Document:

exv4w04

 

EXECUTION COPY

Exhibit 4.04

Guilford Pharmaceuticals Inc.

$60,000,000 5% Convertible Subordinated Notes Due 2008

REGISTRATION RIGHTS AGREEMENT

June 17, 2003

Citigroup Global Markets Inc.

CIBC World Markerts Corp.

As Representatives of the Initial Purchasers

c/o Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

Ladies and Gentlemen:

     Guilford Pharmaceuticals Inc., a corporation organized under the laws of
Delaware (the “Company”), proposes to issue and sell to certain purchasers (the
“Initial Purchasers”), for whom you (the “Representatives”) are acting as
representatives, $60,000,000 principal amount (plus up to an additional
$20,000,000 aggregate principal amount to cover over-allotments, if any) of its
5% Convertible Subordinated Notes due 2008 (the “Securities”), upon the terms
set forth in the Purchase Agreement between the Company and the Representatives
dated June 11, 2003 (the “Purchase Agreement”) relating to the initial
placement (the “Initial Placement”) of the Securities. The Securities will be
convertible into shares of Common Stock (as defined herein), at the conversion
price set forth in the Final Memorandum (as defined herein), as the same may be
adjusted from time to time pursuant to the Indenture (as defined herein). To
induce the Initial Purchasers to enter into the Purchase Agreement and to
satisfy a condition to your obligations thereunder, the Company agrees with you
for your benefit and the benefit of the holders from time to time of the
Securities and the Common Stock issuable upon conversion of the Securities
(including the Initial Purchasers) (each a “Holder” and, collectively, the
“Holders”), as follows:

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

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

     “Affiliate” shall have the meaning specified in Rule 405 under the Act and
the terms “controlling” and “controlled” shall have meanings correlative
thereto.

     “Broker-Dealer” shall mean any broker or dealer registered as such under
the Exchange Act.

 

 

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     “Business Day” shall mean any day other than a Saturday, a Sunday or a
legal holiday or a day on which banking institutions or trust companies are
authorized or obligated by law to close in New York City.

     “Closing Date” shall mean the date of the first issuance of the
Securities.

     “Commission” shall mean the Securities and Exchange Commission.

     “Common Stock” means the common stock, par value $0.01 per share, of the
Company, as it exists on the date of this Agreement and any other shares of
capital stock or other securities of the Company into which such Common Stock
may be reclassified or changed, together with any and all other securities
which may from time to time be issuable upon conversion of Securities.

     “Deferral Period” shall have the meaning indicated in Section 3(i) hereof.

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

     “Final Memorandum” shall mean the Final Memorandum as defined in the
Purchase Agreement.

     “Holder” shall have the meaning set forth in the preamble hereto.

     “Indenture” shall mean the Indenture relating to the Securities, dated as
of June 17, 2003, between the Company and Wachovia Bank, National Association,
as trustee, as the same may be amended from time to time in accordance with the
terms thereof.

     “Initial Placement” shall have the meaning set forth in the preamble
hereto.

     “Initial Purchasers” shall have the meaning set forth in the preamble
hereto.

     “Losses” shall have the meaning set forth in Section 5(d) hereof.

     “Majority Holders” shall mean, on any date, Holders of a majority of the
aggregate principal amount of Securities registered under a Shelf Registration
Statement; provided, however, that Holders of Common Stock issued upon
conversion of Securities shall be deemed to be Holders of the aggregate
principal amount of Securities from which such Common Stock was converted;
provided further, however, that Securities or Common Stock which have been sold
or otherwise transferred pursuant to the Shelf Registration Statement shall not
be included in the calculation of Majority Holders.

     “Managing Underwriters” shall mean the investment banker or investment
bankers and manager or managers that administer an underwritten offering, if
any, conducted pursuant to Section 6 hereof.

 

 

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     “NASD Rules” shall mean the Conduct Rules and the By-Laws of the National
Association of Securities Dealers, Inc.

     “Notice and Questionnaire” shall mean a written notice delivered to the
Company substantially in the form attached as Annex A to the Final Memorandum.

     “Notice Holder” shall mean, on any date, any Holder of Transfer Restricted
Securities that has delivered a Notice and Questionnaire to the Company on or
prior to such date.

     “Prospectus” shall mean a prospectus included in the Shelf Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A under the Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Securities or Common Stock issuable upon
conversion thereof covered by the Shelf Registration Statement, and all
amendments and supplements thereto, including any and all exhibits thereto and
any information incorporated by reference therein.

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

     “Registration Default Damages” shall have the meaning set forth in Section
7 hereof.

     “Securities” shall have the meaning set forth in the preamble hereto.

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

     “Shelf Registration Statement” shall mean a “shelf” registration statement
of the Company pursuant to the provisions of Section 2 hereof which covers some
or all of the Securities and the Common Stock issuable upon conversion thereof,
as applicable, on an appropriate form under Rule 415 under the Act, or any
similar rule that may be adopted by the Commission, amendments and supplements
to such registration statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

     “Transfer Restricted Securities” means each Security and any share of
Common Stock issued or issuable upon conversion thereof until the date on which
such Security or share of Common Stock, as the case may be, (a) has been
transferred pursuant to the Shelf Registration Statement or another
registration statement covering such Security or share of Common Stock which
has been filed with the Commission pursuant to the Act, in either case after
such registration statement has become, and while such registration statement
is, effective under the Act; (b) has been transferred pursuant to Rule 144
under the Act (or any similar provision then in force); or (c) may be sold or
transferred pursuant to paragraph (k) of Rule 144 under the Act (or any
successor provision promulgated by the Commission); provided, however, that the
term shall not

 

 

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include any share of Common Stock issuable upon conversion of a Security
previously sold or transferred pursuant to the foregoing clauses (a), (b) or
(c).

     “Trustee” shall mean the trustee with respect to the Securities under the
Indenture.

     “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as
amended, and the rules and regulations of the Commission promulgated
thereunder.

