Document:

Exhibit 4(c)(viii)

 

Execution
Copy

 

BROADWING INC.

 

Senior Subordinated Discount Notes due 2009

EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

 

March 26, 2003

 

GS Mezzanine Partners II, L.P.

c/o Goldman, Sachs & Co.

85 Broad Street, 10th Floor

New York, NY 10004

 

GS Mezzanine Partners II Offshore, L.P.

c/o Goldman, Sachs & Co.

85 Broad Street, 10th Floor

New York, NY 10004

 

Other Purchasers named in Schedule 1 to the Purchase
Agreement

 

 

Ladies and
Gentlemen:

 

Broadwing Inc., an Ohio corporation (the “Company”),
proposes to issue and sell to GS Mezzanine Partners II, L.P., a Delaware
limited partnership (“GS Mezzanine”), GS Mezzanine Partners II Offshore,
L.P. (“GS Offshore”), an exempted limited partnership organized under
the laws of the Cayman Islands, and any other affiliate of GS Mezzanine who
purchases the Offered Securities (as defined in the Purchase Agreement) being
issued under the Purchase Agreement at the Closing (as defined in the Purchase
Agreement) (together with GS Mezzanine, GS Offshore and one or more
partnerships, corporations, trusts or other organizations specified as a
Purchaser in Schedule 1 to the Purchase Agreement which controls, is controlled
by, or is under common control with, GS Mezzanine or GS Offshore, the “GS
Purchasers”), and any other person specified as a Purchaser in Schedule 1
to the Purchase Agreement (together with the GS Purchasers, the “Purchasers”),
upon the terms and subject to the conditions set forth in a Purchase Agreement,
dated as of December 9, 2002 (as amended, supplemented or modified from time to
time, the “Purchase Agreement”), on the Closing Date (as defined in the
Purchase Agreement), its Senior Subordinated Discount Notes due 2009 in an
aggregate principal amount at maturity of $441,628,051.27 (the “Securities”),
issued pursuant to the Indenture (as defined in the Purchase Agreement), to be
jointly and severally guaranteed on a senior subordinated basis by certain of
the Company’s subsidiaries signatory hereto (the “Guarantors”).  Capitalized terms used but not defined
herein shall have the meanings given to such terms in the Purchase Agreement.

 

As an inducement to the Purchasers to enter into the
Purchase Agreement, the Company and the Guarantors agree with the Purchasers,
for the benefit of the holders (including

 

 

the Purchasers) of the Securities and the Exchange
Securities (as defined in Section 1) (collectively, the “Holders”),
as follows:

 

1.             Registered Exchange
Offer.  To the extent not
prohibited by any applicable law or applicable interpretations of the
Commission’s staff and except as provided in Section 2, the Company and
the Guarantors shall use their commercially reasonable efforts to (i) prepare
and file within 90 days following written demand therefor made by the holders
of at least 25% of the principal amount at maturity of Securities then
outstanding at any time 90 days following the Closing (the date of such demand,
the “Trigger Date”) with the Commission a registration statement (the “Exchange
Offer Registration Statement”) on an appropriate form under the Securities
Act with respect to a proposed offer to the Holders of the Securities (the “Registered
Exchange Offer”) to issue and deliver to such Holders, in exchange for any
and all of the Securities, a like aggregate principal amount at maturity of
debt securities of the Company (the “Exchange Securities”) that are
identical in all material respects to the Securities guaranteed on a senior
subordinated basis by the Guarantors pursuant to guarantees that are
substantially identical to the Guarantees (such new guarantees hereinafter
called “Exchange Guarantees”), except that they will have been
registered pursuant to an effective registration statement under the Securities
Act and will not contain provisions restricting transfer, (ii) use their
commercially reasonable efforts to cause the Exchange Offer Registration
Statement to become effective under the Securities Act no later than 150 days
after the Trigger Date and the Registered Exchange Offer to be consummated no
later than 180 days after the Trigger Date and (iii) keep the Exchange
Offer Registration Statement effective for not less than 30 days (or longer, if
required by applicable law) after the date on which notice of the Registered
Exchange Offer is mailed to the Holders (such period being called the “Exchange
Offer Registration Period”).  The
Exchange Securities and Exchange Guarantees will be issued pursuant to the
Indenture or an indenture (each an “Exchange Securities Indenture”)
between the Company, the Guarantors and the Trustee or such other bank or trust
company that is reasonably satisfactory to a majority in interest of the
Purchasers, as trustee (the “Exchange Securities Trustee”), such
indenture to be identical in all material respects to the Indenture, except for
the transfer restrictions relating to the Securities (as described above).

 

Upon the effectiveness of the Exchange Offer
Registration Statement, the Company shall promptly commence the Registered
Exchange Offer, it being the objective of such Registered Exchange Offer to
enable each Holder electing to exchange Securities for Exchange Securities
(assuming that such Holder (a) is not (i) an affiliate of the Company or
(ii) an Exchanging Dealer (as defined below) not complying with the
requirements of the next sentence, (b) acquires the Exchange Securities in
the ordinary course of such Holder’s business and (c) has no arrangements
or understandings with any person to participate in the distribution of the
Exchange Securities) and to trade such Exchange Securities from and after their
receipt without any limitations or restrictions under the Securities Act and
without material restrictions under the blue sky or securities laws of the
several states of the United States. 
The Company, the Guarantors and the Purchasers and each Exchanging
Dealer acknowledge that, pursuant to current interpretations by the
Commission’s staff of Section 5 of the Securities Act, each Holder that is a
broker-dealer electing to exchange Securities, acquired for its own account as
a result of market-making activities or other trading activities, for Exchange
Securities and Exchange Guarantees (an “Exchanging Dealer”), is required
to deliver a prospectus containing substantially

 

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the information set forth in Annex A hereto on the cover, in Annex
B hereto in the “Exchange Offer Procedures” section and the “Purpose
of the Exchange Offer” section and in Annex C hereto in the “Plan
of Distribution” section of such prospectus in connection with a sale of
any such Exchange Securities and Exchange Guarantees received by such
Exchanging Dealer pursuant to the Registered Exchange Offer.

 

In connection with the Registered Exchange Offer, the
Company shall:

 

(a)                                  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;

 

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

 

(c)                                  permit Holders to withdraw tendered
Securities at any time prior to the close of business, New York City time, on
the last business day on which the Registered Exchange Offer shall remain open
by sending to the depository referred to in clause (b) above at its address a
telegram, telex, facsimile transmission or letter setting forth the name of the
Holder, the principal amount at maturity of Securities delivered for exchange
and a statement that such Holder is withdrawing its election to have such
Securities exchanged; and

 

(d)                                 otherwise comply in all material respects
with all laws that are applicable to the Registered Exchange Offer.

 

As soon as practicable after the close of the
Registered Exchange Offer, the Company shall:

 

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

 

(b)                                 deliver, or cause to be delivered, to the
Trustee for cancellation all Securities or portions thereof so accepted for
exchange; and

 

(c)                                  cause the Trustee or the Exchange
Securities Trustee, as the case may be, promptly to authenticate and deliver to
each Holder Exchange Securities equal in principal amount at maturity to the
Securities of such Holder so accepted for exchange.

 

The Company and the Guarantors shall use their
commercially reasonable efforts to keep the Exchange Offer Registration
Statement effective and to amend and supplement the prospectus contained
therein in order to permit such prospectus to be used by all persons subject to
the prospectus delivery requirements of the Securities Act for a period of one
year after the date on which the Exchange Offer Registration Statement is
declared effective; provided that (i) in the case where
such prospectus and any amendment or supplement thereto must be delivered by an
Exchanging Dealer, such period shall be the period beginning on the date on
which the Exchange Offer Registration Statement is declared effective and
ending on the earlier

 

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to occur of (x) the date that is 180 days after the date on which
the Exchange Offer Registration Statement is declared effective and
(y) the date on which all Exchanging Dealers have sold all Exchange
Securities and Exchange Guarantees held by them and (ii) the Company shall
make such prospectus and any amendment or supplement thereto available to any
broker-dealer for use in connection with any resale of any Exchange Securities
for a period of not less than 180 days after the consummation of the Registered
Exchange Offer.

 

The Indenture or the Exchange Securities Indenture, as
the case may be, shall provide that the Securities and the Exchange Securities
shall vote and consent together on all matters as one class and that neither
the Securities nor the Exchange Securities will have the right to vote or
consent as a separate class on any matter.

 

Interest on each Exchange Security issued pursuant to
the Registered Exchange Offer will accrue from the last interest payment date
on which interest was paid on the Securities surrendered in exchange therefor.

 

Each Holder participating in the Registered Exchange
Offer shall be required to represent to the Company and the Guarantors that
(i) any Exchange Securities received by such Holder will be acquired in
the ordinary course of business, (ii) at the time of the consummation of
the Registered Exchange Offer such Holder has no arrangements or understanding
with any person to participate in the distribution of the Securities or the
Exchange Securities within the meaning of the Securities Act, (iii) such
Holder is not an “affiliate” (within the meaning of Rule 405 under the
Securities Act) of the Company and (iv) if such Holder is a broker-dealer that
will receive Exchange Securities, for its own account in exchange for
Securities that were acquired as a result of market-making or other trading
activities, then such Holder will deliver a prospectus in connection with any
resale of such Exchange Securities.

 

Notwithstanding any other provisions hereof, the
Company and the Guarantors will ensure that (i) any Exchange Offer
Registration Statement and any amendment thereto and any prospectus forming
part thereof and any supplement thereto complies in all material respects with
the Securities Act and the rules and regulations of the Commission thereunder,
(ii) any Exchange Offer Registration Statement and any amendment thereto
does not, when it becomes effective, contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (iii) any
prospectus forming part of any Exchange Offer Registration Statement, and any
supplement to such prospectus, does not, as of the consummation of the
Registered Exchange Offer, include an untrue statement of a material fact or
omit 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.

 

2.                                       Shelf
Registration.  If (i) the Company determines that
the Registered Exchange Offer, as contemplated by Section 1, is not
available because it would violate any applicable law or applicable
interpretations of the Commission’s staff, or (ii) any Securities validly
tendered pursuant to the Registered Exchange Offer are not exchanged for
Exchange Securities on or prior to 180 days after the Trigger Date, or
(iii) any Purchaser so requests on or prior to the 20th
business day following the date on which the Registered Exchange Offer is
consummated with respect to Securities not eligible to be exchanged for
Exchange Securities in

 

4

 

the Registered Exchange Offer and held by it following the consummation
of the Registered Exchange Offer, or (iv) any change in law or the
applicable interpretations thereof by the Commission’s staff do not permit any
Holder to participate in the Registered Exchange Offer, or (v) any Holder
that participates in the Registered Exchange Offer and does not receive freely
transferable Exchange Securities in exchange for tendered Securities (other
than restrictions due solely to the status of such Holder as an “affiliate”
(within the meaning of Rule 405 under the Securities Act) of the Company or the
Guarantors) so requests with respect to such Securities on or prior to the 20th
business day following the date on which the Registered Exchange Offer is
consummated, or (vi) the Company so elects, then the following provisions
shall apply:

 

(a)                                  The Company and the Guarantors shall use
their commercially reasonable efforts to file as promptly as practicable (but
in no event more than 60 days after so required or requested pursuant to this Section
2) with the Commission, and thereafter shall use their commercially
reasonable efforts to cause to be declared effective, a shelf registration
statement on an appropriate form under the Securities Act relating to the offer
and sale of the Transfer Restricted Securities (as defined in Section 3(a)),
by the Holders thereof from time to time in accordance with the methods of
distribution set forth in such registration statement (hereafter, a “Shelf
Registration Statement” and, together with any Exchange Offer Registration
Statement, a “Registration Statement”); provided that no Holder
(other than each Purchaser) shall be entitled to have any Securities held by
such Holder covered by such Shelf Registration Statement unless such Holder
agrees in writing to be bound by the provisions of this Agreement applicable to
such Holder.

