Document:

EXHIBIT 10.4

 

REGISTRATION RIGHTS AGREEMENT

 

Dated
as of February 23, 2004

by
and among

 

UBIQUITEL
OPERATING COMPANY

UBIQUITEL INC.

 

and

 

BEAR,
STEARNS & CO. INC.

CITIGROUP
GLOBAL MARKETS INC.

BANC
OF AMERICA SECURITIES LLC

 

 

This Registration
Rights Agreement (this “Agreement”) is made and entered into as
of February 23, 2004, by and among UbiquiTel Operating Company, a Delaware
corporation (the “Company”), UbiquiTel Inc. (together
with any new party to this Agreement pursuant to Section 6(d) hereof, each
a “Guarantor”
and, together, the “Guarantors”
) and Bear, Stearns & Co. Inc., Citigroup Global Markets Inc. and Banc of
America Securities LLC (each an “Initial Purchaser” and, together, the “Initial
Purchasers”), each of whom has agreed to purchase the Company’s
97/8% Senior Notes due 2011
(the “Initial
Notes”) pursuant to the Purchase Agreement (as defined below).

 

This Agreement is
made pursuant to the Purchase Agreement, dated February 12, 2004 (the “Purchase
Agreement”), by and among the Company, the Guarantor and the
Initial Purchasers.  In order to induce
the Initial Purchasers to purchase the Initial Notes, the Company has agreed to
provide the registration rights set forth in this Agreement.  The execution and delivery of this Agreement
is a condition to the obligations of the Initial Purchasers set forth in
Section 10 of the Purchase Agreement. 
Capitalized terms used herein and not otherwise defined shall have the
meaning assigned to them in the Indenture, dated as of February 23, 2004,
among the Company, the Guarantor and The Bank of New York, as trustee, relating
to the Initial Notes and the Exchange Notes (the “Indenture”). 

 

The parties hereby
agree as follows:

 

SECTION 1.         DEFINITIONS

 

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

 

Act:  The Securities Act of 1933, as amended.

 

Affiliate:  As defined in Rule 144.

 

Broker-Dealer:  Any broker or dealer registered under the
Exchange Act.

 

Business Day:  Any
day other than a Saturday, a Sunday or a day on which banking institutions in
the City of New York or at place of payment are authorized by law, regulation
or executive order to remain closed.

 

Closing Date:  The date hereof.

 

Commission:  The Securities and Exchange Commission.

 

Consummate:  An Exchange Offer shall be deemed
“Consummated” for purposes of this Agreement upon the occurrence of (a) the
filing and effectiveness under the Act of the Exchange Offer Registration
Statement relating to the Exchange Notes to be issued in the Exchange Offer,
(b) the maintenance of such Exchange Offer Registration Statement continuously
effective and the keeping of the Exchange Offer open for a period not less than
the period required pursuant to Section 3(b) hereof and (c) the delivery
by the Company to the Registrar under the Indenture of Exchange Notes in the
same aggregate principal amount as the aggregate principal amount of

 

 

Initial Notes validly tendered by Holders thereof and accepted by the
Company pursuant to the Exchange Offer.

 

Consummation Deadline:  As defined in Section 3(b) hereof.

 

Effectiveness Deadline:  As defined in Sections 3(a) and 4(a) hereof.

 

Exchange Act:  The Securities Exchange Act of 1934, as
amended. 

 

Exchange Notes:  The Company’s 97/8%
Senior Notes due 2011 to be issued pursuant to the Indenture: (i) in the
Exchange Offer or (ii) as contemplated by Section 4 hereof.

 

Exchange Offer:  The exchange and issuance by the Company of
a principal amount of Exchange Notes (which shall be registered pursuant to the
Exchange Offer Registration Statement) equal to the outstanding principal
amount of Initial Notes that are validly tendered by such Holders and accepted
by the Company in connection with such exchange and issuance.

 

Exchange Offer Registration Statement:  The Registration Statement relating to the
Exchange Offer, including the related Prospectus.

 

Filing Deadline:  As defined in Sections 3(a) and 4(a) hereof.

 

Holders:  As defined in Section 2 hereof.

 

Prospectus:  The prospectus included in a Registration
Statement at the time such Registration Statement is declared effective, as
amended or supplemented by any prospectus supplement and by all other
amendments thereto, including post-effective amendments, and all material
incorporated by reference into such Prospectus.

 

Recommencement Date:  As defined in Section 6(d) hereof.

 

Registration Default:  As defined in Section 5 hereof.

 

Registration Statement:  Any registration statement of the Company
and the Guarantor(s) relating to (a) an offering of Exchange Notes pursuant to
an Exchange Offer or (b) the registration for resale of Transfer Restricted
Securities pursuant to the Shelf Registration Statement, in each case, (i) that
is filed pursuant to the provisions of this Agreement, (ii) including the
Prospectus included therein, and (iii) including all amendments and supplements
thereto (including post-effective amendments) and all exhibits and material
incorporated by reference therein.

 

Rule 144:  Rule 144 promulgated under the Act.

 

Shelf Registration Statement:  As defined in Section 4 hereof.

 

Suspension Notice:  As defined in Section 6(d) hereof.

 

TIA:  The Trust Indenture Act of 1939 (15 U.S.C.
Section 77aaa-77bbbb) as in effect on the date of the Indenture.

 

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Transfer Restricted Securities:  Each Initial Note until the earliest to
occur of (a) the date on which such Initial Note has been validly exchanged in
the Exchange Offer by a Person other than a Broker-Dealer for an Exchange Note
entitled to be resold to the public by the Holder thereof without complying
with the prospectus delivery requirements of the Act, (b) following the valid
exchange by a Broker-Dealer in the Exchange Offer of an Initial Note for an
Exchange Note, the date on which such Exchange Note is sold to a purchaser who
receives from such Broker-Dealer on or prior to the date of such sale a copy of
the Prospectus contained in the Exchange Offer Registration Statement, (c) the
date on which such Initial Note has been effectively registered under the Act and
disposed of in accordance with the Shelf Registration Statement (and the
purchasers thereof have been issued Exchange Notes) or (d) the date on which
such Initial Note is distributed to the public pursuant to Rule 144.

 

SECTION 2.         HOLDERS

 

A Person is deemed
to be a holder of Transfer Restricted Securities (each, a “Holder”) whenever such Person owns Transfer Restricted Securities.

 

SECTION 3.         REGISTERED
EXCHANGE OFFER

 

(a)           Unless the Exchange
Offer shall not be permitted by applicable law or Commission policy (after the
procedures set forth in Section 6(a)(i) below have been complied with),
the Company and the Guarantor(s) shall (i) cause the Exchange Offer
Registration Statement to be filed with the Commission no later than 90 days
after the Closing Date or, if such 90th day is not a Business Day,
on the next succeeding Business Day (such 90th day or next succeeding Business
Day being the “Filing Deadline”), (ii) use all commercially
reasonable efforts to cause such Exchange Offer Registration Statement to
become effective no later than 180 days after the Closing Date or, if such 180th
day is not a Business Day, on the next succeeding Business Day (such 180th day
or next succeeding Business Day being the “Effectiveness Deadline”), (iii) in
connection with the foregoing, (A) file all pre-effective amendments to such
Exchange Offer Registration Statement as may be necessary in order to cause it
to become effective, (B) file, if applicable, a post-effective amendment to
such Exchange Offer Registration Statement pursuant to Rule 430A under the Act
and (C) cause all necessary filings, if any, in connection with the
registration and qualification of the Exchange Notes to be made under the Blue
Sky laws of such jurisdictions as are necessary to permit Consummation of the
Exchange Offer, and (iv) upon the effectiveness of such Exchange Offer
Registration Statement, commence and Consummate the Exchange Offer.  The Exchange Offer shall be on the
appropriate form permitting (i) registration of the Exchange Notes to be
offered in exchange for the Initial Notes that are Transfer Restricted
Securities and (ii) resales of Exchange Notes by Broker-Dealers that tendered
into the Exchange Offer Initial Notes that such Broker-Dealer acquired for its
own account as a result of market-making activities or other trading activities
(other than Initial Notes acquired directly from the Company or any of its
Affiliates) as contemplated by Section 3(c) below.

 

(b)           The Company and the
Guarantor(s) shall use all commercially reasonable efforts to cause the
Exchange Offer Registration Statement to be effective continuously, and shall
keep the Exchange Offer open for a period of not less than the minimum period
required under applicable federal and state securities laws to Consummate the Exchange
Offer; provided,

 

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however,
that in no event shall such period be less than 20 Business Days.  The Company and the Guarantor(s) shall cause
the Exchange Offer to comply with all applicable federal and state securities
laws.  No securities other than the
Exchange Notes shall be included in the Exchange Offer Registration
Statement.  The Company and the
Guarantor(s) shall use all commercially reasonable efforts to cause the
Exchange Offer to be Consummated on the earliest practicable date after the
Exchange Offer Registration Statement has become effective, but in no event
later than 30 Business Days or longer, if required by the federal securities
laws, after the date on which the Exchange Offer Registration Statement has
become effective (such 30th day, or such later date required by the federal
securities laws, being the “Consummation Deadline”).

 

(c)           The Company shall
include a “Plan of Distribution” section in the Prospectus contained in
the Exchange Offer Registration Statement and indicate therein that any
Broker-Dealer who holds Transfer Restricted Securities that were acquired for
the account of such Broker-Dealer as a result of market-making activities or
other trading activities (other than Initial Notes acquired directly from the
Company or any Affiliate of the Company), may exchange such Transfer Restricted
Securities pursuant to the Exchange Offer. 
Such “Plan of Distribution” section shall also contain all other
information with respect to such sales by such Broker-Dealers that the
Commission may require in order to permit such sales pursuant thereto, but such
“Plan of Distribution” shall not name any such Broker-Dealer or disclose the
amount of Transfer Restricted Securities held by any such Broker-Dealer, except
to the extent required by the Commission as a result of a change in policy,
rules or regulations after the date of this Agreement.  See the Shearman & Sterling
no-action letter (available July 2, 1993).

