing underwriters shall reasonably request in order to facilitate any
disposition of Securities and Underlying Securities pursuant to such Shelf
Registration Statement, including, without limitation, (i) using its reasonable
efforts to cause its counsel to deliver an opinion or opinions in customary
form, (ii) using its reasonable efforts to cause its officers to execute and
deliver all customary documents and certificates and (iii) using its reasonable
efforts to cause its independent public accountants to provide a comfort letter
or letters in customary form.

 

(o)           Upon (i) the filing
of the Initial Shelf Registration Statement and (ii) the effectiveness of the
Initial Shelf Registration Statement, announce the same, in each case by
release to Reuters Economic Services and Bloomberg Business News.

 

SECTION 4.           Holder’s
Obligations.  Each Holder agrees, by acquisition of the
Registrable Securities, that no Holder shall be entitled to sell any of such
Registrable Securities pursuant to a Registration Statement or to receive a
Prospectus relating thereto, unless such Holder has furnished the Company with
a Notice and Questionnaire as required pursuant to Section 2(d) hereof
(including the information required to be included in such Notice and
Questionnaire) and the information set forth in the next sentence.  Each Notice Holder agrees promptly to
furnish to the Company all information required to be disclosed in order to
make the information previously furnished to the Company by such Notice Holder
not misleading and any other information regarding such Notice Holder and the
distribution of such Registrable Securities as the Company may from time to
time reasonably request.  Any sale of
any Registrable Securities by any Holder shall constitute a representation and
warranty by such Holder that the information relating to such Holder and its
plan of distribution is as set forth in the Prospectus delivered by such Holder
in connection with such disposition, that such Prospectus does not as of the
time of such sale contain any untrue statement of a material fact relating to
or provided by such Holder or its plan of distribution and that such Prospectus
does not as of the time of such sale omit to state any material fact relating
to or provided by such Holder or its plan of distribution necessary to make the
statements in such Prospectus, in the light of the circumstances under which
they were made, not misleading.

 

SECTION 5.           Registration
Expenses.  The Company shall bear all fees and expenses
incurred in connection with the performance by the Company of its obligations
under Sections 2 and 3 of this Agreement whether or not any Registration
Statement is declared effective.  Such
fees and expenses shall include, without limitation, (i) all registration and
filing fees (including, without limitation, fees and expenses (x) with respect
to filings required to be made with the National Association of Securities
Dealers, Inc. and (y) of compliance with federal and state 

 

14

 

securities or Blue Sky laws (including, without limitation, reasonable
fees and disbursements of the Special Counsel in connection with Blue Sky
qualifications of the Registrable Securities under the laws of such
jurisdictions as Notice Holders of a majority of the Registrable Securities
being sold pursuant to a Registration Statement may designate (not to exceed
$5,000), (ii) printing expenses (including, without limitation, expenses of
printing certificates for Registrable Securities in a form eligible for deposit
with The Depository Trust Company), (iii) duplication expenses relating to
copies of any Registration Statement or Prospectus delivered to any Holders
hereunder, (iv) fees and disbursements of counsel for the Company in connection
with the Shelf Registration Statement, (v) reasonable fees and disbursements of
the Trustee and its counsel and of the registrar and transfer agent for the
Common Stock and (vi) any Securities Act liability insurance obtained by the
Company in its sole discretion. In addition, the Company shall pay the internal
expenses of the Company (including, without limitation, all salaries and
expenses of officers and employees performing legal or accounting duties), the
expense of any annual audit, the fees and expenses incurred in connection with
the listing by the Company of the Registrable Securities on any securities
exchange on which similar securities of the Company are then listed and the
fees and expenses of any person, including special experts, retained by the
Company.  Notwithstanding the provisions
of this Section 5, each seller of Registrable Securities shall pay selling
expenses, including any underwriting discount and commissions, and all
registration expenses to the extent required by applicable law.

 

SECTION 6.           Indemnification
and Contribution.