 

(b)                                 The Company and the Guarantors shall use
their commercially reasonable efforts to keep the Shelf Registration Statement
continuously effective in order to permit the prospectus forming part thereof
to be used by Holders of Transfer Restricted Securities for a period ending on
the earlier of (i) the date when all the Transfer Restricted Securities
covered by the Shelf Registration Statement have been sold pursuant thereto and
(ii) the date on which the Securities become eligible for resale without
volume restrictions pursuant to Rule 144 under the Securities Act (in any such
case, such period being called the “Shelf Registration Period”); provided
that upon the occurrence or existence of any pending corporate development or
any other event that, in the reasonable judgment of the Company, makes it
appropriate to suspend the availability of the Shelf Registration Statement and
the related prospectus, the Company shall give notice (without notice of the
nature of details of such events) to the Holders of Transfer Restricted
Securities that the availability of the Shelf Registration Statement is
suspended and, each Holder agrees not to sell any Securities or Exchange
Securities pursuant to the Shelf Registration Statement until such Holder’s
receipt of copies of a supplemented or amended prospectus provided for in
Section 4(j), or until it is advised in writing by the Company that the
prospectus may be used, and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in such prospectus.  The period during
which the availability of the Shelf Registration Statement and any prospectus
is suspended (the “Suspension Period”) shall, without the Company
incurring any obligation to pay Special Interest pursuant to Section 3(a),
not exceed 45 days in any three-month period or 90 days in any
12-month period.

 

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(c)                                  For any sale, transfer or other
disposition of Transfer Restricted Securities pursuant to the Shelf
Registration Statement, each Holder shall give the Company prior written notice
of such sale, transfer or other disposition (any such notice, a “Sale Notice”).  Such Holder shall not consummate the sale,
transfer or other disposition of Transfer Restricted Securities specified in a
Sale Notice unless and until the Company has advised such Holder whether an
amendment or supplement to the Shelf Registration Statement is necessary or
appropriate in order for sales thereunder to be made in compliance with the
Commission’s applicable rules and regulations; provided that if the Company
shall not have so advised such Holder within three business days after a Sale
Notice has been delivered, the Company shall be deemed to have advised such
Holder on such third business day that no amendment or supplement to the Shelf
Registration Statement is required (a “Deemed Sale Advise”) and such
Holder may consummate the sale, transfer or other disposition of Transfer
Restricted Securities described in such Sale Notice at any time during the five
business day period commencing on the first business day following the date on
which such Holder received such Deemed Sale Advise.  If, after receipt of a Sale Notice from a Holder, the Company
advises such Holder that no amendment or supplement to the Shelf Registration
Statement is necessary or appropriate in order for sales thereunder to be made
in compliance with the Commission’s applicable rules and regulations (a “Sale
Advice”), such Holder may consummate the sale, transfer or other
disposition described in such Sale Notice at any time during the five business
day period commencing on the first business day following the date on which
such Holder received such Sale Advice. 
If, after receipt of a Sale Notice from a Holder, the Company advises
such Holder in writing that the Company considers it necessary or appropriate
for the Shelf Registration Statement to be amended or supplemented in order for
sales thereunder to be made in compliance with the Commission’s applicable
rules and regulations prior to such Holder’s receipt of a Sale Advise or Deemed
Sale Advise with respect to such Sale Notice, such Holder shall suspend the
sale, transfer or other disposition of its Transfer Restricted Securities
described in such Sale Notice until the Company advises such Holder that the
Shelf Registration Statement has been amended or supplemented and declared
effective.  The Company shall use
commercially reasonable efforts to file any such amendment or supplement and
cause the Shelf Registration Statement to be declared effective as soon as
practicable.

 

(d)                                 Notwithstanding any other provisions
hereof, the Company and the Guarantors will ensure that (i) any Shelf
Registration Statement and any amendment thereto and any prospectus forming
part thereof and any supplement thereto complies in all material respects with
the Securities Act and the rules and regulations of the Commission thereunder,
(ii) any Shelf Registration Statement and any amendment thereto (in either
case, other than with respect to information included therein in reliance upon
or in conformity with written information furnished to the Company by or on
behalf of any Holder specifically for use therein, including, without
limitation, any such information provided by the Holders pursuant to Annexes A,
B, C and D (the “Holders’ Information”)) does not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading and
(iii) any prospectus forming part of any Shelf Registration Statement, and

 

6

 

any supplement to such prospectus (in either case,
other than with respect to Holders’ Information), 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 the light of the circumstances under
which they were made, not misleading.

 

(e) Notwithstanding any other provision hereof, the
Company and the Guarantors shall not be required to effect a Shelf Registration
Statement pursuant to the requirements of this Section 2 unless the
original principal amount of the Securities sought to be included therein is at
least $20 million.

 

3.                                       Special Interest.

 

(a)                                  If (i) the Exchange Offer Registration
Statement is not filed with the Commission within 90 days following the Trigger
Date, (ii) the Shelf Registration Statement is not filed within 30 days after,
or is not declared effective within 150 days after, filing is required or
requested pursuant to Section 2, (iii) the Exchange Offer Registration
Statement is not declared effective on or prior to 150 days after the Trigger
Date, (iv) the Registered Exchange Offer is not consummated on or prior to 180
days after the Trigger Date, or (v) the Shelf Registration Statement is filed
and declared effective but shall thereafter cease to be effective prior to the
end of the Shelf Registration Period (other than during a Suspension Period
permitted under Section 2(b) or as permitted under Section 2(a)) (it being
understood that the Company and the Guarantors shall not be obligated to
maintain such effectiveness if the failure to maintain such effectiveness was
caused by a failure of Holders to perform their obligations hereunder with
respect to the provision of the Holders’ Information) (each such event referred
to in clauses (i) through (v), a “Registration Default”), the Company
and the Guarantors will be jointly and severally obligated to pay special
interest (“Special Interest”) to each holder of Transfer Restricted
Securities, during the period of one or more such Registration Defaults, at the
rate equal to $0.05 per week per $1,000 of principal amount at Maturity for the
first 90 days during the period of one or more such Registration Defaults,
which amount shall increase by $0.192 per week per $1,000 of principal amount
at Maturity for each subsequent 90-day period during the continuance of one or
more Registration Default, until such time as no Registration Default is in
effect (after which such Special Interest shall cease to be payable), up to a
maximum amount of Special Interest for all Registration Defaults of $0.50 per
week per $1,000 of principal amount at Maturity.  As used herein, “Transfer Restricted Securities” means
each Security until (i) the date on which such Security has been exchanged
for a freely transferable Exchange Security in the Registered Exchange Offer,
(ii) the date on which such Security has been effectively registered under
the Securities Act and disposed of in accordance with the Shelf Registration
Statement, (iii) the date on which such Security is distributed to the
public pursuant to Rule 144 under the Securities Act or is saleable pursuant to
Rule 144(k) under the Securities Act or (iv) the date on which such Security
ceases to be outstanding.

 

(b)                                 The Company shall notify the Trustee and
the Paying Agent (as defined in the Indenture) under the Indenture immediately
upon the happening of each and every Registration Default.  The Company and the Guarantors shall pay the
Special Interest due

 

7

 

on the Transfer Restricted Securities by depositing
with the Paying Agent (which may not be the Company for these purposes), in
trust, for the benefit of the Holders thereof, prior to 10:00 a.m., New York
City time, on the next interest payment date specified by the Indenture and the
Securities, sums sufficient to pay the Special Interest then due.  The Special Interest due shall be payable on
each interest payment date specified by the Indenture and the Securities to the
record holder entitled to receive the interest payment to be made on such
date.  Each obligation to pay Special
Interest shall be deemed to accrue from and including the date of the
applicable Registration Default.

 

(c)                                  The parties hereto agree that the Special
Interest provided for in this Section 3 constitutes a reasonable
estimate of and is intended to constitute the sole damages that will be
suffered by Holders of Transfer Restricted Securities by reason of the failure
of (i) the Exchange Offer Registration Statement to be filed, (ii) the
Shelf Registration Statement to remain effective, (iii) the Exchange Offer
Registration Statement or the Shelf Registration Statement to be declared
effective, or (iv) the Registered Exchange Offer to be consummated, in each
case to the extent required by this Agreement.

 

4.                                       Registration
Procedures.  In connection with any Registration
Statement, the following provisions shall apply:

 

(a)                                  The Company shall (i) furnish to
each Purchaser, prior to the filing thereof with the Commission, a copy of the
Registration Statement and each amendment thereof and each supplement, if any,
to the prospectus included therein and shall use its commercially reasonable
efforts to reflect in each such document, when so filed with the Commission,
such comments as any Purchaser may reasonably propose; (ii) include the
information set forth in Annex A hereto on the cover, in Annex B
hereto in the “Exchange Offer Procedures” section and the “Purpose of
the Exchange Offer” section and in Annex C hereto in the “Plan of
Distribution” section of the prospectus forming a part of the Exchange
Offer Registration Statement, and include the information set forth in Annex
D hereto in the Letter of Transmittal (as defined in the Exchange Offer
Registration Statement) delivered pursuant to the Registered Exchange Offer;
and (iii) if requested by any Purchaser, include the information required
by Items 507 or 508 of Regulation S-K, as applicable, in the prospectus forming
a part of the Exchange Offer Registration Statement.

 

(b)                                 The Company shall advise each Purchaser,
each Exchanging Dealer and the Holders (if applicable) and, if requested by any
such person, confirm such advice in writing (which advice pursuant to clauses
(ii)-(v) hereof shall be accompanied by an instruction to suspend the use of
the prospectus until the requisite changes have been made):

 

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

 

8

 

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

 

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

 

(iv)                              of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Securities or the Exchange Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose; and

 

(v)                                 of the happening of any event that
requires the making of any changes in any Registration Statement so that (A)
the Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading or (B) any prospectus forming part of any Registration
Statement, and any 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 the light of the circumstances under
which they were made, not misleading.

 

(c)                                  The Company and the Guarantors will use
their commercially reasonable efforts to obtain the withdrawal at the earliest
possible time of any order suspending the effectiveness of any Registration
Statement.

 

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

 

(e)                                  The Company will, during the Shelf
Registration Period, promptly deliver to each Holder of Transfer Restricted
Securities included within the coverage of any Shelf Registration Statement,
without charge, as many copies of the prospectus (including each preliminary
prospectus) included in such Shelf Registration Statement and any amendment or
supplement thereto as such Holder may reasonably request; and the Company
consents to the use of such prospectus or any amendment or supplement thereto
by each of the selling Holders of Transfer Restricted Securities in connection
with the offer and sale of the Transfer Restricted Securities covered by such
prospectus or any amendment or supplement thereto to satisfy applicable
prospectus delivery requirements for sales in accordance with the Plan of
Distribution and applicable law.

 

9

 

(f)                                    The Company will furnish to each
Purchaser and each Exchanging Dealer, and to any other Holder who so requests,
without charge, at least one conformed copy of the Exchange Offer Registration
Statement and any post-effective amendment thereto, including financial
statements and schedules and, if any Purchaser or Exchanging Dealer or any such
Holder so requests in writing, all exhibits thereto (including those, if any,
incorporated by reference).

 

(g)                                 The Company will, during the Exchange
Offer Registration Period, promptly deliver to each Purchaser, each Exchanging
Dealer and such other persons that are required to deliver a prospectus
following the Registered Exchange Offer, without charge, as many copies of the
final prospectus included in the Exchange Offer Registration Statement or the
Shelf Registration Statement and any amendment or supplement thereto as such
Purchaser, Exchanging Dealer or other persons may reasonably request; and the
Company and the Guarantors consent to the use of such prospectus or any
amendment or supplement thereto by any such Purchaser, Exchanging Dealer or
other persons, as applicable, as aforesaid.

 

(h)                                 Prior to the effective date of any
Registration Statement, the Company and the Guarantors will use its
commercially reasonable efforts to register or qualify, or cooperate with the
Holders of Securities or Exchange Securities included therein and their
respective counsel in connection with the registration or qualification of,
such Securities or Exchange Securities for offer and sale under the securities
or blue sky laws of such jurisdictions as any such Holder reasonably requests
in writing and do any and all other acts or things necessary or advisable to
enable the offer and sale in such jurisdictions of the Securities or Exchange
Securities covered by such Registration Statement; provided that neither the
Company nor any Guarantor will be required to qualify generally to do business
in any jurisdiction where it is not then so qualified 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.

 

(i)                                     In the case of a Shelf Registration
Statement, the Company and the Guarantors will cooperate with the Holders of
Transfer Restricted Securities to facilitate the timely preparation and
delivery of certificates representing Transfer Restricted Securities to be sold
pursuant to such Shelf Registration Statement free of any restrictive legends
and in such denominations and registered in such names as the Holders thereof
may reasonably request in writing prior to sales of Transfer Restricted
Securities (consistent with the provisions of the Indenture) pursuant to such
Shelf Registration Statement.