 

Because such
Broker-Dealer may be deemed to be an “underwriter” within the meaning of the
Act and must, therefore, deliver a prospectus meeting the requirements of the
Act in connection with its initial sale of any Exchange Notes received by such
Broker-Dealer in the Exchange Offer, the Company and Guarantor(s) shall permit
the use of the Prospectus contained in the Exchange Offer Registration
Statement by such Broker-Dealer to satisfy such prospectus delivery
requirement.  To the extent necessary to
ensure that the Prospectus contained in the Exchange Offer Registration
Statement is available for sales of Exchange Notes by Broker-Dealers, the
Company and the Guarantor(s) agree to use all commercially reasonable efforts
to keep the Exchange Offer Registration Statement continuously effective,
supplemented, amended and current as required by and subject to the provisions
of Sections 6(a) and (c) hereof and in conformity with the requirements of this
Agreement, the Act and the policies, rules and regulations of the Commission as
announced from time to time, for a period of one year from the Consummation
Deadline or such shorter period as will terminate when all Transfer Restricted
Securities covered by such Registration Statement have been sold pursuant
thereto.  The Company and the Guarantor(s)
shall provide sufficient copies of the latest version of such Prospectus to
such Broker-Dealers, promptly upon request, and in no event later than one day
after such request, at any time during such period.

 

SECTION 4.         SHELF
REGISTRATION

 

(a)           Shelf Registration.  If (i) the Company and the Guarantor(s) are
not (A) required to file the Exchange Offer Registration Statement or (B)
permitted to Consummate the Exchange Offer because the Exchange Offer is not
permitted by applicable law or Commission policy (after the Company and the
Guarantor(s) have complied with the procedures set forth in Section 

 

4

 

6(a)(i) below) or (ii) any Holder notifies in writing the Company prior
to 20 Business Days following Consummation of the Exchange Offer that (A) such
Holder was prohibited by law or Commission policy from participating in the
Exchange Offer, (B) such Holder may not resell the Exchange Notes acquired by
it in the Exchange Offer to the public without delivering a prospectus and the
Prospectus contained in the Exchange Offer Registration Statement is not
appropriate or available for such resales by such Holder or (C) such Holder is
a Broker-Dealer and holds Initial Notes acquired directly from the Company or any
of its Affiliates, then the Company and the Guarantor(s) shall:

 

(x) use all
commercially reasonable efforts on or prior to 30 days (or, if such 30th
day is not a Business Day, on the next succeeding Business Day) after the
earlier of (i) the date as of which the Company determines that the Exchange
Offer Registration Statement will not be or cannot be, as the case may be,
filed as a result of clause (a)(i) above and (ii) the date on which the Company
receives the notice specified in clause (a)(ii) above (30 days (or next
succeeding Business Day) after such earlier date, the “Filing Deadline”), to
file a shelf registration statement pursuant to Rule 415 under the Act (which
may be an amendment to the Exchange Offer Registration Statement (the “Shelf
Registration Statement”)), relating to all Transfer Restricted
Securities, and 

 

(y) shall use all
commercially reasonable efforts to cause such Shelf Registration Statement to
become effective on or prior to 60 days (or, if such 60th day is not
a Business Day, on the next succeeding Business Day) after the Filing Deadline
for the Shelf Registration Statement (such 60th day (or next succeeding
Business Day) the “Effectiveness Deadline”).  

 

If, after the
Company and the Guarantor(s) have filed an Exchange Offer Registration
Statement that satisfies the requirements of Section 3(a) above, the
Company and the Guarantor(s) are required to file and make effective a Shelf
Registration Statement solely because the Exchange Offer is not permitted under
applicable federal law (i.e., clause (a)(i)(B) above), then the filing of the
Exchange Offer Registration Statement shall be deemed to satisfy the
requirements of clause (x) above; provided that, in such event, the Company
and the Guarantor(s) shall remain obligated to meet the Effectiveness Deadline
set forth in clause (y).

 

To the extent
necessary to ensure that the Shelf Registration Statement is available for
sales of Transfer Restricted Securities by the Holders thereof entitled to the
benefit of this Section 4(a) and the other securities required to be
registered therein pursuant to Section 6(b)(ii) hereof, the Company and
the Guarantor(s) shall use all commercially reasonable efforts to keep any
Shelf Registration Statement required by this Section 4(a) continuously effective,
supplemented, amended and current as required by and subject to the provisions
of Sections 6(b) and (c) hereof and in conformity with the requirements of this
Agreement, the Act and the policies, rules and regulations of the Commission as
announced from time to time, until the expiration of the period referred to in
Rule 144(k), or such shorter period as will terminate when all Transfer
Restricted Securities covered by such Shelf Registration Statement have been
sold pursuant thereto.

 

(b)           Provision by Holders
of Certain Information in Connection with the Shelf Registration Statement.  No Holder may include any of its Transfer
Restricted Securities in any Shelf Registration Statement pursuant to this
Agreement unless and until such Holder furnishes

 

5

 

to the Company in writing, within 20 days after receipt of a request
therefor, the information specified in Item 507 or 508 of Regulation S-K, as
applicable, of the Act for use in connection with any Shelf Registration
Statement or Prospectus or preliminary prospectus included therein.  No Holder shall be entitled to liquidated
damages pursuant to Section 5 hereof unless and until such Holder shall
have provided all such information. 
Each selling Holder agrees to promptly furnish additional information
required to be disclosed in order to make the information previously furnished
to the Company by such Holder not materially misleading.

 

SECTION 5.         LIQUIDATED
DAMAGES

 

If (i) any
Registration Statement required by this Agreement is not filed with the
Commission on or prior to the applicable Filing Deadline, (ii) any such
Registration Statement has not been declared effective by the Commission on or
prior to the applicable Effectiveness Deadline, (iii) the Exchange Offer has
not been Consummated on or prior to 30 Business Days after the Effectiveness
Deadline with respect to the Exchange Offer Registration Statement or (iv) any
Registration Statement required by this Agreement is filed and declared effective
but shall thereafter cease to be effective or usable for its intended purpose
(each such event referred to in clauses (i) through (iv), a “Registration
Default”), then the Company and the Guarantor(s) hereby jointly
and severally agree to pay to each Holder affected thereby liquidated damages
in an amount equal to $0.05 per week per $1,000 in principal amount of Transfer
Restricted Securities held by such Holder for each week or portion thereof that
the Registration Default continues for the first 90-day period immediately
following the occurrence of such Registration Default.  The amount of the liquidated damages shall
increase by an additional $0.05 per week per $1,000 in principal amount of
Transfer Restricted Securities with respect to each subsequent 90-day period
until all Registration Defaults have been cured, up to a maximum amount of
liquidated damages of $0.50 per week per $1,000 in principal amount of Transfer
Restricted Securities; provided that the Company and the
Guarantor(s) shall in no event be required to pay liquidated damages for more
than one Registration Default at any given time.  Notwithstanding anything to the contrary set forth herein, (1)
upon filing of the Exchange Offer Registration Statement (and/or, if
applicable, the Shelf Registration Statement), in the case of clause (i) above,
(2) upon the effectiveness of the Exchange Offer Registration Statement
(and/or, if applicable, the Shelf Registration Statement), in the case of
clause (ii) above, (3) upon Consummation of the Exchange Offer, in the case of
clause (iii) above, or (4) upon the filing of a post-effective amendment to the
Registration Statement or an additional Registration Statement that causes the
Exchange Offer Registration Statement (and/or, if applicable, the Shelf Registration
Statement) to again be declared effective or made usable in the case of clause
(iv) above, the liquidated damages payable with respect to the Transfer
Restricted Securities as a result of such clause (i), (ii), (iii) or (iv), as
applicable, shall cease. 
Notwithstanding the foregoing, in the event of a Registration Default of
the type described under clause (iv) above, the liquidated damages payable with
respect to the Transfer Restricted Securities shall cease to accrue thereon
upon the expiration of the period referred to in Rule 144(k) under the Act.

 

All accrued
liquidated damages shall be paid to the Holders entitled thereto, in the manner
provided for the payment of interest in the Indenture, on each Interest Payment
Date, as more fully set forth in the Indenture and the Notes.  Notwithstanding the fact that any securities
for which liquidated damages are due cease to be Transfer Restricted
Securities, all obligations of the Company and the Guarantor(s) to pay
liquidated damages with respect to securities shall

 

6

 

survive until such time as such obligations with respect to such
securities shall have been satisfied in full.

 

SECTION 6.         REGISTRATION
PROCEDURES

 

(a)           Exchange Offer
Registration Statement.  In
connection with the Exchange Offer, the Company and the Guarantor(s) shall (x)
comply with all applicable provisions of Section 6(c) below, (y) use all
commercially reasonable efforts to effect such exchange and to permit the
resale of Exchange Notes by Broker-Dealers that tendered in the Exchange Offer
Initial Notes that such Broker-Dealer acquired for its own account as a result
of its market-making activities or other trading activities (other than Initial
Notes acquired directly from the Company or any of its Affiliates) being sold
in accordance with the intended method or methods of distribution thereof, and
(z) comply with all of the following provisions:

 

(i)            If,
following the date hereof there has been announced a change in Commission policy
with respect to exchange offers such as the Exchange Offer, that in the
reasonable opinion of counsel to the Company raises a substantial question as
to whether the Exchange Offer is permitted by applicable federal law, the
Company and the Guarantor(s) hereby agree to seek a no-action letter or other
favorable decision from the Commission allowing the Company and the
Guarantor(s) to Consummate an Exchange Offer for such Transfer Restricted
Securities.  The Company and the
Guarantor(s) hereby agree to pursue the issuance of such a decision to the
Commission staff level.  In connection
with the foregoing, the Company and the Guarantor(s) hereby agree to take all
such other actions as may be requested by the Commission or otherwise required
in connection with the issuance of such decision, including without limitation
(A) participating in telephonic conferences with the Commission, (B) delivering
to the Commission staff an analysis prepared by counsel to the Company setting
forth the legal bases, if any, upon which such counsel has concluded that such
an Exchange Offer should be permitted and (C) diligently pursuing a resolution
(which need not be favorable) by the Commission staff.