     “underwriter” shall mean any underwriter of Securities or Common Stock
issuable upon conversion thereof in connection with an offering thereof under
the Shelf Registration Statement.

     2. Shelf
Registration. (a) The Company shall as promptly as practicable (but
in no event more than 90 days after the Closing Date) file with the Commission
a Shelf Registration Statement providing for the registration of, and the sale
on a continuous or delayed basis by the Holders of, all of the Transfer
Restricted Securities, from time to time in accordance with the methods of
distribution elected by such Holders, pursuant to Rule 415 under the Act or any
similar rule that may be adopted by the Commission; provided, however, that if
any Securities are issued upon exercise of the option granted to the Initial

Purchasers in the Purchase Agreement and the date on which such Securities are
issued occurs after the Closing Date, the Company will take such steps, prior
to the effective date of the Shelf Registration Statement, to ensure that such
Securities and Common Stock issuable upon conversion thereof are included in
the Shelf Registration Statement on the same terms as the Securities issued on
the Closing Date.

     (b) The Company shall use its reasonable best efforts to cause the Shelf
Registration Statement to become or be declared effective under the Act no
later than 150 days after the Closing Date.

     (c) The Company shall use its reasonable best efforts to keep the Shelf
Registration Statement continuously effective, supplemented and amended as
required by the Act, in order to permit the Prospectus forming part thereof to
be usable by Holders for a period (the “Shelf Registration Period”) from the
date the Shelf Registration Statement is declared effective by the Commission
until the earliest of (i) the second anniversary thereof or, if later, the
second anniversary of the last date on which any Securities are issued upon
exercise of the Initial Purchasers’ option; (ii) the date on which all the
Securities and the Common Stock issuable upon conversion of the Securities may
be sold by non-Affiliates of the Company pursuant to paragraph (k) of Rule 144
(or any successor provision) promulgated by the Commission under the Act; and
(iii) the date as of which all the Securities or the Common Stock issuable upon
conversion of the Securities have been sold either under Rule 144 under the Act
(or any similar provision then in force) or pursuant to the Shelf Registration
Statement. The Company shall be deemed not to have used its reasonable best
efforts to keep the Shelf Registration Statement effective during the Shelf
Registration Period if it voluntarily takes any action that would result in
Holders of Transfer Restricted Securities not being able to offer and sell such
Securities at any time during the Shelf Registration Period, unless such action
is

 

 

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(x)  required by applicable law or otherwise undertaken by the Company in
good faith and for valid business reasons (not including avoidance of the
Company’s obligations hereunder), including the acquisition or divestiture of
assets, and (y) permitted by Section 3(i) hereof.

     (d) Each Holder of Transfer Restricted Securities must deliver a Notice
and Questionnaire to the Company at least ten Business Days prior to the
effectiveness of the Shelf Registration Statement. From and after the date the
Shelf Registration Statement is declared effective, the Company shall, as
promptly as is practicable after the date a Notice and Questionnaire is
delivered by a Holder that is not then a Notice Holder, and in any event within
ten Business Days after such date, (i) if required by applicable law, file with
the Commission a post-effective amendment to the Shelf Registration Statement
or prepare and, if required by applicable law, file a supplement to the related
Prospectus or an amendment or supplement to any document incorporated therein
by reference or file any other required document so that the Holder delivering
such Notice and Questionnaire is named as a selling holder in the Shelf
Registration Statement and the related Prospectus and so that such Holder is
permitted to deliver such Prospectus to purchasers of the Transfer Restricted
Securities in accordance with applicable law and, if the Company shall file a
post-effective amendment to the Shelf Registration Statement, use best efforts
to cause such post-effective amendment to be declared effective under the Act
as promptly as is practicable; (ii) provide such Holder copies of any documents
filed pursuant to Section 2(d)(i) hereof; and (iii) notify such Holder as
promptly as practicable after the effectiveness under the Act of any
post-effective amendment filed pursuant to Section 2(d)(i) hereof; provided,
however, that if such Notice and Questionnaire is delivered during a Deferral
Period, the Company shall so inform the Holder delivering such Notice and
Questionnaire and shall take the actions set forth in clauses (i), (ii) and
(iii) above upon expiration of the Deferral Period in accordance with Section
3(i) hereof. Notwithstanding anything contained herein to the contrary, the
Company shall be under no obligation to name any Holder that is not a Notice
Holder as a selling holder in the Shelf Registration Statement or related
Prospectus; provided, however, that any Holder that becomes a Notice Holder
pursuant to the provisions of this Section 2(d) (whether or not such Holder was
a Notice Holder at the time the Shelf Registration Statement was declared
effective) shall be named as a selling holder in the Shelf Registration
Statement or related Prospectus in accordance with the requirements of this
Section 2(d).

     3. Registration Procedures. The following provisions shall apply in
connection with the Shelf Registration Statement.

     (a) The Company shall:

		
	 	     (i) furnish to each of the Representatives and to counsel for
the Notice Holders, if any, not less than five Business Days prior
to the filing thereof with the Commission, a copy of the Shelf
Registration Statement and each amendment thereof and each
amendment or supplement, if any, to the Prospectus included
therein (including all documents incorporated by reference therein
after the initial filing) and shall use its best efforts to
reflect in each such document, when so filed with the Commission,
such

 

 

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	 	comments as the Representatives shall reasonably propose;
provided, however, that the foregoing shall not apply to any
amendment or supplement filed solely for the purpose of naming
additional Notice Holders as selling holders in the Shelf
Registration Statement or related Prospectus; and

		
	 	     (ii) include information regarding the Notice Holders and the
methods of distribution they have elected for their Transfer
Restricted Securities provided to the Company in Notices and
Questionnaires as necessary to permit such distribution by the
methods specified therein.