 

(j)                                     If any event contemplated by Section
4(b)(ii) through (v) occurs during the period for which the
Company and the Guarantors are required to maintain an effective Registration
Statement, the Company and the Guarantors will promptly prepare and file with
the Commission a post-effective amendment to the Registration Statement or a
supplement to the related prospectus or file any other required document so
that, as thereafter delivered to purchasers of the Securities or Exchange
Securities from a Holder, the prospectus will not include an untrue statement
of a material fact or omit to state a

 

10

 

material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

 

(k)                                  Not later than the effective date of the
applicable Registration Statement, the Company will provide a CUSIP number for
the Securities or the Exchange Securities, as the case may be, and provide the
applicable trustee with printed certificates for the Securities or the Exchange
Securities, as the case may be, in a form eligible for deposit with The
Depository Trust Company.

 

(l)                                     The Company and the Guarantors will
comply in all material respects with all applicable rules and regulations of
the Commission and the Company will make generally available (including by
press release) to its 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 Securities Act; provided
that in no event shall such earnings statement be delivered later than 45 days
after the end of a 12-month period (or 90 days, if such period is a fiscal
year) beginning with the first month of the Company’s first fiscal quarter
commencing after the effective date of the applicable Registration Statement,
which statement shall cover such 12-month period.

 

(m)                               The Company and the Guarantors will cause
the Indenture or the Exchange Securities Indenture, as the case may be, to be
qualified under the TIA as required by applicable law in a timely manner and in
the event that such qualification would require the appointment of a new
trustee under such indenture, the Company shall, to the extent it is permitted,
appoint a new trustee thereunder pursuant to the applicable provisions of such
indenture.

 

(n)                                 The Company may require each Holder of
Transfer Restricted Securities to be registered pursuant to any Shelf
Registration Statement to furnish to the Company such information concerning
the Holder and the distribution of such Transfer Restricted Securities as the
Company may from time to time reasonably require for inclusion in such Shelf
Registration Statement, and the Company may exclude from such registration the
Transfer Restricted Securities of any Holder that fails to furnish such
information within a reasonable time after receiving such request.

 

(o)                                 In the case of a Shelf Registration
Statement, each Holder of Transfer Restricted Securities to be registered
pursuant thereto agrees by acquisition of such Transfer Restricted Securities
that, upon receipt of any notice from the Company pursuant to Section
4(b)(ii) through (v), such Holder will discontinue disposition of
such Transfer Restricted Securities until such Holder’s receipt of copies of
the supplemental or amended prospectus or other document contemplated by Section
4(j) or until advised in writing (the “Advice”) by the Company that
the use of the applicable prospectus may be resumed.  If the Company shall give any notice under Section 4(b)(ii)
through (v) during the Shelf Registration Period, such Shelf
Registration Period shall not include any period during which the failure to
maintain such effectiveness was caused by a failure of Holders to perform their
obligations hereunder with respect to the provisions of the Holders’
Information and shall be extended by the number of days during such period from
and

 

11

 

including the date of the giving of such notice to and
including the date when each seller of Transfer Restricted Securities covered
by such Registration Statement shall have received (x) the copies of the
supplemental or amended prospectus or other document contemplated by Section
4(j) (if an amended or supplemental prospectus or other document is
required) or (y) the Advice (if no amended or supplemental prospectus or other
document is required).

 

(p)                                 In the case of a Shelf Registration
Statement, the Company and the Guarantors shall enter into such customary
agreements (including, if requested, an underwriting agreement in customary
form) and take all such other customary action, if any, as Holders of a
majority in principal amount at maturity of the Securities and Exchange
Securities being sold or the managing underwriters (if any) shall reasonably
request in order to facilitate any disposition of Securities or Exchange
Securities pursuant to such Shelf Registration Statement.

 

(q)                                 In the case of a Shelf Registration
Statement, the Company shall (i) make available, at reasonable times and
in a reasonable manner, for inspection by a representative of, and Special
Counsel (as defined in Section 5) acting for, Holders of a majority in
principal amount at maturity of the Securities and Exchange Securities being
sold and any underwriter participating in any disposition of Securities or
Exchange Securities pursuant to such Shelf Registration Statement, all relevant
financial and other records, pertinent corporate documents and properties of
the Company and its subsidiaries and (ii) use its commercially reasonable
efforts to have its officers, directors, employees, Guarantors, accountants and
counsel supply all relevant information reasonably requested by such
representative, Special Counsel or any such underwriter (an “Inspector”)
in connection with such Shelf Registration Statement, in either case to the
extent reasonably requested by such Inspector for the purpose of conducting
customary due diligence with respect to the Company; provided that if
any such information is identified by the Company or any Guarantor as being
confidential or proprietary, each Person receiving such information shall take
such actions as are reasonably necessary to protect the confidentiality of such
information to the extent such action is otherwise not inconsistent with, an
impairment of or in derogation of the rights and interests of any Inspector or
Holder.

 

(r)                                    In the case of a Shelf Registration
Statement, the Company shall, if requested by Holders of a majority in
principal amount at maturity of the Securities and Exchange Securities being
sold, their Special Counsel or the managing underwriters (if any) in connection
with such Shelf Registration Statement, use its commercially reasonable efforts
to cause (i) its counsel to deliver an opinion relating to the Shelf
Registration Statement and the Securities or Exchange Securities, as
applicable, in customary form covering the matters customarily covered in
opinions requested in underwritten offerings, (ii) its officers to execute
and deliver all customary documents and certificates reasonably requested by
Holders of a majority in principal amount at maturity of the Securities and
Exchange Securities being sold, their Special Counsel or the managing
underwriters (if any) and (iii) its independent public accountants to
provide a comfort letter or letters in customary form, subject to receipt of
appropriate

 

12

 

documentation as contemplated, and only if permitted,
by Statement of Auditing Standards No. 72.

 

(s)                                  In the case of a Shelf Registration
Statement, the Company shall, in the event that any broker-dealer registered
under the Exchange Act shall underwrite any Securities and Guarantees or
participate as a member of an underwriting syndicate or selling group or
“assist in the distribution” (within the meaning of the Rules of Conduct (the “Rules
of Conduct”) of the National Association of Securities Dealers, Inc. (“NASD”))
thereof, whether as a holder of such Securities and Guarantees or as an
underwriter, a placement or sales agent or a broker or dealer in respect
thereof, or otherwise, assist such broker-dealer in complying with the
requirements of such Rules of Conduct, including, without limitation, by
(A) if such Rules of Conduct shall so require, engaging a “qualified
independent underwriter” (as defined in such Rules of Conduct) to participate
in the preparation of the registration statement relating to such Securities
and Guarantees, to exercise usual standards of due diligence in respect thereto
and, if any portion of the offering contemplated by such registration statement
is an underwritten offering or is made through a placement or sales agent, to
recommend the yield of such Securities and Guarantees, (B) indemnifying
any such qualified independent underwriter to the extent of the indemnification
of underwriters provided in Section 6, and (C) providing such
information to such broker-dealer as may be required in order for such
broker-dealer to comply with the requirements of the Rules of Conduct.

 

5.                                       Registration Expenses.  The Company agrees to bear and to pay or cause to be paid all expenses
incident to the Company’s performance of or compliance with this Agreement,
including, without limitation, (a) all Commission and any NASD
registration and filing fees and expenses, (b) all expenses relating to
the preparation, printing, distribution and reproduction of each registration
statement required to be filed hereunder, each prospectus included therein or
prepared for distribution pursuant hereto, each amendment or supplement to the
foregoing, the Exchange Securities, the certificates representing the
Securities and Exchange Securities and all other documents relating to the
Company’s performance of or compliance with this Agreement, (c) fees and
expenses of the Trustee under the Indenture and of any escrow agent or
custodian, (d) internal expenses of the Company related to the Company’s performance
of or compliance with this Agreement (including, without limitation, all
salaries and expenses of the Company’s officers and employees performing legal
or accounting duties), (e) fees, disbursements and expenses of counsel and
independent certified public accountants of the Company (including the expenses
of any opinions or “cold comfort” letters required by or incident to such
performance and compliance), (f) in the case of a Shelf Registration
Statement, the fees and disbursements of one counsel (“Special Counsel”)
for the Holders, and (g) fees and expenses of compliance with state securities
or “blue sky” laws and in connection with the preparation of a “blue sky”
survey, including without limitation, reasonable fees and expenses of blue sky
counsel (collectively, the “Registration Expenses”).  To the extent that any Registration Expenses
are incurred, assumed or paid by any Holder or any placement or sales agent
therefor or underwriter thereof, the Company shall reimburse such person for
the full amount of the Registration Expenses so incurred, assumed or paid
promptly after receipt of a request and invoice therefor.  Notwithstanding the foregoing, the Holders
of the Securities or Exchange Securities being registered shall pay all agency
fees and commissions and underwriting discounts

 

13

 

and commissions attributable to the sale of such Securities or Exchange
Securities and the fees and disbursements of any counsel or other advisors or
experts retained by such Holders (severally or jointly), other than the counsel
and experts specifically referred to above.

 

Notwithstanding the foregoing, the provisions of this Section 5
shall be deemed amended to the extent necessary to cause these expense
provisions to comply with “blue sky” laws of each state or the securities laws
of any other jurisdiction in the United States and its territories in which the
offering is made.

 

6.                                       Indemnification.  (a)  In the event the Company files a Shelf
Registration Statement or in connection with any prospectus delivery pursuant
to an Exchange Offer Registration Statement by a Holder or Exchanging Dealer,
as applicable, the Company and the Guarantors shall jointly indemnify and hold
harmless each Holder (including, without limitation, any Purchaser or
Exchanging Dealer), its affiliates, their respective officers, partners,
directors, employees, representatives and agents, and each person, if any, who
controls such Holder within the meaning of the Securities Act or the Exchange
Act  (collectively referred to for
purposes of this Section 6 and Section 7 as a Holder), from and
against any loss, claim, damage or liability, joint or several, or any action
in respect thereof (including, without limitation, any loss, claim, damage,
liability or action relating to purchases and sales of Securities or Exchange
Securities), to which that Holder may become subject, whether commenced or
threatened, under the Securities Act, the Exchange Act, any other federal or
state statutory law or regulation, at common law, or otherwise, insofar as such
loss, claim, damage, liability or action arises out of, or is based upon,
(i) any untrue statement or alleged untrue statement of a material fact
contained in any such Registration Statement or any prospectus forming part
thereof or in any amendment or supplement thereto or (ii) the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and shall reimburse
each Holder promptly upon demand for any legal or other expenses reasonably
incurred by that Holder in connection with investigating or defending or
preparing to defend against or appearing as a third party witness in connection
with any such loss, claim, damage, liability or action as such expenses are
incurred; provided,
however,
that the Company and the Guarantors shall not be liable in any such case to the
extent that any such loss, claim, damage, liability or action arises out of, or
is based upon, an untrue statement or alleged untrue statement in or omission
or alleged omission from any of such documents in reliance upon and in
conformity with any information relating to any Holder furnished to the Company
by such Holder; and provided, further, that with respect
to any such untrue statement in or omission from any related preliminary
prospectus, the indemnity agreement contained in this Section 6(a) shall
not inure to the benefit of any Holder from whom the person asserting any such
loss, claim, damage, liability or action received Securities or Exchange
Securities to the extent that such loss, claim, damage, liability or action of
or with respect to such Holder results from the fact that both (A) a copy of
the final prospectus was not sent or given to such person at or prior to the
written confirmation of the sale of such Securities or Exchange Securities to
such person and (B) the untrue statement in or omission from the related
preliminary prospectus was corrected in the final prospectus unless, in either
case, such failure to deliver the final prospectus was a result of
non-compliance by the Company with Section 4(d), 4(e), 4(f)
or 4(g).

 

14

 

(b)                                 In the event the Company files a Shelf
Registration Statement or in connection with any prospectus delivery pursuant
to an Exchange Offer Registration Statement by a Holder or Exchanging Dealer,
as applicable, each Holder shall indemnify and hold harmless the Company and
the Guarantors, their affiliates, their respective officers, directors,
employees, representatives and agents, and each person, if any, who controls
the Company or any Guarantor within the meaning of the Securities Act or the
Exchange Act (collectively referred to for purposes of this Section 6(b)
and Section 7 as the “Company”), from and against any loss,
claim, damage or liability, joint or several, or any action in respect thereof,
to which the Company may become subject, whether commenced or threatened, under
the Securities Act, the Exchange Act, any other federal or state statutory law
or regulation, at common law or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement
or alleged untrue statement of a material fact contained in any such
Registration Statement or any prospectus forming part thereof or in any
amendment or supplement thereto or (ii) the omission or alleged omission
to state therein a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, but in each case only to the extent that
the untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with any information
relating to such Holder furnished to the Company by such Holder, and shall
reimburse the Company for any legal or other expenses reasonably incurred by
the Company in connection with investigating or defending or preparing to
defend against or appearing as a third party witness in connection with any
such loss, claim, damage, liability or action as such expenses are incurred; provided,
however,
that no such Holder shall be liable for any indemnity claims hereunder in
excess of the amount of net proceeds received by such Holder from the sale of
Securities or Exchange Securities pursuant to such Shelf Registration
Statement.