 

(a)           Indemnification by the Company.  The Company agrees to indemnify and hold harmless each Notice
Holder, each person, if any, who controls any Notice Holder within the meaning
of either 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, any legal or other expenses reasonably incurred
in connection with defending or investigating any such action or claim) caused
by any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement or any amendment thereof, any
preliminary prospectus or the Prospectus (as amended or supplemented if the
Company shall have furnished any amendments or supplements thereto), caused by
any omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein not misleading,
except insofar as such losses, claims, damages or liabilities are caused by any
such untrue statement or omission or alleged untrue statement or omission based
upon information relating to any Holder furnished to the Company in writing by
such Holder expressly for use therein; provided that
the indemnification contained in this paragraph shall not inure to the benefit
of any Holder (or to the benefit of any person controlling such Holder) on
account of any such losses, claims, damages or liabilities caused by any untrue
statement or alleged untrue statement or omission or alleged omission made in
any preliminary prospectus provided in each case the Company has performed its
obligations under Section 3(a) hereof if either (A) (i) such Holder failed to
send or deliver a copy of the Prospectus with or prior to the delivery of
written confirmation of the sale by such Holder to the person asserting the
claim from which such losses, claims, damages or liabilities arise and (ii) the
Prospectus would have corrected such untrue statement or alleged untrue
statement or such omission or alleged omission, or (B) (x) such untrue statement
or alleged untrue statement, omission or alleged omission is corrected in an
amendment or supplement to the Prospectus and (y) having previously been
furnished by or on behalf of the Company with copies of the Prospectus as so
amended or supplemented, such 

 

15

 

Holder thereafter fails to deliver such Prospectus as so amended or
supplemented, with or prior to the delivery of written confirmation of the sale
of a Registrable Security to the person asserting the claim from which such
losses, claims, damages or liabilities arise.  In
connection with any underwritten offering pursuant to Section 8, the Company
will also indemnify the underwriters, if any, their officers and directors and
each person who controls such underwriters (within the meaning of the
Securities Act and the Exchange Act) to the same extent as provided herein with
respect to the indemnification of the Holders, if requested in connection with
any Registration Statement.

 

(b)           Indemnification by Holders. 
Each Holder agrees severally and not jointly to indemnify and hold
harmless the Company and its directors, its officers and each person, if any,
who controls the Company (within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act) or any other Holder, to the
same extent as the foregoing indemnity from the Company to such Holder, but
only with reference to information relating to such Holder furnished to the
Company in writing by such Holder expressly for use in such Registration
Statement or Prospectus or amendment or supplement thereto.  In no event shall the liability of any
Holder hereunder be greater in amount than the dollar amount of the proceeds
received by such Holder upon the sale of the Registrable Securities pursuant to
the Registration Statement giving rise to such indemnification obligation.  In
connection with any underwritten offering pursuant to Section 8, each Holder
will also indemnify the underwriters, if any, their officers and directors and
each person who controls such underwriters (within the meaning of the
Securities Act and the Exchange Act) to the same extent as provided herein with
respect to the indemnification of the Company, if requested in connection with
any Registration Statement.

 

(c)           Conduct of Indemnification Proceedings.  In case any proceeding (including any
governmental investigation) shall be instituted involving any person in respect
of which indemnity may be sought pursuant to Section 6(a) or 6(b) hereof, such
person (the “indemnified party”) shall promptly
notify the person against whom such indemnity may be sought (the “indemnifying party”) in writing and the indemnifying party,
upon request of the indemnified party, shall retain counsel reasonably
satisfactory to the indemnified party to represent the indemnified party and
any others the indemnifying party may designate in such proceeding and shall
pay the reasonable fees and disbursements of such counsel related to such
proceeding.  In any such proceeding, any
indemnified party 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 party
unless (i) the indemnifying party and the indemnified party shall have mutually
agreed to the retention of such counsel or (ii) the named parties to any such
proceeding (including any impleaded parties) include both the indemnifying
party and the indemnified party and representation of both parties by the same
counsel would be inappropriate due to actual or potential differing interests
between them.  It is understood that the
indemnifying party shall not, in respect of the legal expenses of any
indemnified party in connection with any proceeding or related proceedings 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 such indemnified
parties and that all such fees and expenses shall be reimbursed as they are
incurred.  Such firm shall be designated
in writing by, in the case of parties indemnified pursuant to Section 6(a), the
Holders of a majority (with Holders of Securities deemed to be the Holders, for
purposes of determining such majority, of the number of shares of Underlying
Securities into which such Securities are or would be convertible as of the
date on which such designation is made) of the Registrable Securities covered
by the 

 

16

 