 

(ii)           As a
condition to its participation in the Exchange Offer, each Holder (including,
without limitation, any Holder who is a Broker-Dealer) shall furnish, upon the
request of the Company, prior to the Consummation of the Exchange Offer, a
written representation to the Company and the Guarantor(s) (which may be
contained in the letter of transmittal contemplated by the Exchange Offer
Registration Statement) to the effect that (A) it is not an Affiliate of the
Company, (B) it is not engaged in, and does not intend to engage in, and has no
arrangement or understanding with any person to participate in, a distribution
of the Exchange Notes to be issued in the Exchange Offer and (C) it is
acquiring the Exchange Notes in its ordinary course of business.  As a condition to its participation in the
Exchange Offer each Holder using the Exchange Offer to participate in a
distribution of the Exchange Notes shall acknowledge and agree that, if the
resales are of Exchange Notes obtained by such Holder in exchange for Initial
Notes acquired directly from the Company or an Affiliate thereof, it (1) could
not, under Commission policy as in effect on the date of this Agreement, rely
on the position of the Commission enunciated in Morgan Stanley and Co., Inc.
(available June 5, 1991) and Exxon Capital Holdings Corporation
(available May 13, 1988), as interpreted in the Commission’s letter

 

7

 

to Shearman
& Sterling dated July 2, 1993, and similar no-action letters
(including, if applicable, any no-action letter obtained pursuant to clause (i)
above), and (2) must comply with the registration and prospectus delivery
requirements of the Act in connection with a secondary resale transaction and
that such a secondary resale transaction must be covered by an effective
registration statement containing the selling security holder information
required by Item 507 or 508, as applicable, of Regulation S-K.

 

(iii)          Prior
to effectiveness of the Exchange Offer Registration Statement, the Company and
the Guarantor(s) shall provide a supplemental letter to the Commission (A)
stating that the Company and the Guarantor(s) are registering the Exchange
Offer in reliance on the position of the Commission enunciated in Exxon
Capital Holdings Corporation (available May 13, 1988), Morgan Stanley
and Co., Inc. (available June 5, 1991) as interpreted in the
Commission’s letter to Shearman & Sterling dated July 2, 1993,
and, if applicable, any no-action letter obtained pursuant to clause (i) above,
(B) including a representation that neither the Company nor any Guarantor has
entered into any arrangement or understanding with any Person to distribute the
Exchange Notes to be received in the Exchange Offer and that, to the best of
the Company’s and each Guarantor’s information and belief, each Holder
participating in the Exchange Offer is acquiring the Exchange Notes in its
ordinary course of business and has no arrangement or understanding with any
Person to participate in the distribution of the Exchange Notes received in the
Exchange Offer and (C) any other undertaking or representation required by the
Commission as set forth in any no-action letter obtained pursuant to clause (i)
above, if applicable.

 

(b)           Shelf Registration
Statement. In connection with the Shelf Registration Statement, the Company
and the Guarantor(s) shall:

 

(i)            comply
with all the provisions of Section 6(c) below and use all commercially
reasonable efforts to effect such registration to permit the sale of the
Transfer Restricted Securities being sold in accordance with the intended
method or methods of distribution thereof (as indicated in the information
furnished to the Company pursuant to Section 4(b) hereof), and pursuant
thereto the Company and the Guarantor(s) will prepare and file with the
Commission a Registration Statement relating to the registration on any
appropriate form under the Act, which form shall be available for the sale of
the Transfer Restricted Securities in accordance with the intended method or
methods of distribution thereof within the time periods and otherwise in
accordance with the provisions hereof, and

 

(ii)           issue,
upon the request of any Holder or purchaser of Initial Notes covered by any
Shelf Registration Statement contemplated by this Agreement, Exchange Notes
having an aggregate principal amount equal to the aggregate principal amount of
Initial Notes sold pursuant to the Shelf Registration Statement and surrendered
to the Company for cancellation; the Company shall register Exchange Notes on
the Shelf Registration Statement for this purpose and issue the Exchange Notes
to the purchaser(s) of securities subject to the Shelf Registration Statement
in the names as such purchaser(s) shall designate.

 

8

 

(c)           General Provisions.  In connection with any Registration
Statement and any related Prospectus required by this Agreement, the Company
and the Guarantor(s) shall:

 

(i)            use all
commercially reasonable efforts to keep such Registration Statement
continuously effective and provide all requisite financial statements for the
period specified in Section 3 or 4 of this Agreement, as applicable.  Upon the occurrence of any event that would
cause any such Registration Statement or the Prospectus contained therein (A)
to contain an untrue statement of material fact or omit to state any material fact
necessary to make the statements therein not misleading or (B) not to be
effective and usable for resale of Transfer Restricted Securities during the
period required by this Agreement, the Company and the Guarantor(s) shall file
promptly an appropriate amendment to such Registration Statement curing such
defect, and, if Commission review is required, use all commercially reasonable
efforts to cause such amendment to be declared effective as soon as
practicable.

 

(ii)           prepare
and file with the Commission such amendments and post-effective amendments to
the applicable Registration Statement as may be necessary to keep such
Registration Statement effective for the applicable period set forth in
Section 3 or 4 hereof, as the case may be; cause the Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to
be filed pursuant to Rule 424 under the Act, and to comply fully with Rules
424, 430A and 462, as applicable, under the Act in a timely manner; and comply
with the provisions of the Act with respect to the disposition of all
securities covered by such Registration Statement during the applicable period
in accordance with the intended method or methods of distribution by the
sellers thereof set forth in such Registration Statement or supplement to the
Prospectus;

 

(iii)          advise
each Holder promptly and, if requested by such Holder, confirm such advice in
writing, (A) when the Prospectus or any Prospectus supplement or post-effective
amendment has been filed, and, with respect to any applicable Registration
Statement or any post-effective amendment thereto, when the same has become
effective, (B) of any request by the Commission for amendments to the
Registration Statement or amendments or supplements to the Prospectus or for additional
information relating thereto, (C) of the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement under the Act
or of the suspension by any state securities commission of the qualification of
the Transfer Restricted Securities for offering or sale in any jurisdiction, or
the initiation of any proceeding for any of the preceding purposes, and (D) of
the existence of any fact or the happening of any event that makes any
statement of a material fact made in the Registration Statement, the
Prospectus, any amendment or supplement thereto or any document incorporated by
reference therein untrue, or that requires the making of any additions to or
changes in the Registration Statement in order to make the statements therein
not misleading, or that requires the making of any additions to or changes in
the Prospectus in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.  If at any time the Commission shall issue
any stop order suspending the effectiveness of the Registration Statement, or
any state securities commission or other regulatory authority shall issue an
order suspending the qualification or exemption from qualification of the
Transfer Restricted Securities under state securities or Blue Sky laws,

 

9

 

the Company and
the Guarantor(s) shall use all commercially reasonable efforts to obtain the
withdrawal or lifting of such order at the earliest possible time;

 

(iv)          subject to
Section 6(c)(i), if any fact or event contemplated by
Section 6(c)(iii)(D) above shall exist or have occurred, prepare a
supplement or post-effective amendment to the Registration Statement or related
Prospectus or any document incorporated therein by reference or file any other
required document so that, as thereafter delivered to the purchasers of
Transfer Restricted Securities, the Prospectus will not contain an untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading;

 

(v)           furnish
to each Holder in connection with such exchange, registration or sale, if any,
before filing with the Commission, copies of any Registration Statement or any
Prospectus included therein or any amendments or supplements to any such
Registration Statement or Prospectus (and, if requested by any Holder, all
documents incorporated by reference after the initial filing of such
Registration Statement), which documents will be subject to the review and
comment of such Holders in connection with such sale, if any, for a period of
at least five Business Days, and the Company will not file any such
Registration Statement or Prospectus or any amendment or supplement to any such
Registration Statement or Prospectus (including all such documents incorporated
by reference) to which such Holders shall reasonably object within five
Business Days after the receipt thereof. 
A Holder shall be deemed to have reasonably objected to such filing if
such Registration Statement, amendment, Prospectus or supplement, as
applicable, as proposed to be filed, contains an untrue statement of a material
fact or omits to state any material fact necessary to make the statements
therein not misleading or fails to comply with the applicable requirements of
the Act;

 

(vi)          upon the
request of any Holder, prior to the filing of any document that is to be
incorporated by reference into a Registration Statement or Prospectus in
connection with such exchange, registration or sale, if any, provide copies of
such document to each Holder, make the Company’s and the Guarantor(s)’
representatives available for discussion of such document and other customary
due diligence matters, and include such information in such document prior to
the filing thereof as such Holders may reasonably request, subject to the
advice of counsel to the Company and the Guarantor(s);

 

(vii)         make
available, at reasonable times, for inspection by each Holder and any attorney
or accountant retained by such Holders, all financial and other records,
pertinent corporate documents of the Company and the Guarantor(s) and cause the
Company’s and the Guarantor(s)’ officers, directors and employees to supply all
information reasonably requested by any such Holder, attorney or accountant in
connection with such Registration Statement or any post-effective amendment
thereto subsequent to the filing thereof and prior to its effectiveness,
subject, in the case of information that is not public, to the execution by any
such Holder of confidentiality agreements reasonably satisfactory to the
Company and the Guarantor(s);

 

10

 

(viii)        if
requested by any Holders in connection with such exchange, registration or
sale, promptly include in any Registration Statement or Prospectus, pursuant to
a supplement or post-effective amendment if necessary, such information as such
Holders may reasonably request to have included therein and that is required by
the federal securities laws to be so included, including, without limitation,
information relating to the “Plan of Distribution” of the Transfer Restricted
Securities; and make all required filings of such Prospectus supplement or
post-effective amendment as soon as practicable after the Company is notified
of the matters to be included in such Prospectus supplement or post-effective
amendment;

 

(ix)           furnish
to each Holder in connection with such exchange, registration or sale, without
charge, at least one copy of the Registration Statement, as first filed with
the Commission, and of each amendment thereto (and, if requested by any Holder,
all documents incorporated by reference therein and all exhibits (including
exhibits incorporated therein by reference));

 

(x)            deliver
to each Holder without charge, as many copies of the Prospectus (including each
preliminary prospectus) and any amendment or supplement thereto as such Persons
reasonably may request; the Company and the Guarantor(s) hereby consent to the
use (in accordance with law) of the Prospectus and any amendment or supplement
thereto by each selling Holder in connection with the offering and the sale of
the Transfer Restricted Securities covered by the Prospectus or any amendment
or supplement thereto;