 

(c)                                  Promptly after receipt by an indemnified
party under this Section 6 of notice of any claim or the commencement of
any action, the indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party pursuant to Section 6(a) or 6(b),
notify the indemnifying party in writing of the claim or the commencement of
that action; provided, however, that the failure to notify the
indemnifying party shall not relieve it from any liability which it may have
under this Section 6 or otherwise except to the extent that it has been
materially prejudiced by such failure. 
If any such claim or action shall be brought against an indemnified
party, and it shall notify the indemnifying party thereof, the indemnifying
party shall be entitled to participate therein and, to the extent that it wishes,
jointly with any other similarly notified indemnifying party, to assume the
defense thereof with counsel reasonably satisfactory to the indemnified
party.  After notice from the
indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 6 for any legal or other
expenses subsequently incurred by the indemnified party in connection with the
defense thereof other than the reasonable costs of investigation; provided,
however,
that an indemnified party shall have the right to employ its own counsel in any
such action, but the fees, expenses and other charges of such counsel for the
indemnified party will be at the expense of such indemnified party unless (1)
the employment of counsel by the indemnified party has been authorized in
writing by the indemnifying party, (2) the indemnified party has reasonably
concluded (based upon written advice of counsel to the indemnified party) that
there may be legal defenses available to it that

 

15

 

are different from or in addition to those available to the
indemnifying party, (3) a conflict or potential conflict exists (based upon
written advice of counsel to the indemnified party) between the indemnified
party and the indemnifying party (in which case the indemnifying party will not
have the right to direct the defense of such action on behalf of the
indemnified party) or (4) the indemnifying party has not in fact employed
counsel reasonably satisfactory to the indemnified party to assume the defense
of such action within a reasonable time after receiving notice of the
commencement of the action, in each of which cases the reasonable fees,
disbursements and other charges of counsel will be at the expense of the
indemnifying party or parties.  It is
understood that the indemnifying party or parties shall not, in connection with
any proceeding or related proceedings in the same jurisdiction, be liable for
the reasonable fees, disbursements and other charges of more than one separate
firm of attorneys (in addition to any local counsel) at any one time for all
such indemnified party or parties.  Each
indemnified party, as a condition of the indemnity agreements contained in Sections
6(a) and 6(b), shall use all reasonable efforts to cooperate with
the indemnifying party in the defense of any such action or claim.  No indemnifying party shall be liable for
any settlement of any such action effected without its written consent (which
consent shall not be unreasonably withheld), but if settled with its written
consent or if there be a final judgment for the plaintiff in any such action,
the indemnifying party agrees to indemnify and hold harmless any indemnified
party from and against any loss or liability by reason of such settlement or
judgment.  No indemnifying party shall,
without the prior written consent of the indemnified party (which consent shall
not be unreasonably withheld), effect any settlement of any pending or
threatened proceeding in respect of which any indemnified party is or could
have been a party and indemnity could have been sought hereunder by such
indemnified party, unless such settlement includes an unconditional release of
such indemnified party from all liability on claims that are the subject matter
of such proceeding and does not include a statement as to, or an admission of,
fault, culpability or failure to act, by or on behalf of any indemnified party.

 

7.                                       Contribution.  If the indemnification provided for in Section 6
is unavailable or insufficient to hold harmless an indemnified party under Section
6(a) or 6(b), then each indemnifying party shall, in lieu of
indemnifying such indemnified party, contribute to the amount paid or payable
by such indemnified party as a result of such loss, claim, damage or liability,
or action in respect thereof, (i) in such proportion as shall be
appropriate to reflect the relative benefits received by the Company from the
initial offering and sale of the Securities, on the one hand, and by a Holder
from receiving Securities or Exchange Securities, as applicable, registered
under the Securities Act, on the other, or (ii) if the allocation provided
by clause (i) above is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits referred to in
clause (i) above but also the relative fault of the Company and the
Guarantors, on the one hand, and the Holders, on the other, with respect to the
statements or omissions that resulted in such loss, claim, damage or liability,
or action in respect thereof, as well as any other relevant equitable
considerations.  The relative fault
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 the Company and the Guarantors or
information supplied by the Company and the Guarantors, on the one hand, or to
any information relating to such Holder supplied by such Holder, on the other,
the intent of the parties and their relative knowledge, access to information
and opportunity to correct or prevent

 

16

 

such untrue statement or omission. 
The parties hereto agree that it would not be just and equitable if
contributions pursuant to this Section 7 were to be determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to herein.  The amount paid or payable by an indemnified party as a result of
the loss, claim, damage or liability, or action in respect thereof, referred to
above in this Section 7 shall be deemed to include, for purposes of this
Section 7, any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending or preparing to
defend any such action or claim. 
Notwithstanding the provisions of this Section 7, an indemnifying
party that is a Holder of Securities or Exchange Securities shall not be
required to contribute any amount in excess of the amount by which the total
price at which the Securities or Exchange Securities sold by such indemnifying
party to any purchaser exceeds the amount of any damages which such
indemnifying party has otherwise paid or become liable to pay by reason of any
untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

 

8.                                       Rules 144 and 144A.The Company shall use its commercially
reasonable efforts to file the reports required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations adopted by
the Commission thereunder in a timely manner and, if at any time the Company is
not required to file such reports, it will, upon the written request of any
Holder of Transfer Restricted Securities, make publicly available other
information so long as necessary to permit sales of such Holder’s securities
pursuant to Rules 144 and 144A or any successor rule or regulation hereafter
adopted by the Commission.  The Company
and the Guarantors covenant that they will take such further action as any
Holder of Transfer Restricted Securities may reasonably request, all to the
extent required from time to time to enable such Holder to sell Transfer
Restricted Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rules 144 and 144A (including, without
limitation, the requirements of Rule 144A(d)(4)).  Upon the written request of any Holder of Transfer Restricted
Securities, the Company and the Guarantors shall deliver to such Holder a
written statement as to whether they have complied with such requirements.
Notwithstanding the foregoing, nothing in this Section 8 shall be deemed
to require the Company to register any of its securities pursuant to the
Exchange Act.

 

9.                                       Underwritten
Registrations.  If any of the Transfer Restricted
Securities covered by any Shelf Registration Statement are to be sold in an
underwritten offering, the investment banker or investment bankers and manager
or managers that will administer the offering will be selected by the Holders
of a majority in principal amount at maturity of such Transfer Restricted
Securities included in such offering, subject to the consent of the Company
(which shall not be unreasonably withheld or delayed), and such Holders shall
be responsible for all underwriting commissions and discounts in connection
therewith.

 

No person may participate in any underwritten
registration hereunder unless such person (i) agrees to sell such person’s
Transfer Restricted Securities on the basis reasonably provided in any
underwriting arrangements approved by the persons entitled hereunder to approve
such arrangements and (ii) completes and executes all questionnaires,
powers of

 

17

 

attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements.

 

10.                                 Miscellaneous.(a)  Amendments and Waivers.  The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, unless the Company has obtained the
written consent of Holders of a majority in aggregate principal amount at
maturity of the Securities and the Exchange Securities, taken as a single
class, affected by such amendment, modification, supplement, waiver or
consent.  Notwithstanding the foregoing,
a waiver or consent to depart from the provisions hereof with respect to a
matter that relates exclusively to the rights of Holders whose Securities or
Exchange Securities are being sold pursuant to a Registration Statement and
that does not directly or indirectly affect the rights of other Holders may be
given by Holders of a majority in aggregate principal amount at maturity of the
Securities and the Exchange Securities being sold by such Holders pursuant to
such Registration Statement.

 

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

 

(1)                                  if to a Holder, at the most current
address given by such Holder to the Company in accordance with the provisions
of this Section 10(b), which address initially is, with respect to each
Holder, the address of such Holder maintained by the Registrar under the
Indenture;

 

(2)                                  if to a Purchaser, initially at its
address set forth in the Purchase Agreement with a copy to Fried, Frank,
Harris, Shriver & Jacobson, One New York Plaza, New York, New York, 10004,
Attention:  F. William Reindel, Esq., or
at such other address as the Purchaser or its nominee shall have specified to
the Company in writing; and

 

(3)                                  if to the Company or any Guarantor,
initially at the address of the Company set forth in the Purchase Agreement,
Attention:  Mark Peterson, with a copy
to Cravath, Swaine & Moore, 825 Eighth Avenue, New York, NY  10019, Attention:  William V. Fogg, Esq., or at such other address as the Company
shall have specified to each Holder in writing.

 

All such notices and communications shall be deemed to
have been duly given:  when delivered by
hand, if personally delivered; one business day after being delivered to a
next-day air courier; five business days after being deposited in the mail; and
when receipt is acknowledged by the recipient’s telecopier machine, if sent by
telecopier.

 

(c)                                  Successors and Assigns.  This
Agreement shall be binding upon the Company and its successors and assigns; provided
that nothing herein shall be deemed to permit any assignment, transfer or other
disposition of Securities in violation of the terms of the Purchase Agreement
or the Indenture.  If any transferee of
any Holder shall acquire Securities in any manner, whether by operation of law
or otherwise, such Securities shall

 

18

 

be held subject to all the terms of this Agreement,
and by taking and holding such Securities such Person shall be conclusively
deemed to have agreed to be bound by and to perform all the terms and
provisions of this Agreement and such Person shall be entitled to receive the
benefits hereof.

 

(d)                                 Counterparts.  This
Agreement may be executed in any number of counterparts (which may be delivered
in original form or by telecopier) 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.

 

(e)                                  Definition of Terms.  For purposes
of this Agreement, (a) the term “business day” means any day on which the
New York Stock Exchange, Inc. is open for trading, (b) the term
“subsidiary” has the meaning set forth in Rule 405 under the Securities Act and
(c) except where otherwise expressly provided, the term “affiliate” has
the meaning set forth in Rule 405 under the Securities Act.

 

(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. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

(h)                                 Remedies.  In the event
of a breach by the Company, any Guarantor or any Holder of any of their
obligations under this Agreement, each Holder or the Company, as the case may
be, in addition to being entitled to exercise all rights granted by law,
including recovery of damages (other than the recovery of damages for a breach
by the Company or any Guarantor of its obligations under Sections 1 or 2
for which Special Interest has been paid pursuant to Section 3), will be
entitled to specific performance of its rights under this Agreement.  The Company, the Guarantors and each Holder
agree that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by each such person of any of the provisions of
this Agreement and hereby further agree that, in the event of any action for
specific performance in respect of such breach, each such person shall waive
the defense that a remedy at law would be adequate.

 

(i)                                     No Inconsistent Agreements.  The Company
and each Guarantor represents, warrants and agrees that (i) it has not
entered into, and shall not on or after the date of this Agreement, enter into
any agreement that is inconsistent with the rights granted to the Holders in
this Agreement or otherwise conflicts with the provisions hereof, (ii) the
rights granted to the Holders hereunder do not in any way conflict with and are
not inconsistent with the rights granted to the holders of any other
outstanding securities issued or guaranteed by the Company or any Guarantor
under any other

 

19

 

agreement and (iii) without limiting the
generality of the foregoing, without the written consent of the Holders of a
majority in aggregate principal amount at maturity of the then outstanding
Transfer Restricted Securities, it will not grant to any person the right to
request the Company to register any debt securities of the Company under the
Securities Act unless the rights so granted are not in conflict or inconsistent
with the provisions of this Agreement.

 

(j)                                     No Piggyback on Registrations.  Neither the
Company nor any of its security holders (other than the Holders of Transfer
Restricted Securities in such capacity) shall have the right to include any
securities of the Company in any Shelf Registration or Registered Exchange
Offer other than Transfer Restricted Securities.