Registration Statement held by Holders that are indemnified parties
pursuant to Section 6(a) and, in the case of parties indemnified pursuant to
Section 6(b), the Company.  The
indemnifying party 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 party agrees to
indemnify the indemnified party from and against any loss or liability by
reason of such settlement or judgment. 
Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified
party for fees and expenses of counsel as contemplated by the second and third
sentences of this paragraph, the indemnifying party agrees that it 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 such indemnifying party of the aforesaid request and (ii) such indemnifying
party shall not have reimbursed the indemnified party in accordance with such
request prior to the date of such settlement. 
No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened proceeding
in respect of which any indemnified party is or could have been a party and
indemnity could have been sought hereunder by such indemnified party, unless
such settlement includes an unconditional release of such indemnified party
from all liability on claims that are the subject matter of such proceeding.

 

(d)           Contribution.  To the
extent that the indemnification provided for in Section 6(a) or 6(b) is
unavailable to an indemnified party or insufficient in respect of any losses,
claims, damages or liabilities referred to therein, then each indemnifying
party under such paragraph, in lieu of indemnifying such indemnified party
thereunder, shall contribute to the amount paid or payable by such indemnified
party 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
indemnifying party or parties on the one hand and the indemnified party or
parties on the other hand or (ii) if the allocation provided by clause (i)
above is not permitted by applicable law, in such proportion as is appropriate
to reflect not only the relative benefits referred to in clause (i) above but
also the relative fault of the indemnifying party or parties on the one hand
and of the indemnified party or parties on the other hand 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 benefits received by the
Company shall be deemed to be equal to the total net proceeds from the initial
placement pursuant to the Purchase Agreement (before deducting expenses) of the
Registrable Securities to which such losses, claims, damages or liabilities
relate.  The relative benefits received
by any Holder shall be deemed to be equal to the value of receiving Registrable
Securities that are registered under the Securities Act.  The relative fault of the Holders on the one
hand and the Company on the other hand shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Holders or by the Company, and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. 
The Holders’ respective obligations to contribute pursuant to this
paragraph 6 are several in proportion to the respective number of Registrable
Securities they have sold pursuant to a Registration Statement, and not joint.

 

The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 6(d) were determined by pro rata allocation or by any other method of allocation
that does not take into account the equitable considerations referred to in the
immediately preceding paragraph.  The
amount paid or payable by an indemnified party as a result of the 

 

17

 

losses, claims, damages or liabilities referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim.  Notwithstanding this Section
6, no indemnifying party that is a selling Holder shall be required to
contribute any amount in excess of the amount by which the total price at which
the Registrable Securities sold by it and distributed to the public were
offered to the public exceeds the amount of any damages that such indemnifying
party 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.

 

(e)           The remedies
provided for in this Section 6 are not exclusive and shall not limit any rights
or remedies which may otherwise be available to an indemnified party at law or
in equity, hereunder, under the Purchase Agreement or otherwise.

 

(f)            The indemnity and
contribution provisions contained in this Section 6 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, any person
controlling any Holder or any affiliate of any Holder or by or on behalf of the
Company, its officers or directors or any person controlling the Company and
(iii) the sale of any Registrable Securities by any Holder.

 

SECTION 7.           Information
Requirements.  The Company covenants that, if at any time
before the end of the Effectiveness Period the Company is not subject to the reporting
requirements of the Exchange Act, it will cooperate with any Holder and take
such further reasonable action as any Holder may reasonably request in writing
(including, without limitation, making such reasonable representations as any
such Holder may reasonably request), all to the extent required from time to
time to enable such Holder to sell Registrable Securities without registration
under the Securities Act within the limitation of the exemptions provided by
Rule 144 and Rule 144A under the Securities Act and customarily taken in
connection with sales pursuant to such exemptions.  Upon the written request of any Holder, the Company shall deliver
to such Holder a written statement as to whether it has complied with such
filing requirements, unless such a statement has been included in the Company’s
most recent report filed pursuant to Section 13 or Section 15(d) of Exchange
Act.  Notwithstanding the foregoing,
nothing in this Section 7 shall be deemed to require the Company to register
any of its securities (other than the Common Stock) under any section of the
Exchange Act.

