Document:

exv10w19

 

EXHIBIT 10.19

Execution Copy

Form of Purchase Agreement among Hollinger International Publishing Inc.,

Hollinger International Inc. and Wachovia Securities, Inc. dated as of December 16, 2002

Hollinger International Publishing Inc.

$300,000,000

9% Senior Notes due 2010

PURCHASE AGREEMENT

December 16, 2002

Wachovia Securities, Inc.

One Wachovia Center

301 South College Street

Charlotte, North Carolina 28288-0604

Ladies and Gentlemen:

     Hollinger International Publishing Inc., a Delaware corporation (the
“Company”), and Hollinger International Inc., a Delaware corporation (the
“Parent Guarantor”), confirm their agreement with Wachovia Securities, Inc.
(the “Initial Purchaser”) on the terms set forth herein.

     1.     Notes. The Company proposes to issue and sell to the Initial Purchaser
$300,000,000 principal amount of its 9% Senior Notes due 2010 (the “Notes”),
guaranteed on a senior basis by the Parent Guarantor (the “Note Guarantee”).
The Notes are to be issued under an indenture (the “Indenture”) to be dated as
of the Closing Date (as defined in Section 3 hereof) among the Company, the
Parent Guarantor and Wachovia Trust Company, National Association, as trustee
(the “Trustee”). This Agreement, the Registration Rights Agreement dated the
date hereof among the Initial Purchaser, the Company and the Parent Guarantor
(the “Registration Rights Agreement”) and the Indenture are hereinafter
collectively referred to as the “Transaction Documents” and the execution and
delivery of the Transaction Documents and the transactions contemplated herein
and therein are hereinafter referred to as the “Note Transactions”.

     The offer and sale of the Notes to the Initial Purchaser will be made
without registration of the Notes (and the Note Guarantee) under the Securities
Act of 1933, as amended (the “Securities Act”), in reliance upon certain
exemptions from the registration requirements of the Securities Act. The
Initial Purchaser has advised the Company and the Parent Guarantor that it will
offer and sell the Notes purchased by it hereunder in accordance with Section 4
hereof as soon as it deems advisable.

     In connection with the sale of the Notes, the Company has prepared a
preliminary offering memorandum, dated December 10, 2002 (the “Preliminary
Memorandum”), and a final offering memorandum, dated the date hereof (the
“Final Memorandum”). Each of the Preliminary Memorandum and the Final
Memorandum sets forth certain information concerning the Company, the Notes,
the Transaction Documents and the Note Transactions. As used herein, the term
“Preliminary Memorandum” and “Final Memorandum” shall include in each case the
documents incorporated by reference therein. The Company hereby confirms that
it has

 

 

authorized the use of the Preliminary Memorandum and the Final Memorandum,
and any amendment or supplement thereto, in connection with the offer and sale
of the Notes by the Initial Purchaser. Unless stated to the contrary, all
references herein to the Final Memorandum are to the Final Memorandum as of the
date hereof (the “Execution Date”) and are not meant to include any amendment
or supplement, or any information incorporated by reference therein, subsequent
to the Execution Date.

     2.     Representations and Warranties of the Company and the Parent Guarantor.
The Company and the Parent Guarantor jointly and severally represent and
warrant to, and agree with, the Initial Purchaser that:

     (a)  The Preliminary Memorandum, at the date thereof, did not contain any
untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. The Final Memorandum, at the date
hereof, does not and at the Closing Date will not (and any amendment or
supplement thereto, at the date thereof and at the Closing Date, will not),
contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading; provided, however, that the Company
makes no representations or warranties as to the information contained in or
omitted from the Preliminary Memorandum or the Final Memorandum (or any
amendment or supplement thereto) in reliance upon and in conformity with
information furnished in writing to the Company by or on behalf of the Initial
Purchaser specifically for inclusion therein, as specified in Section 11.

     (b)  Each of the Company, the Parent Guarantor and their direct and
indirect subsidiaries has been duly organized and each is validly existing
under the laws of the jurisdiction in which it is chartered or organized. Each
of the Company, the Parent Guarantor and their direct and indirect subsidiaries
organized in the United States is in good standing under the laws of the
jurisdiction in which it is chartered or organized and is duly qualified to do
business as a foreign corporation (or, if applicable, partnership or limited
liability company) under the laws of each jurisdiction which requires such
qualification wherein it owns or leases material properties or conducts
material business, except in such jurisdictions in which the failure to be so
incorporated or organized and validly existing or to so qualify, in the
aggregate, would not have a Material Adverse Effect. “Material Adverse Effect”
shall mean a material adverse change in or effect on the business, condition
(financial or otherwise), properties, net worth, results of operations or
prospects, whether or not in the ordinary course of business, of the Company,
the Parent Guarantor and their direct and indirect subsidiaries, considered as
one enterprise.

     (c)  Each of the Company, the Parent Guarantor and their direct and
indirect subsidiaries has full corporate (or, if applicable, partnership or
limited liability company) power to own or lease their respective properties
and conduct their respective businesses as described in the Final Memorandum;
and each of the Company and the Parent Guarantor has full corporate power to
enter into the Transaction Documents and to carry out all the terms and
provisions hereof and thereof to be carried out by it.

     (d)  Each of the Company and the Parent Guarantor has an authorized, issued
and

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outstanding capitalization as set forth in the Final Memorandum. All of
the issued shares of capital stock of the Company and the Parent Guarantor have
been duly authorized and validly issued and are fully paid and nonassessable.

     (e)  The issued shares of capital stock of each of the Company’s direct and
indirect subsidiaries have been duly authorized and validly issued, are fully
paid and nonassessable and, except as otherwise set forth in the Final
Memorandum, (i) in the case of shares of material subsidiaries, are owned of
record and beneficially by the Company, either directly or through wholly-owned
subsidiaries, and (ii) all such shares are free and clear of any pledge, lien,
encumbrance, security interest, restriction on voting or transfer, preemptive
rights or other defect in title or any claim of any third party, except as
provided by the Senior Credit Facility (as defined in the Final Memorandum) or
as described in the Final Memorandum.

     (f)  No direct or indirect subsidiary of the Company is prohibited,
directly or indirectly, from paying any dividends to the Company, from making
any other distribution on such subsidiary’s capital stock, from repaying to the
Company any loans or advances to such subsidiary from the Company or from
transferring any of such subsidiary’s property or assets to the Company or any
other subsidiary of the Company, except as provided by applicable laws or
regulations, by the Indenture, by the Senior Credit Facility or as described in
or contemplated by the Final Memorandum.

     (g)  There are no outstanding (i) securities or obligations of the Company
convertible into or exchangeable for any capital stock of the Company, (ii)
warrants, rights or options to subscribe for or purchase from the Company, any
such capital stock or any such convertible or exchangeable securities or
obligations or (iii) obligations of the Company to issue such shares, any such
convertible or exchangeable securities or obligations, or any such warrants,
rights or options.

     (h)  KPMG LLP, who has certified certain financial statements included in
the Final Memorandum and delivered its reports with respect to the audited
consolidated financial statements and schedules in the Final Memorandum, is an
independent public accountant with respect to the Company and the Parent
Guarantor within the meaning of the Securities Act and the applicable rules and
regulations thereunder.

     (i) The consolidated financial statements (including the notes thereto) of
the Parent Guarantor and the Publishing — Restricted Group included in the
Final Memorandum fairly present in all material respects the financial position
of the Parent Guarantor and the Publishing — Restricted Group and their
results of operations as of the dates and for the periods specified therein;
since the date of the latest of such financial statements, there has been no
change nor any development or event involving a prospective change which has
had or could reasonably be expected to have a Material Adverse Effect; such
financial statements have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods involved
(except as otherwise expressly noted in the notes thereto or elsewhere in the
Final Memorandum); and the other financial and statistical information and data
included in the Final Memorandum are accurately presented and, in the case of
financial information and data, prepared on a basis consistent with such
financial statements and/or the books and records of the Company, the Parent
Guarantor and their subsidiaries.

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     (j)  Each of the Company, the Parent Guarantor and their direct and
indirect subsidiaries maintains a system of internal accounting controls
sufficient to provide reasonable assurances that (i) transactions are executed
in accordance with management’s general or specific authorizations; (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles and to
maintain asset accountability; (iii) access to assets is permitted only in
accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.

     (k)  The Transaction Documents have been duly authorized by all necessary
corporate action of the Company and the Parent Guarantor and, when duly
executed and delivered by the Company and the Parent Guarantor and, as the case
may be, by the Trustee, will constitute legal, valid and binding obligations of
the Company and the Parent Guarantor, enforceable against the Company and the
Parent Guarantor in accordance with their terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency (including, without
limitation, all laws relating to fraudulent transfers), reorganization,
moratorium or similar laws affecting enforcement of creditors’ rights generally
and except as enforcement thereof is subject to general principles of equity.

     (l)  The Indenture conforms in all material respects to the requirements of
the Trust Indenture Act of 1939, as amended (the “TIA”) and to the rules and
regulations of the Securities and Exchange Commission (the “Commission”)
applicable to an indenture that is qualified thereunder.

     (m)  The Notes and the Note Guarantee have been duly authorized by all
necessary corporate action for issuance and sale pursuant to this Agreement
and, when executed, authenticated, issued and delivered in the manner provided
for in the Indenture and sold and paid for as provided in this Agreement, the
Notes and the Note Guarantee will constitute legal, valid and binding
obligations of the Company and the Parent Guarantor, respectively, entitled to
the benefits of the Indenture and enforceable against the Company and the
Parent Guarantor in accordance with their terms and the terms of the Indenture,
except as the enforcement thereof may be limited by bankruptcy, insolvency
(including, without limitation, all laws relating to fraudulent transfers),
reorganization, moratorium or similar laws affecting enforcement of creditors’
rights generally and except as enforcement thereof is subject to general
principles of equity.

     (n)  The issuance, offering and sale of the Notes to the Initial Purchaser
by the Company pursuant to this Agreement and the compliance by the Company and
the Parent Guarantor with the other provisions of the Transaction Documents
herein and therein set forth do not (i) require the consent, approval,
authorization, order, registration or qualification of, or filing with, any
governmental authority or court, or body or arbitrator having jurisdiction over
the Company or the Parent Guarantor, or (ii) conflict with, result in a breach
or violation of, or constitute a default under (A) any indenture, mortgage,
deed of trust or loan agreement, (B) any material agreement or material
instrument to which the Company, the Parent Guarantor or any of their direct or
indirect subsidiaries is a party or by which the Company, the Parent Guarantor
or any of their subsidiaries or any of their respective properties is bound,
except for those the

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     conflict, breach, violation or default of which would not result in a
Material Adverse Effect, (C) the charter or by-laws of the Company, the Parent
Guarantor or any of their subsidiaries, or (D) any statute, rule or regulation
or any judgment, order or decree of any governmental authority or court or any
arbitrator applicable to the Company, the Parent Guarantor or any of their
subsidiaries, except for any statute, rule or regulation or any judgment, order
or decree of any governmental authority or court or any arbitrator the
noncompliance with which would not result in a Material Adverse Effect or
materially and adversely affect the consummation by the Company or the Parent
Guarantor of the Note Transactions.

     (o)  No legal or governmental proceedings or investigations are pending or
threatened to which the Company, the Parent Guarantor or any of their direct
and indirect subsidiaries is a party or to which the property of the Company,
the Parent Guarantor or any of their subsidiaries is subject that are not
described in the Preliminary Memorandum or the Final Memorandum, except for
such proceedings or investigations that, if the subject of an unfavorable
decision, ruling or finding, would not, singly or in the aggregate, result in a
Material Adverse Effect or materially and adversely affect the consummation of
the Note Transactions.

     (p)  Except for information required to be disclosed pursuant to Items 402
and 403 of Regulation S-K under the Securities Act, no relationship, direct or
indirect, exists between or among the Company, the Parent Guarantor or any of
their direct or indirect subsidiaries, on the one hand, and the directors,
officers, shareholders, customers or suppliers of the Company, the Parent
Guarantor or any of their subsidiaries on the other hand, that would be
required by the Securities Act to be described in a prospectus were the Notes
being issued and sold in a public offering, that is not described in the
Preliminary Memorandum and the Final Memorandum.

     (q)  None of the Company or the Parent Guarantor is now nor after giving
effect to the issuance of the Notes and the execution, delivery and performance
of the Transaction Documents and the consummation of the Note Transactions,
will be (i) insolvent, (ii) left with unreasonably small capital with which to
engage in its anticipated businesses or (iii) incurring debts or other
obligations beyond its ability to pay such debts or obligations as they become
due.

     (r)  Neither the Company nor the Parent Guarantor has distributed and,
prior to the later of (i) the Closing Date and (ii) the completion of the
distribution of the Notes, will distribute any offering material in connection
with the offering and sale of the Notes other than the Preliminary Memorandum,
the Final Memorandum or any amendment or supplement thereto.

     (s)  Each of the Company, the Parent Guarantor and their direct and
indirect subsidiaries has good and marketable title in fee simple to all items
of real property and marketable title to all personal property owned by each of
them, in each case except as provided by the Senior Credit Facility or as set
forth in the Final Memorandum, free and clear of any pledge, lien, encumbrance,
security interest or other defect or claim of any third party, except such as
do not have a Material Adverse Effect. Any leased real property held by the
Company, the Parent Guarantor or their subsidiaries is held under valid,
subsisting and enforceable leases, with such exceptions as do not have a
Material Adverse Effect.

     (t)  No “prohibited transaction” (as defined in Section 406 of the Employee
Retirement Income Security Act of 1974, as amended, including the regulations
and published

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interpretations thereunder (“ERISA”), or Section 4975 of the Internal
Revenue Code of 1986, as amended from time to time (the “Code”)) or
“accumulated funding deficiency” (as defined in Section 302 of ERISA) or any of
the events set forth in Section 4043(c) of ERISA (other than events with
respect to which the 30-day notice requirement under Section 4043 of ERISA has
been waived) has occurred, exists or is reasonably expected to occur with
respect to any employee benefit plan (as defined in Section 3(3) of ERISA)
which the Company or any of the Company’s direct or indirect subsidiaries
maintains, contributes to or has any obligation to contribute to, or with
respect to which the Company or any of the Company’s direct or indirect
subsidiaries has any liability, direct or indirect, contingent or otherwise (a
“Plan”) which would have a Material Adverse Effect; each Plan is in compliance
in all material respects with applicable law, including ERISA and the Code; the
Company and the Company’s direct or indirect subsidiaries have not incurred and
do not expect to incur liability under Title IV of ERISA with respect to the
termination of, or withdrawal from, any Plan; and each Plan that is intended to
be qualified under Section 401(a) of the Code is so qualified in all material
respects and nothing has occurred, whether by action or failure to act, which
could reasonably be expected to cause the loss of such qualification. No labor
dispute with the employees of the Company or any of its direct and indirect
subsidiaries exists or is threatened or imminent which could result in a
Material Adverse Effect.

     (u)  No proceeding looking toward merger, consolidation, liquidation or
dissolution of the Company or the Parent Guarantor, or the sale of all or
substantially all of the assets of the Company, the Parent Guarantor or their
subsidiaries is pending or contemplated.

     (v)  Each of the Company, the Parent Guarantor and their direct and
indirect subsidiaries owns or otherwise possesses adequate rights to use all
material patents, trademarks, service marks, trade names and copyrights,
licenses, all applications and registrations for each of the foregoing, and all
other material proprietary rights and confidential information necessary to
conduct their respective businesses as currently conducted; and none of the
Company, the Parent Guarantor and any of their direct or indirect subsidiaries
has received any notice, or is otherwise aware, of any infringement of or
conflict with the rights of any third party with respect to any of the
foregoing which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, would result in a Material Adverse Effect.