 

(k)                                  Severability. The remedies provided herein are cumulative and not
exclusive of any remedies provided by law. 
If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall
in no way be affected, impaired or invalidated, and the parties hereto shall
use their commercially reasonable efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter
declared invalid, illegal, void or unenforceable.

 

Please confirm that the foregoing correctly sets forth
the agreement among the Company and the Purchasers.

 

[Signature Page of Exchange and Registration Rights
Agreement to Follow]

 

20

 

[Signature Page to
Exchange and Registration Rights Agreement]

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  BROADWING
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Peterson

  
	
   

  	
  Name:

  	
  Mark W. Peterson

  
	
   

  	
  Title:

  	
  Vice President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CINCINNATI BELL PUBLIC COMMUNICATIONS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Peterson

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ZOOMTOWN.COM INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Peterson

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CINCINNATI BELL ANY DISTANCE, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Peterson

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  CINCINNATI BELL TELECOMMUNICATIONS SERVICES INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Peterson

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
					

 

 

	
   

  	
  BROADWING FINANCIAL LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Peterson

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  CINCINNATI BELL WIRELESS COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Peterson

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  CINCINNATI BELL WIRELESS HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Peterson

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  BROADWING HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Peterson

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Agreed to and accepted by:

 

 

	
  GS MEZZANINE PARTNERS II, L.P.

  
	
   

  
	
  By:

  	
  GS Mezzanine Advisors II, L.L.C.

  
	
   

  	
  its general partner

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  GS MEZZANINE PARTNERS II OFFSHORE, L.P.

  
	
   

  	
   

  
	
  By:

  	
  GS Mezzanine
  Advisors II, L.L.C.

  
	
   

  	
  its general
  partner

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

ANNEX A

 

Each broker-dealer that receives Exchange Securities
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 Securities.  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 Securities Act.  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 Securities received
in exchange for Securities where such Securities were acquired by such
broker-dealer as a result of market-making activities or other trading
activities.  The Company has agreed
that, for a period of 180 days after the consummation of the Registered
Exchange Offer, it will make this Prospectus available to any broker-dealer for
use in connection with any such resale. 
See “Plan of Distribution”.

 

1

 

ANNEX B

 

Each broker-dealer that receives Exchange Securities
for its own account in exchange for Securities, where such Securities 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 Securities.  See “Plan of Distribution”.

 

1

 

ANNEX C

 

PLAN OF DISTRIBUTION

 

Each broker-dealer that receives Exchange Securities
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 Securities.  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 Securities received in
exchange for Securities where such Securities were acquired as a result of
market-making activities or other trading activities.  The Company has agreed that, for a period of 180 days after the
consummation of the Registered Exchange Offer, it will make this prospectus, as
amended or supplemented, available to any broker-dealer for use in connection
with any such resale.  In addition,
until                        ,
all dealers effecting transactions in the Exchange Securities may be required
to deliver a prospectus.

 

The Company will not receive any proceeds from any
sale of Exchange Securities by broker-dealers. 
Exchange Securities 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 Securities 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 at 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 or the
purchasers of any such Exchange Securities. 
Any broker-dealer that resells Exchange Securities 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 Securities may
be deemed to be an “underwriter” within the meaning of the Securities Act and
any profit on any such resale of Exchange Securities and any commission or
concessions received by any such persons may be deemed to be underwriting
compensation under the Securities 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 Securities Act.

 

For a period of 180 days after the consummation of the
Registered Exchange Offer the Company 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 has agreed to pay all expenses
incident to the Registered Exchange Offer (including the expenses of one
counsel for the Holders of the Securities) other than commissions or concessions
of any broker-dealers and will indemnify the Holders of the Securities
(including any broker-dealers) against certain liabilities, including
liabilities under the Securities Act.

 

1

 

ANNEX D

 

 ̈                                    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:

 

 

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 Securities. 
If the undersigned is a broker-dealer that will receive Exchange
Securities for its own account in exchange for Securities that were acquired as
a result of market-making activities or other trading activities, it
acknowledges that it will deliver a prospectus in connection with any resale of
such Exchange Securities; 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 Securities Act.

 

1Exhibit
4(c)(ix)

 

Execution
Copy

 

EQUITY
REGISTRATION RIGHTS AGREEMENT

 

by and between

 

BROADWING INC.,

 

GS MEZZANINE
PARTNERS II, L.P.,

 

GS MEZZANINE
PARTNERS II OFFSHORE, L.P., and

 

OTHER PURCHASERS
NAMED HEREIN

 

March 26, 2003

 

 

Table of Contents

 

	
  1.

  	
  Definitions

  
	
   

  	
   

  
	
  2.

  	
  Holders of Registrable
  Securities

  
	
   

  	
   

  
	
  3.

  	
  Registration Rights

  
	
   

  	
   

  
	
  (a)

  	
  Piggyback Rights

  
	
  (b)

  	
  Shelf Registration

  
	
   

  	
   

  
	
  4.

  	
  Restrictions on Public
  Sale by Holder of Registrable Securities

  
	
   

  	
   

  
	
  5.

  	
  Registration Procedures

  
	
   

  	
   

  
	
  6.

  	
  Registration Expenses

  
	
   

  	
   

  
	
  7.

  	
  Indemnification

  
	
   

  	
   

  
	
  (a)

  	
  Indemnification
  by the Company

  
	
  (b)

  	
  Indemnification
  by Holder of Registrable Securities

  
	
  (c)

  	
  Conduct of Indemnification Proceedings

  
	
  (d)

  	
  Contribution

  
	
   

  	
   

  
	
  8.

  	
  Rule 144

  
	
   

  	
   

  
	
  9.

  	
  Participation
  in Underwritten Offerings

  
	
   

  	
   

  
	
  10.

  	
  Miscellaneous

  
	
   

  	
   

  
	
  (a)

  	
  Remedies

  
	
  (b)

  	
  No
  Inconsistent Agreements

  
	
  (c)

  	
  Amendments
  and Waivers

  
	
  (d)

  	
  Notices

  
	
  (e)

  	
  Successors
  and Assigns

  
	
  (f)

  	
  Counterparts

  
	
  (g)

  	
  Headings

  
	
  (h)

  	
  Legend

  
	
  (i)

  	
  New York Law;
  Submission to Jurisdiction; Waiver of Jury Trial

  
	
  (j)

  	
  Severability

  
	
  (k)

  	
  Entire
  Agreement

  

 

i

 

EQUITY
REGISTRATION RIGHTS AGREEMENT

 

THIS EQUITY REGISTRATION
RIGHTS AGREEMENT (this “Agreement”) is made as of March 26, 2003, by and
between Broadwing Inc., an Ohio corporation (the “Company”), GS
Mezzanine Partners II, L.P., a Delaware limited partnership (“GS Mezzanine”),
GS Mezzanine Partners II Offshore, L.P. (“GS Offshore”), an exempted
limited partnership organized under the laws of the Cayman Islands, and any
other affiliate of GS Mezzanine who purchases the Offered Securities (as
defined in the Purchase Agreement) being issued under the Purchase Agreement at
the Closing (as defined in the Purchase Agreement) (together with GS Mezzanine,
GS Offshore and one or more partnerships, corporations, trusts or other
organizations specified as a Purchaser in Schedule 1 to the Purchase Agreement
which controls, is controlled by, or is under common control with, GS Mezzanine
or GS Offshore, the “GS Purchasers”), and any other person specified as
a Purchaser in Schedule 1 to the Purchase Agreement (together with the GS
Purchasers, the “Purchasers”).

 

RECITALS

 

WHEREAS, on December 9,
2002, the Company and the Purchasers entered into a Purchase Agreement (as
amended, supplemented or modified from time to time, the “Purchase Agreement”),
pursuant to which the Company has issued, and the Purchasers have purchased,
warrants (the “Warrants”) to purchase shares (the “Warrant Shares”)
of the Company’s Common Stock (defined below), as more fully described in the
Purchase Agreement; and

 

WHEREAS, the execution and delivery of this Agreement
is a condition to the closing of the Purchase Agreement.

 

NOW, THEREFORE, in consideration of the premises and
of the mutual covenants and obligations hereinafter set forth, the parties
hereto hereby agree as follows:

 

AGREEMENT

 

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

 

1.                                       Definitions.

 

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

 

“Advice” as defined in Section 5.

 

“Agreement” as defined in the preamble.

 

“Company” as defined in the preamble.

 

1

 

“Deemed Sale Advise” as defined in Section
3(b)(i).

 

“Effective Date”
as defined in Section 3(b)(i).

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder,
as the same may be amended from time to time.

 

“Filing Date” as defined in Section 3(b)(i).

 

“GS Mezzanine” as defined in the preamble.

 

“GS Purchasers” as defined in the preamble.

 

“Holder” as defined in Section 2.

 

“Holder Indemnified Parties” as defined in
Section 7(a).

 

“Holders’ Information” as defined in Section
5.

 

“Indemnifying Party” as defined in Section
7(c).

 

“Initiating Holder” as defined in
Section 3(a)(i).

 

“Liquidated Damages” as defined in Section
3(b)(ii).

 

“NASD” means the National Association of
Securities Dealers, Inc.

 

“Person” means any individual, partnership,
limited liability company, corporation, trust, joint stock company, business
trust, joint venture, or unincorporated organization, or a government or agency
or political subdivision thereof.

 

“Prospectus” means the prospectus included
in any Registration Statement, as amended or supplemented by any prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by such Registration Statement and by all other
amendments and supplements to the prospectus, including post-effective
amendments and all material incorporated by reference in such prospectus.

 

“Purchase Agreement” as defined in the
recitals.

 

“Purchasers” as
defined in the preamble.

 

“Registrable Securities” means any
(i) Registrable Warrant Shares owned by the Purchasers and (ii) shares of
Common Stock issued or issuable, directly or indirectly, with respect to the
Common Stock referenced in clause (i) above by way of stock dividend, stock
split or combination of shares, provided that a security ceases to be a Registrable
Security when it is no longer a Transfer Restricted Security.

 

“Registrable Warrant Shares” means all
Warrant Shares issuable to the Holders of

 

2

 

Warrants upon
exercise of such Warrants.

 

“Registrant Indemnified Parties” as defined
in Section 7(b).

 

“Registration Default”
as defined in Section 3(b)(ii).

 

“Registration Expenses” as defined in
Section 6(a).

 

“Registration Default” as defined in Section
3(b)(ii).

 

“Registration Statement” means any
registration statement of the Company which covers any of the Registrable
Securities, including the Prospectus, amendments and supplements to such
Registration Statement, including post-effective amendments, all exhibits and
all material incorporated by reference in such Registration Statement.

 

“Sale Advice” as defined in Section 3(b)(i).

 

“Sale Notice” as defined in Section 3(b)(i).

 

“SEC” means the Securities and Exchange
Commission.

 

“Securities Act” means the Securities Act of
1933, as amended, and the rules and regulations promulgated thereunder, as the
same may be amended from time to time.

 

“Shelf Registration” as defined in Section
3(b)(i).

 

“Shelf Registration Statement” as defined in
Section 3(b)(i).

 

“Transfer Restricted Security” means the
Registrable Securities upon original issuance thereof; provided that a
Registrable Security is no longer a Transfer Restricted Security when (i) a
registration statement with respect to the sale of such security shall have
been declared effective under the Securities Act and such security shall have
been disposed of in accordance with such registration statement, (ii) such
security shall have been distributed to the public  pursuant to Rule 144 (or any successor provision) under the
Securities Act or is saleable pursuant to Rule 144(k) under the Securities Act
or (iii) such security ceases to be outstanding.

 

“Trigger Date” as defined in
Section 3(b)(i).

 

“underwritten registration or underwritten
offering” means a registration in which securities of the Company are sold
to an underwriter for reoffering to the public.

 

“Warrant Agreement” means that certain Warrant
Agreement, dated as of the date hereof, by and between the Company and the
Purchasers.

 

“Warrant Shares” as defined in the recitals.

 

“Warrants” as
defined in the recitals.

 

3

 

 

2.                                       Holders of Registrable Securities.  A Person is deemed to be a holder (a “Holder”)
of Registrable Securities whenever such Person owns Registrable Securities of
record.  This Agreement will inure to
the benefit of and be binding upon subsequent Holders of Registrable
Securities, if any, as provided in Section 10(e) hereof.

 

3.                                       Registration Rights.

 

(a)                                  Piggyback Rights.