 

SECTION 8.           Underwritten
Registrations.  The Holders of Registrable Securities
covered by a Shelf Registration Statement who desire to do so may sell such
Registrable Securities to an underwriter in an underwritten offering for
reoffering to the public.  If any of the
Registrable Securities covered by any Shelf Registration Statement are to be
sold in an underwritten offering, the investment banker or investment bankers
and manager or managers that will administer the offering will be selected by
the Holders of a majority of such Registrable Securities included in such
offering, subject to the consent of the Company (which shall not be
unreasonably withheld or delayed), and such Holders shall be responsible for
all underwriting commissions and discounts and any transfer taxes in connection
therewith.  No person may participate in
any underwritten registration hereunder unless such person (i) agrees to sell
such 

 

18

 

person’s Registrable Securities on the basis reasonably provided in any
underwriting arrangements approved by the persons entitled hereunder to approve
such arrangements and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements.

 

SECTION 9.           Miscellaneous.

 

(a)           No Conflicting Agreements. 
The Company is not, as of the date hereof, a party to, nor shall it, on
or after the date of this Agreement, enter into, any agreement with respect to
its securities that conflicts with the rights granted to the Holders in this
Agreement.  The Company represents and
warrants that the rights granted to the Holders hereunder do not in any way
conflict with the rights granted to the holders of the Company’s securities
under any other agreements.

 

(b)           Amendments and Waivers. 
The provisions of this Agreement, including the provisions of this
sentence, may not be amended, modified or supplemented without the written
consent of the Company which shall not be unreasonably withheld and the Holders
of a majority of the then outstanding Underlying Securities constituting
Registrable Securities, and waivers or consents to departures from the
provisions hereof may not be given, unless the Company has obtained the written
consent of Holders of a majority of the then outstanding Underlying Securities
constituting Registrable Securities (with Holders of Securities deemed to be
the Holders, for purposes of this Section, of the number of outstanding shares
of Underlying Securities into which such Securities are or would be convertible
as of the date on which such consent is requested).  Notwithstanding the foregoing, a waiver or consent to depart from
the provisions hereof with respect to a matter that relates exclusively to the
rights of Holders whose securities are being sold pursuant to a Registration
Statement and that does not directly or indirectly affect the rights of other
Holders or the Company may be given by Holders of at least a majority of the
Registrable Securities being sold by such Holders pursuant to such Registration
Statement; provided that the provisions of this
sentence may not be amended, modified or supplemented except in accordance with
the provisions of the immediately preceding sentence. Notwithstanding the
foregoing sentence, this Agreement may be amended by written agreement signed
by the Company and the Initial Purchasers, without the consent of the Holders
of Registrable Securities, to cure any ambiguity or to correct or supplement
any provision contained herein that may be defective or inconsistent with any
other provision contained herein, or to make such other provisions in regard to
matters or questions arising under this Agreement that shall not adversely
affect the interests of the Holders of Registrable Securities.  Each Holder of Registrable Securities
outstanding at the time of any such amendment, modification, supplement, waiver
or consent or thereafter shall be bound by any such amendment, modification,
supplement, waiver or consent effected pursuant to this Section 9(b), whether
or not any notice, writing or marking indicating such amendment, modification,
supplement, waiver or consent appears on the Registrable Securities or is
delivered to such Holder.

 

(c)           Notices.  All notices
and other communications provided for or permitted hereunder shall be made in
writing by hand delivery, by telecopier, by courier guaranteeing overnight
delivery or by first-class mail, return receipt requested, and shall be deemed
given (i) when made, if made by hand delivery, (ii) upon confirmation, if made
by telecopier, (iii) one (1) 

 

19

 

Business Day after being deposited with such courier, if made by
overnight courier or (iv) on the date indicated on the notice of receipt, if
made by first-class mail, to the parties as follows:

 

(i) 
if to a Holder, at the most current address given by such Holder to the
Company in a Notice and Questionnaire or any amendment thereto;

 

(ii) 
if to the Company, to:

 

Nextel
Partners, Inc.

4500 Carillon Point

Kirkland, Washington  98033

Attention:  Don Manning, Esq.

Telecopy:  (425) 576-3650

and

Summit Law Group, PLLC

315 Fifth Avenue, South, Suite 1000

Seattle, Washington  98104

Attention:  Mark Worthington

Telecopy:  (206) 676-7001

(iii) 
if to the Initial Purchasers, to:

 

Wachovia
Capital Markets, LLC

c/o Wachovia Securities, Inc.