     (w)  Each of the Company, the Parent Guarantor and their direct and
indirect subsidiaries is insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts and with such
deductibles as are prudent in the businesses in which they are engaged, except
where the failure to have such would not have a Material Adverse Effect; and
none of the Company, the Parent Guarantor and any such subsidiary has any
reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that
would not have a Material Adverse Effect.

     (x)  Each of the Company, the Parent Guarantor and their direct and
indirect subsidiaries possesses all certificates, authorizations and permits
issued by the appropriate federal, state or foreign regulatory authorities
necessary to conduct their respective businesses, except where the failure to
have such would not have a Material Adverse Effect, and none of the Company,
the Parent Guarantor and any such subsidiary has received any notice of
proceedings

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relating to the revocation or modification of any such certificate,
authorization or permit which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling or finding, would result in a Material Adverse
Effect.

     (y)  Environmental Matters:

		
	 	     (i) Each of the Company, the Parent Guarantor and their direct and
indirect subsidiaries is and has been in compliance with all applicable
laws, statutes, ordinances, rules, regulations, orders, judgments,
decisions, decrees, standards, and requirements (“Legal Requirements”)
relating to: human health and safety; pollution; management, disposal or
release of any chemical substance, product or waste; and protection,
cleanup, remediation or corrective action relating to the environment or
natural resources (“Environmental Law”);

		
	 	     (ii) Each of the Company, the Parent Guarantor and their direct and
indirect subsidiaries has obtained and is in compliance with the
conditions of all permits, authorizations, licenses, approvals, and
variances necessary under any Environmental Law for the continued conduct
in the manner now conducted of the business of each of the Company and
any such subsidiary (“Environmental Permits”);

		
	 	     (iii) There are no past or present conditions or circumstances,
including but not limited to pending changes in any Environmental Law or
Environmental Permits, that are likely to interfere with the conduct of
the business of each of the Company, the Parent Guarantor and their
direct and indirect subsidiaries in the manner now conducted or which
would interfere with compliance with any Environmental Law or
Environmental Permits; and

		
	 	     (iv) There are no past or present conditions or circumstances at, or
arising out of, the business, assets and properties of each of the
Company, the Parent Guarantor and their direct and indirect subsidiaries
or any businesses, assets or properties formerly leased, operated or
owned by each of the Company, the Parent Guarantor and any such
subsidiary, including but not limited to on-site or off-site disposal or
release of any chemical substance, product or waste, which may give rise
to: (i) liabilities or obligations for any cleanup, remediation or
corrective action under any Environmental Law; (ii) claims arising under
any Environmental Law for personal injury, property damage, or damage to
natural resources; (iii) liabilities or obligations incurred by the
Company, the Parent Guarantor and any such subsidiary to comply with any
Environmental Law; or (iv) fines or penalties arising under any
Environmental Law;

except in each case for any noncompliance or conditions or circumstances that,
singly or in the aggregate, would not result in a Material Adverse Effect.

     (z)  No default exists, and no event has occurred that, with notice or
lapse of time or both, would constitute a default in the due performance and
observation of any term, covenant or condition of any indenture, mortgage, deed
of trust, lease or other agreement or instrument to which each of the Company,
the Parent Guarantor and any of their direct and indirect subsidiaries is a
party or by which the Company, the Parent Guarantor and any such subsidiary,

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or any of their respective properties, is bound which would have or which,
after notice or lapse of time or both, would have a Material Adverse Effect.

     (aa)  Each of the Company, the Parent Guarantor and their direct and
indirect subsidiaries has filed all foreign, federal, state and local tax
returns that are required to be filed or have requested extensions thereof and
have paid all taxes required to be paid by them and any other assessment, fine
or penalty levied against them, to the extent that any of the foregoing is due
and payable, except for any such assessment, fine or penalty that is currently
being contested in good faith and for which the Company and the Parent
Guarantor retains adequate reserves and except in each case for any
noncompliance that, singly or in the aggregate, would not result in a Material
Adverse Effect.

     (bb)  Neither the Company nor the Parent Guarantor is, nor after giving
effect to the sale of the Notes and the application of the proceeds thereof as
described in the Final Memorandum, will be an “investment company”, or a
company “controlled” by an “investment company”, within the meaning of the
Investment Company Act of 1940, as amended (the “Investment Company Act”),
without taking account of any exemption arising out of the number of holders of
the securities of the Company.

     (cc)  None of the Company, the Parent Guarantor, any of their Affiliates
(as defined in Rule 501(b) of Regulation D under the Securities Act
(“Regulation D”)), and any person acting on its or their behalf (other than the
Initial Purchaser and its agents, as to which the Company makes no
representation or warranty) has, directly or indirectly, made offers or sales
of any security, or solicited offers to buy any security, under circumstances
that would require the registration of the Notes under the Securities Act.

     (dd)  None of the Company, the Parent Guarantor, any of their Affiliates,
and any person acting on its or their behalf (other than the Initial Purchaser
and its agents, as to which the Company makes no representation or warranty)
has engaged in any form of general solicitation or general advertising (within
the meaning of Regulation D) in connection with any offer or sale of the Notes
in the United States.

     (ee)  None of the Company, the Parent Guarantor, any of their Affiliates
and any person acting on its or their behalf (other than the Initial Purchaser
and its agents, as to which the Company makes no representation or warranty)
has engaged in any directed selling efforts with respect to the Notes, and each
of them has complied with the offering restrictions requirement of Regulation S
under the Securities Act (“Regulation S”). Terms used in this paragraph have
the meanings given to them by Regulation S.

     (ff) None of the Company, the Parent Guarantor and any of their Affiliates
has taken, directly or indirectly, any action designed to cause or result in,
or which has constituted or which might reasonably be expected to cause or
result in, stabilization or manipulation of the price of any security of the
Company or the Parent Guarantor to facilitate the sale or resale of the Notes;
nor has the Company, the Parent Guarantor or any of their Affiliates paid or
agreed to pay to any person any compensation for soliciting another to purchase
any securities of the Company or the Parent Guarantor (except as contemplated
by this Agreement) to facilitate the sale or resale of the Notes.

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     (gg)  The Notes satisfy the eligibility requirements of Rule 144A(d)(3)
under the Securities Act.

     (hh)  Assuming the accuracy of the representations and warranties of the
Initial Purchaser in Section 4 hereof and compliance by the Initial Purchaser
with the procedures set forth in Section 4 hereof, it is not necessary in
connection with the offer, sale and delivery of the Notes to the Initial
Purchaser in the manner contemplated by this Agreement, the Preliminary
Memorandum and the Final Memorandum to register any of the Notes or the Note
Guarantee under the Securities Act or to qualify the Indenture under the Trust
Indenture Act.

     Each certificate signed by any officer of the Company or the Parent
Guarantor and delivered to the Initial Purchaser or its counsel shall be deemed
to be a representation and warranty by the Company or the Parent Guarantor, as
the case may be, to the Initial Purchaser as to the matters covered thereby.

     3.     Purchase, Sale and Delivery of the Notes. On the basis of the
representations, warranties, agreements and covenants herein contained and
subject to the terms and conditions herein set forth, the Company agrees to
issue and sell $300,000,000 principal amount of Notes, and the Initial
Purchaser agrees to purchase from the Company the principal amount of Notes set
forth opposite its name in Schedule 1 hereto at a purchase price equal to
97.25% of the principal amount thereof. One or more certificates in definitive
form or global form, as instructed by the Initial Purchaser, and in such
denomination or denominations and registered in such name or names as the
Initial Purchaser requests upon notice to the Company at least 48 hours prior
to the Closing Date, shall be delivered by or on behalf of the Company to the
Initial Purchaser for the account of the Initial Purchaser, against payment by
or on behalf of the Initial Purchaser of the purchase price therefor by wire
transfer in same-day funds to the Company. Such delivery of and payment for
the Notes shall be made at 10:00 A.M., New York City time, on December 23,
2002, or at such other time or date as the Initial Purchaser and the Company
may agree upon, such time and date of delivery against payment being herein
referred to as the “Closing Date”. The Company will make such certificate or
certificates for the Notes available for checking by the Initial Purchaser at
the New York offices of Shearman & Sterling (“Counsel for the Initial
Purchaser”) at least 24 hours prior to the Closing Date.

     4.     Offering of the Notes and the Initial Purchaser’s Representations and
Warranties. The Initial Purchaser represents and warrants to and agrees with
the Company that:

     (a)  It is an “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act).

     (b) It (and any person acting on its behalf) has not offered or sold, and
it (and any person acting on its behalf) will not offer or sell, any Notes
except (i) to those it reasonably believes to be qualified institutional buyers
(as defined in Rule 144A under the Securities Act) (“QIBs”) in transactions
meeting the requirements of Rule 144A, or (ii) in accordance with the
restrictions set forth in Regulation S. In connection with each sale pursuant
to clause (i) above, the Initial Purchaser (and any person acting on its
behalf) has taken or will take reasonable steps to ensure that the purchaser of
such Notes is aware that such sale is being made in reliance upon Rule 144A.

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     (c)  Neither it nor any person acting on its behalf has made or will make
offers or sales of the Notes other than in accordance with Rule 144A or
Regulation S and therefore not by means of any form of general solicitation or
general advertising (within the meaning of Regulation D).

     (d)  At or prior to the confirmation of any sale of any Notes sold in
reliance on Regulation S, it (and any person acting on its behalf) will have
sent to each distributor, dealer or other person receiving a selling
concession, fee or other remuneration that purchases Notes from it during the
restricted period (as defined in Regulation S) a confirmation or notice
substantially to the following effect:

     “The Notes covered hereby have not been registered under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), and may not be
offered or sold within the United States, or to or for the account or benefit
of U.S. persons, (i) as part of their distribution at any time; or (ii)
otherwise until 40 days after the later of the commencement of the offering of
the Notes and the Closing Date, except in either case in accordance with
Regulation S or Rule 144A under the Securities Act. Terms used above have the
meanings given to them by Regulation S.”

     (e)  (i) It has not offered or sold and, prior to the expiration of a
period of six months from the closing of the offering of the Notes, will not
offer or sell any Notes to persons in the United Kingdom except to persons
whose ordinary activities involve them in acquiring, holding, managing or
disposing of investments (as principal or agent) for the purposes of their
businesses or otherwise in circumstances which have not resulted and will not
result in an offer to the public in the United Kingdom within the meaning of
the Public Offers of Securities Regulation 1995 (as amended); (ii) it has only
communicated or caused to be communicated and will only communicate or cause to
be communicated any invitation or inducement to engage in investment activity
(within the meaning of section 21 of the Financial Services and Markets Act
2000 (the “FMSA”)) received by it in connection with the issue or sale of any
Notes in circumstances in which section 21(1) of the FSMA does not apply to the
Company; and (iii) it has complied and will comply with all applicable
provisions of the FSMA with respect to anything done by it in relation to the
Notes in, from or otherwise involving the United Kingdom.

     5.     Covenants of the Company and the Parent Guarantor. The Company and the
Parent Guarantor, jointly and severally, covenant and agree with the Initial
Purchaser that:

     (a)  The Company will furnish to the Initial Purchaser and to Counsel for
the Initial Purchaser as soon as reasonably possible, without charge, during
the period referred to in paragraph (c) below, as many copies of the Final
Memorandum and any amendments and supplements thereto as they reasonably may
request. The Company will pay the expenses of printing or other production of
all documents relating to the offering of the Notes and will reimburse the
Initial Purchaser for payment of the required PORTAL (as defined below) filing
fee.

     (b)  Prior to the completion of the distribution of the Notes by the
Initial Purchaser, the Company will not make any amendment or supplement to the
Final Memorandum to which the Initial Purchaser reasonably objects.

10

 

     (c)  At any time prior to the completion of the distribution of the Notes
by the Initial Purchaser, if any event occurs as a result of which the Final
Memorandum, as then amended or supplemented, would include any untrue statement
of a material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading, or if it should be necessary to amend or supplement the Final
Memorandum to comply with applicable law, the Company will promptly (i) notify
the Initial Purchaser of the same; (ii) subject to the requirements of
paragraph (b) of this Section 5, prepare and provide to the Initial Purchaser
pursuant to paragraph (a) of this Section 5, an amendment or supplement that
will correct such statement or omission or effect such compliance; and (iii)
supply any supplemented or amended Final Memorandum to the Initial Purchaser
and Counsel for the Initial Purchaser without charge in such quantities as may
be reasonably requested.

     (d)  The Company will (i) qualify the Notes and the Note Guarantee for sale
by the Initial Purchaser under the laws of such jurisdictions as the Initial
Purchaser may designate and (ii) will maintain such qualifications for so long
as required for the sale of the Notes by the Initial Purchaser;
provided, that
the Company will not be required to qualify to do business in any jurisdiction
in which it is not then so qualified, to file any general consent to service of
process or to take any other action which would subject it to general service
of process or to taxation in any such jurisdiction where it is not then so
subject and the Company will not be obligated to file a registration statement
or a prospectus, except as contemplated by the Registration Rights Agreement,
or to take any similar action in any jurisdiction. The Company will promptly
advise the Initial Purchaser of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Notes for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose.

     (e)  At any time prior to the completion of the distribution of the Notes
by the Initial Purchaser; (1) the Company, whenever it, the Parent Guarantor or
any of their subsidiaries publishes or makes available to the public (by filing
with any regulatory authority or securities exchange or by publishing a press
release or otherwise) any information that would reasonably be expected to be
material in the context of the issuance of the Notes under this Agreement,
shall promptly notify the Initial Purchaser as to the nature of such
information or event; (2) the Company will likewise notify the Initial
Purchaser of (i) any decrease in the rating of the Notes or any other debt
securities of the Company or the Parent Guarantor by any nationally recognized
statistical rating organization (as defined in Rule 436(g)(2) under the
Securities Act) or (ii) any notice or public announcement given of any intended
or potential decrease in any such rating or that any such securities rating
agency has under surveillance or review, with possible negative implications,
its rating of the Notes, as soon as the Company becomes aware of any such
decrease, notice or public announcement; and (3) the Company will also deliver
to the Initial Purchaser, as soon as available and without request, copies of
its and the Parent Guarantor’s yearly and quarterly filings under the
Securities Exchange Act of 1934 (the “Exchange Act”).

     (f)  The Company will not, and will not permit any of its Affiliates to,
resell any of the Notes that have been acquired by any of them, other than
pursuant to an effective registration statement under the Securities Act or in
accordance with Rule 144 under the Securities Act.

     (g)  Except as contemplated in the Registration Rights Agreement, none of the

11

 

Company or any of its Affiliates, nor any person acting on its or their
behalf (other than the Initial Purchaser or any of its Affiliates, as to whom
the Company makes no covenant) will, directly or indirectly, make offers or
sales of any security, or solicit offers to buy any security, under
circumstances that would require the registration of the Notes under the
Securities Act.

     (h)  None of the Company or any of its Affiliates, nor any person acting on
its or their behalf (other than the Initial Purchaser or any of its Affiliates,
as to whom the Company makes no covenant) will engage in any form of general
solicitation or general advertising (within the meaning of Regulation D) in
connection with any offer or sale of the Notes.