     (b) The Company shall cause the Shelf Registration Statement and the
related Prospectus and any amendment or supplement thereto, as of the effective
date of the Shelf Registration Statement or such amendment or supplement, (i)
to comply in all material respects with the applicable requirements of the Act;
and (ii) not to contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to
make the statements therein (in the case of the Prospectus, in the light of the
circumstances under which they were made) not misleading.

     (c) The Company shall advise the Representatives, the Notice Holders and
any underwriter that has provided in writing to the Company a telephone or
facsimile number and address for notices, and confirm such advice by notice in
writing (which notice pursuant to clauses (ii)-(v) hereof shall be accompanied
by an instruction to suspend the use of the Prospectus until the Company shall
have remedied the basis for such suspension):

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

		
	 	     (ii) of any request by the Commission for any amendment or
supplement to the Shelf Registration Statement or the Prospectus
or for additional information;

		
	 	     (iii) of the issuance by the Commission of any stop order
suspending the effectiveness of the Shelf Registration Statement
or the institution or threatening of any proceeding for that
purpose;

		
	 	     (iv) of the receipt by the Company of any notification with
respect to the suspension of the qualification of the Transfer
Restricted Securities included therein for sale in any
jurisdiction or the institution or threatening of any proceeding
for such purpose; and

		
	 	     (v) of the happening of any event that requires any change in
the Shelf Registration Statement or the Prospectus so that, as of
such date, they (A) do not contain any untrue statement of a
material fact and (B) do not omit to state a material fact
required to be stated therein or necessary to make

 

 

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	 	the statements therein (in the case of the Prospectus, in the
light of the circumstances under which they were made) not
misleading.

     (d) The Company shall use its best efforts to prevent the issuance of any
order suspending the effectiveness of the Shelf Registration Statement or the
qualification of the securities therein for sale in any jurisdiction and, if
issued, to obtain as soon as possible the withdrawal thereof.

     (e) The Company shall furnish to each Notice Holder, without charge, at
least one copy of the Shelf Registration Statement and any post-effective
amendment thereto, including all material incorporated therein by reference,
and, if a Notice Holder so requests in writing, all exhibits thereto (including
exhibits incorporated by reference therein).

     (f) During the Shelf Registration Period, the Company shall promptly
deliver to each Initial Purchaser, each Notice Holder, and any sales or
placement agents or underwriters acting on their behalf, without charge, as
many copies of the Prospectus (including the preliminary Prospectus) included
in the Shelf Registration Statement and any amendment or supplement thereto as
any such person may reasonably request. The Company consents to the use of the
Prospectus or any amendment or supplement thereto by each of the foregoing in
connection with the offering and sale of the Transfer Restricted Securities
covered by the Prospectus or any amendment or supplement thereto.

     (g) Prior to any offering of Transfer Restricted Securities pursuant to
the Shelf Registration Statement, the Company shall arrange for the
qualification of the Transfer Restricted Securities for sale under the laws of
such jurisdictions as any Notice Holder shall reasonably request and shall
maintain such qualification in effect so long as required; provided, however,
that in no event shall the Company be obligated to qualify to do business in
any jurisdiction where it is not then so qualified or to take any action that
would subject it to service of process in suits, other than those arising out
of the Initial Placement or any offering pursuant to the Shelf Registration
Statement, in any jurisdiction where it is not then so subject.

     (h) Upon the occurrence of any event contemplated by subsections (c)(ii)
through (v) above, the Company shall promptly (or within the time period
provided for by Section 3(i) hereof, if applicable) prepare a post-effective
amendment to the Shelf Registration Statement or an amendment or supplement to
the related Prospectus or file any other required document so that, as
thereafter delivered to the purchasers of the securities included therein, the
Prospectus will not include an untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

     (i) Upon the occurrence or existence of any pending corporate development
or any other material event that, in the good faith judgment of the Company
(not including avoidance of the Company’s obligations hereunder), makes it
appropriate to suspend the availability of the Shelf Registration Statement and
the related Prospectus,

 

 

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the Company shall give notice (without notice of the nature or details of
such events) to the Notice Holders that the availability of the Shelf
Registration Statement is suspended and, upon receipt of any such notice, each
Notice Holder agrees not to sell any Transfer Restricted Securities pursuant to
the Shelf Registration Statement until such Notice Holder’s receipt of copies
of the supplemented or amended Prospectus provided for in Section 3(i) hereof,
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 “Deferral Period”) shall not exceed 30 days in
any three-month period or for three periods not to exceed an aggregate of 60
days in any twelve-month period.

     (j) Not later than the effective date of the Shelf Registration Statement,
the Company shall provide CUSIP numbers for the Securities and the Common Stock
registered under the Shelf Registration Statement and provide the Trustee with
printed certificates for the Securities.

     (k) The Company shall comply with all applicable rules and regulations of
the Commission and shall make generally available to its security holders an
earnings statement satisfying the provisions of Section 11(a) of the Act as
soon as practicable after the effective date of the Shelf Registration
Statement and in any event no 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 Shelf Registration Statement.

     (l) The Company shall cause the Indenture to be qualified under the Trust
Indenture Act in a timely manner.

     (m) The Company shall cause all Common Stock issued or issuable upon
conversion of the Securities to be listed on each securities exchange or
quotation system on which the Common Stock is then listed no later than the
date the applicable Shelf Registration Statement is declared effective and, in
connection therewith, to make such filings as may be required under the
Exchange Act and to have such filings declared effective as and when required
thereunder.

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

     (o) The Company shall enter into customary agreements (including, if
requested, an underwriting agreement in customary form) and take all other
appropriate actions in order to expedite or facilitate the registration or the
disposition of the Transfer Restricted Securities, and in connection therewith,
if an underwriting agreement is

 

 

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entered into, cause the same to contain indemnification provisions and
procedures no less favorable than those set forth in Section 5 hereof.