12 East 49th Street, 45th Floor

New York, New York 10017

Attention: Mary Louise Guttmann, Esq.

Telecopy: (212) 891-5042

 

or to such other address as such person may have
furnished to the other persons identified in this Section 9(c) in writing in
accordance herewith.

 

(d)           Approval of Holders. 
Whenever the consent or approval of Holders of a specified percentage of
Registrable Securities is required hereunder, Registrable Securities held by
the Company or its affiliates (as such term is defined in Rule 405 under the
Securities Act) (other than the Initial Purchasers or subsequent Holders if
such subsequent Holders are deemed to be such affiliates solely by reason of
their holdings of such Registrable Securities) shall not be counted in
determining whether such consent or approval was given by the Holders of such
required percentage.

 

(e)           Successors and Assigns. 
Any person who purchases any Registrable Securities from the Initial
Purchasers shall be deemed, for purposes of this Agreement, to be an assignee
of the Initial Purchasers.  This
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of each of the parties and shall inure to the benefit of and be binding
upon each Holder of any Registrable Securities, provided
that nothing herein shall be deemed to 

 

20

 

permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Indenture or applicable Federal or
state securities laws.  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 and such person shall be entitled to receive the benefits hereof.

 

(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 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 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 LAW OF THE
STATE OF NEW YORK.

 

(i)            Severability.  If any
term provision, covenant or restriction of this Agreement is held to be
invalid, illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated
thereby, and the parties hereto shall use their best efforts to find and employ
an alternative means to achieve the same or substantially the same result as
that contemplated by such term, provision, covenant or restriction, it being
intended that all of the rights and privileges of the parties shall be
enforceable to the fullest extent permitted by law.

 

(j)            Entire Agreement. 
This Agreement is intended by the parties as a final expression of their
agreement and is 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 and the registration rights granted by the Company with
respect to the Registrable Securities. 
Except as provided in the Purchase Agreement, 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 undertakings among
the parties with respect to such registration rights.  No party hereto shall have any rights, duties or obligations
other than those specifically set forth in this Agreement.

 

(k)           Termination.  This
Agreement and the obligations of the parties hereunder shall terminate upon the
end of the Effectiveness Period, except for any liabilities or obligations
under Section 4, 5 or 6 hereof and the obligations to make payments of and
provide for liquidated damages under Section 2(e) hereof to the extent such
damages accrue prior to the end of the Effectiveness Period, each of which
shall remain in effect in accordance with its terms.

 

[Remainder of page intentionally left blank.]

 

21

 

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

 

 

	
   

  	
  NEXTEL PARTNERS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Confirmed and
  accepted as of

  the date first above written:

  	
   

  
	
   

  	
   

  
	
  WACHOVIA CAPITAL
  MARKETS, LLC

  CREDIT SUISSE FIRST BOSTON LLC

  	
   

  
	
   

  	
   

  
	
  By: Wachovia
  Capital Markets, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

22Exhibit
4.1

 

SIXTH AMENDMENT TO
CREDIT AGREEMENT

 

This SIXTH AMENDMENT TO
CREDIT AGREEMENT dated as of July 15, 2003, and effective as of June 1, 2003
(this “Amendment”), is made by and among Alternative Resources
Corporation (“ARC”), ARC Service, Inc., ARC Solutions, Inc., ARC
Midholding, Inc., Writers Inc., ARC Technology Management LLC, ARC Staffing
Management LLC, and ARC Shared Services LLC (collectively, the “Borrowers”),
and Fleet Capital Corporation (the “Lender”).