 

(xi)           upon the
request of any Holder, enter into such customary agreements (including
underwriting agreements) and make such customary representations and warranties
and take all such other customary actions in connection therewith in order to
expedite or facilitate the disposition of the Transfer Restricted Securities
pursuant to any applicable Registration Statement contemplated by this
Agreement as may be reasonably requested by any Holder in connection with any
sale or resale pursuant to any applicable Registration Statement.  In such connection, the Company and the
Guarantor(s) shall:

 

(A)          upon
request of any Holder, furnish (or in the case of paragraphs (2) and (3), use
its commercially reasonable efforts to cause to be furnished) to each Holder,
upon Consummation of the Exchange Offer or upon the effectiveness of the Shelf
Registration Statement, as the case may be:

 

(1)           a
certificate, dated such date, signed on behalf of the Company and each
Guarantor by (x) the President or any Vice President and (y) a principal
financial or accounting officer of the Company and such Guarantor, confirming,
as of the date thereof, such matters as such Holders may reasonably request;

 

(2)           an
opinion, dated the date of Consummation of the Exchange Offer or the date of
effectiveness of the Shelf Registration Statement, as the case may be, of
counsel for the Company and the Guarantor(s) in customary form and covering
such other matters as such Holder may reasonably request, and in any event
including a statement to 

 

11

 

the effect that
such counsel has participated in conferences with officers and other
representatives of the Company and the Guarantor(s) and representatives of the
independent public accountants for the Company and the Guarantor(s) and have
considered the matters required to be stated therein and the statements
contained therein, although (i) such counsel is not passing upon and does not
assume responsibility for the accuracy, completeness or fairness of such
statements, and (ii) such counsel has not independently verified the accuracy,
completeness or fairness of such statements; and that such counsel advises
that, on the basis of the foregoing (relying as to materiality to the extent
such counsel deems appropriate upon the statements of officers and other
representatives of the Company and the Guarantor(s)) and without independent
check or verification), no facts came to such counsel’s attention that caused
such counsel to believe that the applicable Registration Statement, at the time
such Registration Statement or any post-effective amendment thereto became
effective and, in the case of the Exchange Offer Registration Statement, as of
the date of Consummation of the Exchange Offer, contained an untrue statement
of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, or that the
Prospectus contained in such Registration Statement as of its date and, in the
case of the opinion dated the date of Consummation of the Exchange Offer, as of
the date of Consummation, contained an untrue statement of a material fact or
omitted to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not
misleading.  Without limiting the
foregoing, such counsel may state further that such counsel assumes no
responsibility for, and has not independently verified, the accuracy,
completeness or fairness of the financial statements, notes and schedules and
other financial data included in any Registration Statement contemplated by
this Agreement or the related Prospectus; and

 

(3)           a
customary comfort letter, dated the date of Consummation of the Exchange Offer,
or as of the date of effectiveness of the Shelf Registration Statement, as the
case may be, from the Company’s independent accountants, in the customary form
and covering matters of the type customarily covered in comfort letters to underwriters
in connection with underwritten offerings, and affirming the matters set forth
in the comfort letters delivered pursuant to Section 10(h) of the Purchase
Agreement; and

 

(B)           deliver
such other documents and certificates as may be reasonably requested by the
selling Holders to evidence compliance with the matters covered in clause (A)
above and with any customary conditions contained in any agreement entered into
by the Company and the Guarantor(s) pursuant to this clause (xi);

 

12

 

(xii)          prior
to any public offering of Transfer Restricted Securities, cooperate with the
selling Holders and their counsel in connection with the registration and
qualification of the Transfer Restricted Securities under the securities or
Blue Sky laws of such jurisdictions as the selling Holders may request and do
any and all other acts or things necessary or advisable to enable the
disposition in such jurisdictions of the Transfer Restricted Securities covered
by the applicable Registration Statement; provided, however, that neither the
Company nor any Guarantor shall be required to register or qualify as a foreign
corporation where it is not now so qualified or to take any action that would
subject it to the service of process in suits or to taxation, other than as to
matters and transactions relating to the Registration Statement, in any
jurisdiction where it is not now so subject;

 

(xiii)         in
connection with any sale of Transfer Restricted Securities that will result in
such securities no longer being Transfer Restricted Securities, cooperate with
the Holders to facilitate the timely preparation and delivery of certificates
representing Transfer Restricted Securities to be sold and not bearing any
restrictive legends; and to register such Transfer Restricted Securities in
such denominations and such names as the selling Holders may request at least
two Business Days prior to such sale of Transfer Restricted Securities;

 

(xiv)        use
all commercially reasonable efforts to cause the disposition of the Transfer
Restricted Securities covered by the Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be
necessary to enable the seller or sellers thereof to consummate the disposition
of such Transfer Restricted Securities, subject to the proviso contained in
clause (xii) above;

 

(xv)         provide a
CUSIP number for all Transfer Restricted Securities not later than the
effective date of a Registration Statement covering such Transfer Restricted
Securities and provide the Trustee under the Indenture with printed
certificates for the Transfer Restricted Securities which are in a form
eligible for deposit with the Depository Trust Company;

 

(xvi)        otherwise
use all commercially efforts to comply with all applicable rules and
regulations of the Commission, and make generally available to its security
holders with regard to any applicable Registration Statement, as soon as
practicable, a consolidated earnings statement meeting the requirements of Rule
158 under the Act (which need not be audited) covering a twelve-month period
beginning after the effective date of the Registration Statement (as such term
is defined in paragraph (c) of Rule 158 under the Act);

 

(xvii)       cause
the Indenture to be qualified under the TIA not later than the effective date
of the first Registration Statement required by this Agreement and, in
connection therewith, cooperate with the Trustee and the Holders to effect such
changes to the Indenture as may be required for such Indenture to be so
qualified in accordance with the terms of the TIA; and execute and use its
commercially reasonable efforts to cause the Trustee to execute, all documents
that may be required to effect such changes

 

13

 

and all other
forms and documents required to be filed with the Commission to enable such
Indenture to be so qualified in a timely manner; and

 

(xviii)      provide
promptly to each Holder, upon request, each document filed with the Commission
pursuant to the requirements of Section 13 or Section 15(d) of the
Exchange Act.

 

(d)           Restrictions on
Holders.  Each Holder agrees by
acquisition of a Transfer Restricted Security that, upon receipt of the notice
referred to in Section 6(c)(iii)(C) or any notice from the Company of the
existence of any fact of the kind described in Section 6(c)(iii)(D) hereof
(in each case, a “Suspension Notice”), such Holder will
forthwith discontinue disposition of Transfer Restricted Securities pursuant to
the applicable Registration Statement until (i) such Holder has received copies
of the supplemented or amended Prospectus contemplated by Section 6(c)(iv)
hereof, or (ii) such Holder is advised in writing by the Company that the use
of the Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus (in
each case, the “Recommencement Date”).  Each Holder receiving a Suspension Notice
hereby agrees that it will either (i) destroy any Prospectuses, other than
permanent file copies, then in such Holder’s possession which have been
replaced by the Company with more recently dated Prospectuses or (ii) deliver
to the Company (at the Company’s expense) all copies, other than permanent file
copies, then in such Holder’s possession of the Prospectus covering such
Transfer Restricted Securities that was current at the time of receipt of the
Suspension Notice.  The time period
regarding the effectiveness of such Registration Statement set forth in
Section 3 or 4 hereof, as applicable, shall be extended by a number of
days equal to the number of days in the period from and including the date of
delivery of the Suspension Notice to the Recommencement Date.

 

SECTION 7.         REGISTRATION
EXPENSES

 

(a)           All expenses incident
to the Company’s and the Guarantor(s)’ performance of or compliance with this
Agreement will be borne by the Company, regardless of whether a Registration
Statement becomes effective, including without limitation: (i) all registration
and filing fees and expenses; (ii) all fees and expenses of compliance with
federal securities and state Blue Sky or securities laws; (iii) all expenses of
printing (including printing certificates for the Exchange Notes to be issued
in the Exchange Offer and printing of Prospectuses), messenger and delivery
services and telephone; (iv) all fees and disbursements of counsel for the
Company and the Guarantor(s) and all reasonable fees and disbursements of not
more than one counsel acting for the Holders of Transfer Restricted Securities
and appointed in accordance with Section 7(b) hereof (provided that the fees of such counsel in
connection with the Exchange Offer Registration Statement shall not exceed
$7,500 without the prior written consent of the Company); and (v) all fees and
disbursements of independent certified public accountants of the Company and
the Guarantor(s) (including the expenses of any special audit and comfort
letters required by or incident to such performance).

 

The Company will,
in any event, bear its and the Guarantor(s)’ internal expenses (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expenses of any annual audit and
the fees and expenses of any Person, including special experts, retained by the
Company or the Guarantor(s).

 

14

 

(b)           In connection with any
Registration Statement required by this Agreement (including, without
limitation, the Exchange Offer Registration Statement and the Shelf
Registration Statement), the Company and the Guarantor(s) will reimburse the
Initial Purchasers and the Holders of Transfer Restricted Securities who are
validly tendering Initial Notes in the Exchange Offer and/or selling or
reselling Initial Notes or Exchange Notes pursuant to the “Plan of
Distribution” contained in the Exchange Offer Registration Statement or the
Shelf Registration Statement, as applicable, for the reasonable fees and
disbursements of not more than one counsel, who shall be Latham & Watkins
LLP, unless another firm shall be chosen by the Holders of a majority in
principal amount of the Transfer Restricted Securities for whose benefit such
Registration Statement is being prepared.

 

SECTION 8.         INDEMNIFICATION

 

(a)           The Company and the
Guarantor(s) agree, jointly and severally, to indemnify and hold harmless each
Holder, its directors, officers and each Person, if any, who controls such
Holder (within the meaning of Section 15 of the Act or Section 20 of the
Exchange Act), from and against any and all losses, claims, damages,
liabilities or judgments (including without limitation, any legal or other
expenses incurred in connection with investigating or defending any matter,
including any action that could give rise to any such losses, claims, damages,
liabilities or judgments) to which they or any of the foregoing may become
subject under the Act, the Exchange Act or otherwise, insofar as such losses,
claims, damages, liabilities or judgments (or actions in respect thereof) arise
out of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement, preliminary prospectus
or Prospectus (or any amendment or supplement thereto), or arise out of or are
based upon any omission or alleged omission to state therein a 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,
except insofar as such losses, claims, damages, liabilities or judgments (or
actions in respect thereof) arise out of or are based upon an untrue statement
or omission or alleged untrue statement or omission that is made therein in
reliance upon and in conformity with information relating to any of the Holders
furnished in writing to the Company by or on behalf of any of the Holders
expressly for use therein.  This
indemnity agreement will be in addition to any liability that the Company and
the Guarantor(s) may otherwise have.