     (p) The Company shall:

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

		
	 	     (ii) cause the Company’s officers, directors, employees,
accountants and auditors to supply all relevant information
reasonably requested by the Holders or any such underwriter,
attorney, accountant or agent in connection with the Shelf
Registration Statement as is customary for similar due diligence
examinations;

		
	 	     (iii) in connection with any underwritten offering conducted
pursuant to Section 6, make such representations and warranties to
the Holders of Transfer Restricted Securities registered
thereunder and the underwriters, if any, in form, substance and
scope as are customarily made by issuers to underwriters in
primary underwritten offerings and covering matters including, but
not limited to, those set forth in the Purchase Agreement;

		
	 	     (iv) in connection with any underwritten offering conducted
pursuant to Section 6, obtain opinions of counsel to the Company
and updates thereof (which counsel and opinions (in form, scope
and substance) shall be reasonably satisfactory to the Managing
Underwriters, if any) addressed to each selling Holder and the
underwriters, if any, covering such matters as are customarily
covered in opinions requested in underwritten offerings and such
other matters as may be reasonably requested by such Holders and
underwriters;

		
	 	     (v) in connection with any underwritten offering conducted
pursuant to Section 6, obtain “comfort” letters and updates
thereof from the independent certified public accountants of the
Company (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any business
acquired or to be acquired by the Company for which financial
statements and financial data are, or are required to be, included
in the Shelf Registration Statement), addressed to each selling
Holder of Transfer Restricted Securities registered thereunder and
the underwriters, if any, in customary form and covering matters
of the type customarily covered in “comfort” letters in connection
with primary underwritten offerings; and

 

 

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	 	     (vi) in connection with any underwritten offering conducted
pursuant to Section 6, deliver such documents and certificates as
may be reasonably requested by the Majority Holders or the
Managing Underwriters, if any, including those to evidence
compliance with Section 3(i) hereof and with any customary
conditions contained in the underwriting agreement or other
agreement entered into by the Company.

The actions set forth in clauses (iii), (iv), (v) and (vi) of this paragraph
(p) shall be performed at (A) the effectiveness of the Shelf Registration
Statement and each post-effective amendment thereto; and (B) each closing under
any underwriting or similar agreement as and to the extent required thereunder.

     (q) The Company shall use its best efforts if the Securities have been
rated prior to the initial sale of such Securities, to confirm such ratings
will apply to the Securities covered by the Shelf Registration Statement.

     (r) In the event that any Broker-Dealer shall underwrite any Transfer
Restricted Securities or participate as a member of an underwriting syndicate
or selling group or “assist in the distribution” (within the meaning of the
NASD Rules) thereof, whether as a Holder of such Transfer Restricted Securities
or as an underwriter, a placement or sales agent or a broker or dealer in
respect thereof, or otherwise, the Company shall assist such Broker-Dealer in
complying with the NASD Rules.

     (s) The Company shall use its reasonable best efforts to take all other
steps necessary to effect the registration of the Transfer Restricted
Securities covered by the Shelf Registration Statement.

     4. Registration Expenses. The Company shall bear all expenses incurred in
connection with the performance of its obligations under Sections 2 and 3
hereof and shall reimburse the Holders for the reasonable fees and
disbursements of one firm or counsel (which shall be a nationally recognized
law firm experienced in securities matters designated by the Majority Holders)
to act as counsel for the Holders in connection therewith.

     5.
Indemnification and Contribution. (a) The Company agrees to indemnify and
hold harmless each Holder of Transfer Restricted Securities covered by the
Shelf Registration Statement, each Initial Purchaser, the directors, officers,
employees, Affiliates and agents of each such Holder or Initial Purchaser and
each person who controls any such Holder or Initial Purchaser within the
meaning of either the Act or the Exchange Act against any and all losses,
claims, damages or liabilities, joint or several, to which they or any of them
may become subject under the Act, the Exchange Act or other federal or state
statutory law or regulation, at common law or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in the Shelf Registration Statement as originally filed
or in any amendment thereof, or in any preliminary Prospectus or the
Prospectus, or in any amendment thereof or supplement thereto, or arise out of
or are based upon the omission or alleged omission

 

 

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to state therein a material fact required to be stated therein or
necessary to make the statements therein (in the case of any preliminary
Prospectus or the Prospectus, in the light of the circumstances under which
they were made) not misleading, and agrees to reimburse each such indemnified
party, as incurred, for any legal or other expenses reasonably incurred by it
in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the Company will not be liable in
any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon any such untrue statement or alleged untrue
statement or omission or alleged omission made therein in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
the party claiming indemnification specifically for inclusion therein. This
indemnity agreement shall be in addition to any liability that the Company may
otherwise have.

     The Company also agrees to indemnify as provided in this Section 5(a) or
contribute as provided in Section 5(d) hereof to Losses of each underwriter, if
any, of Transfer Restricted Securities registered under the Shelf Registration
Statement, its directors, officers, employees, Affiliates or agents and each
person who controls such underwriter on substantially the same basis as that of
the indemnification of the Initial Purchasers and the selling Holders provided
in this paragraph (a) and shall, if requested by any Holder, enter into an
underwriting agreement reflecting such agreement, as provided in Section 3(o)
hereof.

     (b) Each Holder of Transfer Restricted Securities covered by the Shelf
Registration Statement (including each Initial Purchaser that is a Holder, in
such capacity) severally and not jointly agrees to indemnify and hold harmless
the Company, each of its directors, each of its officers who signs the Shelf
Registration Statement and each person who controls the Company within the
meaning of either the Act or the Exchange Act, to the same extent as the
foregoing indemnity from the Company to each such Holder, but only with
reference to written information relating to such Holder furnished to the
Company by or on behalf of such Holder specifically for inclusion in the
documents referred to in the foregoing indemnity. This indemnity agreement
shall be acknowledged by each Notice Holder that is not an Initial Purchaser in
such Notice Holder’s Notice and Questionnaire and shall be in addition to any
liability that any such Notice Holder may otherwise have.