 

WHEREAS, the Borrowers
and the Lender are parties to a Credit and Security Agreement dated as of
January 31, 2002, as amended by a First Amendment to Credit Agreement and
Waiver dated as of August 8, 2001, a Second Amendment to Credit Agreement dated
as of August 30, 2002, a Third Amendment to Credit Agreement dated as of
November 14, 2002, and a Waiver, Joinder and Fourth Amendment to Credit
Agreement dated as of December 27, 2002, and a Fifth Amendment to Credit
Agreement and Waiver dated as of April 14, 2003 (as so amended, the “Credit Agreement”);

 

WHEREAS, the Credit
Agreement provides for the Lender to make overadvances (the “Overadances”)
for the benefit of the Borrowers until December 31, 2003, or such later date as
the Lender may agree in writing, in an aggregate amount outstanding from time
to time of up to $2,000,000 (the “Overadvance Limit”), as reduced from
time to time;

 

WHEREAS, Wynnchurch has
executed and delivered the Wynnchurch Guaranty, pursuant to which Wynnchurch
has guarantied to the Lender the repayment of the Overadvances up to the
Overadvance Limit, as reduced from time to time;

 

WHEREAS, the terms of the
Credit Agreement and the Wynnchurch Guaranty respectively provide that the
Overadvance Limit and the amount of Overadvances guarantied by Wynnchurch shall
respectively be reduced from time to time upon the payment in cash by
Bluecurrent, Inc. (“Bluecurrent”) to the Borrowers of amounts due in
respect of accounts receivable owing by Bluecurrent to the Borrowers (the “Bluecurrent
Receivables”), on a dollar for dollar basis in an amount equal to such
payments;

 

WHEREAS, the Borrowers
received a payment on or about May 29, 2003 in the amount of approximately
$850,000 in respect of the Bluecurrent Receivables (the “Initial Bluecurrent
Payment”) and have requested that the Lender amend the provisions of the
Credit Agreement to eliminate the reduction of the Overadvance Limit that would
result from the Initial Bluecurrent Payment, so that only payments received in
respect of the Bluecurrent Receivables after the Initial Bluecurrent Payment
shall result in a reduction of the Overadvance Limit, on a dollar for dollar
basis in an amount equal to such payments;

 

WHEREAS, Wynnchurch has
agreed to amend the Wynnchurch Guaranty to eliminate the reduction in the
amount of Overadvances guarantied thereunder that would result from the payment
of Initial Bluecurrent Payment, so that only payments received in respect of
the Bluecurrent Receivables after the Initial Bluecurrent Payment shall result
in a reduction of the amount of Overadvances guarantied thereunder, on a dollar
for dollar basis in an amount equal to such payments.

 

 

WHEREAS, the Lender has
agreed to amend the provisions of the Credit Agreement to eliminate the
reduction of the Overadvance Limit resulting from the Initial Bluecurrent
Payment, subject to the terms, conditions and limitations set forth herein;

 

NOW, THEREFORE, in
consideration of the foregoing and the agreements contained herein, the parties
hereby agree as follows:

 

1.                                       Capitalized
Terms.

 

Capitalized terms used
herein which are defined in the Credit Agreement have the same meanings herein
as therein, except to the extent that such meanings are amended hereby.

 

2.                                       Amendment
to Credit Agreement.

 

Subject to the
satisfaction of the terms and conditions set forth in Section 5 hereof, the
Borrowers and the Lender agree that the Credit Agreement is hereby amended,
effective as of June 1, 2003, as follows:

 

(a)                                  Amendments
to Section 1.1 of the Credit Agreement.

 

(i)                                     The
following new definition of “Bluecurrent” is hereby inserted in Section 1.1 in
appropriate alphabetical order:

 

“’Bluecurrent’
means Bluecurrent, Inc.”

 

(ii)                                  The
following new definition of “Initial Bluecurrent Payment” is hereby inserted in
Section 1.1 in appropriate alphabetical order:

 

“’Initial Bluecurrent
Payment’ means an initial payment, in the amount of approximately $850,000,
paid on or about May 29, 2003 by Bluecurrent to the Borrowers in respect of
certain disputed accounts receivable owing by Bluecurrent to the Borrowers.”

 

(iii)                               The
definition of “Initial Overadvance Amount” contained in Section 1.1 of the
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“’Initial Overadvance
Limit’ means $2,000,000; provided that the Initial Overadvance Limit
shall be reduced from time to time, upon the payment in cash by Bluecurrent to
the Borrowers of amounts due in respect of accounts receivable owing by
Bluecurrent to the Borrowers, on a dollar for dollar basis in an amount equal
to such cash payments; provided  further that no reduction in the
Initial Overadvance Limit shall become effective until three days after (a) the
Lender has received written notice from the Borrowers of the receipt of the
applicable cash payment and (b) the application of such cash payment to the
outstanding Loans; and provided  further that the Initial
Overadvance Limit shall not be reduced as a result of the Initial Bluecurrent
Payment.”