 

(b)           Each Holder agrees,
severally and not jointly, to indemnify and hold harmless the Company and the
Guarantor(s), and their respective directors and officers, and each Person, if
any, who controls (within the meaning of Section 15 of the Act or Section 20
of the Exchange Act) the Company or the Guarantor(s) to the same extent as the
foregoing indemnity from the Company and the Guarantor(s) set forth in
section (a) above, but only with reference to information relating to such
Holder furnished in writing to the Company by or on behalf of such Holder
expressly for use in any Registration Statement.  In no event shall any Holder, its directors, officers or any
Person who controls such Holder be liable or responsible for any amount in
excess of the amount by which the total amount received by such Holder from its
sale of Transfer Restricted Securities pursuant to a Registration Statement
exceeds the amount paid by such Holder for such Transfer Restricted
Securities.  This indemnity will be in
addition to any liability that the Holders may otherwise have.

 

15

 

(c)           In case any action
shall be commenced or threatened involving any person in respect of which
indemnity may be sought pursuant to Section 8(a) or 8(b) (the “indemnified
party”), the indemnified party shall promptly notify the person
against whom such indemnity may be sought (the “indemnifying party”)
in writing (provided that the
failure so to notify an indemnifying party shall relieve it from any liability
that it may have under this Section 8 solely to the extent that such
failure to provide notice forfeits or materially prejudices any defense
otherwise available to such indemnifying party), and the indemnifying party
shall assume the defense of such action, including the employment of counsel
reasonably satisfactory to the indemnified party and the payment of all fees
and expenses of such counsel, as incurred (except that in the case of any
action in respect of which indemnity may be sought pursuant to both Sections
8(a) and 8(b), a Holder shall not be required to assume the defense of such
action pursuant to this Section 8(c), but may employ separate counsel and
participate in the defense thereof, but the fees and expenses of such counsel,
except as provided below, shall be at the expense of the Holder).  Any indemnified party shall have the right
to employ separate counsel in any such action and participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
the indemnified party unless (i) the employment of such counsel has been
specifically authorized in writing by the indemnifying party, (ii) the
indemnifying party has failed to assume the defense of such action or employ
counsel reasonably satisfactory to the indemnified party or (iii) the named
parties to any such action (including any impleaded parties) include both the
indemnified party and the indemnifying party, and the indemnified party has
been advised by such counsel that there may be one or more legal defenses
available to it which are different from or additional to those available to
the indemnifying party (in which case the indemnifying party shall not have the
right to assume the defense of such action on behalf of the indemnified party).  In any such case, the indemnifying party
shall not, in connection with any one action or separate but substantially
similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the fees and expenses of
more than one separate firm of attorneys (in addition to any local counsel) for
all indemnified parties and all such fees and expenses shall be reimbursed as
they are incurred.  Such firm shall be
designated in writing by a majority of the Holders, in the case of the parties
indemnified pursuant to Section 8(a), and by the Company and Guarantor(s),
in the case of parties indemnified pursuant to Section 8(b). The
indemnifying party shall indemnify and hold harmless the indemnified party from
and against any and all losses, claims, damages, liabilities and judgments by
reason of any settlement of any action (i) effected with the written consent of
the indemnifying party or (ii) effected without the written consent of the
indemnifying party if (a) the settlement is entered into more than 20 Business
Days after the indemnifying party received a request from the indemnified party
for reimbursement for the fees and expenses of counsel (in any case where such
fees and expenses are at the expense of the indemnifying party), (b) such
indemnifying party received notice of the terms of such settlement at least 10
Business Days prior to such settlement being entered into, and (c) such
indemnifying party failed to reimburse such 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 or
compromise of, or consent to the entry of 
judgment with respect to, any pending or threatened action in respect of
which the indemnified party is or could have been a party and indemnity or
contribution may be or could have been sought hereunder by the indemnified
party, unless (x) such settlement, compromise or judgment (i) includes an
unconditional release of the indemnified party from all liability arising out
of such action and (ii)

 

16

 

does not include a statement as to or an admission of fault,
culpability or a failure to act, by or on behalf of the indemnified party, and
(y) the indemnifying party confirms in writing its indemnification obligations
hereunder with respect to such settlement, compromise or judgment.

 

(d)           To the extent that the
indemnification provided for in this Section 8 is unavailable to an
indemnified party in respect of any losses, claims, damages, liabilities or
judgments referred to therein, then each indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages,
liabilities or judgments (i) in such proportion as is appropriate to reflect
the relative benefits received by the Company and the Guarantor(s), on the one
hand, and the Holders, on the other hand, from their sale of Transfer
Restricted Securities or (ii) if the allocation provided by clause 8(d)(i)
above is not permitted by applicable law, in such proportion as is appropriate
to reflect not only the relative benefits referred to in clause 8(d)(i) above
but also the relative fault of the Company and the Guarantor(s), on the one
hand, and of the Holder, on the other hand, in connection with the statements
or omissions which resulted in such losses, claims, damages, liabilities or
judgments, as well as any other relevant equitable considerations.  The relative fault of the Company and the
Guarantor(s), on the one hand, and of the Holder, on the other hand, shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by or on behalf of the
Company or such Guarantor, on the one hand, or by or on behalf of the Holder,
on the other hand, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or
omission.  

 

The Company, the
Guarantor(s) and each Holder agree that it would not be just and equitable if
contribution pursuant to this Section 8(d) were determined by pro rata
allocation (even if the Holders were treated as one entity for such purpose) or
by any other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph.  The amount paid or payable by an indemnified
party as a result of the losses, claims, damages, liabilities or judgments
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 matter, including any action that could have given rise to
such losses, claims, damages, liabilities or judgments.  Notwithstanding the provisions of this
Section 8, in no event shall any Holder, its directors, its officers or
any Person, if any, who controls such Holder be required to contribute, in the
aggregate, any amount in excess of the amount by which the total amount
received by such Holder from its sale of Transfer Restricted Securities
pursuant to a Registration Statement exceeds (i) the amount paid by such Holder
for such Transfer Restricted Securities plus (ii) 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 Act) shall
be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.  The
Holders’ obligations to contribute pursuant to this Section 8(d) are
several in proportion to the respective principal amount of Transfer Restricted
Securities held by each Holder hereunder and not joint.

 

17

 

SECTION 9.         RULE 144A
AND RULE 144

 

The Company and
each Guarantor agrees with each Holder, for so long as any Transfer Restricted
Securities remain outstanding and during any period in which the Company or such
Guarantor (i) is not subject to Section 13 or 15(d) of the Exchange Act,
to make available, upon request of any Holder, to such Holder or beneficial
owner of Transfer Restricted Securities in connection with any sale thereof and
any prospective purchaser of such Transfer Restricted Securities designated by
such Holder or beneficial owner, the information required by Rule 144A(d)(4)
under the Act in order to permit resales of such Transfer Restricted Securities
pursuant to Rule 144A under the Act, and (ii) is subject to Section 13 or
15(d) of the Exchange Act, to make all filings required thereby in a timely
manner in order to permit resales of such Transfer Restricted Securities
pursuant to Rule 144.

 

SECTION 10.       MISCELLANEOUS

 

(a)           Remedies.  The Company and the Guarantor(s) acknowledge
and agree that any failure by the Company and/or the Guarantor(s) to comply
with their respective obligations under Sections 3 and 4 hereof may result in
material irreparable injury to the Initial Purchasers or the Holders for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure,
the Initial Purchasers or any Holder may obtain such relief as may be required
to specifically enforce the Company’s and the Guarantor(s)’ obligations under
Sections 3 and 4 hereof.  The Company
and the Guarantor(s) further agree to waive the defense in any action for
specific performance that a remedy at law would be adequate.

 

(b)           No Inconsistent
Agreements.  Neither the Company nor
any Guarantor will, on or after the date of this Agreement, enter into any
agreement with respect to its securities that is inconsistent with the rights
granted to the Holders in this Agreement or otherwise conflicts with the
provisions hereof.  Neither the Company
nor any Guarantor has previously entered into, nor is currently a party to, any
agreement granting any registration rights with respect to its securities to
any Person that would require such securities to be included in any
Registration Statement filed hereunder. 
The rights granted to the Holders hereunder do not in any way conflict
with and are not inconsistent with the rights granted to the holders of the
Company’s and the Guarantor(s)’ securities under any agreement in effect on the
date hereof.

 

(c)           Amendments and
Waivers.  The provisions of this
Agreement may not be amended, modified or supplemented, and waivers or consents
to or departures from the provisions hereof may not be given unless required by
applicable law or (i) in the case of Section 5 hereof and this
Section 10(c)(i), the Company has obtained the written consent of Holders
of all outstanding Transfer Restricted Securities and (ii) in the case of all
other provisions hereof, the Company has obtained the written consent of
Holders of a majority of the outstanding principal amount of Transfer
Restricted Securities (excluding Transfer Restricted Securities held by the
Company or its Affiliates).  Notwithstanding
the foregoing, a waiver or consent to departure from the provisions hereof that
relates exclusively to the rights of Holders whose Transfer Restricted
Securities are being tendered pursuant to the Exchange Offer, and that does not
affect directly or indirectly the rights of other Holders whose Transfer
Restricted Securities are not being tendered pursuant to such Exchange Offer,
may be given by the Holders of a

 

18

 

majority of the outstanding principal amount of Transfer Restricted
Securities subject to such Exchange Offer.

 

(d)           Additional Guarantors.  The
Company shall cause any of its Restricted Subsidiaries (as defined in the
Indenture) that becomes, prior to the consummation of the Exchange Offer, a
Guarantor in accordance with the terms and provisions of the Indenture to
become a party to this Agreement as a Guarantor.