     (c) Promptly after receipt by an indemnified party under this Section 5 or
notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under
this Section 5, notify the indemnifying party in writing of the commencement
thereof; but the failure so to notify the indemnifying party (i) will not
relieve it from liability under paragraph (a) or (b) above unless and to the
extent it did not otherwise learn of such action and such failure results in
the forfeiture by the indemnifying party of substantial rights and defenses;
and (ii) will not, in any event, relieve the indemnifying party from any
obligations to any indemnified party other than the indemnification obligation
provided in paragraph (a) or (b) above. The indemnifying party shall be
entitled to appoint counsel (including local counsel) of the indemnifying
party’s choice at the indemnifying party’s expense to represent the indemnified
party in any action for which indemnification is

 

 

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

     (d) In the event that the indemnity provided in paragraph (a) or (b) of
this Section 5 is unavailable to or insufficient to hold harmless an
indemnified party for any reason, then each applicable indemnifying party shall
have a joint and several obligation to contribute to the aggregate losses,
claims, damages and liabilities (including legal or other expenses reasonably
incurred in connection with investigating or defending loss, claim, liability,
damage or action) (collectively “Losses”) to which such indemnified party may
be subject in such proportion as is appropriate to reflect the relative
benefits received by such indemnifying party, on the one hand, and such
indemnified party, on the other hand, from the Initial Placement and any sales
of Transfer Restricted Securities under the Shelf Registration Statement which
resulted in such Losses; provided, however, that in no case shall any Initial
Purchaser be responsible, in the aggregate, for any amount in excess of the
purchase discount or commission applicable to such Security, as set forth in
the Final Memorandum, nor shall any underwriter be responsible for any amount
in excess of the underwriting discount or commission applicable to the Transfer
Restricted Securities purchased by such underwriter under the Shelf
Registration Statement which resulted in such Losses. If the allocation
provided by the immediately preceding sentence is unavailable for any reason,
the indemnifying party and the indemnified party shall contribute in such
proportion as is appropriate to reflect not only such relative benefits but
also the relative fault of such indemnifying party, on the one hand, and such
indemnified party, on the other hand, in connection with the statements or
omissions which resulted in such Losses as well as any other relevant equitable
considerations.

 

 

13

Benefits received by the Company shall be deemed to be equal to the total
net proceeds from the Initial Placement (before deducting expenses) as set
forth in the Final Memorandum. Benefits received by the Initial Purchasers
shall be deemed to be equal to the total purchase discounts and commissions as
set forth on the cover page of the Final Memorandum, and benefits received by
any other Holders shall be deemed to be equal to the value of receiving
Transfer Restricted Securities registered under the Act. Benefits received by
any underwriter shall be deemed to be equal to the total underwriting discounts
and commissions, as set forth on the cover page of the Prospectus forming a
part of the Shelf Registration Statement which resulted in such Losses.
Relative fault shall be determined by reference to, among other things, whether
any untrue or any alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information provided by
the indemnifying party, on the one hand, or by the indemnified party, on the
other hand, the intent of the parties and their relative knowledge, access to
information and opportunity to correct or prevent such untrue statement or
omission. The parties agree that it would not be just and equitable if
contribution were determined by pro rata allocation (even if the Holders were
treated as one entity for such purpose) or any other method of allocation which
does not take account of the equitable considerations referred to above.
Notwithstanding the provisions of this paragraph (d), no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 5, each person who
controls a Holder within the meaning of either the Act or the Exchange Act and
each director, officer, employee and agent of such Holder shall have the same
rights to contribution as such Holder, and each person who controls the Company
within the meaning of either the Act or the Exchange Act, each officer of the
Company who shall have signed the Shelf Registration Statement and each
director of the Company shall have the same rights to contribution as the
Company, subject in each case to the applicable terms and conditions of this
paragraph (d).

     (e) The provisions of this Section 5 shall remain in full force and
effect, regardless of any investigation made by or on behalf of any Holder or
the Company or any of the indemnified persons referred to in this Section 5,
and shall survive the sale by a Holder of Transfer Restricted Securities
covered by the Shelf Registration Statement.

     6.
Underwritten Registrations. (a) If any of the Transfer Restricted
Securities covered by the Shelf Registration Statement are to be sold in an
underwritten offering, the Managing Underwriters shall be selected by the
Majority Holders, subject to the consent of the Company (which shall not be
unreasonably withheld).

     (b) No person may participate in any underwritten offering pursuant to the
Shelf Registration Statement 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 attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements.

 

 

14

     7. Registration Defaults. If any of the following events shall occur,
then the Company shall pay liquidated damages (the “Registration Default
Damages”) to the Holders of Transfer Restricted Securities in respect of the
Transfer Restricted Securities as follows:

     (a) if the Shelf Registration Statement is not filed with the Commission
on or prior to the 90th day following the Closing Date, then commencing on the
91st day after the Closing Date, Registration Default Damages shall accrue on
the Transfer Restricted Securities at a rate of .25% per annum for the first 90
days from and including such 91st day and .50% per annum thereafter; or

     (b) if the Shelf Registration Statement is not declared effective by the
Commission on or prior to the 150th day following the Closing Date, then
commencing on the 151st day after the Closing Date, Registration Default
Damages shall accrue on the Transfer Restricted Securities at a rate of .25%
per annum for the first 90 days from and including such 151st day and .50% per
annum thereafter; or

     (c) if the Shelf Registration Statement has been declared effective but
ceases to be effective (without being succeeded immediately by a replacement
Shelf Registration Statement filed and declared effective) or usable for the
offer and sale of Transfer Restricted Securities for a period of time
(including any Deferral Period) which exceeds 30 days in the aggregate in any
90-day period or 60 days in the aggregate in any 12-month period during the
Shelf Registration Period, then commencing on the day the Shelf Registration
Statement ceases to be effective or usable, Registration Default Damages shall
accrue on the Transfer Restricted Securities at a rate of .25% per annum for
the first 90 days from and including such date on which the Shelf Registration
Statement ceases to be effective or usable and .50% per annum thereafter; or