     (i)  So long as any of the Notes are “restricted securities” within the
meaning of Rule 144(a)(3) under the Securities Act, at any time that the
Company is not then subject to Section 13 or 15(d) of the Exchange Act, the
Company will provide at its expense to each holder of the Notes and to each
prospective purchaser (as designated by such holder) of the Notes, upon the
request of such holder or prospective purchaser, any information required to be
provided by Rule 144A(d)(4) under the Securities Act. (This covenant is
intended to be for the benefit of the holders, and the prospective purchasers
designated by such holders from time to time, of the Notes.)

     (j)  The Company will use its best efforts to cause the Notes to be
designated Private Offerings, Resales and Trading through Automated Linkages
(“PORTAL”) market securities in accordance with the rules and regulations
adopted by the National Association of Securities Dealers, Inc. relating to
trading in PORTAL and to be eligible for clearance and settlement through DTC.

     (k)  The Company will apply the net proceeds from the sale of the Notes as
set forth under “Use of Proceeds” in the Final Memorandum.

     (l)  Until completion of the distribution, neither the Company nor any of
its Affiliates will take, directly or indirectly, any action designed to cause
or result in, or which has constituted or which might reasonably be expected to
cause or result in, stabilization or manipulation of the price of any security
of the Company to facilitate the sale or resale of the Notes.

     (m)  The Company will not, directly or indirectly, offer, sell, grant any
option to purchase or otherwise dispose of any debt securities of the Company
(other than the Notes offered pursuant to this Agreement) for a period of 180
days after the date hereof, without the prior written consent of Wachovia
Securities, Inc., such consent not to be unreasonably withheld.

     (n)  Neither the Company nor any of its Affiliates, nor any person acting
on its or their behalf (other than the Initial Purchaser or its agents, as to
which the Company makes no covenant) will engage in any directed selling
efforts with respect to the Notes, and each of them will comply with the
offering restrictions requirement of Regulation S. Terms used in this
paragraph have the meanings given them by Regulation S.

     (o)  Each Note will bear a legend substantially to the following effect
until such legend shall no longer be necessary or advisable because the Notes
are no longer subject to the restrictions on transfer described therein:

12

 

		
	 	     THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER, OR AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF, THE SECURITIES ACT, IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
JURISDICTION AND IN ACCORDANCE WITH THE TRANSFER RESTRICTIONS CONTAINED
IN THE INDENTURE UNDER WHICH THIS NOTE WAS ISSUED.

     6.     Expenses. The Company will pay all costs and expenses incident to the
performance of the obligations of the Company under this Agreement, whether or
not the Note Transactions are consummated or this Agreement is terminated
pursuant to Section 10 hereof, including all costs and expenses incident to (i)
the printing or other production of documents with respect to the Note
Transactions, including any costs of printing the Preliminary Memorandum and
Final Memorandum and any amendment or supplement thereto, this Agreement and
any blue sky memoranda; (ii) all arrangements relating to the delivery to the
Initial Purchaser of copies of the foregoing documents; (iii) the fees and
disbursements of the counsel, the accountants, the Trustee and any other
experts or advisors retained by the Company; (iv) preparation, issuance and
delivery to the Initial Purchaser of any certificates evidencing the Notes; (v)
the qualification of the Notes under state securities and blue sky laws, and
the maintenance of such qualifications, including filing fees and fees and
disbursements of counsel for the Initial Purchaser relating thereto; (vi) the
fees and expenses, if any, incurred in connection with the admission of the
Notes for trading in the PORTAL market; and (vii) the fees of any agency that
rates the Notes. If the sale of the Notes provided for herein is not
consummated because any condition to the obligations of the Initial Purchaser
set forth in Section 7 hereof is not satisfied, because this Agreement is
terminated pursuant to Section 10(a) hereof or because of any failure, refusal
or inability on the part of the Company or the Parent Guarantor to perform all
obligations and satisfy all conditions on their part to be performed or
satisfied hereunder other than by reason of a default by the Initial Purchaser,
the Company will reimburse the Initial Purchaser upon demand for all reasonable
out-of-pocket expenses (including counsel fees and disbursements) that shall
have been incurred by them in connection with the proposed purchase and sale of
the Notes. The Company shall not in any event be liable to the Initial
Purchaser for the loss of anticipated profits from the transactions covered by
this Agreement.

     7.     Conditions to the Initial Purchaser’s Obligations. The obligations of
the Initial Purchaser to purchase and pay for the Notes shall be subject to the
accuracy of the representations and warranties of the Company and the Parent
Guarantor in Section 2 hereof, in each case as of the Execution Date and as of
the Closing Date, as if made on and as of the Closing Date, to the accuracy of
the statements of the officers of the Company and the Parent Guarantor made
pursuant to the provisions hereof, to the performance by the Company and the
Parent Guarantor of their covenants and agreements hereunder and to the
following additional conditions:

     (a)  The Initial Purchaser shall have received an opinion, dated the
Closing Date, of (i) the general counsel for the Company and the Parent
Guarantor, and (ii) Torys LLP, special counsel for the Company and the Parent
Guarantor, in each case in form and substance

13

 

satisfactory to the Initial Purchaser, to the effect set forth in Exhibit A-1 and Exhibit A-2 hereto.

     (b)  The Initial Purchaser shall have received an opinion, dated the
Closing Date, of Stikeman Elliott, U.K. counsel for the Company and the Parent
Guarantor, in form and substance satisfactory to the Initial Purchaser, to the
effect set forth in Exhibit B hereto.

     (c)  The Initial Purchaser shall have received an opinion, dated the
Closing Date, of Counsel for the Initial Purchaser, with respect to the
issuance and sale of the Notes and such other related matters as the Initial
Purchaser may reasonably require, and the Company shall have furnished to such
counsel such documents as it may reasonably request for the purpose of enabling
it to pass upon such matters.

     (d)  The Initial Purchaser shall have received a “comfort letter” from KPMG
LLP, the independent public accountant for the Company and the Parent
Guarantor, dated as of the date hereof, addressed to the Initial Purchaser and
in form and substance satisfactory to the Initial Purchaser and Counsel for the
Initial Purchaser. In addition, the Initial Purchaser shall have received a
“bring-down comfort letter” from KPMG LLP, dated as of the Closing Date,
addressed to the Initial Purchaser and in form and substance satisfactory to
the Initial Purchaser and Counsel for the Initial Purchaser. References to the
Final Memorandum in this paragraph (d) with respect to either letter referred
to above shall include any amendment or supplement thereto at the date of such
letter.

     (e)  The Senior Credit Facility, with terms substantially the same as those
described in the Final Memorandum, shall have been executed and delivered by
the parties thereto, and the closing conditions to the initial borrowings
thereunder shall have been satisfied.

     (f)  The Initial Purchaser shall have received a certificate, dated the
Closing Date, of the Chief Executive Officer and the Chief Financial Officer of
each of the Company and the Parent Guarantor to the effect that:

		
	 	     (i) the representations and warranties of the Company and the Parent
Guarantor in this Agreement are true and correct as if made on and as of
the Closing Date; the Final Memorandum, as amended or supplemented as of
the Closing Date, does not include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the
statements therein, in light of the circumstances under which they were
made, not misleading; and the Company and the Parent Guarantor have
performed all covenants and agreements and satisfied all conditions on
their part to be performed or satisfied at or prior to the Closing Date;
and

		
	 	     (ii) neither the Company, the Parent Guarantor nor any of their
subsidiaries has sustained any loss or interference with their respective
businesses or properties from fire, flood, hurricane, accident or other
calamity, whether or not covered by insurance, or from any labor dispute
or any legal or governmental proceeding that has had a Material Adverse
Effect, and there has not been any material adverse change in the
business, operations, properties, assets, liabilities, net worth,
condition (financial or otherwise) or prospects of the Company, the
Parent Guarantor and their subsidiaries, considered as one enterprise,
except in each case as described in or contemplated by the Final
Memorandum

14

 

		
	 	     (exclusive of any amendment or supplement thereto).

     (g)  The Notes shall have received initial ratings of not less than B by
Standard & Poor’s and B2 by Moody’s, and, subsequent to the Execution Date,
there shall not have been any decrease in the rating of the Notes by any
“nationally recognized statistical rating organization” (as defined for
purposes of Rule 436(g)(2) under the Securities Act) or any notice or public
announcement given of any intended or potential decrease in any such rating or
that any such securities rating agency has under surveillance or review, with
possible negative implications, its rating of the Notes.

     (h)  On or before the Closing Date, the Company shall have furnished to the
Initial Purchaser and Counsel for the Initial Purchaser evidence satisfactory
to the Initial Purchaser that each part of the Transactions (as defined in the
Final Memorandum) has occurred or will occur contemporaneously with the Closing
Date.

     (i)  On or before the Closing Date, the Initial Purchaser and Counsel for
the Initial Purchaser shall have received such further certificates, documents
or other information as they may have reasonably requested from the Company and
the Parent Guarantor.

     All opinions, certificates, letters and documents delivered pursuant to
this Agreement will comply with the provisions hereof only if they are
reasonably satisfactory to the Initial Purchaser and Counsel for the Initial
Purchaser. The Company shall furnish to the Initial Purchaser such conformed
copies of such opinions, certificates, letters and documents in such quantities
as the Initial Purchaser and Counsel for the Initial Purchaser shall reasonably
request.

     8.     Indemnification and Contribution. The Company and the Parent
Guarantor, jointly and severally, agree to indemnify and hold harmless the
Initial Purchaser and each person, if any, who controls (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act) the Initial
Purchaser against any losses, claims, damages or liabilities, joint or several,
to which the Initial Purchaser or such controlling person may become subject
under the Securities Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
(i) any untrue statement or alleged untrue statement of any material fact
contained in the Preliminary Memorandum or the Final Memorandum or any
amendment or supplement thereto; or (ii) the omission or alleged omission to
state in the Preliminary Memorandum or the Final Memorandum or any amendment or
supplement thereto, a material fact required to be stated therein or necessary
to make the statements therein not misleading, and will reimburse, as incurred,
the Initial Purchaser and such controlling person for any legal or other
expenses reasonably incurred by the Initial Purchaser or such controlling
person in connection with investigating, defending against or appearing as a
third-party witness in connection with any such loss, claim, damage, liability
or action; provided, that the Company and the Parent Guarantor will not be
liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in any Preliminary Memorandum,
the Final Memorandum or any amendment or supplement thereto, in reliance upon
and in conformity with written information furnished to the Company by the
Initial Purchaser specifically for use therein as set forth in Section 11
hereof ; and provided further that this indemnity agreement with respect to any
untrue statement or alleged untrue statement in or

15

 

omission or alleged omission from the Preliminary Memorandum shall not
inure to the benefit of the Initial Purchaser (or any person controlling the
Initial Purchaser) from whom the person asserting any such losses, claims,
damages or liabilities purchased Notes, if a copy of the Final Memorandum (as
then amended or supplemented) was not sent or given by or on behalf of the
Initial Purchaser to such person at or prior to the written confirmation of the
initial sale of the Notes to such person and if the Final Memorandum (as so
amended or supplemented) would have corrected the defect giving rise to such
loss, claim, damage or liability. The Company and the Parent Guarantor will
not, without the prior written consent of the Initial Purchaser, settle or
compromise or consent to the entry of any judgment in any pending or threatened
claim, action, suit or proceeding in respect of which indemnification may be
sought hereunder (when the Initial Purchaser or any person who controls the
Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of
the Exchange Act is an actual or potential party to such claim, action, suit or
proceeding) unless such settlement, compromise or consent includes an
unconditional release of the Initial Purchaser and such controlling persons
from all liability arising out of such claim, action, suit or proceeding.

     (b)  The Initial Purchaser will indemnify and hold harmless the Company and
the Parent Guarantor, their respective directors, officers, and each person, if
any, who controls any of the Company and the Parent Guarantor within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
against any losses, claims, damages or liabilities to which the Company, the
Parent Guarantor, any such directors or officers of the Company and the Parent
Guarantor or any such controlling person of the Company and the Parent
Guarantor may become subject under the Securities Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon (i) any untrue statement or alleged untrue
statement of any material fact contained in the Preliminary Memorandum or the
Final Memorandum or any amendment or supplement thereto, or (ii) the omission
or the alleged omission to state therein a material fact required to be stated
in the Preliminary Memorandum or the Final Memorandum or any amendment or
supplement thereto, necessary to make the statements therein not misleading, in
each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company by or
on behalf of the Initial Purchaser specifically for use therein as set forth in
Section 11 hereof, and subject to the limitation set forth immediately
preceding this clause, will reimburse as incurred, any legal or other expenses
reasonably incurred by the Company or the Parent Guarantor or any such
directors or officers or such controlling person in connection with
investigating, defending against or appearing as a third party witness in
connection with, any such loss, claim, damage, liability or action in respect
thereof.

     (c)  Promptly after receipt by an indemnified party under this Section 8 of
notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party under this
Section 8, notify such indemnifying party of the commencement thereof; but the
failure so to notify such indemnifying party will not relieve such indemnifying
party from any liability which it may have to such indemnified party otherwise
than under this Section 8. In case any such action is brought against any
indemnified party, and such indemnified party notifies the relevant
indemnifying party of the commencement thereof, such indemnifying party will be
entitled to participate therein and, to the extent that it may wish, to assume
the defense thereof, jointly with any other indemnifying party similarly

16

 

notified, with counsel reasonably satisfactory to such indemnified party;
provided, that if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded, based on advice of outside counsel, that there may
be one or more legal defenses available to it and/or other indemnified parties
which are different from or additional to those available to the indemnifying
party, the indemnifying party shall not have the right to direct the defense of
such action on behalf of such indemnified party or parties and such indemnified
party or parties shall have the right to select separate counsel to defend such
action on behalf of such indemnified party or parties. After notice from an
indemnifying party to an indemnified party of its election so to assume the
defense thereof and approval by such indemnified party of counsel appointed to
defend such action, such indemnifying party will not be liable to such
indemnified party under this Section 8 for any legal or other expenses, other
than reasonable costs of investigation, subsequently incurred by such
indemnified party in connection with the defense thereof, unless (i) such
indemnified party shall have employed separate counsel in accordance with the
proviso to the next preceding sentence or (ii) such indemnifying party does not
promptly retain counsel reasonably satisfactory to such indemnified party or
(iii) such indemnifying party has authorized the employment of counsel for such
indemnified party at the expense of the indemnifying party. It is understood
that an indemnifying party shall not be liable for fees and expenses of more
than one counsel (in addition to any local counsel) separate from their own
counsel for all indemnified parties in connection with any one action or
separate but similar or related actions in the same jurisdiction arising out of
the same general allegations or circumstances. After such notice from an
indemnifying party to an indemnified party, such indemnifying party will not be
liable for the costs and expenses of any settlement of such action effected by
such indemnified party without the consent of such indemnifying party.