 

(e)           Third Party
Beneficiary.  The Holders shall be
third party beneficiaries to the agreements made hereunder between the Company
and the Guarantor(s), on the one hand, and the Initial Purchasers, on the other
hand, and shall have the right to enforce such agreements directly to the
extent they may deem such enforcement necessary or advisable to protect its
rights or the rights of Holders hereunder.

 

(f)            Notices.  All notices and other communications
provided for or permitted hereunder shall be made in writing by hand-delivery,
telecopier or air courier guaranteeing overnight delivery:

 

(i)            if to a
Holder, at the address set forth on the records of the Registrar under the
Indenture, with a copy to the Registrar under the Indenture; and

 

(ii)           if to the
Company or the Guarantor(s):

 

UbiquiTel Operating Company

One West Elm Street, Suite 400

Conshohocken, Pennsylvania 19428

Telecopier No.: (610) 832-1076

Attention: Patricia E. Knese, Vice President and
General Counsel

 

With a copy to:

 

Greenberg Traurig, P.A.

1221 Brickell Avenue

Miami, Florida 33131

Telecopier No.: (305) 961-5642

Attention: Andrew E. Balog, Esq.

 

All such notices
and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; when receipt acknowledged, if
telecopied; and on the next Business Day, if timely delivered to an air courier
guaranteeing overnight delivery.

 

Copies of all such
notices, demands or other communications shall be concurrently delivered by the
Person giving the same to the Trustee at the address specified in the
Indenture.

 

(g)           Successors and
Assigns.  This Agreement shall inure
to the benefit of and be binding upon the successors and assigns of each of the
parties, including without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein

 

19

 

shall be deemed to permit any assignment, transfer or other disposition
of Transfer Restricted Securities in violation of the terms hereof or of the
Purchase Agreement or the Indenture.  If
any transferee of any Holder shall acquire Transfer Restricted Securities in
any manner, whether by operation of law or otherwise, such Transfer Restricted
Securities shall be held subject to all of the terms of this Agreement, and by
taking and holding such Transfer Restricted Securities such Person shall be
conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement, including the restrictions on resale
set forth in this Agreement and, if applicable, the Purchase Agreement, and
such Person shall be entitled to receive the benefits hereof.

 

(h)           Counterparts.  This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

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

 

(j)            Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO THE CONFLICT OF LAW RULES THEREOF.

 

(k)           Severability.  In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired
thereby.

 

(l)            Entire Agreement.  This Agreement is intended by the parties as
a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein.  There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein with respect to the
registration rights granted with respect to the Transfer Restricted
Securities.  This Agreement supersedes
all prior agreements and understandings between the parties with respect to
such subject matter.

 

20

 

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

 

	
   

  	
  UBIQUITEL
  OPERATING COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Donald A.
  Harris

  
	
   

  	
   

  	
  Title: President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UBIQUITEL INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Donald A.
  Harris

  
	
   

  	
   

  	
  Title: President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  BEAR, STEARNS
  & CO. INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CITIGROUP GLOBAL
  MARKETS INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  BANC OF AMERICA
  SECURITIES LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:Exhibit
10.1

 

MEDICAL
STAFFING NETWORK, INC.

 

EMPLOYMENT
AGREEMENT

 

This EMPLOYMENT AGREEMENT
(the “Agreement”) is dated as of the 9th day of June, 2003 among Medical
Staffing Network, Inc. (the “Company”), Medical Staffing Network Holdings, Inc.
(“Holdings”) and Gregory K. Guckes (the “Executive”).

 

R E C I T A L
S:

 

WHEREAS, in consideration
of the mutual covenants and agreements contained herein, the parties hereto
agree as follows:

 

Section 1.                                            Employment.  The Company hereby agrees to employ the
Executive and the Executive hereby accepts such employment with the Company, on
the terms and subject to the conditions hereinafter set forth.  During the Employment Term (as hereinafter
defined), the Executive shall serve as President and Chief Operating Officer of
the Company and shall have the duties, responsibilities and obligations
reasonably assigned to the Executive by the Chief Executive Officer (“CEO”) and
the Board of Directors of the Company (the “Board”).

 

Section 2.                                            Term.  Unless terminated pursuant to Section 6
hereof, the Executive’s employment hereunder shall commence on June 9, 2003
(the “Commencement Date”) and shall continue during the period ending on the
third anniversary of the Commencement Date (the “Initial Employment Term”).  The Initial Employment Term shall be
extended automatically without further action by either party by one additional
year (added to the end of the Initial Employment Term) first on the third
anniversary of the Commencement Date, and on each succeeding anniversary thereafter,
unless, not later than ninety (90) days prior to the end of the Initial
Employment Term (or extension thereof), either the Company or the Executive
shall have notified the other in writing of its intention not to renew this
Agreement.  The Initial Employment Term,
together with any extension thereof pursuant to this Section 2, shall be
referred to as the “Employment Term.”

 

Section 3.                                            Compensation.  During the Employment Term, the Executive
shall be entitled to the following compensation and benefits:

 

(a)                                  Salary.  As compensation for the performance of the
Executive’s services hereunder, the Company shall pay to the Executive a salary
of $350,000 per annum with increases, if any, as may be approved in writing by
the Board (the “Salary”).  The Salary shall
be payable in accordance with the payroll practices of the Company as the same
shall exist from time to time.

 

 

(b)                                 Bonus
Pool.  During the Employment Term,
the Executive shall be entitled to participate in the Company’s bonus incentive
pool, on such terms as the Board shall approve from time to time.

 

(c)                                  Other
Compensation Plans.  The Executive
shall be entitled to participate in any stock option plans, or other
compensation plans offered by the Company to its officers and directors,
subject to the terms and conditions contained therein.

 

(d)                                 Benefits.  The Executive shall be entitled to
participate in health, insurance, pension and other benefits provided to other
similarly situated employees of the Company; provided that the Executive
shall be entitled to Company paid health insurance coverage for the Executive
and his dependents.  The Executive shall
also be entitled to three (3) weeks of vacation per annum and shall be entitled
to the same number of holidays, sick days and other benefits as are generally
allowed to other similarly situated employees of the Company in accordance with
the Company policy in effect from time to time.

 

(e)                                  Relocation
Expenses.  The Company shall
reimburse the Executive for Relocation Expenses (as defined below) up to a
maximum of $125,000.  For purposes of
this Agreement, “Relocation Expenses” means expenses reasonably incurred by the
Executive in connection with (i) travel to and from the Boca Raton, Florida
area to locate and purchase a home, (ii) temporary living expenses incurred
prior to purchasing a home in the Boca Raton, Florida area, (iii) the sale of
the Executive’s existing home in Greenwood Village, Colorado, (iv) the costs
ancillary to the purchase of a home in the Boca Raton, Florida area, such as
appraisal fees, survey costs and filing fees, and (v) moving personal property
to the Boca Raton, Florida area.

 

Section 4.                                            Exclusivity.  During the Employment Term, the Executive
shall devote his full working time to the business of the Company, shall
faithfully serve the Company, shall in all respects conform to and comply with
the lawful and reasonable directions and instructions given to him in
accordance with the terms of this Agreement, shall use his best efforts to
promote and serve the interests of the Company, and shall not engage in any
other business activity, whether or not such activity shall be engaged in for
pecuniary profit, except that the Executive may (i) participate in the
activities of professional trade organizations related to the business of the
Company, (ii) engage in personal investing activities and/or charitable
activities consistent with the Company’s policy regarding investments (which
may change from time to time) or (iii) with the consent of the Board, serve as
a member of the board of directors or advisory boards (or their equivalents in
the case of a non-corporate entity) of non-competing businesses and charitable
organizations, provided that activities set forth in these clauses (i),
(ii), or (iii) either singly or in the aggregate, do not interfere in any
material respect with the services to be provided by the Executive hereunder.

 

Section 5.                                            Reimbursement
for Expenses.  The Executive is
authorized to incur reasonable expenses in the discharge of the services to be
performed hereunder,

 

2

 

including expenses for travel, entertainment,
lodging and similar items in accordance with the Company’s expense
reimbursement policy, as the same may be modified by the Board from time to
time.  The Company shall reimburse the
Executive for all such proper expenses upon presentation by the Executive of
itemized accounts of such expenditures in accordance with the financial policy
of the Company, as in effect from time to time.

 

Section 6.                                            Termination
and Default.

 

(a)                                  Early
Termination of the Employment Term. 
Notwithstanding Section 2 hereof, the Employment Term shall end upon the
earliest to occur of (i) a termination of Executive’s employment due to the
Executive’s death, (ii) a termination by reason of a Disability, where
“Disability” shall mean any physical or mental disability or infirmity that
prevents the performance of Executive’s duties hereunder for a period of 90
consecutive days or 120 days during any 12-month period, (iii) a termination by
the Company with or without Cause (as defined below), and (iv)  a
termination by Executive with or without Good Reason (as defined below).  In the event of termination of the
Executive’s employment for any reason, at the Company’s request, the Executive
shall resign from the Board and the board of directors of any Company
subsidiaries.

 

(b)                                 Termination
due to Death or Disability.  The
Executive’s employment shall terminate upon his death, or in the event of a
Disability, upon delivery of written notice to the Executive of such
termination by reason of the Executive’s Disability.  Upon such event, the Executive, or Executive’s estate, as
applicable, shall be entitled to receive the amounts specified in Section 6(f)
below.  The Board’s reasoned and good faith
judgment of Disability shall be final, binding and conclusive and shall be
based on such competent medical evidence as shall be presented to it by
Executive and/or by any physician or group of physicians or other competent
medical expert employed by Executive or the Company to advise the Board.

 

(c)                                  Termination
by the Company with or without Cause. 
The Company may terminate the Executive’s employment at any time, with
or without Cause.  Termination of the
Executive’s employment hereunder shall be effective upon delivery of written
notice of such termination.  For
purposes of this Agreement, “Cause” shall mean: (i) the Executive’s failure,
neglect or refusal (except where due to a Disability) to perform his duties
hereunder which failure, neglect or refusal shall not have been corrected by
the Executive within 10 business days of receipt by the Executive of written
notice from the Company of such failure, neglect or refusal, which notice shall
with reasonable specificity set forth the nature of said failure, neglect or
refusal; (ii) any willful or intentional act of the Executive that has the
effect of injuring the reputation or business of the Company or its affiliates
in any material respect; (iii) the Executive’s use of illegal drugs or repeated
drunkenness by the Executive on Company property; (iv) conviction of, or plea
of guilty or nolo contendere to, the commission of a felony by the
Executive; (v) the commission by the Executive of an act of fraud or
embezzlement against the Company; or (vi) the Executive’s breach of any of the
covenants provided in Section 7 hereof.