     (d) if the aggregate duration of Deferral Periods in any period exceeds
the number of days permitted in respect of such period pursuant to Section 3(i)
hereof, then commencing on the day the aggregate duration of Deferral Periods
in any period exceeds the number of days permitted in respect of such period,
Registration Default Damages shall accrue on the Transfer Restricted Securities
at a rate of .25% per annum for the first 90 days from and including such date
and .50% per annum thereafter;

provided, however, that (1) upon the filing of the Shelf Registration Statement
(in the case of paragraph (a) above), (2) upon the effectiveness of the Shelf
Registration Statement (in the case of paragraph (b) above), (3) upon the
effectiveness of the Shelf Registration Statement which had ceased to remain
effective (in the case of paragraph (c) above), or (4) upon the termination of
the Deferral Period that caused the limit on the aggregate duration of Deferral
Periods in a period set forth in Section 3(i) to be exceeded (in the case of
paragraph (d) above), Registration Default Damages shall cease to accrue.

     8. No Inconsistent Agreements. The Company has not entered into, and
agrees not to enter into, any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders herein or that otherwise
conflicts with the provisions hereof.

 

 

15

     9. Amendments and Waivers. The provisions of this Agreement may not be
amended, qualified, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given, unless the Company has
obtained the written consent of the Holders of a majority of the aggregate
principal amount of the Transfer Restricted Securities outstanding; provided,
however, that, with respect to any matter that directly or indirectly affects
the rights of any Initial Purchaser hereunder, the Company shall obtain the
written consent of each such Initial Purchaser against which such amendment,
qualification, supplement, waiver or consent is to be effective; provided
further, however, that no amendment, qualification, supplement, waiver or
consent with respect to Section 7 hereof shall be effective as against any
Holder of Transfer Restricted Securities unless consented to in writing by such
Holder; and provided further, that the provisions of this Article 9 may not be
amended, qualified, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given, unless the Company has
obtained the written consent of the Initial Purchasers and each Holder.

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

     (a) if to a Holder, at the most current address given by such holder to
the Company in accordance with the provisions of the Notice and Questionnaire,
which address initially is, with respect to each Holder, the address of such
Holder maintained by the Registrar under the Indenture;

     (b) if to the Initial Purchasers or the Representatives, initially at the
address or addresses set forth in the Purchase Agreement; and

     (c) if to the Company, initially at its address set forth in the Purchase
Agreement.

     All such notices and communications shall be deemed to have been duly
given when received.

     The Initial Purchasers or the Company by notice to the other parties may
designate additional or different addresses for subsequent notices or
communications.

     11. Remedies. Each Holder, in addition to being entitled to exercise all
rights provided to it herein, in the Indenture or in the Purchase Agreement or
granted by law, including recovery of liquidated or other damages, 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 hereby agrees to waive in any action for specific performance the defense
that a remedy at law would be adequate.

     12. Successors. This Agreement shall inure to the benefit of and be
binding upon the parties hereto, their respective successors and assigns,
including, without the need for an express assignment or any consent by the
Company thereto,

 

 

16

subsequent Holders of Securities, and the indemnified persons referred to
in Section 5 hereof. The Company hereby agrees to extend the benefits of this
Agreement to any Holder of Securities, and any such Holder may specifically
enforce the provisions of this Agreement as if an original party hereto.

     13. Counterparts. This Agreement may be signed in one or more
counterparts, each of which shall constitute an original and all of which
together shall constitute one and the same agreement.

     14. Headings. The section headings used herein are for convenience only
and shall not affect the construction hereof.

     15. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed in the State of New York. The parties hereto each hereby
waive any right to trial by jury in any action, proceeding or counterclaim
arising out of or relating to this Agreement.

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

     17. Securities Held by the Company, etc. Whenever the consent or approval
of Holders of a specified percentage of principal amount of Securities or the
Common Stock issuable upon conversion thereof is required hereunder, Securities
or the Common Stock issuable upon conversion thereof held by the Company or its
Affiliates (other than subsequent Holders of Securities or the Common Stock
issuable upon conversion thereof if such subsequent Holders are deemed to be
Affiliates solely by reason of their holdings of such Securities or Common
Stock) shall not be counted in determining whether such consent or approval was
given by the Holders of such required percentage.

 

 

     If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us the enclosed duplicate hereof,
whereupon this letter and your acceptance shall represent a binding agreement
between the Company and the several Initial Purchasers.

	 	 	 	 	 	 	 
	 	 	
Very truly yours,
	 	 	 	 	 	 	 
	 	 	
Guilford Pharmaceuticals Inc.
	 	 	 	 	 	 	 
	 	 	
By:
	 	/s/ Craig R. Smith, M.D.

	 	 	 	 	Name: Craig R. Smith, M.D.

Title: Chairman, President and
	 	 	 	 	 	 	    Chief Executive Officer

The foregoing Agreement is hereby confirmed and

accepted as of the date first above written.

Citigroup Global Markets Inc.

CIBC World Markets Corp.

	 	 	 	 
	By:	 	
Citigroup Global Markets Inc.
	 	 	 
	By	 	
/s/ A. Scott Daniel

Name: A. Scott Daniel

Title: Director	 

For themselves and the other several

Initial Purchasers named in Schedule I

to the Purchase Agreement<PAGE>
                                                                     EXHIBIT 4.8

                                                                  EXECUTION COPY

================================================================================

                         REGISTRATION RIGHTS AGREEMENT

                            Dated as of June 5, 2003

                                 by and between

                               SEQUA CORPORATION

                                      and

                            BEAR, STEARNS & CO. INC.