     (d)  In circumstances in which the indemnity agreement provided for in the
preceding paragraphs of this Section 8 is unavailable or insufficient, for any
reason, to hold harmless an indemnified party in respect of any losses, claims,
damages or liabilities (or actions in respect thereof) (“Losses”), the Company
and the Parent Guarantor, on the one hand, and the Initial Purchaser, on the
other, in order to provide for just and equitable contribution, agree to
contribute to the amount paid or payable by such indemnified party as a result
of such Losses to which the Company and the Parent Guarantor, on the one hand,
and the Initial Purchaser, on the other, may be subject, in such proportion as
is appropriate to reflect the relative benefits received by the Company and the
Parent Guarantor, on the one hand, and the Initial Purchaser, on the other,
from the offering of the Notes or (ii) if the allocation provided by the
foregoing clause (i) is unavailable for any reason, not only such relative
benefits but also the relative fault of the Company and the Parent Guarantor,
on the one hand, and the Initial Purchaser, on the other, in connection with
the statements or omissions or alleged statements or omissions that resulted in
such Losses. The relative benefits received by the Company and the Parent
Guarantor on the one hand and the Initial Purchaser on the other shall be
deemed to be in the same proportion as the total net proceeds from the offering
(before deducting expenses) received by the Company and the Parent Guarantor
bear to the total underwriting discounts and commissions received by the
Initial Purchaser from the Company in connection with the purchase of the Notes
hereunder. The relative fault of the parties shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company, the Parent Guarantor or the
Initial Purchaser, the parties’ intent, relative knowledge, access to
information and opportunity to

17

 

correct or prevent such statement or omission, and any other equitable
considerations appropriate in the circumstances. The Company, the Parent
Guarantor and the Initial Purchaser agree that it would not be just and
equitable if contribution were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable
considerations referred to above. Notwithstanding any other provision of this
paragraph (d), the Initial Purchaser shall not be obligated to make
contributions hereunder that in the aggregate exceed the total underwriting
discounts and commissions received by the Initial Purchaser from the Company in
connection with the purchase of the Notes hereunder, and no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. For purposes of this paragraph
(d), each person, if any, who controls the Initial Purchaser within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act shall
have the same rights to contribution as the Initial Purchaser, and each
director or officer of the Company or the Parent Guarantor and each person, if
any, who controls the Company or the Parent Guarantor within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act, shall have
the same rights to contribution as the Company or the Parent Guarantor,
respectively.

     (e)  The obligations of the Company and the Parent Guarantor under this
Section 8 shall be in addition to any liability which the Company and the
Parent Guarantor may otherwise have and the obligations of the Initial
Purchaser under this Section 8 shall be in addition to any liability which the
Initial Purchaser may otherwise have.

     9.     Survival. The respective representations, warranties, agreements,
covenants, indemnities and other statements of the Company and the Parent
Guarantor, their respective officers, and the Initial Purchaser set forth in
this Agreement or made by or on behalf of them, respectively, pursuant to this
Agreement shall remain in full force and effect, regardless of (i) any
investigation made by or on behalf of the Company, the Parent Guarantor, any of
their respective officers, directors or subsidiaries or any controlling person
referred to in Section 8 hereof or the Initial Purchaser and (ii) delivery of
and payment for the Notes. The respective agreements, covenants, indemnities
and other statements set forth in Sections 6 and 8 hereof shall remain in full
force and effect, regardless of any termination or cancellation of this
Agreement.

     10.     Termination. (a) This Agreement may be terminated in the sole
discretion of the Initial Purchaser by notice to the Company given at any time
at or prior to the Closing Date in the event that the Company or the Parent
Guarantor shall have failed, refused or been unable to perform all obligations
and satisfy all conditions on its part to be performed or satisfied hereunder
at or prior thereto or if, at or prior to the Closing Date (i) trading in the
Parent Guarantor’s common stock shall have been suspended by the Commission or
trading in securities generally on the New York Stock Exchange or the Nasdaq
National Market shall have been suspended or minimum or maximum prices shall
have been established on any such exchange or market; (ii) a banking moratorium
shall have been declared by New York or United States authorities or there has
been a material disruption in securities settlement, payment or clearance
services in the United States; or (iii) there shall have been (A) an outbreak
or escalation of hostilities between the United States and any foreign power,
(B) an outbreak or escalation of any other insurrection or armed conflict
involving the United States or (C) any other calamity or crisis or material
adverse change in general economic, political or financial conditions which has

18

 

an effect on the U.S. financial markets that, in the sole judgment of the
Initial Purchaser, makes it impracticable or inadvisable to proceed with the
offer, sale and delivery of the Notes as contemplated by the Final Memorandum.

     (b)  Termination of this Agreement pursuant to this Section 10 shall be
without liability of any party to any other party except as provided in
Sections 6 and 8 hereof.

     11.     Information
Supplied by Initial Purchaser. The statements set forth
under the heading “Plan of Distribution” in the Preliminary Memorandum and the
Final Memorandum, to the extent such statements relate to the Initial
Purchaser, constitute the only information furnished by the Initial Purchaser
to the Company for the purposes of Sections 2(a) and 8 hereof.

     12.     Notices. All communications hereunder shall be in writing and, if
sent to the Initial Purchaser, shall be delivered or sent by mail, telex or
facsimile transmission and confirmed in writing to Wachovia Securities, Inc.,
One Wachovia Center, 301 South College Street, Charlotte, North Carolina
28288-0604, Attention: High Yield Origination, and, if sent to the Company or
the Parent Guarantor, shall be delivered or sent by mail, telex or facsimile
transmission and confirmed in writing to the Company at Hollinger International
Publishing Inc., 401 North Wabash Avenue, Chicago, Illinois 60611, Attention:
President.

     13.     Successors. This Agreement shall inure to the benefit of and shall be
binding upon the Initial Purchaser, the Company and the Parent Guarantor and
their respective successors and legal representatives, and nothing expressed or
mentioned in this Agreement is intended or shall be construed to give any other
person any legal or equitable right, remedy or claim under or in respect of
this Agreement, or any provisions herein contained, this Agreement and all
conditions and provisions hereof being intended to be and being for the sole
and exclusive benefit of the Initial Purchaser, the Company and the Parent
Guarantor and their respective successors and legal representatives, and for
the benefit of no other person, except that (i) the indemnities of the Company
and the Parent Guarantor contained in Section 8 of this Agreement shall also be
for the benefit of any person or persons who control the Initial Purchaser
within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act and (ii) the indemnities of the Initial Purchaser contained in
Section 8 of this Agreement shall also be for the benefit of the directors and
officers of the Company and the Parent Guarantor, and any person or persons who
control the Company or the Parent Guarantor within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act.

     14.     Applicable
Law. The validity and interpretation of this Agreement,
and the terms and conditions set forth herein, shall be governed by and
construed in accordance with the laws of the State of New York.

     15.     Consent
to Jurisdiction and Service of Process.

     (a)  All judicial proceedings arising out of or relating to this Agreement
may be brought in any state or federal court of competent jurisdiction in the
State of New York, which jurisdiction is non-exclusive.

     (b)  Each party agrees that any service of process or other legal summons
in connection with any proceeding may be served on it by mailing a copy thereof
by registered

19

 

mail, or a form of mail substantially equivalent thereto, postage prepaid,
addressed to the served party at its address as provided for in Section 12
hereof. Nothing in this Section shall affect the right of the parties to serve
process in any other manner permitted by law.

     16. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Counterparts may be
delivered by facsimile transmission.

20

 

     If the foregoing correctly sets forth our understanding, please indicate
your acceptance thereof in the space provided below for that purpose, whereupon
this letter shall constitute an agreement binding the Company, the Parent
Guarantor and the Initial Purchaser.

	 	 	 	 	 
	 	 	 	 	Very truly yours,
	 	 	 	 	 
	 	 	 	 	HOLLINGER INTERNATIONAL PUBLISHING INC.
	 	 	 	 	 
	 	 	 	 	By:
	 	 	 	 	

Name:
	 	 	 	 	Title:
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	HOLLINGER INTERNATIONAL INC.
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	By:
	 	 	 	 	

Name:
	 	 	 	 	Title:

The foregoing Agreement is hereby

confirmed and accepted as of the

date first above written.

 

WACHOVIA SECURITIES, INC.

 

By:

Name:

Title:

21

 

Exhibit A

FORM OF OPINION OF THE GENERAL COUNSEL

FOR THE COMPANY AND THE PARENT GUARANTOR

	1.	 	There are no legal or governmental proceedings
pending or, to my knowledge, threatened against or
affecting
the Company or the Parent Guarantor (i) asserting the
invalidity of the Transaction Documents, the Notes or the Note
Guarantee; (ii) seeking to prevent the consummation of the
Note Transactions; or (iii) that would be likely to impair
materially the ability of the Company or the Parent Guarantor
to perform its obligations under the Transaction Documents;
and (b) there are no legal or governmental proceedings pending
or, to my knowledge, threatened against or affecting the
Company or the Parent Guarantor that would be required to be
described in a prospectus filed pursuant to the Securities Act
of 1933, in each case other than as described in the Final
Memorandum.
	 
	2.	 	In my capacity as counsel to the Company and the
Parent Guarantor, I have examined a copy of the Final
Memorandum. I have also reviewed and participated in
discussions concerning the preparation of the Final Memorandum
with officers and employees of the Company and the Parent
Guarantor, with the Company’s outside counsel and auditors and
with representatives of and counsel to the Initial Purchaser.
On the basis of the foregoing, no facts came to my attention
which gave me reason to believe that the Final Memorandum, as
of its date or the date hereof, contained or contains an
untrue statement of a material fact or omitted or omits 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.

Ex. A

 

Exhibit A-2

FORM OF TORYS LLP OPINION

	1.	 	Each of the Company and the Parent Guarantor is
validly existing as a corporation in good standing under the
laws of the jurisdiction in which it is chartered or
organized.
	 
	2.	 	Each of the Company and the Parent Guarantor is
duly qualified to do business as a foreign corporation and is
in good standing under the laws of the State of Illinois.
	 
	3.	 	Each of the Company and the Parent Guarantor has
full corporate power to own or lease its properties and
conduct its businesses as described in the Final Memorandum,
to enter into the Transaction Documents and to carry out their
obligations thereunder.
	 
	4.	 	To our knowledge, (a) there are no legal or
governmental proceedings pending or threatened against or
affecting the Company or the Parent Guarantor (i) asserting
the invalidity of the Transaction Documents, the Notes or the
Note Guarantee; (ii) seeking to prevent the consummation of
the Note Transactions; or (iii) that would be likely to impair
materially the ability of the Company or the Parent Guarantor
to perform its obligations under the Transaction Documents;
and (b) there are no legal or governmental proceedings pending
or threatened against or affecting the Company or the Parent
Guarantor that would be required to be described in a
prospectus filed pursuant to the Securities Act of 1933, in
each case other than as described in the Final Memorandum.
	 
	5.	 	The Purchase Agreement has been duly authorized,
executed and delivered by the Company and the Parent
Guarantor.
	 
	6.	 	The Indenture and the Registration Rights
Agreement have been duly authorized, executed and delivered by
the Company and the Parent Guarantor and (in the case of the
Indenture, assuming the due authorization, execution and
delivery thereof by the Trustee) constitute legal, valid and
binding obligations of the Company and the Parent Guarantor,
enforceable against them in accordance with their terms.
	 
	7.	 	The Notes are in the form contemplated by the
Indenture, have been duly authorized by all necessary
corporate action for issuance and sale pursuant to the
Purchase Agreement and, assuming authentication by the
Trustee, constitute legal, valid and binding obligations of
the Company, entitled to the benefits of the Indenture and
enforceable in accordance with their terms and the terms of
the Indenture.
	 
	8.	 	The Note Guarantee is in the form contemplated by
the Indenture, has been duly authorized by all necessary
corporate action for issuance and sale pursuant to the
Purchase Agreement and, assuming authentication by

Ex. A-2

 

	 	 	the Trustee, constitutes a legal, valid and binding
obligation of the Parent Guarantor entitled to the benefits
of the Indenture and enforceable in accordance with its terms
and the terms of the Indenture.
	 
	9.	 	The statements in the Final Memorandum (i) under
the captions “Description of Notes” and “Exchange Offer;
Registration Rights” and (ii) the descriptions or summaries of
contracts, agreements or other legal documents to which the
Company, the Parent Guarantor or any of their subsidiaries is
a party, or statements of law or legal conclusions (other than
matters of English law), insofar as such statements constitute
summaries of legal matters or documents, are a fair summary in
all material respects of the matters referred to therein.
	 
	10.	 	The statements in the Final Memorandum under the
caption “Certain United States Federal Tax Considerations,”
insofar as such statements constitute a summary of the United
States federal tax laws referred to therein, are a fair
summary in all material respects of the United States federal
tax laws referred to therein.
	 
	11.	 	In reliance on the representations, warranties
and covenants of the Company, the Parent Guarantor and the
Initial Purchaser in the Purchase Agreement and assuming the
compliance by all parties with the offering procedures set
forth in the Purchase Agreement, the offer and sale of the
Notes by the Company to the Initial Purchaser is exempt from
the registration requirements of the Securities Act and it is
not necessary to qualify the Indenture under the Trust
Indenture Act.
	 
	12.	 	The issuance, offering and sale of the Notes to
the Initial Purchaser by the Company pursuant to the Purchase
Agreement and the compliance by the Company and the Parent
Guarantor with the Transaction Documents do not require the
consent, approval, authorization, order, registration or
qualification of, or filing with, any governmental authority
or court, or body or arbitrator having jurisdiction over the
Company or the Parent Guarantor, excluding state securities
laws.
	 
	13.	 	The issuance, offering and sale of the Notes to
the Initial Purchaser by the Company pursuant to the Purchase
Agreement and the compliance by the Company and the Parent
Guarantor with the Transaction Documents do not conflict with,
result in a breach or violation of, or constitute a default
under, (i) to our knowledge, any agreement to which the
Company or the Parent Guarantor is bound; (ii) the charter or
by-laws of the Company or the Parent Guarantor; or (iii) any
statute, rule or regulation or any judgment, order or decree
of any governmental authority or court or any arbitrator
applicable to the Company or the Parent Guarantor.
	 
	14.	 	Each of the Company and the Parent Guarantor is
not an “investment company”, and is not a company “controlled”
by an “investment

Ex. A2-2

 

	 	 	company”, within the meaning of the Investment Company Act,
without taking account of any exemption arising out of the
number of holders of the securities of the Company.

     In addition, Torys LLP shall include in its opinion or a separate letter
the following language:

	15.	 	In our capacity as counsel to the Company and the
Parent Guarantor, we have examined a copy of the Final
Memorandum. We have also reviewed and participated in
discussions concerning the preparation of the Final Memorandum
with certain officers and employees of the Company and the
Parent Guarantor, with their auditors and with representatives
of and counsel to the Initial Purchaser. The limitations
inherent in the independent verification of factual matters
and in the role of outside counsel are such, however, that we
cannot and do not assume any responsibility for the accuracy,
completeness or fairness of any of the statements made in the
Final Memorandum, except as set forth in paragraphs 9 and 10
of our opinion addressed to you, dated the date hereof.
	 
	16.	 	Subject to the limitations set forth in the
immediately preceding paragraph, we advise you that, on the
basis of the information we gained in the course of performing
the services referred to above, no facts came to our attention
which gave us reason to believe that the Final Memorandum
(other than the financial statements and schedules and other
financial and statistical data included or incorporated by
reference therein or omitted therefrom, as to which we have
not been requested to express a view), as of its date or the
date hereof, contained or contains an untrue statement of a
material fact or omitted or omits 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.

Ex. A2-3

 

Exhibit B

FORM OF STIKEMAN ELLIOTT OPINION

	1.	 	Each of DT Holdings Limited (“DTH”), First DT
Holdings Limited (“FDTH”) and The Telegraph is a limited
liability company duly incorporated and validly existing under
the laws of England (and, so far as is discoverable from
public records in England and Wales, is not in liquidation),
with corporate power and authority to own or lease its
properties and to conduct its business as described in the
Final Memorandum.

Counsel’s opinion shall be limited to the laws of England.

Ex. B

 

SCHEDULE 1

INITIAL PURCHASER

	 	 	 	 	 	 
	 	 	 	Aggregate Principal
	 	 	 	Amount of Notes to be
	Initial Purchaser	 	Purchased from the Company
	
	 	

	Wachovia Securities, Inc.
	 	$	300,000,000	 
	 
	 	 	
	 
	 	Total
	 	$	300,000,000	 

S-1exv10w20

 

Exhibit 10.20

Execution Copy

Form of Registration Rights Agreement among

Hollinger International Publishing Inc., Hollinger International Inc.,

and Wachovia Securities, Inc. dated as of December 16, 2002

Hollinger International Publishing Inc.