 

2

 

3.                                       No
Default; Representations and Warranties, etc.

 

The Borrowers
hereby represent, warrant and confirm that: (a) the representations and
warranties of the Credit Parties contained in Article 5 of the Credit Agreement
are true and correct on and as of the date hereof as if made on such date
(except to the extent that such representations and warranties expressly relate
to an earlier date); (b) after giving effect to this Amendment, the Borrowers
are in compliance with all of the terms and provisions set forth in the Credit
Agreement and the other Loan Documents; (c) after giving effect to this
Amendment, no Default has occurred and is continuing; and (d) the
execution, delivery and performance by the Borrowers of this Amendment (i) have
been duly authorized by all necessary action on the part of the Borrowers, (ii)
will not violate any applicable law or regulation or the organizational
documents of any Borrower, (iii) will not violate or result in a default under
any indenture, agreement or other instrument binding on any Borrower or any of
its assets, including without limitation, any Subordinated Debt Document, and
(iv) do not require any consent, waiver or approval of or by any Person (other
than the Lender) which has not been obtained.

 

4.                                       Conditions
to Effectiveness.

 

This
Amendment shall become effective, as of June 1, 2003, upon satisfaction of the
following conditions precedent:

 

(a)                                  The
Lender shall have received counterparts of this Amendment duly executed by each
of the Borrowers;

 

(b)                                 The
Lender shall have received a Certificate of the Secretary of ARC, certifying
that this Amendment has been duly authorized by the Boards of Directors of ARC
and each of its Subsidiaries; and

 

(c)                                  The
Borrowers and Wynnchurch shall have executed and delivered to the Lender an
amendment to the Wynnchurch Guaranty, in form and substance satisfactory to the
Lender, providing for the elimination of the automatic reduction in the amount
of Overadvances guarantied thereunder resulting from the payment of Initial
Bluecurrent Payment.

 

5.                                       Miscellaneous.

 

(a)                                  Except
as specifically amended hereby, all of the terms and provisions of the Credit
Agreement, the other Loan Documents and all related documents, shall remain in
full force and effect.  Nothing
contained herein shall constitute a waiver of any provision of the Credit
Agreement or the other Loan Documents.

 

(b)                                 This
Amendment may be executed in any number of counterparts, each of which, when
executed and delivered, shall be an original, but all counterparts shall
together constitute one instrument. 
Delivery of an executed signature page hereto by facsimile transmission
shall be effective as delivery of a manually executed counterpart hereof.

 

(c)                                  This
Amendment shall be governed by the laws of The Commonwealth of Massachusetts
and shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns.

 

3

 

(d)                                 The
Borrowers shall reimburse the Lender for all reasonable costs and expenses,
including reasonable legal fees and disbursements, incurred by the Lender in
connection with this Amendment and the transactions contemplated hereby.

 

[Remainder of Page Left
Intentionally Blank]

 

4

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed by their
respective authorized officers as of the day and year first above written.

 

 

	
   

  	
  BORROWERS

  
	
   

  	
   

  
	
   

  	
  ALTERNATIVE RESOURCES
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARC SERVICE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARC SOLUTIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARC MIDHOLDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WRITERS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

5

 

	
   

  	
  ARC TECHNOLOGY
  MANAGEMENT LLC

  
	
   

  	
   

  
	
   

  	
  By:  ARC SERVICE, INC., its Manager and sole
  member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARC STAFFING MANAGEMENT
  LLC

  
	
   

  	
   

  
	
   

  	
  By:  ARC SERVICE, INC., its Manager and sole
  member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARC SHARED SERVICES LLC

  
	
   

  	
   

  
	
   

  	
  By:  ARC SERVICE, INC., its Manager and sole
  member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
					

 

6

 

	
   

  	
  LENDER

  
	
   

  	
   

  
	
   

  	
  FLEET CAPITAL
  CORPORATION, as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ISSUING LENDER

  
	
   

  	
   

  
	
   

  	
  FLEET NATIONAL BANK, as
  Issuing Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CASH MANAGEMENT BANK

  
	
   

  	
   

  
	
   

  	
  FLEET NATIONAL BANK, as
  Cash Management Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

7

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