================================================================================
<PAGE>
                  THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made
and entered into as of June 5, 2003, by and between Sequa Corporation, a
Delaware corporation (the "Company"), and Bear, Stearns & Co. Inc. (the "Initial
Purchaser"), who has agreed to purchase the Company's 8 7/8% Series A Senior
Notes due 2008 (the "Series A Notes") , which shall be part of that certain
series titled "8 7/8% Series A Senior Notes due 2008" created by Securities
Resolution No. 2 of the Company, effective as of April 2, 2001, pursuant to the
Purchase Agreement (as defined herein).

                  This Agreement is made pursuant to the Purchase Agreement,
dated June 2, 2003 (the "Purchase Agreement"), by and between the Company and
the Initial Purchaser. In order to induce the Initial Purchaser to purchase the
Series A Notes, the Company has agreed to provide the registration rights set
forth in this Agreement. The execution and delivery of this Agreement is a
condition to the obligations of the Initial Purchaser set forth in Section 3 of
the Purchase Agreement. Capitalized terms used herein and not otherwise defined
shall have the meaning assigned to them in the Indenture, dated as of July 29,
1999 (the "Indenture"), by and between the Company and The Bank of New York (as
successor to Harris Trust Company of New York), as Trustee, relating to the
Series A Notes and the Series B Notes (as defined).

                  The parties hereby agree as follows:

                  Section 1. Definitions. As used in this Agreement, the
following capitalized terms shall have the following meanings:

                  Act:  The Securities Act of 1933, as amended.

                  Affiliate:  As defined in Rule 144 of the Act.

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

                  Closing Date:  The date hereof.

                  Commission:  The Securities and Exchange Commission.

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

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

                  Effectiveness Deadline: The date that is 180th days after the
Closing Date; provided, however, that with respect to any Shelf Registration
Statement, the Effectiveness
<PAGE>
Deadline shall be the 180th day after the delivery of a Shelf Notice as required
pursuant to Section 4 hereof.

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

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

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

                  Exempt Resales: The transactions in which the Initial
Purchaser proposes to sell the Series A Notes to certain "qualified
institutional buyers," as such term is defined in Rule 144A under the Act and
pursuant to Regulation S under the Act.

                  Filing Deadline: (A) If no Exchange Offer Registration
Statement has been filed by the Company pursuant to this Agreement, the 90th day
after the Closing Date; and (B) with respect to a Shelf Registration Statement,
the 90th day after the delivery of a Shelf Notice as required pursuant to
Section 4 hereof.

                  Holders:  As defined in Section 2 hereof.

                  indemnified party:  As defined in Section 8(c) hereof.

                  indemnifying person: As defined in Section 8(c) hereof.

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

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

                  Registration Default:  As defined in Section 5 hereof.

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

                  Regulation S:  Regulation S promulgated under the Act.

                  Rule 144:  Rule 144 promulgated under the Act.

                                       2
<PAGE>
                  Series B Notes: The Company's 8 7/8% Senior B Notes due 2008
to be issued pursuant to the Indenture (i) in the Exchange Offer or (ii) as
contemplated by Section 4 hereof.

                  Shelf Registration Statement:  As defined in Section 4 hereof.

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

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

                  Transfer Restricted Securities: Each (A) Series A Note, until
the earliest to occur of (i) the date on which such Series A Note is exchanged
in the Exchange Offer for a Series B Note which is entitled to be resold to the
public by the Holder thereof without complying with the prospectus delivery
requirements of the Act, (ii) the date on which such Series A Note has been
disposed of in accordance with a Shelf Registration Statement (and the
purchasers thereof have been issued Series B Notes), or (iii) the date on which
such Series A Note may be distributed to the public pursuant to Rule 144(k)
under the Act and each (B) Series B Note held by a Broker Dealer until the date
on which such Series B Note is disposed of by a Broker-Dealer pursuant to the
"Plan of Distribution" contemplated by the Exchange Offer Registration Statement
(including the delivery of the Prospectus contained therein).

                  Underwritten Registration: A registration in which securities
of the Company are sold to an underwriter for reoffering to the public.

                  Section 2. Holders. A Person is deemed to be a holder of
Transfer Restricted Securities (each, a "Holder") whenever such Person owns
Transfer Restricted Securities.

                  Section 3. Registered Exchange Offer.

                  (a) Unless the Exchange Offer shall not be permitted by
applicable federal law (after the procedures set forth in Section 6(a)(i) below
have been complied with), the Company shall (i) cause the Exchange Offer
Registration Statement to be filed with the Commission as soon as practicable
after the Closing Date, but in no event later than the applicable Filing
Deadline and (ii) use its reasonable best efforts to cause such Exchange Offer
Registration Statement to become effective on or before the applicable
Effectiveness Deadline. The Exchange Offer shall be on the appropriate form
permitting (i) registration of the Series B Notes to be offered in exchange for
the Series A Notes that are Transfer Restricted Securities and (ii) resales of
Series B Notes by Broker-Dealers that tendered into the Exchange Offer Notes
that such Broker-Dealer acquired for its own account as a result of market
making activities or other trading activities (other than Series A Notes
acquired directly from the Company or any of its Affiliates) as contemplated by
Section 3(c) below.

                  (b) The Company shall use its reasonable best efforts to keep
the Exchange Offer open for a period of not less than the minimum period
required under applicable federal and state securities laws to Consummate the
Exchange Offer; provided, however, that in no event shall such period be less
than 20 Business Days. The Company shall cause the Exchange Offer to comply with
all applicable federal and state securities laws. No securities other than the
Series B Notes shall be included in the Exchange Offer Registration Statement.
The Company shall use

                                       3
<PAGE>
its reasonable best efforts to cause the Exchange Offer to be Consummated on the
earliest practicable date after the Exchange Offer Registration Statement has
become effective, but in no event later than 30 days thereafter (such 30th day
being the "Consummation Deadline"). The Company shall use its reasonable best
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 lawfully delivered by all persons subject to the prospectus
delivery requirements of the Securities Act for such period of time as is
necessary to comply with applicable law in connection with any resale of the
Series B Notes; provided, however, that such period shall not exceed 180 days
after the consummation of the Exchange Offer.