 

(i)                                     Piggyback
Rights.  If the Shelf Registration
Statement has not been declared effective and the Company at any time after the
date hereof proposes to register any of its equity securities under the
Securities Act for its account or for the account of another Person (an “Initiating
Holder”) (other than a registration on Form S-4 or S-8, or any successor or
other forms promulgated for similar purposes, a registration statement filed in
order to register capital stock with respect to an acquisition or exchange
offer or which constituted a part of or all the consideration for an
acquisition or a registration with respect to an employee benefit plan), other
than pursuant to Section 3(b), whether or not for sale for its own account, it
will, at each such time, give prompt written notice (no later than 15 days
prior to effectiveness of the related registration statement) to the  Holders of its intention to do so (a “Piggyback
Registration”) and of the rights of the Holders under this Section
3(a).  Upon the written request of any
Holder made within 10 days after the receipt of any such notice (which request
shall specify the number of Registrable Securities intended to be registered by
such Holder), the Company will use its commercially reasonable efforts to
effect the registration under the Securities Act of all Registrable Securities
which the Company has been so requested to register by the Holders; provided,
however, that should a Holder fail to provide timely notice to the
Company, such Holder will forfeit any rights to participate in the Piggyback
Registration with respect to such proposed offering; and further, provided
that (A) if, at any time after giving written notice of its intention to
register any securities the Company or an Initiating Holder shall determine for
any reason not to proceed with the proposed registration of the securities to
be sold by it, the Company or such Initiating Holder may, at its election, give
written notice of such determination to the Holders and, thereupon, the Company
shall be relieved of its obligation to register any Registrable Securities in
connection with such registration (but not from its obligation to pay the
Registration Expenses incurred in connection therewith in accordance with
Section 6(a)), or the Company may elect to delay the registration, and (B) if
such registration involves an underwritten offering, the Holders of Registrable
Securities requesting to be included in the registration must sell their
Registrable Securities to the underwriters selected by the Company or the
Initiating Holders, as the case may be, on the same terms and conditions as
apply to the Company or the Initiating Holders, as the case may be, with, in
the case of a combined primary and secondary offering, such differences,
including any with respect to indemnification and liability insurance, as may
be customary or appropriate in combined primary and secondary offerings.  If a registration requested pursuant to this
Section 3(a)(i) involves an underwritten public offering, any Holder requesting
to be included in such registration may elect, in writing prior to the
effective date of the registration statement filed in connection with such
registration, not to register all or any portion of such securities in
connection with such registration.

 

(ii)                                  Expenses.  The Company will pay all Registration
Expenses in connection

 

4

 

with each registration of
Registrable Securities requested pursuant to this Section 3(a) in accordance
with Section 6(a).

 

(iii)                               Priority in
Piggyback Registrations.  If
a requested registration pursuant to this Section 3(a) involves an underwritten
offering and the managing underwriter advises the Company in writing that, in
its opinion, the number of securities requested to be included in such
registration (including securities of the Company which are not Registrable Securities)
exceeds the number that can be sold in such offering at a price acceptable to
the Company or is such as to adversely affect the success of the offering, the
Company will include in such registration (a) first, (1) if the Company
initiated the registration, the securities the Company proposes to sell and (2)
if an Initiating Holder initiated the registration, the securities that the
Initiating Holder proposes to sell, then the securities the Company proposes to
sell, if any, and (b) second, the number of Registrable Securities to be
included in such registration shall be allocated so that the number of
securities to be registered for each requesting Holder will equal the product
of (x) the total number of Registrable Securities held by such Holder and (y) a
fraction (I) the numerator of which is the number of Registrable Securities
which the managing underwriter advises can be sold at a price acceptable to the
Company and (II) the denominator of which is the total number of Registrable
Securities held by all requesting Holders (provided that any securities hereby
allocated to any such Holder that exceed such Holder’s request shall be
reallocated among the remaining requesting Holders in like manner).

 

(b)                                 Shelf Registration.

 

(i)                                     Filing of Shelf
Registration.  (A) The
Company shall use its commercially reasonable efforts to prepare and file a
“shelf” registration statement (the “Shelf Registration Statement”) on
any appropriate form pursuant to Rule 415 (or similar rule that may be adopted
by the SEC) under the Securities Act (a “Shelf Registration”) within 90
days following written demand therefor made by Holders of at least 25% of the
number of Registrable Securities (the date of such demand, the “Trigger Date”),
but in no event later than the date that is 120 days following the Trigger Date
(the “Filing Date”) to permit resales of all of the Transfer Restricted
Securities.  The Company agrees to use
its commercially reasonable efforts to cause such Shelf Registration to become
effective as soon as practicable after the filing thereof and in no event later
than 90 days after the Filing Date (the “Effective Date”), and
thereafter use its commercially reasonable efforts to keep it continuously
effective for the period that will terminate upon the earlier of the date on
which all the Transfer Restricted Securities covered by the Shelf Registration
have been sold pursuant to such Shelf Registration or are eligible for resale
without volume restrictions pursuant to Rule 144(k) under the Securities Act, provided
that upon the occurrence or existence of any pending corporate development or
any other event that, in the sole judgment of the Company, makes it appropriate
to suspend the availability of the Shelf Registration Statement and the related
prospectus, the Company shall give notice (without notice of the nature of
details of such events) to the Holders of Transfer Restricted Securities that
the availability of the Shelf Registration Statement is suspended and, each
Holder agrees not to sell any Warrant Shares pursuant to the Shelf Registration
Statement until such Holder’s receipt of copies of a supplemented or amended
prospectus provided for in Section 5(b), or until it is advised in writing
by the Company that the prospectus may be used, and has received copies of any
additional or supplemental filings that are incorporated or deemed incorporated
by reference

 

5

 

in such prospectus. The
period during which the availability of the Shelf Registration Statement and
any prospectus is suspended (the “Suspension Period”) shall, without the
Company incurring any obligation to pay Liquidated Damages pursuant to
Section 3(b)(ii), not exceed 45 days in any three-month period or
90 days in any 12-month period. 
The Company shall not be required to file more than one Shelf
Registration Statement, subject to the provisions set forth in Section 5
hereof.

 

(B) 
For any sale, transfer or other disposition of Transfer Restricted
Securities pursuant to the Shelf Registration Statement, each Holder shall give
the Company prior written notice of such sale, transfer or other disposition
(any such notice, a “Sale Notice”). 
Such Holder shall not consummate the sale, transfer or other disposition
of Registrable Securities specified in a Sale Notice unless and until the
Company has advised such Holder whether an amendment or supplement to the Shelf
Registration Statement is necessary or appropriate in order for sales
thereunder to be made in compliance with the Commission’s applicable rules and
regulations; provided that if the Company shall not have so advised such Holder
within three business days after a Sale Notice has been delivered, the Company
shall be deemed to have advised such Holder on such third business day that no
amendment or supplement to the Shelf Registration Statement is required (a “Deemed
Sale Advise”) and such Holder may consummate the sale, transfer or other
disposition of Registrable Securities described in such Sale Notice at any time
during the five business day period commencing on the first business day
following the date on which such Holder received such Deemed Sale Advise.  If, after receipt of a Sale Notice from a
Holder, the Company advises such Holder that no amendment or supplement to the
Shelf Registration Statement is necessary or appropriate in order for sales
thereunder to be made in compliance with the Commission’s applicable rules and
regulations (a “Sale Advice”), such Holder may consummate the sale,
transfer or other disposition described in such Sale Notice at any time during
the five business day period commencing on the first business day following the
date on which such Holder received such Sale Advice.  If, after receipt of a Sale Notice from a Holder, the Company
advises such Holder in writing that the Company considers it necessary or
appropriate for the Shelf Registration Statement to be amended or supplemented
in order for sales thereunder to be made in compliance with the Commission’s
applicable rules and regulations prior to such Holder’s receipt of a Sale
Advise or Deemed Sale Advise with respect to such Sale Notice, such Holder
shall suspend the sale, transfer or other disposition of its Transfer
Restricted Securities described in such Sale Notice until the Company advises
such Holder that the Shelf Registration Statement has been amended or
supplemented and declared effective. 
The Company shall use commercially reasonable efforts to file any such
amendment or supplement and cause the Shelf Registration Statement to be
declared effective as soon as practicable subject, however, to clause (A) of
this Section 3(b)(i).

 

(ii)                                  Liquidated
Damages.  If (A)  a Shelf Registration Statement has not
been declared effective by the SEC on or prior to the date that is 90 days from
the Filing Date or (B)  a Shelf
Registration Statement is filed and declared effective but shall thereafter
cease to be effective or fail to be usable for its intended purpose for more
than 45 days (including, without limitation, by reason of a stop order or
suspension) (other than during a Suspension Period permitted under  Section 3(b)(i)(A) or as permitted under
Section 3(b)(i)(B)) during the time period required for effectiveness in
Section 3(b)(i) above without being succeeded promptly by a post-effective
amendment that cures such failure and is promptly declared effective (it being

 

6

 

understood that the Company
shall not be obligated to maintain such effectiveness if the failure to
maintain such effectiveness was caused by a failure of Holders to perform their
obligations hereunder with respect to the provision of any Holders’
Information) (each such event referred to in clauses (A) and (B), a “Registration
Default”), the Company agrees to pay liquidated damages (“Liquidated Damages”)
to each Holder of Registrable Securities from and including the day following
the Registration Default to but excluding the day on which the Registration
Default has been cured: (1) during the first 90-day period during which a
Registration Default shall have occurred and be continuing, in an amount equal
to $0.05 per one thousand Warrant Shares for each week or portion thereof that
the Registration Default continues following the occurrence of such
Registration Default, (2) with respect to each subsequent 90-day period
thereafter during which a Registration Default shall have occurred and be
continuing, such amount shall increase by an additional $0.05 per one thousand
Warrant Shares held by such Holder for each week or portion thereof until all
Registration Defaults have been cured; provided that in no event shall the
aggregate Liquidated Damages pursuant to this clause exceed $0.192 per one
thousand Warrant Shares per week.  All
Liquidated Damages shall be calculated based on the actual number of days
elapsed and a 360 day year, and all accrued Liquidated Damages shall be paid by
wire transfer of immediately available funds or by federal funds check on each
Interest Payment Date, as defined in the Indenture.  Following the cure of all Registration Defaults relating to the
Registrable Securities, the accrual of Liquidated Damages will cease.  The Company shall not pay Liquidated Damages
for more than one Registration Default at any one time.  Except as provided in Section 7 hereof, no
Holder of Registrable Securities shall be entitled to any damages for a
Registration Default beyond the Liquidated Damages provided for herein.  All obligations of the Company set forth in
Section 3(b)(ii) that are outstanding with respect to any Registrable Security
at the time such security ceases to be a Registrable Security shall survive
until such time as all such obligations have been paid in full.

 

4.                                       Restrictions on Public Sale by
Holder of Registrable Securities

 

If the
Company shall register its securities or securities on behalf of an Initiating
Holder under the Securities Act for sale to the public in an underwritten
offering and the managing underwriter of such offering shall inform the Company
that the availability of the Registrable Securities for public sale pursuant to
the Shelf Registration Statement or Rule 144 under the Securities Act would
adversely interfere with the successful marketing or pricing of the securities
proposed to be registered by the Company on its behalf or on behalf of an
Initiating Holder, then, each Holder of Registrable Securities agrees, if
requested by the managing underwriters not to effect any public sale or
distribution of Warrant Shares or securities of the Company of the same class
as the securities included in the registration statement relating to the
Company’s or to the Initiating Holder’s securities, including a sale pursuant
to Rule 144 under the Securities Act (except as part of such underwritten
registration), for a period which shall begin not more than 15 days prior to, and
last not more than  90 days after, the
effective date of each underwritten offering made pursuant to the registration
statement relating to the Company’s or to the Initiating Holder’s securities,
to the extent timely notified by the Company or the managing underwriters.  Each Holder of Registrable Securities
agrees, if requested by the managing underwriters, to sign customary “lock-up”
letters with respect to such underwritten offering.

 

The
foregoing provisions of the preceding paragraph shall not apply to any Holder
of

 

7

 

Registrable Securities if such Holder is  prevented by applicable
statute or regulation from entering any such agreement; provided, however,  that any such Holder shall undertake, in
its  request
to participate in  any such underwritten offering, not to effect any public sale
or distribution of any Registrable Securities held by such Holder and covered
by a Registration Statement commencing on the date of sale of the Registrable
Securities unless it has provided 90 days prior written notice of such sale or
distribution to the underwriter or underwriters.