 

3

 

(d)                                 Termination
by the Executive for Good Reason. 
The Executive may terminate his employment with the Company for Good
Reason upon thirty (30) days written notice, which notice shall specifically
set forth the nature of such Good Reason. 
The term “Good Reason” shall mean (i) the substantial and material
diminution in the Executive’s status, duties, or responsibilities then in
effect; (ii) without the Executive’s consent, the relocation of the Executive’s
principal office location more than fifty (50) miles from its current location
in Boca Raton, Florida; (iii) any material breach of this Agreement; or (iv)
the failure of any successor to assume this Agreement as required under Section
11(a) hereof.  Notwithstanding the
occurrence of any such event or circumstance above, such occurrence shall not
be deemed to constitute Good Reason hereunder if, within the thirty-day notice
period, the event or circumstance giving rise to Good Reason has been fully
corrected by the Company.

 

(e)                                  Resignation
by the Executive.  The Executive
shall have the right to terminate his employment at any time by giving thirty
(30) days written notice of his resignation.

 

(f)                                    Payments
upon Termination.  (i)  In the event that the Executive’s employment
terminates for any reason, the Company shall pay to the Executive all amounts
accrued but unpaid hereunder through the date of termination in respect of
Salary and other compensation provided hereunder, accrued but unused vacation
and any unreimbursed expenses.  Amounts
owed by the Company in respect of the payments under Section 6(f)(i) hereof or
reimbursement for expenses under the provisions of Section 5 hereof shall be
paid within five (5) business days of any termination.

 

(ii)                                  In
the event the Executive’s employment is terminated by the Company without Cause
(other than upon expiration of the Employment Term pursuant to Section 2 hereof
or a termination under Section 6(b) above), or by the Executive with Good
Reason, in addition to the amounts specified in subsection (i) above, (A) the
Executive shall continue to receive the Salary and other compensation provided
hereunder (less any applicable withholding or similar taxes) at the rate in
effect hereunder on the date of such termination for a period of twelve (12)
months (the “Severance Term”), and (B) to the extent permissible under the
Company’s health plans, during the Severance Term, the Executive shall continue
to receive any health benefits provided to him as of the date of such
termination.

 

(iii)                               In the event the
Executive’s employment is terminated (A) by the Company without Cause (other
than upon expiration of the Employment Term pursuant to Section 2 hereof), (B)
pursuant to Section 6(b) hereof, or (C) by the Executive with Good Reason, in
addition to the amounts specified in subsections (i) and (ii) above, the
Company shall reimburse the Executive for all legal fees, costs, and expenses
(including without limitation, legal fees and expenses on appeal) incurred by
the Executive in enforcing this Agreement.

 

4

 

(iv)                              Payment
of any amounts pursuant to this Section 6(f) shall be expressly conditioned
upon the Executive’s execution of a general waiver and release of claims
against the Company and its officers, directors, agents, and affiliates.

 

(g)                                 Change
in Control.  In the event that
within twelve (12) months following a Change in Control, the Executive’s employment
is terminated by the Company without Cause (other than upon expiration of the
Employment Term pursuant to Section 2 hereof or a termination under Section
6(b) above), or by the Executive with Good Reason, in addition to amounts
provided in Section 6(f) hereof, the Executive shall be entitled to a lump-sum
payment equal to two (2) times the sum of the Executive’s Salary and other
compensation provided hereunder as then in effect not later than 30 days after
the effective date of the Executive’s termination of employment.    For purposes of this Agreement, the term
“Change in Control” shall mean:

 

(i)                                     The
acquisition by any individual, entity or group (other than the Company,
Holdings, any employee benefit plan of the Company or Holdings, or Warburg,
Pincus Private Equity VIII, L.P. or any affiliate thereof) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Securities
Exchange Act of 1934) of securities representing more than 50% of the voting
securities of the Company or of Holdings entitled to vote generally in the
election of directors, determined on a fully-diluted basis (“Voting
Securities”); provided, however, that such acquisition shall not
constitute a Change in Control hereunder if a majority of the holders of the
Voting Securities immediately prior to such acquisition retain directly or
through ownership of one or more holding companies, immediately following such
acquisition, a majority of the voting securities entitled to vote generally in
the election of directors of the successor entity;

 

(ii)                                  The
date upon which individuals who as of the date hereof constitute a majority of
the Board (the “Incumbent Board” ) cease to constitute at least a majority of
the Board, provided that any individual becoming a director subsequent
to the date hereof whose election, or nomination for election by the Company’s
or Holdings’ shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though
such individual were a member of the Incumbent Board; or

 

(iii)                                Consummation of a
reorganization, merger or consolidation or sale or other disposition of all or
substantially all of the assets of the Company or of Holdings (a “Business
Combination”), in each case, unless, following such Business Combination, all
or substantially all of the individuals or entities who were the beneficial
owners, respectively, of the Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 50%
of, respectively, the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the Company or Holdings
or all or substantially all of the Company’s or Holdings’ assets either
directly or through one or more subsidiaries).

 

5

 

(h)                                 Payment
In Lieu.  In the event of
termination of the Executive’s employment due to the voluntary resignation by
the Executive, the Company may, in its sole and absolute discretion, at any
time after notice of termination has been given by the Executive, terminate
this Agreement, provided that the Company shall pay to the Executive his
then current Salary and continue benefits provided pursuant to Section 3(d) for
the duration of the unexpired notice period.

 

(i)                                     Parachute
Payments.  In the event that (i) any
amount or benefit paid or distributed to the Executive pursuant to this
Agreement, taken together with any amounts or benefits otherwise paid or
distributed to the Executive (collectively, the “Covered Payments”), are or
become subject to the excise tax imposed under Section 4999 of the Internal
Revenue Code of 1986, as amended, or any similar tax that may hereafter be
imposed (the “Excise Tax”), and (ii) it would be economically advantageous to
the Executive to reduce such Covered Payments to avoid imposition of the Excise
Tax, the Covered Payments shall be reduced to an amount which maximizes the
aggregate present value (as determined in accordance with Section 280G(d)(4) of
the Code or any successor provision of the Code) of the Covered Payments
without causing the Covered Payments to be subject to the Excise Tax.  The reduction described in this Section 6(i)
shall only be made if the net after-tax amount to be received by the Executive
after giving effect to the reduction will be greater than the net after-tax
amount that would be received by the Executive without the reduction.  The Executive shall in his sole discretion
determine which and how much of the Covered Payments shall be eliminated or
reduced consistent with the requirements of this Section 6(i).

 

(j)                                     Survival
of Operative Sections.  Upon any
termination of the Executive’s employment, the provisions of Section 6(f)
through Section 6(i), and Section 7 through Section 17 of this Agreement shall
survive to the extent necessary to give effect to the provisions thereof.

 

Section 7.                                            Restrictive
Covenants.  The Executive
acknowledges and agrees that the agreements and covenants contained in this
Section 7 are (i) reasonable and valid in geographical and temporal scope and
in all other respects, and (ii) essential to protect the value of the Company’s
business and assets and by his employment with the Company, and that the
Executive will obtain knowledge, contacts, know-how, training and experience
and there is a substantial probability that such knowledge, know-how, contacts,
training and experience could be used to the substantial advantage of a
competitor of the Company and to the Company’s substantial detriment.  For purposes of this Section 7, references
to the Company shall be deemed to include Holdings.

 

(a)                                  Confidential
Information.  At any time during and
after the end of the Employment Term, without the prior written consent of the
Board, except to the extent required by an order of a court having
jurisdiction or under subpoena from an appropriate government agency, in which
event, the Executive shall use his best efforts to consult with the Board prior
to responding to any such order or subpoena, and except as required in the
performance of his duties hereunder, the Executive shall not disclose any
confidential or proprietary trade secrets, customer lists, drawings, designs,
information

 

6

 

regarding product
development, marketing plans, sales plans, manufacturing plans, management
organization information, operating policies or manuals, business plans,
financial records, packaging design or other financial, commercial, business or
technical information (i) relating to the Company, or (ii) that the
Company or any of its affiliates may receive belonging to suppliers, customers
or others who do business with the Company (“Confidential Information”).  Executive’s obligation under this Section
7(a) shall not apply to any information which (i) is known publicly; (ii) is in
the public domain or hereafter enters the public domain without the breach of
the Executive of this Section 7(a); (iii) is known to the Executive prior to
the Executive’s receipt of such information from the Company or any of its
subsidiaries, as evidenced by written records of the Executive; or (iv) is
disclosed after termination of the Executive’s employment to the Executive by a
third party not under an obligation of confidence to the Company.

 

(b)                                 Non-Competition.  The Executive covenants and agrees that
during the Employment Term and for a period extending to the first anniversary
of the Executive’s termination of employment for any reason, or in the case of
a termination under Section 6(g) hereof a period extending to the third
anniversary of such termination (the “Restricted Period”), with respect to any
jurisdiction in which the Company is engaged in business at the time of such
termination, the Executive shall not, directly or indirectly, individually or
jointly, own any interest in, operate, join, control or participate as a
partner, director, principal, officer, or agent of, enter into the employment
of, act as a consultant to, or perform any services for any entity which
competes to a material extent with the business activities in which the Company
is engaged at the time of such termination or in which business activities the
Company has documented plans to become engaged in and as to which Executive has
knowledge at the time of Executive’s termination of employment, or any entity
in which any such relationship with the Executive would result in the
inevitable use or disclosure of Confidential Information (a “Competing
Business”).  Notwithstanding the
foregoing, in the event of a termination of employment other than pursuant to
Section 6(g) hereof, at the election of the Company, the Restricted Period may
be extended to a period ending not later than the third anniversary of the
Executive’s termination of employment; provided that during such
extended period, the Company continues to pay the Executive the Salary (less
any applicable withholding or similar taxes) at the rate in effect hereunder on
the date of such termination. 
Notwithstanding anything herein to the contrary, this Section 7(b) shall
not prevent the Executive from acquiring as an investment securities
representing not more than three percent (3%) of the outstanding voting
securities of any publicly-held corporation.