$300,000,000

9% Senior Notes due 2010

REGISTRATION RIGHTS AGREEMENT

December 16, 2002

Wachovia Securities, Inc.

One Wachovia Center

301 South College Street

Charlotte, North Carolina 28288-0604

Ladies and Gentlemen:

     This Registration Rights Agreement (the “Agreement”) is entered into by
and among Hollinger International Publishing Inc., a Delaware corporation (the
“Company”), Hollinger International Inc., a Delaware corporation (the “Parent
Guarantor”), and Wachovia Securities, Inc. (the “Initial Purchaser”).

     This Agreement is entered into in connection with the purchase agreement,
dated December 16, 2002, by and among the Company, the Parent Guarantor and the
Initial Purchaser (the “Purchase Agreement”), which provides for the issuance
and sale by the Company to the Initial Purchaser of $300,000,000 aggregate
principal amount of the Company’s 9% Senior Notes due 2010 (the “Notes”) to be
unconditionally guaranteed on a general unsecured senior basis by the Parent
Guarantor (the “Note Guarantee”). In order to induce the Initial Purchaser to
enter into the Purchase Agreement, the Company and the Parent Guarantor have
agreed to provide the registration rights set forth in this Agreement for the
benefit of the Initial Purchaser and its direct and indirect transferees. The
parties hereby agree as follows:

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

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

1

 

     “Additional Interest” has the meaning set forth in Section 4 hereto.

     “Affiliate” means, with respect to any specified person, any other person
that, directly or indirectly, is in control of, is controlled by, or is under
common control with, such specified person. For purposes of this definition,
control of a person means the power, direct or indirect, to direct or cause the
direction of the management and policies of such person whether by contract or
otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

     “Agreement” has the meaning set forth in the preamble hereto.

     “Business Day” means any day excluding Saturday, Sunday or any other day
which is a legal holiday under the laws of New York, New York or is a day on
which banking institutions therein located are authorized or required by law or
other governmental action to close.

     “Commission” means the Securities and Exchange Commission.

     “Consummate” means, with respect to a Registered Exchange Offer, 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
Registered Exchange Offer, (b) the maintenance of such Registration Statement
continuously effective and the keeping of the Registered Exchange Offer open
for a period not less than the minimum period required pursuant to Section
2(c)(ii) hereof, (c) the Company’s acceptance for exchange of all Transfer
Restricted Notes duly tendered and not validly withdrawn pursuant to the
Registered Exchange Offer and (d) the delivery of Exchange Notes by the Company
to the registrar under the Indenture in the same aggregate principal amount as
the aggregate principal amount of Transfer Restricted Notes duly tendered and
not validly withdrawn by Holders thereof pursuant to the Registered Exchange
Offer and the delivery of such Exchange Notes to such Holders. The term
“Consummation” has a meaning correlative to the foregoing.

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

     “Exchange Notes” means debt securities of the Company, guaranteed by the
Parent Guarantor, substantially identical in all material respects to the Notes
other than issue date (except that the Additional Interest provisions and the
transfer restrictions pertaining to the Notes will be modified or eliminated,
as appropriate), to be issued under the Indenture.

     “Exchange Offer Registration Period” means the 180-day period following
the Consummation of the Registered Exchange Offer, exclusive of any period
during which any stop order shall be in effect suspending the effectiveness of
the Exchange Offer Registration Statement or during which the Company has
suspended the use of the Prospectus contained therein pursuant to Section 2(d);
provided, however, that in the event that all resales of Exchange Notes
(including, subject to the time periods set forth herein, any resales by
Participating Broker-Dealers) covered by such Exchange Offer Registration
Statement have been made, the Exchange Offer Registration Statement need not
thereafter remain continuously effective for such period.

2

 

     “Exchange Offer Registration Statement” means a registration statement of
the Company and the Parent Guarantor on an appropriate form under the Act with
respect to the Registered Exchange Offer, all amendments and supplements to
such registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

     “Filing Date” has the meaning set forth in Section 2 hereto.

     “Holder” means any holder from time to time of Transfer Restricted Notes
or Exchange Notes (including the Initial Purchaser).

     “Indenture” means the indenture relating to the Notes and the Exchange
Notes, to be dated as of December 23, 2002, among the Company, the Parent
Guarantor and Wachovia Trust Company, National Association, as trustee, as the
same may be amended, supplemented, waived or otherwise modified from time to
time in accordance with the terms thereof.

     “Initial Purchaser” has the meaning set forth in the preamble hereto.

     “Issue Date” means December 23, 2002.

     “Losses” has the meaning set forth in Section 8(d) hereto.

     “Majority Holders” means the Holders of a majority of the aggregate
principal amount of Transfer Restricted Notes registered under a Registration
Statement.

     “Managing Underwriters” means the investment banker or investment bankers
and manager or managers that shall administer an underwritten offering under a
Shelf Registration Statement.

     “Notes” has the meaning set forth in the preamble hereto.

     “Participating Broker-Dealer” means any Holder (which may include the
Initial Purchaser) that is a broker-dealer electing to exchange Notes acquired
for its own account as a result of market-making activities or other trading
activities for Exchange Notes.

     “Private Exchange Notes” has the meaning set forth in Section 2(g) hereof.

     “Prospectus” means the prospectus included in any Registration Statement
(including a prospectus that discloses information previously omitted from a
prospectus filed as part of an effective registration statement in reliance
upon Rule 430A under the Act or any similar rule that may be adopted by the
Commission), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Transfer Restricted
Notes covered by such Registration Statement, and all amendments and
supplements to the Prospectus.

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

3

 

     “Registered Exchange Offer” means the proposed offer to the Holders to
issue and deliver to such Holders, in exchange for the Notes, a like aggregate
principal amount of Exchange Notes.

     “Registration Statement” means any Exchange Offer Registration Statement
or Shelf Registration Statement that covers any of the Transfer Restricted
Notes (including the Note Guarantee) pursuant to the provisions of this
Agreement, amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto, and all material incorporated by reference
therein.

     “Shelf Registration” means a registration of Transfer Restricted Notes
with the Commission effected pursuant to Section 3 hereof.

     “Shelf Registration Period” has the meaning set forth in Section 3(c)
hereof.

     “Shelf Registration Statement” means a “shelf” registration statement of
the Company and the Parent Guarantor filed pursuant to the provisions of
Section 3 hereof, which covers some or all of the Transfer Restricted Notes, as
applicable, on an appropriate form under Rule 415 under the Act, or any similar
rule that may be adopted by the Commission, and which may be in the format of
an amendment to the Exchange Offer Registration Statement if permitted by the
Commission, all amendments and supplements to such registration statement,
including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by
reference therein.

     “Transfer Restricted Notes” means each Note upon original issuance thereof
and at all times subsequent thereto, each Exchange Note as to which Section
3(a)(iii) or Section 3(a)(iv) apply upon original issuance and at all times
subsequent thereto, until in the case of any such Note or Exchange Note, as the
case may be, the earliest to occur of (i) the date on which such Note has been
exchanged by a person other than a Participating Broker-Dealer for an Exchange
Note (other than with respect to an Exchange Note as to which Section 3(a)(iii)
or Section 3(a)(iv) apply), (ii) with respect to Exchange Notes received by
Participating Broker-Dealers in the Registered Exchange Offer, the date on
which such Exchange Note has been sold by such Participating Broker-Dealer by
means of the Prospectus contained in the Exchange Offer Registration Statement,
(iii) a Shelf Registration Statement covering such Note or Exchange Note, as
the case may be, has been declared effective by the Commission and such Note or
Exchange Note, as the case may be, has been disposed of in accordance with such
effective Shelf Registration Statement, (iv) the date on which such Note or
Exchange Note, as the case may be, can be sold without any limitations under
clauses (c), (e), (f) or (h) of Rule 144 under the Act or any similar rule that
may be adopted by the Commission or (v) such Note or Exchange Note, as the
case may be, ceases to be outstanding for purposes of the Indenture.

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

     “Trustee” means the trustee with respect to the Notes or Exchange Notes,
as applicable, under the Indenture.

4

 

     2.     Registered Exchange Offer; Resales of Exchange Notes by Participating
Broker-Dealers; Private Exchange. (a) The Company and the Parent Guarantor
shall prepare and, not later than 110 days from the Issue Date (or, if such
110th day is not a Business Day, by the first Business Day thereafter), shall
file with the Commission the Exchange Offer Registration Statement with respect
to the Registered Exchange Offer (the date of such filing hereinafter referred
to as the “Filing Date”). The Company and the Parent Guarantor shall use their
reasonable best efforts (i) to cause the Exchange Offer Registration Statement
to be declared effective under the Act within 150 days from the Issue Date (or,
if such 150th day is not a Business Day, by the first Business Day thereafter),
and (ii) to Consummate the Registered Exchange Offer within 30 days from the
date the Exchange Offer Registration Statement becomes effective.

     (b)  The objective of such Registered Exchange Offer is to enable each
Holder electing to exchange Transfer Restricted Notes for Exchange Notes
(assuming that such Holder (x) is not an “affiliate” of the Company or the
Parent Guarantor within the meaning of the Act, (y) is not a broker-dealer that
acquired the Transfer Restricted Notes in a transaction other than as a part of
its market-making or other trading activities and (z) if such Holder is not a
broker-dealer, acquires the Exchange Notes in the ordinary course of such
Holder’s business, is not participating in the distribution of the Exchange
Notes and has no arrangements or intentions with any person to make a
distribution of the Exchange Notes) to resell such Exchange Notes from and
after their receipt without any limitations or restrictions under the Act and
without material restrictions under the securities laws of a substantial
proportion of the several states of the United States. Each Holder
participating in the Registered Exchange Offer shall be required to represent
to the Company and the Parent Guarantor that at the time of the Consummation of
the Registered Exchange Offer each of the items listed in subsections (x), (y)
and (z) of this Section 2(b) is true.

     (c)  In connection with the Registered Exchange Offer, the Company and the
Parent Guarantor shall:

		
	 	     (i) mail to each Holder a copy of the Prospectus forming part of the
Exchange Offer Registration Statement, together with an appropriate
letter of transmittal and related documents;

		
	 	     (ii) keep the Registered Exchange Offer open for acceptance for not
less than 30 days (or longer if required by applicable law) after the
date notice thereof is mailed to Holders;

		
	 	     (iii) permit Holders to withdraw tendered Notes at any time prior to
5:00 p.m. New York City time on the last Business Day on which the
Registered Exchange Offer shall remain open;

		
	 	     (iv) utilize the services of a depositary for the Registered
Exchange Offer with an address in the Borough of Manhattan, The City of
New York; and

		
	 	     (v) comply in all material respects with all applicable laws
relating to the Registered Exchange Offer.

5

 

     (d)  The Company and the Parent Guarantor may suspend the use of the
Prospectus for a period not to exceed 30 days in any six-month period or an
aggregate of 45 days in any twelve-month period for valid business reasons (not
including avoidance of their obligations hereunder) to avoid premature public
disclosure of a pending corporate transaction, including pending acquisitions
or divestitures of assets, mergers and combinations and similar events;
provided that (i) the Company and the Parent Guarantor promptly thereafter
comply with the requirements of Section 5(k) hereof, if applicable; (ii) the
period during which the Registration Statement is required to be effective and
usable shall be extended by the number of days during which such Registration
Statement was not effective or usable pursuant to the foregoing provisions; and
(iii) the Additional Interest shall accrue on the Notes as provided in Section
4 hereof.

     (e)  As soon as practicable after the Consummation of the Registered
Exchange Offer, the Company and the Parent Guarantor shall:

		
	 	     (i) accept for exchange all the Notes validly tendered and not
withdrawn pursuant to the Registered Exchange Offer;

		
	 	     (ii) deliver to the Trustee for cancellation all of the Notes so
accepted for exchange; and

		
	 	     (iii) cause the Trustee promptly to authenticate and deliver to each
Holder Exchange Notes equal in principal amount to the Transfer
Restricted Notes of such Holder so accepted for exchange.

     (f)  The Initial Purchaser, the Company and the Parent Guarantor
acknowledge that, pursuant to interpretations by the staff of the Commission of
Section 5 of the Act, and in the absence of an applicable exemption therefrom,
each Participating Broker-Dealer is required to deliver a Prospectus in
connection with a sale of any Exchange Notes received by such Participating
Broker-Dealer pursuant to the Registered Exchange Offer in exchange for
Transfer Restricted Notes acquired for its own account as a result of
market-making activities or other trading activities. Accordingly, the Company
and the Parent Guarantor will allow Participating Broker-Dealers and other
persons, if any, with similar prospectus delivery requirements to use the
Prospectus contained in the Exchange Offer Registration Statement during the
Exchange Offer Registration Period in connection with the resale of such
Exchange Notes and shall:

		
	 	     (i) include the information set forth in (a) Annex A hereto on the
cover of the Prospectus forming a part of the Exchange Offer Registration
Statement; (b) Annex B hereto in the forepart of the Exchange Offer
Registration Statement in a section setting forth details of the
Registered Exchange Offer; (c) Annex C hereto in the plan of distribution
section of the Prospectus forming a part of the Exchange Offer
Registration Statement, and (d) Annex D hereto in the letter of
transmittal delivered pursuant to the Registered Exchange Offer; and

		
	 	     (ii) use reasonable best efforts to keep the Exchange Offer
Registration Statement continuously effective (subject to Section 2(d))
under the Act during the Exchange Offer Registration Period for delivery
of the Prospectus included therein by

6

 

		
	 	Participating Broker-Dealers in connection with sales of Exchange
Notes received pursuant to the Registered Exchange Offer, as contemplated
by Section 5(h) below.

     (g)  In the event that the Initial Purchaser determines that it is not
eligible to participate in the Registered Exchange Offer with respect to the
exchange of Transfer Restricted Notes constituting any portion of an unsold
allotment, upon the effectiveness of the Shelf Registration Statement as
contemplated by Section 3 hereof and at the request of the Initial Purchaser,
the Company and the Parent Guarantor shall issue and deliver to the Initial
Purchaser, or to the party purchasing Transfer Restricted Notes registered
under the Shelf Registration Statement from the Initial Purchaser, in exchange
for such Transfer Restricted Notes, a like principal amount of Exchange Notes
to the extent permitted by applicable law (the “Private Exchange Notes”). The
Company and the Parent Guarantor shall use their reasonable best efforts to
cause the CUSIP Service Bureau to issue the same CUSIP number for such Exchange
Notes as for Exchange Notes issued pursuant to the Registered Exchange Offer.