 

5.                                       Registration Procedures

 

If and
whenever the Company is required to file a Registration Statement pursuant to
Section 3(b) hereof, the Company will use its commercially reasonable efforts
to effect such registration to permit the sale of such Registrable Securities
in accordance with the intended method or methods of distribution thereof, and
the Company will use its commercially reasonable efforts to, as expeditiously
as possible:

 

(a)                                  prepare and
file with the SEC, within the time period provided in Section 3, a Shelf
Registration Statement or Shelf Registration Statements relating to such
registration on any appropriate form under the Securities Act, which form shall
be available for the sale of the Registrable Securities in accordance with the
intended method or methods of distribution thereof and shall include all
financial statements (including, if applicable, financial statements of any
Person which shall have guaranteed any indebtedness of the Company) required by
the SEC to be filed therewith, cooperate and assist in any filings required to
be made with the NASD, and use its commercially reasonable efforts to cause
such Registration Statement to become effective within the time period provided
in Section 3; provided that before filing a Registration Statement or any
amendments or supplements thereto with respect to the Registrable Securities,
the Company will furnish to the Holders of the Registrable Securities covered
by such Registration Statement and the underwriters, if any, drafts of all such
documents proposed to be filed (without exhibits or schedules), which documents
will be subject to the review by such Holders and underwriters, and the Company
will not file any Registration Statement or any amendments or supplements
thereto to which the Holders of a majority of the Registrable Securities or
such managing underwriters, if any shall reasonably object within 4 business
days unless required by law in the reasonable judgment of the Company;

 

(b)                                 notify the
selling Holders of Registrable Securities and the managing underwriters, if
any, promptly, and (if requested by any such Person) confirm such advice in
writing, (1) when the Prospectus or any Prospectus supplement or post-effective
amendment has been filed, and, with respect to the Registration Statement or
any post-effective amendment, when the same has become effective, (2) of any
request by the SEC for amendments or supplements to the Registration Statement
or the Prospectus or for additional information, (3) of the issuance by the SEC
of any stop order which the Company has knowledge of suspending the
effectiveness of the Registration Statement or the initiation of any proceedings
for that purpose, (4) if at any time the representations and warranties of the
Company contemplated by paragraph (n) below cease to be true and correct in any
material respect, (5) of the receipt by the Company of any notification with
respect to the suspension of the qualification of the Registrable Securities
for sale in any jurisdiction or the initiation or threatening of any proceeding
for such purpose and (6) of the Company’s becoming aware that the Prospectus
(including any document incorporated

 

8

 

therein by reference), as then in effect, includes an untrue
statement of material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in
light of the circumstances under which such statement was made.

 

(c)                                  use its
commercially reasonable efforts to obtain the withdrawal of any order
suspending the effectiveness of the Registration Statement at the earliest
possible moment;

 

(d)                                 if
reasonably requested by the managing underwriter or underwriters or the Holders
of a majority of the Registrable Securities being sold in connection with an
underwritten offering, the Company shall use its commercially reasonable
efforts to promptly incorporate in a Prospectus supplement or post-effective
amendment such information as the managing underwriter or underwriters or the
Holders of a majority of the Registrable Securities being sold agree should be
included therein relating to the plan of distribution with respect to such
Registrable Securities, including, without limitation, information with respect
to the amount of Registrable Securities being sold to such managing underwriter
or underwriters, the purchase price being paid therefor by such underwriters
and any other terms of the underwritten (or best efforts underwritten) offering
of the Registrable Securities to be sold in such offering; and make all
required filings of such Prospectus supplement or post-effective amendment as
soon as notified of the matters to be incorporated in such Prospectus
supplement or post-effective amendment;

 

(e)                                  furnish to
each selling Holder of Registrable Securities and each managing underwriter, if
any, without charge, if requested, at least one conformed copy of the
Registration Statement and any post-effective amendment thereto, including
financial statements and schedules, all documents incorporated therein by
reference and all exhibits (including those incorporated by reference);

 

(f)                                    deliver to
each selling Holder of Registrable Securities and the underwriters, if any,
without charge, if requested, as many copies of the Prospectus (including each
preliminary Prospectus) and any amendment or supplement thereto as such Persons
may reasonably request; the Company consents to the use (subject to the
limitations set forth in the last paragraph of this Section 5) of the
Prospectus or any amendment or supplement thereto by each of the selling
Holders of Registrable Securities and the underwriters, if any, in connection
with the offering and sale of the Registrable Securities covered by the
Prospectus or any amendment or supplement thereto;

 

(g)                                 prior to any
public offering of Registrable Securities, use its commercially reasonable
efforts to register or qualify or cooperate with the selling Holders of
Registrable Securities, the underwriters, if any, and their respective counsel
in connection with the registration or qualification of such Registrable
Securities for offer and  sale under the securities or blue sky laws
of such jurisdictions as any such seller or underwriter reasonably requests in
writing and do any and all other acts or things necessary or advisable to
enable the disposition in such jurisdictions of such Registrable Securities; provided  that the Company will not
be required to qualify generally to do business in any jurisdiction where it is
not then so qualified or to take any action which would subject it to general
service of process or taxation in any such jurisdiction where it is not then so
subject;

 

9

 

(h)                                 cooperate
with the selling Holders of Registrable Securities and the managing
underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing such Registrable Securities to be sold and not
bearing any restrictive legends; and enable such Registrable Securities to be
in such denominations and registered in such names as such managing
underwriters may request at least two business days prior to any sale of such
Registrable Securities to the underwriters;

 

(i)                                     use its
commercially reasonable efforts to cause the Registrable Securities covered by
the applicable Registration Statement to be registered with or approved by such
other U.S. governmental agencies or U.S. authorities as may be required to
enable the seller or sellers thereof or the underwriters, if any, to consummate
the disposition of such Registrable Securities (subject to the proviso
contained in clause (g) above and other than the NASD registration which shall
be the responsibility of the lead underwriter);

 

(j)                                     upon the
occurrence of any event contemplated by paragraph (b)(6) above, prepare a
supplement or post-effective amendment to the related Registration Statement or
the related Prospectus or any document incorporated therein by reference or
file any other required document so that, as thereafter delivered to the
Holders of the Registrable Securities, the Prospectus will not contain an
untrue statement of a material fact or omit to state any material fact necessary
to make the statements therein not misleading in light of the circumstances
then existing;

 

(k)                                  use its
commercially reasonable efforts to cause all Registrable Securities covered by
a Registration Statement to be listed on each securities exchange on which
similar securities issued by the Company are then listed if such listing is
permitted under the rules of such exchange and if requested by the Holders of a
majority of such Registrable Securities or the managing underwriters, if any;

 

(l)                                     not later
than the effective date of the Registration Statement, provide a CUSIP number
for all Registrable Securities and provide the transfer agent with printed
certificates for the Registrable Securities which are in a form eligible for
deposit with The Depository Trust Company;

 

(m)                               to the
extent applicable, enter into such agreements (including an underwriting
agreement) and take all such other actions in connection therewith in order to
expedite or facilitate the disposition of such Registrable Securities if
requested by a majority of the Holders of the Registrable Securities, and in
such connection, whether or not an underwriting agreement is entered into and
whether or not the registration is an underwritten registration, (1) make such
representations and warranties (with reasonable exceptions) to the Holders of
such Registrable Securities and the underwriters, if any, in form, substance
and scope as are customarily made by issuers to underwriters in primary
underwritten offerings; (2) obtain opinions of counsel to the Company addressed
to the underwriters, if any, covering the matters customarily covered in
opinions requested in underwritten offerings and such other matters as may be
reasonably requested by the underwriters; (3) obtain “comfort” letters and
updates thereof from the Company’s independent certified public accountants
addressed to such underwriters, if any, and to the extent that such independent
certified public accounts agree, addressed to such Holders,

 

10

 

such letters to be in customary form and covering matters of
the type customarily covered in “cold comfort” letters by underwriters in
connection with primary underwritten offerings, subject to receipt of
appropriate documentation as contemplated, and only if permitted, by Statement
of Auditing Standards No. 72; (4) if an underwriting agreement is entered into,
include indemnification provisions in such underwriters’ customary form; and
(5) the Company shall deliver such documents and certificates as may be
requested by the Holders of a majority of the Registrable Securities being sold
and the managing underwriters, if any, to evidence compliance with paragraph
(j) above and with any customary conditions contained in the underwriting
agreement or other agreement entered into by the Company.  The above shall be done at each closing
under such underwriting agreement or as and to the extent required
thereunder.  In the case of a
nonunderwritten offering, the Company shall deliver to the Selling Holders such
of the foregoing items as are customary in a secondary offering to be delivered
to selling securityholders;

 

(n)                                 upon
appropriate prior notice, make available at reasonable times during normal
business hours for inspection by any underwriter participating in any
underwriting pursuant to Section 3(b)(i), and any attorney or accountant
retained by such underwriters, if any, all financial and other records,
pertinent corporate documents and properties of the Company as may be
reasonably necessary to enable them to exercise their due diligence
responsibilities, and provide reasonable access to appropriate officers of the
Company in connection with such due diligence responsibilities; provided,
however, that the Holders and any such underwriter, attorney or
accountant shall agree to hold in confidence all information so provided except
as required by law in accordance with the procedures established by such Holder
for safe-keeping of confidential information; and

 

(o)                                 use its
commercially reasonable efforts to make appropriate officers of the Company
available at reasonable times during normal business hours to such Holders and
underwriters for meetings with prospective purchasers of the Registrable
Securities and prepare and present to potential investors customary “road show”
material in a manner consistent with other new issuances of other securities
similar to the Registrable Securities.

 

The
Company may require each seller of Registrable Securities as to which any
registration is being effected to furnish to the Company such information
regarding Holders and the distribution of such securities as the Company may
from time to time reasonably request in writing (the “Holders’ Information”).

 

Each
Holder of Registrable Securities agrees by acceptance of such Registrable
Securities that, upon receipt of any notice from the Company of the happening
of any event of the kind described in Section 5(b)(3), (5) or (6) hereof that,
in the reasonable judgment of the Company, it is advisable to suspend use of
the prospectus for a discrete period of time due to pending corporate
developments, public filings with the SEC or similar events, such Holder will
forthwith discontinue disposition of Registrable Securities until such Holder’s
receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 5(j) hereof, or until it is advised in writing (the “Advice”) by
the Company that the use of such Prospectus may be resumed, and has received
copies of any additional or supplemental filings which are incorporated by
reference in such Prospectus, and, if so directed by the Company such Holder
will deliver to the Company

 

11

 

(at the Company’s expense) all copies, other than permanent
file copies then in such Holder’s possession, of such Prospectus covering such
Registrable Securities current at the time of receipt of such notice.  The Company shall use its commercially
reasonable efforts to insure that the use of the prospectus may be resumed as
soon as practicable, and in any event shall not be entitled to require the
Holder to suspend use of any prospectus for more than an aggregate of sixty
(60) business days in any twelve-month period.

 

6.                                       Registration Expenses

 

(a)                                  All expenses
incident to the Company’s performance of or compliance with this Agreement,
including without limitation all (i) registration and filing fees, fees and
expenses associated with filings required to be made with the NASD, (ii) fees
and expenses of compliance with securities or blue sky laws (including
reasonable fees and disbursements of counsel for the underwriters or selling
Holders in connection with blue sky qualifications of the Registrable
Securities and determination of their eligibility for investment under the laws
of such jurisdictions as the managing underwriters or Holders of a majority of
the Registrable Securities being sold may reasonably designate), (iii) printing
expenses (including expenses of printing certificates for the Registrable
Securities in a form eligible for deposit with The Depository Trust Company and
of printing prospectuses), messenger, telephone and delivery expenses, and (iv)
reasonable fees and disbursements of counsel for the Company and the Company’s
independent certified public accountants (including the expenses of any special
audit and “comfort” letters required by or incident to such performance) (all
such expenses being herein called “Registration Expenses”) will be borne
by the Company regardless whether the Registration Statement becomes effective;
provided, however, that Registration Expenses shall not include
(i) any transfer taxes relating to the sale or disposition of the Registrable
Securities and (ii) all agency fees and commissions and underwriting discounts
and commissions attributable to the sale of such Registrable Securities.  The Company, in any event, will pay the
Company’s own internal expenses (including, without limitation, all salaries
and expenses of its officers and employees performing legal or accounting
duties), and the expense of any annual audit.