 

(c)                                  Non-Solicitation;
Non-Interference.  During the
Restricted Period, the Executive shall not, directly or indirectly, for his own
account or for the account of any other individual or entity (i) solicit or
induce, or in any manner attempt to solicit or induce, any person employed by,
as agent of, or a service provider to, the Company to terminate such person’s
employment, agency or service, as the case may be, with the Company; or (ii)
divert, or attempt to divert, any person, concern, or entity from doing
business with the Company or any of its subsidiaries, or attempt to induce any
such person, concern or entity to cease being a customer or supplier of the
Company.

 

7

 

(d)                                 Non-Disparagement.  The Executive agrees that, except as
required by applicable law, or compelled by process of law, at any time
following the date hereof, neither he, nor anyone acting on his behalf, shall
hereafter (i) make any derogatory, disparaging or critical statement about
the Company, or any of the Company’s current officers, directors, employees,
shareholders or lenders or any persons who were officers, directors, employees,
shareholders or lenders of the Company; or (ii)  without the Company’s
prior written consent, communicate, directly or indirectly, with the press or
other media, concerning the past or present employees or business of the
Company.

 

(e)                                  Return
of Documents.  In the event of the
termination of Executive’s employment for any reason, the Executive shall
deliver to the Company all of (i) the property of the Company and
(ii) the documents and data of any nature and in whatever medium of the
Company in his possession, and he shall not take with him any such property,
documents or data or any reproduction thereof, or any documents containing or
pertaining to any Confidential Information.

 

(f)                                    Works
for Hire.  The Executive agrees that
the Company shall own all right, title and interest (including patent rights,
copyrights, trade secret rights, mask work rights and other rights throughout
the world) in any inventions, works of authorship, mask works, ideas or
information made or conceived or reduced to practice, in whole or in part, by the
Executive (either alone or with others) during the Employment Term
(“Developments”); provided, however, that the Company shall not
own Developments for which no equipment, supplies, facility, trade secret
information or Confidential Information of the Company was used and which were
developed entirely on Executive’s time, and which do not relate (A) to
the business of the Company or its affiliates or (B) to the Company’s or its
affiliates actual or demonstrably anticipated research or development, and (ii)
which do not result from any work performed by the Executive for the
Company.  Subject to the foregoing,
Executive will promptly and fully disclose to the Company, or any persons
designated by it, any and all Developments made or conceived or reduced to
practice or learned by the Executive, either alone or jointly with others
during the Employment Term.  The
Executive hereby assigns to the Company all right, title and interest in and to
any and all Developments owned by the Company pursuant to the first sentence of
this Section 7(f).  The Executive agrees
to assist the Company, at the Company’s expense, to further evidence, record
and perfect such assignments, and to perfect, obtain, maintain, enforce, and
defend any rights specified to be so owned or assigned.  The Executive hereby irrevocably designates
and appoints the Company and its agents as attorneys-in-fact to act for and on
the Executive’s behalf to execute and file any document and to do all other
lawfully permitted acts to further the purposes of the foregoing with the same
legal force and effect as if executed by the Executive.  In addition, and not in contravention of any
of the foregoing, the Executive acknowledges that all original works of
authorship which are made by him (solely or jointly with others) within the
scope of employment and which are protectable by copyright are “works made for
hire,” as that term is defined in the United States Copyright Act (17 USC ‘
101).  To the extent allowed by law,
this Section 7(f) includes all rights of paternity, integrity, disclosure and
withdrawal and any other rights that may be known as or referred to as “moral
rights” (“Moral Rights”) in respect of the

 

8

 

Developments owned by the
Company pursuant to the first sentence of this Section 7(f).  To the extent Executive retains any such
Moral Rights under applicable law, the Executive hereby waives such Moral
Rights and consents to any action consistent with the terms of this Agreement
with respect to such Moral Rights, in each case, to the full extent of such
applicable law.  The Executive will
confirm any such waivers and consents from time to time as requested by the
Company.

 

(g)                                 Blue
Pencil.  If any court of competent
jurisdiction shall at any time deem the duration or the geographic scope of any
of the provisions of this Section 7 unenforceable, the other provisions of this
Section 7 shall nevertheless stand and the duration and/or geographic scope set
forth herein shall be deemed to be the longest period and/or greatest size
permissible by law under the circumstances, and the parties hereto agree that
such court shall reduce the time period and/or geographic scope to permissible
duration or size.

 

Section 8.                                            Injunctive
Relief.  Without intending to limit
the remedies available to the Company, the Executive acknowledges that a breach
of any of the covenants contained in Section 7 hereof may result in material
irreparable injury to the Company or its subsidiaries or affiliates 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 such a breach or
threat thereof, the Company shall be entitled to obtain a temporary restraining
order and/or a preliminary or permanent injunction, without the necessity of
proving irreparable harm or injury as a result of such breach or threatened
breach of Section 7 hereof, restraining the Executive from engaging in
activities prohibited by Section 7 hereof or such other relief as may be
required specifically to enforce any of the covenants in Section 7 hereof.  Notwithstanding any other provision to the
contrary, the Restricted Period shall be tolled during any period of violation
of any of the covenants in Section 7(b) or Section 7(c) hereof and during any
other period required for litigation during which the Company seeks to enforce
this covenant against the Executive if it is ultimately determined that such
person was in breach of such covenants.

 

Section 9.                                            Representations
and Warranties of the Executive. 
The Executive represents that:

 

(a)                                  the
Executive is entering into this Agreement voluntarily and that his employment
hereunder and compliance with the terms and conditions hereof will not conflict
with or result in the breach by him of any agreement to which he is
a party or by which he may be bound,

 

(b)                                 he
has not, and in connection with his employment with the Company will not,
violate any non-solicitation or other similar covenant or agreement by which he
is or may be bound, and

 

(c)                                  in
connection with his employment with the Company he will not use any
confidential or proprietary information he may have obtained in connection with
employment with any prior employer.

 

9

 

Section 10.                                      Taxes.  The Company may withhold from any payments
made under this Agreement all applicable taxes, including but not limited to
income, employment and social insurance taxes, as shall be required by law.

 

Section 11.                                      Successors
and Assigns; No Third-Party Beneficiaries.

 

(a)                                  The
Company. This Agreement shall inure to the benefit of and be enforceable
by, and may be assigned by the Company to, any purchaser of all or
substantially all of the Company’s business or assets, any successor to the
Company or any assignee thereof (whether direct or indirect, by purchase,
merger, consolidation or otherwise). 
The Company will require any such purchaser, successor or assignee to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
purchase, succession or assignment had taken place.

 

(b)                                 The
Executive.  The Executive’s rights
and obligations under this Agreement shall not be transferable by the Executive
by assignment or otherwise, without the prior written consent of the Company; provided,
however, that if the Executive shall die, all amounts then payable to
the Executive hereunder shall be paid in accordance with the terms of this
Agreement to the Executive’s devisee, legatee or other designee or, if there be
no such designee, to the Executive’s estate.

 

Section 12.                                      Waiver
and Amendments.  Any waiver,
alteration, amendment or modification of any of the terms of this Agreement
shall be valid only if made in writing and signed by the parties hereto; provided,
however, that any such waiver, alteration, amendment or modification is
consented to on the Company’s behalf by the Board.  No waiver by either of the parties hereto of their rights
hereunder shall be deemed to constitute a waiver with respect to any subsequent
occurrences or transactions hereunder unless such waiver specifically states
that it is to be construed as a continuing waiver.

 

Section 13.                                      Severability
and Governing Law.  If any covenants
or such other provisions of this Agreement are found to be invalid or
unenforceable by a final determination of a court of competent jurisdiction (a)
the remaining terms and provisions hereof shall be unimpaired and (b) the
invalid or unenforceable term or provision hereof shall be deemed replaced by a
term or provision that is valid and enforceable and that comes closest to
expressing the intention of the invalid or unenforceable term or provision
hereof.  THIS AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA (WITHOUT
GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES THEREOF) APPLICABLE TO CONTRACTS
MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.

 

10

 

Section 14.                                      Notices.

 

(a)                                  Every
notice or other communication relating to this Agreement shall be in writing,
and shall be mailed to or delivered to the party for whom it is intended at
such address as may from time to time be designated by it in a notice mailed or
delivered to the other party as herein provided, provided that unless
and until some other address be so designated, all notices or communications by
the Executive to the Company shall be mailed or delivered to the Company at its
principal executive office, and all notices or communications by the Company to
the Executive may be given to the Executive personally or may be mailed to
Executive at the Executive’s last known address, as reflected in the Company’s
records.

 

(b)                                 Any
notice so addressed shall be deemed to be given:  (i) if delivered by hand, on the date of such delivery; (ii) if
mailed by courier, on the first business day following the date of such
mailing; and (iii) if mailed by registered or certified mail, on the third
business day after the date of such mailing.

 

Section 15.                                      Section
Headings.  The headings of the
sections and subsections of this Agreement are inserted for convenience only
and shall not be deemed to constitute a part thereof, affect the meaning or
interpretation of this Agreement or of any term or provision hereof.

 

Section 16.                                      Entire
Agreement.  This Agreement
constitutes the entire understanding and agreement of the parties hereto
regarding the employment of the Executive. 
This Agreement supersedes all prior negotiations, discussions, correspondence,
communications, understandings and agreements between the parties relating to
the subject matter of this Agreement, including, without limitation, the
Original Agreement.

 

Section 17.                                      Counterparts.  This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original and all of which
together shall be considered one and the same agreement.

 

[Signatures
appear on the following page.]

 

11

 

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

 

 

	
   

  	
  MEDICAL STAFFING NETWORK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Robert J. Adamson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert J. Adamson

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MEDICAL STAFFING NETWORK HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Kevin S. Little

  
	
   

  	
   

  	
  Name:

  	
  Kevin S. Little

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Gregory K. Guckes

  	
   

  
	
   

  	
  Gregory K. Guckes

  
													

 

12

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