     3.     Shelf Registration. (a) If (i) the Company and the Parent Guarantor
are not permitted to file the Exchange Offer Registration Statement or to
Consummate the Registered Exchange Offer because the Registered Exchange Offer
is not permitted by applicable law or Commission policy, (ii) for any other
reason the Registered Exchange Offer is not Consummated within 30 days (or if
such 30th day is not a Business Day, by the first Business Day thereafter) of
the date the Exchange Offer Registration Statement has become effective, (iii)
the Initial Purchaser so requests with respect to Notes which have not been
resold acquired by it directly from the Company and the Parent Guarantor on or
prior to the 30th day (or if such 30th day is not a Business Day, by the first
Business Day thereafter) following the Consummation of the Registered Exchange
Offer, (iv) any Holder notifies the Company and the Parent Guarantor on or
prior to the 30th day (or if such 30th day is not a Business Day, by the first
Business Day thereafter) following the Consummation of the Registered Exchange
Offer that (A) such Holder is not eligible to participate in the Registered
Exchange Offer, due to applicable law or Commission policy, (B) the Exchange
Notes such Holder would receive would not be freely tradable, (C) such Holder
is a Participating Broker-Dealer that cannot publicly resell the Exchange Notes
that it acquires in the Registered Exchange Offer without delivering a
Prospectus and the Prospectus contained in the Exchange Offer Registration
Statement is not appropriate or available for resales following the completion
of the Registered Exchange Offer, or (D) the Holder is a broker-dealer and owns
Notes it has not exchanged and that it acquired directly from the Company, one
of its Affiliates or the Parent Guarantor, or (v) in the case where the Initial
Purchaser participates in the Registered Exchange Offer or acquires Private
Exchange Notes pursuant to Section 2(g) hereof, the Initial Purchaser does not
receive freely tradable Exchange Notes in exchange for Notes constituting any
portion of an unsold allotment and the Initial Purchaser notifies the Company
and the Parent Guarantor on or prior to the 30th day following the Consummation
of the Registered Exchange Offer (it being understood that, for purposes of
this Section 3, (x) the requirement that the Initial Purchaser deliver a
Prospectus containing the information required by Items 507 and/or 508 of
Regulation S-K under the Act in connection with sales of Exchange Notes
acquired in exchange for such Transfer Restricted Notes shall result in such
Exchange Notes being not “freely tradable” and (y) the requirement that a
Participating Broker-Dealer deliver a Prospectus in connection with sales of
Exchange Notes acquired in the Registered Exchange Offer in exchange for
Transfer Restricted Notes

7

 

acquired as a result of market-making activities or other trading
activities shall not result in such Exchange Notes being not “freely
tradable”), the following provisions shall apply:

     (b)  The Company and the Parent Guarantor shall use their reasonable best
efforts to prepare and file with the Commission a Shelf Registration Statement
prior to the 30th day (or if such 30th day is not a Business Day, by the first
Business Day thereafter) following the earliest to occur of (i) the date on
which the Company and the Parent Guarantor determine that they are not
permitted to file the Exchange Offer Registration Statement or to Consummate
the Exchange Offer; (ii) 30 days (or if such 30th day is not a Business Day, by
the first Business Day thereafter) after the Exchange Offer Registration
Statement has been declared effective if the Registered Exchange Offer has not
been Consummated by such date and (iii) the date notice is given pursuant to
Section (a)(iii), (iv) or (v) above (or if either such 30th day is not a
Business Day, by the first Business Day thereafter) and shall use their
reasonable best efforts to cause the Shelf Registration Statement to be
declared effective by the Commission within 90 days thereafter (or if such 90th
day is not a Business Day, by the first Business Day thereafter). With respect
to Exchange Notes received by the Initial Purchaser in exchange for Notes
constituting any portion of an unsold allotment, the Company and the Parent
Guarantor may, if permitted by current interpretations by the Commission’s
staff, file a post-effective amendment to the Exchange Offer Registration
Statement containing the information required by Regulation S-K Items 507
and/or 508, as applicable, in satisfaction of their obligations under this
paragraph (b) with respect thereto, and any such Exchange Offer Registration
Statement, as so amended, shall be referred to herein as, and governed by the
provisions herein applicable to, a Shelf Registration Statement.

     (c)  The Company and the Parent Guarantor shall use their reasonable best
efforts to keep such Shelf Registration Statement continuously effective
(subject to Section 3(d)) in order to permit the Prospectus forming a part
thereof to be usable by Holders until the earliest of (i) such time as the
Notes or Exchange Notes covered by the Shelf Registration Statement can be sold
without any limitations under clauses (c), (e), (f) and (h) of Rule 144 or
similar rule adopted by the Commission, (ii) two years from the date the Shelf
Registration Statement has been declared effective exclusive of any period
during which any stop order shall be in effect suspending the effectiveness of
the Shelf Registration Statement or during which the Company has suspended the
use of the Prospectus contained therein pursuant to Section 3(d) and (iii) such
date as of which all the Transfer Restricted Notes have been sold pursuant to
the Shelf Registration Statement (in any such case, such period being called
the “Shelf Registration Period”). The Company and the Parent Guarantor shall
be deemed not to have used their reasonable best efforts to keep the Shelf
Registration Statement effective during the Shelf Registration Period if they
voluntarily take any action that would result in Holders of Transfer Restricted
Notes covered thereby not being able to offer and sell such notes during that
period, unless such action is (x) required by applicable law or (y) pursuant to
Section 3(d) hereof, and, in either case, so long as the Company and the Parent
Guarantor promptly thereafter comply with the requirements of Section 5(k)
hereof, if applicable.

     (d)  The Company and the Parent Guarantor may suspend the use of the
Prospectus for a period not to exceed 30 days in any six-month period or an
aggregate of 45 days in any twelve-month period for valid business reasons (not
including avoidance of their obligations hereunder) to avoid premature public
disclosure of a pending corporate transaction, including pending acquisitions
or divestitures of assets, mergers and combinations and similar

8

 

events; provided that (i) the Company and the Parent Guarantor promptly
thereafter comply with the requirements of Section 5(k) hereof, if applicable;
(ii) the period during which the Registration Statement is required to be
effective and usable shall be extended by the number of days during which such
Registration Statement was not effective or usable pursuant to the foregoing
provisions; and (iii) the Additional Interest shall accrue on the Notes as
provided in Section 4 hereof.

     (e)  No Holder of Transfer Restricted Notes may include any of its
Transfer Restricted Notes in any Shelf Registration Statement pursuant to this
Agreement unless and until such Holder furnishes to the Company and the Parent
Guarantor in writing, within 20 days after receipt of a request therefor, such
information as the Company and the Parent Guarantor may reasonably request for
use in connection with any Shelf Registration Statement or Prospectus or
preliminary Prospectus included therein. No Holder of Transfer Restricted
Notes shall be entitled to Additional Interest pursuant to Section 4 hereof
unless and until such Holder shall have used its reasonable best efforts to
provide all such reasonably requested information. Each Holder of Transfer
Restricted Notes as to which any Shelf Registration Statement is being effected
agrees to furnish promptly to the Company and the Parent Guarantor all
information required to be disclosed in order to make the information
previously furnished to the Company and the Parent Guarantor by such Holder not
misleading.

     4.     Additional Interest.

     (a)  The parties hereto agree that Holders of Transfer Restricted Notes
will suffer damages if the Company or the Parent Guarantor fails to perform
their obligations under Section 2 or Section 3 hereof and that it would not be
feasible to ascertain the extent of such damages. Accordingly, in the event
that (i) the applicable Registration Statement is not filed with the Commission
on or prior to the date specified herein for such filing, (ii) the applicable
Registration Statement has not been declared effective by the Commission on or
prior to the date specified herein for such effectiveness after such obligation
arises, (iii) if the Registered Exchange Offer is required to be Consummated
hereunder, the Registered Exchange Offer has not been Consummated by the
Company and the Parent Guarantor within the time period set forth in Section
2(a) hereof, (iv) prior to the end of the Exchange Offer Registration Period or
the Shelf Registration Period, the Commission shall have issued a stop order
suspending the effectiveness of the Exchange Offer Registration Statement or
the Shelf Registration Statement, as the case may be, or proceedings have been
initiated with respect to the Registration Statement under Section 8(d) or 8(e)
of the Act, or (v) the Company and the Parent Guarantor shall have initiated a
suspension period pursuant to Section 2(d) or 3(d) (each such event referred to
in clauses (i) through (v), a “Registration Default”), then additional interest
with respect to the Transfer Restricted Notes (“Additional Interest”) will
accrue with respect to the first 90-day period immediately following the
occurrence of such Registration Default in an amount equal to 0.5% per annum
per $1,000 principal amount of such Notes and will increase by an additional
0.5% per annum per $1,000 principal amount of such Notes for each subsequent
90-day period until such Registration Default has been cured, up to an
aggregate maximum amount of Additional Interest of 1.0% per annum per $1,000
principal amount of Notes for all Registration Defaults. Following the cure of
a Registration Default, the accrual of Additional Interest with respect to such
Registration Default will cease and upon the cure of all Registration Defaults
the accrual of all Additional Interest will cease. Notwithstanding anything to
the contrary in this

9

 

Section 4(a), the Company and the Parent Guarantor shall not be required
to pay Additional Interest to a Holder of Transfer Restricted Notes if such
Holder failed to comply with its obligations to make the representations set
forth in the second sentence of Section 2(b).

     (b)  The Company shall notify the Trustee and paying agent under the
Indenture (or the trustee and paying agent under such other indenture under
which any Transfer Restricted Notes are issued) immediately upon the happening
of each and every Registration Default. The Company and the Parent Guarantor
shall pay the Additional Interest due on the Transfer Restricted Notes by
depositing with the paying agent (which shall not be the Company or the Parent
Guarantor for these purposes) for the Transfer Restricted Notes, in trust, for
the benefit of the Holders thereof, prior to 11:00 a.m. on the next interest
payment date specified in the Indenture (or such other indenture), sums
sufficient to pay the Additional Interest then due. The Additional Interest
due shall be payable on each interest payment date specified by the Indenture
(or such other indenture) to the record holders entitled to receive the
interest payment to be made on such date. Each obligation to pay Additional
Interest shall be deemed to accrue from and include the date of the applicable
Registration Default to, but excluding, the relevant interest payment date.

     (c)  The parties hereto agree that the Additional Interest provided for in
this Section 4 constitutes a reasonable estimate of the damages that will be
suffered by holders of Transfer Restricted Notes by reason of the happening of
any Registration Default and are intended to constitute the sole remedy for
damages that will be suffered by the Holders of the Transfer Restricted Notes
by reason of any of the failures listed in Section 4(a).

     (d)  All of the Company’s and the Parent Guarantor’s obligations set forth
in this Section 4 which are outstanding with respect to any Transfer Restricted
Note at the time such Note ceases to be covered by an effective Registration
Statement shall survive until such time as all such obligations with respect to
such Note have been satisfied in full (notwithstanding termination of this
Agreement).

     5.     Registration Procedures. In connection with any Exchange Offer
Registration Statement, and, to the extent applicable, any Shelf Registration
Statement the following provisions shall apply:

     (a)  The Company and the Parent Guarantor shall furnish to the Initial
Purchaser, prior to the filing thereof with the Commission, a copy of any
Registration Statement, and each amendment thereof and each amendment or
supplement, if any, to the Prospectus included therein and shall reflect in
each such document, when so filed with the Commission, such comments as the
Initial Purchaser reasonably may propose in a timely fashion.

     (b)  The Company and the Parent Guarantor shall ensure that:

		
	 	     (i) any Registration Statement and any amendment thereto and any
Prospectus contained therein and any amendment or supplement thereto
complies in all material respects with the Act;

		
	 	     (ii) any Registration Statement and any amendment thereto does not,
when it becomes effective, contain an untrue statement of a material fact
or omit to state a

10

 

		
	 	material fact required to be stated therein or necessary to make the
statements therein not misleading; and

		
	 	     (iii) any Prospectus forming part of any Registration Statement,
including any amendment or supplement to such Prospectus, does not
include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading;

provided that no representation or agreement is made hereby with respect to
information with respect to the Initial Purchaser, any underwriter or any
Holder required to be included in any Registration Statement or Prospectus
pursuant to the Act or provided by the Initial Purchaser, any Holder or any
underwriter specifically for inclusion in any Registration Statement or
Prospectus.

     (c)  (1) The Company and the Parent Guarantor shall advise the Initial
Purchaser and, in the case of a Shelf Registration Statement, the Holders of
Transfer Restricted Notes covered thereby, and, if requested by the Initial
Purchaser or any such Holder, confirm such advice in writing:

		
	 	     (i) when a Registration Statement and any amendment thereto has been
filed with the Commission and when the Registration Statement or any
post-effective amendment thereto has become effective; and

		
	 	     (ii) of any request by the Commission for amendments or supplements
to the Registration Statement or the Prospectus included therein or for
additional information.

     (2)  The Company and the Parent Guarantor shall advise the Initial
Purchaser and, in the case of a Shelf Registration Statement, the Holders of
Transfer Restricted Notes covered thereby, and, in the case of an Exchange
Offer Registration Statement, any Participating Broker-Dealer that has provided
in writing to the Company a telephone or facsimile number and address for
notices, and, if requested by the Initial Purchaser or any such Holder or
Participating Broker-Dealer, confirm such advice in writing:

		
	 	     (i) of the issuance by the Commission of any stop order suspending
the effectiveness of the Registration Statement or the initiation of any
proceedings for that purpose;

		
	 	     (ii) of the receipt by the Company or the Parent Guarantor of any
notification with respect to the suspension of the qualification of the
Transfer Restricted Notes included in any Registration Statement for sale
in any jurisdiction or the initiation or threatening of any proceeding
for such purpose; and

		
	 	     (iii) of the happening of any event that requires the making of any
changes in the Registration Statement or the Prospectus so that, as of
such date, the statements therein are not misleading and do not omit to
state a material fact required to be stated therein or necessary to make
the statements therein (in the case of the Prospectus, in light of the
circumstances under which they were made) not misleading (which advice
shall be

11

 

		
	 	accompanied by an instruction to suspend the use of the Prospectus
until the requisite changes have been made).

     (d)  The Company and the Parent Guarantor shall use their reasonable best
efforts to obtain the withdrawal of any order suspending the effectiveness of
any Registration Statement at the earliest possible time.

     (e)  The Company and the Parent Guarantor shall furnish to each Holder of
Transfer Restricted Notes included within the coverage of any Shelf
Registration Statement, without charge, at least one copy of such Shelf
Registration Statement and any post-effective amendment thereto, including
financial statements and schedules, and, if the Holder so requests in writing,
all exhibits thereto (including those incorporated by reference).

     (f)  The Company and the Parent Guarantor shall, during the Shelf
Registration Period, deliver to each Holder of Transfer Restricted Notes
included within the coverage of any Shelf Registration Statement, without
charge, as many copies of the Prospectus (including any preliminary Prospectus)
included in such Shelf Registration Statement and any amendment or supplement
thereto as such Holder may reasonably request; and the Company and the Parent
Guarantor consent to the use of the Prospectus (including any preliminary
Prospectus) or any amendment or supplement thereto by each of the selling
Holders of Transfer Restricted Notes in connection with the offering and sale
of the Transfer Restricted Notes covered by the Prospectus or any amendment or
supplement thereto.

     (g)  The Company and the Parent Guarantor shall furnish to each
Participating Broker-Dealer that so requests, without charge, at least one copy
of the Exchange Offer Registration Statement and any post-effective amendment
thereto, including financial statements and schedules, any documents
incorporated by reference therein and, if the Participating Broker-Dealer so
requests in writing, all exhibits thereto (including those incorporated by
reference).

     (h)  The Company and the Parent Guarantor shall, during the Exchange Offer
Registration Period and pursuant to the requirements of the Act for the resale
of the Exchange Notes during the period in which a prospectus is required to be
delivered under the Act (including any Commission no-action letters relating to
the Registered Exchange Offer), deliver to each Participating Broker-Dealer,
without charge, as many copies of the Prospectus (including any preliminary
Prospectus) included in such Exchange Offer Registration Statement and any
amendment or supplement thereto as such Participating Broker-Dealer may
reasonably request; and the Company and the Parent Guarantor consent to the use
of the Prospectus (including any preliminary Prospectus) or any amendment or
supplement thereto by any such Participating Broker-Dealer in connection with
the offering and sale of the Exchange Notes, as provided in Section 2(f) above.