 

(b)                                 In
connection with the any Registration Statement hereunder, the Company will
reimburse the selling Holders of Registrable Securities being registered in
such registration for the reasonable legal fees and disbursements of one
counsel chosen by the selling Holders of a majority of such Registrable
Securities (which shall be reasonably acceptable to the Company).

 

7.                                       Indemnification

 

(a)                                  Indemnification by the Company.  The Company agrees to indemnify and hold
harmless, to the full extent permitted by law, each Holder of Registrable
Securities, their officers and directors and each Person who controls such
Holder (within the meaning of the Securities Act) (the “Holder Indemnified
Parties”) against all losses, claims, damages, liabilities and expenses
reasonably incurred by such party in connection with any actual or threatened
action arising out of or based upon any untrue or alleged untrue statement of a
material fact contained in any Registration Statement, Prospectus or preliminary
Prospectus or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein (in
the case of a Prospectus or a preliminary Prospectus, in light of the

 

12

 

circumstances
under which such statement was made) not misleading, except insofar as the same
arises out of or are based upon any such untrue statement or omission made in
reliance on and in conformity with any information furnished in writing to the
Company by any underwriter or any Holder or any of their counsel or other
representatives expressly for use therein; provided,  that
the Company shall not be liable in any such case to the extent that any such
loss, claim, damage, liability or expense arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission in
the preliminary Prospectus or Prospectus, if such untrue statement or alleged
untrue statement or omission or alleged omission is corrected in the Prospectus
or an amendment or supplement to the Prospectus, as applicable, and the Holder
thereafter fails to deliver such Prospectus or Prospectus as so amended or
supplemented, as applicable, prior to or concurrently with the sale of the
Registrable Securities to the person asserting such loss, claim, damage,
liability or expense after the Company had furnished such Holder with a
sufficient number of copies of the same. 
The Company shall also indemnify underwriters participating in an
underwritten offering pursuant to Section 3(b)(i) and each Person who controls
such Persons (within the meaning of the Securities Act) to the same extent as
provided above with respect to the indemnification of the Holder Indemnified
Parties, if requested.

 

(b)                                 Indemnification
by Holder of Registrable Securities.  In connection with the  Registration of Registrable Securities, each
Holder of Registrable Securities will furnish to the Company in writing such
information and affidavits as the Company reasonably requests for use in
connection with any Registration Statement or Prospectus and agrees to,
severally and not jointly, indemnify and hold harmless, to the full extent
permitted by law, the Company, its directors, managers and officers and each Person
who controls the Company (within the meaning of the Securities Act), each
underwriter participating in an underwritten offering pursuant to Section
3(b)(i) and each person controlling such underwriter within the meaning of the
Securities Act (the “Registrant Indemnified Parties”) against any
losses, claims, damages, liabilities and expenses resulting from any untrue
statement of a material fact contained in any Registration Statement or
Prospectus or any omission of a material fact required to be stated in the
Registration Statement or Prospectus or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading, to the extent, but only to the extent, that such untrue statement
or omission relates to a Holder and is made in reliance on and in conformity
with any information or affidavit furnished in writing by or on behalf of such
Holder to the Company specifically for inclusion in such Registration Statement
or Prospectus (or information withheld from such written information and
affidavits) or any grossly negligent or fraudulent action or inaction of such
Holder.  In no event shall the liability
of any selling Holder of Registrable Securities hereunder be greater in amount
than the dollar amount of the proceeds received by such Holder upon the sale of
the Registrable Securities giving rise to such indemnification obligation.  The Registrant Indemnified Parties shall be
entitled to receive indemnities from underwriters, selling brokers, dealer
managers and similar securities industry professionals participating in the
distribution of  Registrable Securities
to the same extent above with respect to information or affidavit furnished in
writing by or on behalf of such Persons as provided specifically for any
Prospectus or Registration Statement.

 

(c)                                  Conduct of Indemnification Proceedings.  Any Person entitled to indemnification
hereunder will (i) give prompt notice to the Company or Holder of Registrable
Securities, as the

 

13

 

case may
be (in either case, as applicable, an “Indemnifying Party”), of any
claim with respect to which it seeks indemnification and (ii) permit such
Indemnifying Party to assume the defense of such claim with counsel reasonably
satisfactory to such Person; provided, however,  that
any Person entitled to indemnification hereunder shall have the right to employ
separate counsel and to participate in the defense of such claim, but the fees
and expenses of such counsel shall be at the expense of such Person unless (a)
the Indemnifying Party has agreed to pay such fees or expenses, (b) the
Indemnifying Party has failed to assume the defense of such claim or (c) in the
reasonable judgment of any such Person, based upon written advice of its counsel,
a conflict of interest may exist between such Person and the Indemnifying Party
with respect to such claims and the representation of both would be
inappropriate (in which case, if the Person notifies the Indemnifying Party in
writing that such Person elects to employ separate counsel at the expense of
the Indemnifying Party, the Indemnifying Party shall not have the right to
assume the defense of such claim on behalf of such Person).  If such defense is not assumed by the
Indemnifying Party, the Indemnifying Party will not be subject to any liability
for any settlement made without its consent (but such consent will not be
unreasonably withheld).  No Indemnifying
Party will be required to consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving
by the claimant or plaintiff to such Person entitled to indemnification a
release from all liability in respect to such claim or litigation.  Any Indemnifying Party who is not entitled
to, or elects not to, assume the defense of a claim will not be obligated to
pay the reasonable fees and expenses of more than one counsel for all Persons
entitled to indemnification by such Indemnifying Party with respect to such
claim in any one jurisdiction, unless in the reasonable judgment of such Person
a conflict of interest may exist between such Person and any other Person
entitled to indemnification hereunder with respect to such claim and the
representation of both would be inappropriate, in which event the Indemnifying
Party shall be obligated to pay the reasonable fees and expenses of such
additional counsel or counsels, but only of one such additional counsel for
each group of similarly situated Persons in any one jurisdiction.

 

(d)                                 Contribution.  If for any reason the indemnification
provided for in the preceding paragraphs (a) and (b) is unavailable to a Person
entitled to indemnification or is insufficient to hold it harmless as
contemplated by the preceding paragraphs (a) and (b), then the Indemnifying
Party shall contribute to the amount paid or payable by such Person as a result
of such loss, claim, damage or liability in such proportion as is appropriate
to reflect not only the relative benefits received by such Person and the
Indemnifying Party, but also the relative fault of such Person and the
Indemnifying Party, as well as any other relevant equitable considerations, provided that no Holder of
Registrable Securities shall be required to contribute an amount greater than
the dollar amount of the proceeds received by such Holder of Registrable
Securities with respect to the sale of any securities.  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.

 

8.                                       Rule 144.  The
Company agrees to use commercially reasonable efforts to file the reports
required to be filed by it under the Securities Act and the Exchange Act and
the rules and regulations adopted by the SEC thereunder (or, if it is not
required to file such reports, it will, upon the request of any Holder of
Registrable Securities, make publicly available other information so long as
necessary to permit sales pursuant to Rule 144(k) under the Securities

 

14

 

Act), and it will take such further reasonable action requested by a
Holder of Registrable Securities, all to the extent required from time to time
to enable such Holder to sell Registrable Securities without registration under
the Securities Act within the limitation of the exemptions provided by (a) Rule
144(k) under the Securities Act, as such Rule may be amended from time to time,
or (b) any similar rule or regulation hereafter adopted by the SEC.  Upon the request of any Holder of
Registrable Securities, the Company will deliver to such Holder a written
statement as to whether it has complied with such information and filing
requirements.

 

9.                                       Participation in Underwritten Offerings.  No Holder of Registrable Securities may
participate in any underwritten registration unless such Holder (a) agrees to
sell such Holder’s Transfer Restricted Securities on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve
such arrangements and (b) completes and executes all customary questionnaires,
powers of attorney, indemnities, underwriting agreements, lock-up letters and
other documents reasonably required under the terms of such underwriting
arrangements.

 

10.                                 Miscellaneous.

 

(a)                                  Remedies.  Each Holder of Registrable Securities, in
addition to being entitled to exercise all rights provided herein or granted by
law, including recovery of damages, in connection with the breach by the
Company of its obligations to register the Registrable Securities will be
entitled to specific performance of its rights under this Agreement.  The Company agrees that monetary
damages  would not be adequate
compensation for any loss incurred by reason of a breach by it of the
provisions of this Agreement and agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate.

 

(b)                                 No
Inconsistent Agreements. 
The Company will not on or after the date of this Agreement enter into
any agreement with respect to its securities which is inconsistent with the
rights granted to the Holders of Registrable Securities in this Agreement or
otherwise conflicts with the provisions hereof.  The rights granted to the Holders of Registrable Securities
hereunder do not in any way conflict with and are not inconsistent with the
rights granted to the Holders of the Company’s securities under any other
agreements.

 

(c)                                  Amendments
and Waivers.  The
provisions of this Agreement, including the provisions of this sentence, may
not be amended, modified or supplemented, and waivers or consents to departures
from the provisions of this Agreement may not be given unless the Company has
obtained the written consent of Holders of a majority of the outstanding
Registrable Securities (excluding Registrable Securities held by the Company or
one of its affiliates).

 

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

 

 

15

 

 

(i)                                     if to the
Company, to:

 

Broadwing Inc.

201 East Fourth Street

Cincinnati,
OH  45202

(facsimile
no.:  (513) 397-4177)   

Attention:  Mark Peterson

 

with copies to:

 

Cravath, Swaine
& Moore

825 Eighth Avenue

New York, NY  10019

(facsimile no.:  (212) 474-3700)

Attention:  William V. Fogg, Esq.

 

(ii)                                  if to the
Purchasers, to:

 

GS Mezzanine
Partners II, L.P.

GS Mezzanine Partners II Offshore, L.P.

c/o Goldman, Sachs & Co.

85 Broad Street

New York, New York  10004

(facsimile no.:  (212) 902-3000)

Attention:  Kaca Enquist

 

with copies to:

 

Fried, Frank, Harris, Shriver & Jacobson

One New York Plaza

New York, New York  10004

(facsimile no.:  (212) 859-4000)

Attention:  F. William Reindel, Esq.

 

All such
notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five business days after being
deposited in the mail, postage prepaid if mailed; when answered back, if
delivered by facsimile; and on the next business day if timely delivered,
postage prepaid, to an air courier guaranteeing overnight delivery.

 

(e)                                  Successors
and Assigns.  This
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of each of the parties hereto, including without limitation and without
the need for an express assignment, subsequent Holders of Registrable
Securities.

 

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

 

16

 

agreement.

 

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

 

(h)                                 Legend.  Any certificate representing Warrants (or
any other securities exercisable for or convertible into or exchangeable for
Warrants) shall bear the following legend until such time as it is no longer
applicable:

 

“THE
WARRANTS REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A REGISTRATION RIGHTS
AGREEMENT BETWEEN BROADWING INC. (THE “COMPANY”), GS MEZZANINE PARTNERS II,
L.P. AND GS MEZZAINE PARTNERS II OFFSHORE, L.P., A COPY OF WHICH IS ON FILE
WITH THE SECRETARY OF THE COMPANY.  NO
TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE
WITH THE PROVISIONS OF SUCH 
REGISTRATION RIGHTS AGREEMENT. 
THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE OF THIS CERTIFICATE, AGREES
TO BE BOUND BY ALL OF THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.”

 

(i)                                     New York
Law; Submission to Jurisdiction; Waiver of Jury Trial.  This Agreement shall be construed in
accordance with and governed by the laws of the State of New York.  Each party hereto hereby submits to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York State Court sitting in New York City
for purposes of all legal proceedings arising out of or relating to this
Agreement or the transactions contemplated hereby.  Each party hereto irrevocably waives, to the fullest extent
permitted by law, any objection which it may now or hereafter have to the
laying of the venue of any such proceeding brought in such a court and any
claim that any such proceeding brought in such a court has been brought in an
inconvenient forum.  Each party hereto
irrevocably waives any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated
hereby.

 

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

 

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

 

17

 

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

 

	
   

  	
  BROADWING INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Peterson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mark W. Peterson

  
	
   

  	
   

  	
  Title:

  	
  Vice President &
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GS MEZZANINE PARTNERS
  II, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GS Mezzanine Advisors
  II, L.L.C.

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Katherine B.
  Enquist

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Katherine B. Enquist

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GS MEZZANINE PARTNERS
  II OFFSHORE, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GS Mezzanine Advisors
  II, L.L.C.

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Katherine B.
  Enquist

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Katherine B. Enquist

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}]]