     (i)  Prior to the Registered Exchange Offer or any other offering of
Transfer Restricted Notes pursuant to any Registration Statement, the Company
and the Parent Guarantor shall use reasonable best efforts to register, qualify
or cooperate with the Holders of Transfer Restricted Notes included therein and
their respective counsel in connection with the registration or qualification
of such Transfer Restricted Notes for offer and sale under the securities or
blue sky laws of such states as any such Holders reasonably request in writing
and do any and all

12

 

other acts or things necessary or advisable to enable the offer and sale
in such jurisdictions of the Transfer Restricted Notes covered by such
Registration Statement; provided, however, neither the Company nor the Parent
Guarantor will be required to qualify generally to do business in any
jurisdiction in which it is not then so qualified, to file any general consent
to service of process or to take any action which would subject it to general
service of process or to taxation in any such jurisdiction where it is not then
so subject.

     (j)  The Company and the Parent Guarantor shall cooperate with the Holders
to facilitate the timely preparation and delivery of certificates representing
Transfer Restricted Notes to be sold pursuant to any Registration Statement
free of any restrictive legends and in denominations authorized by the
Indenture and registered in such names as Holders may request prior to sales of
Transfer Restricted Notes pursuant to such Registration Statement.

     (k)  Upon the occurrence of any event contemplated by Section 2(d), 3(d)
or paragraph (c)(2)(iii) of this Section 5, the Company and the Parent
Guarantor shall promptly prepare and file a post-effective amendment to any
Registration Statement or an amendment or supplement to the related Prospectus
or any other required document so that, as thereafter delivered to purchasers
of the Transfer Restricted Notes included therein, the Prospectus will not
include an untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading.

     (l)  The Company and the Parent Guarantor shall use their reasonable best
efforts to cause The Depository Trust Company (“DTC”) on the first Business Day
following the effective date of any Registration Statement hereunder or as soon
as possible thereafter to remove (i) from any existing CUSIP number assigned to
the Transfer Restricted Notes or Exchange Notes, as the case may be, any
designation indicating that such notes are “restricted securities,” which
efforts shall include delivery to DTC of a letter executed by the Company
substantially in the form of Annex E hereto and (ii) any other stop or
restriction on DTC’s system with respect to the Transfer Restricted Notes or
Exchange Notes, as the case may be. In the event the Company and the Parent
Guarantor are unable to cause DTC to take actions described in the immediately
preceding sentence, the Company and the Parent Guarantor shall take such
actions as the Initial Purchaser may reasonably request to provide, as soon as
practicable, a new CUSIP (if not already obtained) number for the Transfer
Restricted Notes or Exchange Notes registered under such Registration Statement
and to cause such CUSIP number to be assigned to the Transfer Restricted Notes
or Exchange Notes (or to the maximum aggregate principal amount of the
securities to which such number may be assigned).

     (m)  The Company and the Parent Guarantor shall use their reasonable best
efforts to comply with all applicable rules and regulations of the Commission
and shall make generally available to the security holders as soon as
practicable after the effective date of the applicable Registration Statement
an earnings statement satisfying the provisions of Section 11(a) of the Act and
Rule 158 promulgated thereunder.

     (n)  The Company and the Parent Guarantor shall use reasonable best
efforts to cause the Indenture to be qualified under the Trust Indenture Act in
a timely manner.

13

 

     (o)  The Company and the Parent Guarantor may require each Holder of
Transfer Restricted Notes to be sold pursuant to any Shelf Registration
Statement to furnish to the Company and the Parent Guarantor such information
regarding the Holder and the distribution of such Transfer Restricted Notes as
may, from time to time, be reasonably required by the Act, and the obligations
of the Company and the Parent Guarantor to any Holder hereunder shall be
expressly conditioned on the compliance of such Holder with such request.

     (p)  The Company and the Parent Guarantor shall, if requested, promptly
incorporate in a Prospectus supplement or post-effective amendment to a Shelf
Registration Statement (i) such information as the Majority Holders provide or,
if the Transfer Restricted Notes are being sold in an underwritten offering, as
the Managing Underwriters and the Majority Holders reasonably agree should be
included therein and, in either case, provided to the Company or the Parent
Guarantor in writing for inclusion in the Shelf Registration Statement, or
Prospectus, and (ii) such information as a Holder may provide from time to time
to the Company or the Parent Guarantor in writing for inclusion in a Prospectus
or any Shelf Registration Statement, in the case of clause (i) or (ii) above,
concerning such Holder and/or underwriter and the distribution of such Holder’s
Transfer Restricted Notes and, in either case, shall make all required filings
of such Prospectus supplement or post-effective amendment as soon as
practicable after being notified in writing of the matters to be incorporated
in such Prospectus supplement or post-effective amendment.

     (q)  In the case of any Shelf Registration Statement, the Company and the
Parent Guarantor shall enter into such agreements (including underwriting
agreements) and take all other customary and appropriate actions as may be
reasonably requested in order to expedite or facilitate the registration or the
disposition of any Transfer Restricted Notes, and in connection therewith, if
an underwriting agreement is entered into, cause the same to contain
indemnification provisions and procedures no less favorable than those set
forth in Section 8 (or such other provisions and procedures reasonably
acceptable to the Majority Holders and the Managing Underwriters, if any, with
respect to all parties to be indemnified pursuant to Section 8).

     (r)  In the case of any Shelf Registration Statement, the Company and the
Parent Guarantor shall:

		
	 	     (i) make reasonably available for inspection by the Holders of
Transfer Restricted Notes to be registered thereunder, any Managing
Underwriter participating in any disposition pursuant to such Shelf
Registration Statement, and any attorney, accountant or other agent
retained by the Holders or any such Managing Underwriter, all relevant
financial and other records, pertinent corporate documents and properties
of the Company and any of its subsidiaries;

		
	 	     (ii) cause the Company’s and the Parent Guarantor’s officers,
directors and employees to supply all relevant information reasonably
requested by the Holders or any such Managing Underwriter, attorney,
accountant or agent in connection with any such Registration Statement as
is customary for similar due diligence examinations; provided, however,
that any information that is designated in writing by the Company and the
Parent Guarantors as confidential at the time of delivery of such
information shall be kept

14

 

		
	 	confidential by the Holders or any such Managing Underwriter,
attorney, accountant or agent, unless (x) disclosure thereof is made in
connection with a court proceeding or required by law; provided that each
Holder and any such Managing Underwriter, attorney, accountant or agent
will, upon learning that disclosure of such information is sought in a
court proceeding or required by law, give notice to the Company and the
Parent Guarantor with enough time to allow the Company and the Parent
Guarantor to undertake appropriate action to prevent disclosure at the
Company’s and the Parent Guarantor’s sole expense, or (y) such
information has previously been made or becomes available to the public
generally through the Company, the Parent Guarantor or through a third
party without an accompanying obligation of confidentiality;

		
	 	     (iii) make such representations and warranties to the Holders of
Transfer Restricted Notes registered thereunder and the Managing
Underwriters, if any, in form, substance and scope as are customarily
made by the Company and the Parent Guarantor to Managing Underwriters and
covering matters including, but not limited to, those set forth in the
Purchase Agreement;

		
	 	     (iv) obtain opinions of counsel to the Company and the Parent
Guarantor and updates thereof (which counsel and opinions, in form, scope
and substance, shall be reasonably satisfactory to the Managing
Underwriters, if any) addressed to each selling Holder and the Managing
Underwriters, if any, covering such matters as are customarily covered in
opinions requested in underwritten offerings and such other matters as
may be reasonably requested by such Holders and Managing Underwriters;

		
	 	     (v) obtain “cold comfort” letters and updates thereof from the
independent certified public accountants of the Company and the Parent
Guarantor (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any business acquired
by the Company for which financial statements and financial data are, or
are required to be, included in the Registration Statement), addressed to
each selling Holder of the Transfer Restricted Notes covered by such
Shelf Registration Statement (provided such Holder furnishes the
accountants with such representations as the accountants customarily
require in similar situations) and the Managing Underwriters, if any, in
customary form and covering matters of the type customarily covered in
“cold comfort” letters in connection with primary underwritten offerings;
and

		
	 	     (vi) deliver such documents and certificates as may be reasonably
requested by the Majority Holders and the Managing Underwriters, if any,
including those to evidence compliance with Section 5(i) and with any
customary conditions contained in the underwriting agreement or other
agreement entered into by the Company and the Parent Guarantor.

     The foregoing actions set forth in this Section 5(r) shall be performed at
(i) the effectiveness of such Shelf Registration Statement and each
post-effective amendment thereto and (ii) each closing under any underwriting
or similar agreement as and to the extent required thereunder.

15

 

     (s)  The Company and the Parent Guarantor shall, if and to the extent
required under the Act and/or the Trust Indenture Act and the rules and
regulations thereunder in order to register the Note Guarantee under the Act
and qualify the Indenture under the Trust Indenture Act, cause each guarantor,
if any, to sign any Registration Statement and take all other action necessary
to register the Note Guarantee under the applicable Registration Statement.

     6.     Registration Expenses. The Company and the Parent Guarantor shall
bear all reasonable fees and expenses (including the reasonable fees and
expenses, if any, of Shearman & Sterling, counsel for the Initial Purchaser,
incurred in connection with the Registered Exchange Offer) incurred in
connection with the performance of their obligations under Sections 2, 3, 4 and
5 hereof (other than brokers’, dealers’ and underwriters’ discounts and
commissions and brokers’, dealers’ and underwriters’ counsel fees) and, in
connection with the Shelf Registration Statement, shall reimburse the Holders
for the reasonable fees and disbursements of one firm or counsel designated by
the Majority Holders to act as counsel for the Holders in connection therewith.

     7.     Rules 144 and 144A. The Company and the Parent Guarantor shall use
reasonable best efforts to file the reports required to be filed by them under
the Act and the Exchange Act in a timely manner (provided that the Company need
not file such reports if, and so long as, it would not be required to do so
pursuant to Rule 12h-5 under the Exchange Act) and, if at any time the Company
or the Parent Guarantor is not required to file such reports, the Company will,
upon the request of any Holder of Transfer Restricted Notes, make publicly
available other information so long as necessary to permit sales of their
securities pursuant to Rules 144 and 144A (or any successor rule adopted by the
Commission). The Company covenants that it will take such further action as
any Holder of Transfer Restricted Notes may reasonably request, all to the
extent required from time to time to enable such Holder to sell Transfer
Restricted Notes without registration under the Securities Act within the
limitation of the exemptions provided by Rules 144 and 144A (including the
requirements of Rule 144A(d)(4) if applicable). The Company will provide a
copy of this Agreement to prospective purchasers of Transfer Restricted Notes
identified to the Company by the Initial Purchaser upon request. Upon the
request of any Holder of Transfer Restricted Notes, the Company shall deliver
to such Holder a written statement as to whether it has complied with such
requirements.

     8.     Indemnification and Contribution.

		
	 	     (a) (i) In connection with any Registration Statement, the Company
and the Parent Guarantor, jointly and severally, agree to indemnify and
hold harmless each Holder of Transfer Restricted Notes covered thereby,
the directors, officers, employees and agents of each such Holder and
each person who controls any such Holder within the meaning of either the
Act or the Exchange Act against any and all losses, claims, damages or
liabilities, joint or several, to which they or any of them may become
subject under the Act, the Exchange Act or other Federal or state
statutory law or regulation, at common law or otherwise, insofar as such
losses, claims, damages or liabilities (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 the Registration Statement as
originally filed or in any amendment thereof, in any preliminary
Prospectus or Prospectus or in any amendment thereof or supplement
thereto, or arise out of or are based upon the omission

16

 

		
	 	or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not
misleading, and agree to reimburse each such indemnified party, as
incurred, for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the Company and the Parent
Guarantor will not be liable in any case to the extent that any such
loss, claim, damage or liability arises out of or is based upon (A) any
such untrue statement or alleged untrue statement or omission or alleged
omission made therein in reliance upon and in conformity with written
information relating to the Holder furnished to the Company and the
Parent Guarantor by or on behalf of any such Holder specifically for
inclusion therein, (B) use of a Registration Statement or the related
Prospectus during a period when a stop order has been issued in respect
of such Registration Statement or any proceedings for that purpose have
been initiated or use of a Prospectus when use of such Prospectus has
been suspended pursuant to Section 2(d), 3(d) or 5(c)(2); provided,
further, in each case, that Holders received prior notice of such stop
order, initiation of proceedings or suspension or (C) if the Holder is
required to but does not deliver a Prospectus or the then-current
Prospectus. This indemnity agreement will be in addition to any
liability which the Company and the Parent Guarantor may otherwise have.

		
	 	     (ii) The Company and the Parent Guarantor also agree to indemnify or
contribute to Losses, as provided in Section 8(d), of any Managing
Underwriters of Transfer Restricted Notes registered under a Registration
Statement, their officers and directors and each person who controls such
Managing Underwriters on substantially the same basis as that of the
indemnification of the selling Holders provided in this Section 8(a) and
shall, if requested by any Holder, enter into an underwriting agreement
reflecting such agreement, as provided in Section 5(q) hereof.

     (b)  Each Holder of Transfer Restricted Notes covered by a Registration
Statement severally agrees to indemnify and hold harmless the Company and the
Parent Guarantor and their respective directors, officers, employees and agents
and each person who controls either of the Company or the Parent Guarantor
within the meaning of either the Act or the Exchange Act to the same extent as
the foregoing indemnity from the Company and the Parent Guarantor to each such
Holder, but only with reference to written information relating to such Holder
furnished to the Company and the Parent Guarantor by or on behalf of such
Holder specifically for inclusion in the documents referred to in the foregoing
indemnity. This indemnity agreement will be in addition to any liability which
any such Holder may otherwise have.

     (c)  Promptly after receipt by an indemnified party under this Section 8
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under
this Section 8, notify the indemnifying party in writing of the commencement
thereof; but the failure so to notify the indemnifying party (i) will not
relieve it from liability under paragraph (a) or (b) above unless and to the
extent it did not otherwise learn of such action and such failure results in
the forfeiture by the indemnifying party of substantial rights and defenses and
(ii) will not, in any event, relieve the indemnifying party from any
obligations to any indemnified party other than the indemnification obligation
provided in paragraph (a) or (b) above. The indemnifying party shall be
entitled to appoint counsel of the indemnifying party’s choice at the
indemnifying party’s expense to represent the indemnified

17

 

party in any action for which indemnification is sought (in which case the
indemnifying party shall not thereafter be responsible for the fees and
expenses of any separate counsel retained by the indemnified party or parties
except as set forth below); provided, however, that such counsel shall be
reasonably satisfactory to the indemnified party. The indemnified party will
not settle or compromise or consent to the entry of judgment with respect to
any such action without the consent of the indemnifying party (which consent
shall not be unreasonably withheld). Notwithstanding the indemnifying party’s
election to appoint counsel to represent the indemnified party in an action,
the indemnified party shall have the right to employ separate counsel
(including local counsel), and the indemnifying party shall bear the reasonable
fees, costs and expenses of such separate counsel (and local counsel) if (i)
the use of counsel chosen by the indemnifying party to represent the
indemnified party would present such counsel with a conflict of interest, (ii)
the actual or potential defendants in, or targets of, any such action include
both the indemnified party and the indemnifying party and the indemnified party
shall have reasonably concluded, based on the advice of outside counsel, that
there may be legal defenses available to it and/or other indemnified parties
which are different from or additional to those available to the indemnifying
party, (iii) the indemnifying party shall not have employed counsel reasonably
satisfactory to the indemnified party to represent the indemnified party within
a reasonable time after notice of the institution of such action or (iv) the
indemnifying party shall have authorized the indemnified party to employ
separate counsel at the expense of the indemnifying party; provided further,
that the indemnifying party shall not be responsible for the fees and expenses
of more than one separate counsel (together with appropriate local counsel)
representing all the indemnified parties under paragraph (a) or paragraph (b)
above. An indemnifying party will not, without the prior written consent of
the indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding.

     (d)  In the event that the indemnity provided in paragraph (a) or (b) of
this Section 8 is unavailable to or insufficient to hold harmless an
indemnified party for any reason, then each applicable indemnifying party, in
lieu of indemnifying such indemnified party, shall have a joint and several
obligation to contribute to the aggregate losses, claims, damages and
liabilities (including legal or other expenses reasonably incurred in
connection with investigating or defending same) (collectively “Losses”) to
which such indemnified party may be subject in such proportion as is
appropriate to reflect the relative benefits received by such indemnifying
party, on the one hand, and such indemnified party, on the other hand, from the
Registration Statement which resulted in such Losses. If the allocation
provided by the immediately preceding sentence is unavailable for any reason,
the indemnifying party and the indemnified party shall contribute in such
proportion as is appropriate to reflect not only such relative benefits but
also the relative fault of such indemnifying party, on the one hand, and such
indemnified party, on the other hand, in connection with the statements or
omissions which resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of the parties shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company on the one hand or
such Holder or such other indemnified person, as the case may be, on the other,
and the parties’ relative intent, knowledge, access to information and

18

 

opportunity to correct or prevent such statement or omission. Benefits
received by the Company and the Parent Guarantor shall be deemed to be equal to
the sum of (x) the aggregate principal amount of the Notes and (y) the total
amount of Additional Interest which the Company and the Parent Guarantor were
not required to pay as a result of registering the Transfer Restricted Notes
covered by the Registration Statement which resulted in such Losses. Benefits
received by any Holder shall be deemed to be equal to the value of receiving
Transfer Restricted Notes registered under the Act. Benefits received by any
Managing Underwriter shall be deemed to be equal to the total underwriting
discounts and commissions, as set forth on the cover page of the Prospectus
forming a part of the Registration Statement which resulted in such Losses.
Relative fault shall be determined by reference to, among other things, whether
any alleged untrue statement or omission relates to information provided by the
indemnifying party, on the one hand, or by the indemnified party, on the other
hand. The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this
subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any action or claim which is the subject of this subsection (d).
Notwithstanding any other provision of this Section 8(d), the Holders of the
Transfer Restricted Notes shall in no case be required to contribute any amount
in excess of the amount by which the net proceeds received by such Holders from
the sale of the Transfer Restricted Notes pursuant to a Registration Statement
exceeds the amount of damages which such Holders have otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission and in no case shall any Managing Underwriter be responsible
for any amount in excess of the underwriting discount or commission applicable
to the Transfer Restricted Notes purchased by such Managing Underwriter under
the Registration Statement which resulted in such Losses. The parties agree
that it would not be just and equitable if contribution were determined by pro
rata allocation or any other method of allocation which does not take account
of the equitable considerations referred to above. Notwithstanding the
provisions of this paragraph (d), 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. For purposes of this Section 8, each person who controls an
indemnified party within the meaning of either the Act or the Exchange Act and
each director, officer, employee and agent of such indemnified party shall have
the same rights to contribution as such indemnified party, and each person who
controls the Company or the Parent Guarantor within the meaning of either the
Act or the Exchange Act and each director, officer, employee and agent of the
Company or the Parent Guarantor shall have the same rights to contribution as
the Company and the Parent Guarantor, subject in each case to the applicable
terms and conditions of this paragraph (d).

     (e)  The provisions of this Section 8 will remain in full force and
effect, regardless of any investigation made by or on behalf of any Holder, the
Company, the Parent Guarantor or any of the officers, directors or controlling
persons referred to in Section 8 hereof, and will survive the sale by a Holder
of Transfer Restricted Notes covered by a Registration Statement.

     9.     Underwritten Registrations.

     If any of the Transfer Restricted Notes covered by any Shelf Registration
Statement are to be sold in an underwritten offering, the Managing Underwriter
that will administer the offering will be selected by the Majority Holders of
such Transfer Restricted

19

 

Notes included in such offering, subject to the consent of the Company not
to be unreasonably withheld; it being expressly agreed that Wachovia
Securities, Inc. is an acceptable Managing Underwriter to the Company and such
Holders shall be responsible for all underwriting commissions and discounts in
connection therewith.

     No person may participate in any underwritten registration hereunder
unless such person (i) agrees to sell such person’s Transfer Restricted Notes
on the basis reasonably provided in any underwriting arrangements approved by
the persons entitled hereunder to approve such arrangements and (ii) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements.

     10.     Miscellaneous.

     (a)  No Inconsistent Agreements. The Company and the Parent Guarantor
have not, as of the date hereof, entered into nor shall they, on or after the
date hereof, enter into any agreement that is inconsistent with the rights
granted to the Holders herein or otherwise conflicts with the provisions
hereof.

     (b)  Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, qualified, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the Company and the Parent Guarantor have obtained the
written consent of the Majority Holders. Notwithstanding the foregoing, a
waiver or consent to departure from the provisions hereof with respect to a
matter that relates exclusively to the rights of Holders whose Transfer
Restricted Notes are being sold pursuant to a Shelf Registration Statement or
whose Notes are being exchanged pursuant to an Exchange Offer Registration
Statement, as the case may be, and which does not directly or indirectly affect
the rights of other Holders may be given by such Holders, determined on the
basis of Notes being sold rather than registered. Notwithstanding any of the
foregoing, no amendment, modification, supplement, waiver or consents to any
departure from the provisions of Section 8 hereof shall be effective as against
any Holder of Transfer Restricted Notes unless consented to in writing by such
Holder.

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

		
	 	     (i) if to the Initial Purchaser, as follows:

	 	Wachovia Securities, Inc.

One Wachovia Center

301 South College Street

Charlotte, North Carolina 28288-0604

Attention: High Yield Origination

		
	 	     (ii) if to any other Holder, at the most current address given by
such Holder to the Company and the Parent Guarantor in accordance with
the provisions of this Section

20

 

		
	 	10(c), which address initially is, with respect to each Holder, the
address of such Holder maintained by the registrar under the Indenture,
with a copy in like manner to the Initial Purchaser; and

		
	 	     (iii) if to the Company or the Parent Guarantor, as follows:

	 	Hollinger International Publishing Inc.

401 North Wabash Avenue

Chicago, Illinois 60611

Attention: President

     All such notices and communications shall be deemed to have been duly
given when received, if delivered by hand or air courier, and when sent, if
sent by first-class mail, telex or telecopier.

     The Company and the Parent Guarantor by notice to the others may designate
additional or different addresses for subsequent notices or communications.

     (d)  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 the need for an express assignment or any consent by the
Company or the Parent Guarantor thereto, subsequent Holders. The Company and
the Parent Guarantor hereby agree to extend the benefits of this Agreement to
any Holder and any such Holder may specifically enforce the provisions of this
Agreement as if an original party hereto.

     (e)  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.

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

     (g) Governing Law and Consent to Jurisdiction. This agreement shall be
governed by and construed in accordance with the laws of the State of New York.
The Company and the Parent Guarantor (x) submit to the nonexclusive
jurisdiction of the courts of the State of New York and of the United States
sitting in the Borough of Manhattan in respect of any action, claim or
proceeding (“Proceeding”) arising out of or relating to this Agreement or the
transactions contemplated hereby, (y) irrevocably waive, to the fullest extent
permitted by applicable law, any objection that it may now or hereafter have to
the laying of venue of any Proceeding in the Supreme Court of the State of New
York, County of New York, or the United States District Court for the Southern
District of New York, and any claim that any Proceeding in any such court has
been brought in an inconvenient forum, and (z) agree that any service of
process or other legal summons in connection with any Proceeding may be served
on it by mailing a copy thereof by registered mail, or a form of mail
substantially equivalent thereto, postage prepaid, addressed to the served
party at its address as provided for in Section 10(c).

21

 

Nothing in this section shall affect the right of the parties to serve
process in any other manner permitted by law.

     (h)  Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties
shall be enforceable to the fullest extent permitted by law.

     (i)  Notes Held by the Company, etc. Whenever the consent or approval of
Holders of a specified percentage of principal amount of Transfer Restricted
Notes or Exchange Notes is required hereunder, Transfer Restricted Notes or
Exchange Notes held by the Company, the Parent Guarantor or any of their
respective Affiliates (other than subsequent Holders of Transfer Restricted
Notes or Exchange Notes if such subsequent Holders are deemed to be Affiliates
solely by reason of their holdings of such Notes) shall not be counted in
determining whether such consent or approval was given by the Holders of such
required percentage.

22

 

     Please confirm that the foregoing correctly sets forth the agreement
between and among the Company, the Parent Guarantor and the Initial Purchaser.

	 	 	 	 	 	 	 
	 	 	 	 	Very truly yours,
	 
	 	 	 	 	HOLLINGER INTERNATIONAL PUBLISHING INC.
	 
	 
	 	 	 	 	By:	 	 
	 	 	 	 	 	 	

Name:
	 	 	 	 	 	 	Title:
	 
	 
	 	 	 	 	HOLLINGER INTERNATIONAL INC.
	 
	 	 	 	 	By:	 	 
	 	 	 	 	 	 	

Name:
	 	 	 	 	 	 	Title:
	 
	
The foregoing Agreement is hereby

acknowledged and accepted as of

the date first written above.	 	 	 	 
	 
	
WACHOVIA SECURITIES, INC.	 	 	 	 
	 
	By:	 	 	 	 	 	 
	 	 	

Name:	 	 	 	 
	 	 	
Title:	 	 	 	 

23

 

ANNEX A

     Each broker-dealer that receives Exchange Notes for its own account
pursuant to the Registered Exchange Offer must acknowledge that it will deliver
a prospectus in connection with any resale of such Exchange Notes. The Letter
of Transmittal states that by so acknowledging and by delivering a prospectus,
a broker-dealer will not be deemed to admit that it is an “underwriter” within
the meaning of the Act. This Prospectus, as it may be amended or supplemented
from time to time, may be used by a broker-dealer during the Exchange Offer
Registration Period in connection with resales of Exchange Notes received in
exchange for Notes where such Notes were acquired by such broker-dealer as a
result of market-making activities or other trading activities. The Company
and the Parent Guarantor have agreed that, during the Exchange Offer
Registration Period, it will make this Prospectus available to any
broker-dealer for use in connection with any such resale. See “Plan of
Distribution.”

A-1

 

ANNEX B

     Each broker-dealer that receives Exchange Notes for its own account in
exchange for Notes, where such Notes were acquired by such broker-dealer as a
result of market-making activities or other trading activities, must
acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Notes during the Exchange Offer Registration Period. See “Plan
of Distribution.”

B-1

 

ANNEX C

PLAN OF DISTRIBUTION

     Each broker-dealer that receives Exchange Notes for its own account
pursuant to the Registered Exchange Offer must acknowledge that it will deliver
a prospectus in connection with any resale of such Exchange Notes during the
Exchange Offer Registration Period. This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Notes received in exchange for Notes where such Notes
were acquired as a result of market-making activities or other trading
activities. The Company and the Parent Guarantor have agreed that, during the
Exchange Offer Registration Period, it will make this Prospectus, as amended or
supplemented, available to any broker-dealer for use in connection with any
such resale.

     The Company and the Parent Guarantor will not receive any proceeds from
any sale of Exchange Notes by broker-dealers. Exchange Notes received by
broker-dealers for their own account pursuant to the Registered Exchange Offer
may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of
options on the Exchange Notes or a combination of such methods of resale, at
market prices prevailing at the time of resale, at prices related to such
prevailing market prices or negotiated prices. Any such resale may be made
directly to purchasers or to or through brokers or dealers who may receive
compensation in the form of commissions or concessions from any such
broker-dealer and/or the purchasers of any such Exchange Notes. Any
broker-dealer that resells Exchange Notes that were received by it for its own
account pursuant to the Registered Exchange Offer and any broker or dealer that
participates in a distribution of such Exchange Notes may be deemed to be an
“underwriter” within the meaning of the Act and any profit from any such resale
of Exchange Notes and any commissions or concessions received by any such
persons may be deemed to be underwriting compensation under the Act. The
Letter of Transmittal states that by acknowledging that it will deliver and by
delivering a prospectus, a broker-dealer will not be deemed to admit that it is
an “underwriter” within the meaning of the Act.

     During the Exchange Offer Registration Period, the Company and the Parent
Guarantor will promptly send additional copies of this Prospectus and any
amendment or supplement to this Prospectus to any broker-dealer that requests
such documents in the Letter of Transmittal. The Company and the Parent
Guarantor have agreed to pay all expenses incident to the Registered Exchange
Offer (including the expenses of one counsel for the holders of the Notes)
other than dealers’ and brokers’ discounts, commissions and counsel fees and
will indemnify the holders of the Notes (including any broker-dealers) against
certain liabilities, including liabilities under the Act.

     [If applicable, add information required by Regulation S-K Items 507
and/or 508.]

C-1

 

ANNEX D

	 	 	 	 	 
	o	 	CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10
ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS
OR SUPPLEMENTS THERETO.
	 
	 	 	
Name:	 	 
	 	 	 	 	

	 
	 	 	
Address:	 	 
	 	 	 	 	

	 
	 
	 	 	 	 	

     The undersigned represents that it is not an Affiliate of the Company or
the Parent Guarantor, that any Exchange Notes to be received by it will be
acquired in the ordinary course of business and that at the time of the
commencement of the Registered Exchange Offer it had no arrangement with any
person to participate in a distribution of the Exchange Notes.

     In addition, if the undersigned is not a broker-dealer, the undersigned
represents that it is not engaged in, and does not intend to engage in, a
distribution of Exchange Notes. If the undersigned is a broker-dealer that
will receive Exchange Notes for its own account in exchange for Notes, it
represents that the Notes to be exchanged for Exchange Notes were acquired by
it as a result of market-making activities or other trading activities and
acknowledges that it will deliver a prospectus in connection with any resale of
such Exchange Notes; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
“underwriter” within the meaning of the Act.

D-1

 

ANNEX E

FORM OF LETTER TO BE PROVIDED BY THE COMPANY TO

THE DEPOSITORY TRUST COMPANY

The Depository Trust Company

55 Water Street, 50th Floor

New York, NY 10041

	 	 	 
	Re:	 	
9% Senior Notes due 2010 (the “Notes”) of
Hollinger International Publishing Inc.

Ladies and Gentlemen:

     Please be advised that the Securities and Exchange Commission has declared
effective a Registration Statement on Form S-     under the Securities Act of
1933, as amended, with regard to all of the Notes referenced above.
Accordingly, there is no longer any restriction as to whom such Notes may be
sold and [any restrictions on the CUSIP designation are no longer appropriate
and may be removed] [the new CUSIP number for the Notes provided should be
used]. I understand that upon receipt of this letter, DTC will remove any stop
or restriction on its system with respect to this issue.

     As always, please do not hesitate to call if we can be of further
assistance.

Very truly yours,

HOLLINGER INTERNATIONAL PUBLISHING INC.

	 	 	 
	By:	 	 
	 	 	

	 	 	
Authorized Officer

E-1

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