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

                  Section 4. Shelf Registration.

                  (a) Shelf Registration. If (i) the Exchange Offer is not
permitted by applicable law (after the Company has complied with the procedures
set forth in Section 6(a)(i) below) or (ii) any Holder of Transfer Restricted
Securities shall notify the Company within 20 Business Days following the
Consummation Deadline that (A) such Holder was prohibited by law or Commission
policy from participating in the Exchange Offer or (B) such Holder may not
resell the Series B Notes acquired by it in the Exchange Offer to the public
without delivering a prospectus and the Prospectus contained in the Exchange
Offer Registration Statement is not appropriate or available for such resales by
such Holder or (C) such Holder is a Broker-Dealer and holds Series A Notes
acquired directly from the Company or pursuant to the Purchase Agreement, then
the Company shall, following written notice thereof (the "Shelf Notice"):

                           (x) cause to be filed, on or prior to the applicable
         Filing Deadline a shelf registration statement pursuant to Rule 415
         under the Act (which may be an amendment to the Exchange Offer
         Registration Statement (the "Shelf Registration Statement")), relating
         to all Transfer Restricted Securities; and

                           (y) shall use its reasonable best efforts to cause
         such Shelf Registration Statement to become effective on or prior to
         the applicable Effectiveness Deadline.

                  If, after the Company has filed an Exchange Offer Registration
Statement that satisfies the requirements of Section 3(a) above, the Company is
required to file and make effective a Shelf Registration Statement solely
because the Exchange Offer is not permitted

                                       4
<PAGE>
under applicable federal law (i.e., clause (a)(i) above), then the filing of the
Exchange Offer Registration Statement shall be deemed to satisfy the
requirements of clause (x) above; provided that, in such event, the Company
shall remain obligated to meet the Effectiveness Deadline set forth in clause
(y).

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

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

                  Section 5. Liquidated Damages. If (i) any Registration
Statement required by this Agreement is not filed with the Commission on or
prior to the applicable Filing Deadline, (ii) any such Registration Statement
has not been declared effective by the Commission on or prior to the applicable
Effectiveness Deadline, (iii) the Exchange Offer has not been Consummated on or
prior to the Consummation Deadline or (iv) any Registration Statement required
by this Agreement is filed and declared effective but shall thereafter cease to
be effective or fail to be usable for its intended purpose without being
succeeded within five days by a post-effective amendment to such Registration
Statement that cures such failure (each such event referred to in clauses (i)
through (iv), a "Registration Default"), then the Company hereby agrees to pay
to each Holder of Transfer Restricted Securities affected thereby liquidated
damages in an amount equal to $.05 per week per $1,000 in principal amount of
Transfer Restricted Securities held by such Holder for each week or portion
thereof that the Registration Default continues for the first 90-day period
immediately following the occurrence of such Registration Default. The amount of
the liquidated damages shall increase by an additional $.05 per week per $1,000
in principal amount of Transfer Restricted Securities with respect to each
subsequent 90-day period until all Registration Defaults have been cured, up to
a maximum amount of liquidated damages of $.40 per week per $1,000 in principal
amount of Transfer Restricted Securities; provided that the Company shall in no
event be required to pay liquidated

                                       5
<PAGE>
damages for more than one Registration Default at any given time.
Notwithstanding anything to the contrary set forth herein, (1) upon filing of
the Exchange Offer Registration Statement (and/or, if applicable, the Shelf
Registration Statement), in the case of (i) above, (2) upon the effectiveness of
the Exchange Offer Registration Statement (and/or, if applicable, the Shelf
Registration Statement), in the case of (ii) above, (3) upon Consummation of the
Exchange Offer, in the case of (iii) above, or (4) upon the filing of a
post-effective amendment to the Registration Statement or an additional
Registration Statement that causes the Exchange Offer Registration Statement
(and/or, if applicable, the Shelf Registration Statement) to again be declared
effective or made usable in the case of (iv) above, the liquidated damages
payable with respect to the Transfer Restricted Securities as a result of such
clause (i), (ii), (iii) or (iv), as applicable, shall cease.

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

                  Section 6. Registration Procedures.

                  (a) Exchange Offer Registration Statement. In connection with
the Exchange Offer:

                           (i) As a condition to its participation in the
         Exchange Offer, each Holder of Transfer Restricted Securities
         (including, without limitation, any Holder who is a Broker Dealer)
         shall furnish, upon the request of the Company, prior to the
         Consummation of the Exchange Offer, a written representation to the
         Company (which may be contained in the letter of transmittal
         contemplated by the Exchange Offer Registration Statement) to the
         effect that (A) it is not an Affiliate of the Company, (B) it is not
         engaged in, and does not intend to engage in, and has no arrangement or
         understanding with any person to participate in, a distribution of the
         Series B Notes to be issued in the Exchange Offer and (C) it is
         acquiring the Series B Notes in its ordinary course of business. As a
         condition to its participation in the Exchange Offer each Holder using
         the Exchange Offer to participate in a distribution of the Series B
         Notes shall acknowledge and agree that, if the resales are of Series B
         Notes obtained by such Holder in exchange for Series A Notes acquired
         directly from the Company or an Affiliate thereof, it (1) could not,
         under Commission policy as in effect on the date of this Agreement,
         rely on the position of the Commission enunciated in Morgan Stanley and
         Co., Inc. (available June 5, 1991) and Exxon Capital Holdings
         Corporation (available May 13, 1988), as interpreted in the
         Commission's letter to Shearman & Sterling dated July 2, 1993, and
         similar no-action letters (including, if applicable, any no-action
         letter obtained pursuant to clause (i) above), and (2) must comply with
         the registration and prospectus delivery requirements of the Act in
         connection with a secondary resale transaction and that such a
         secondary resale transaction must be covered by an effective
         registration statement containing the selling security holder
         information required by Item 507 or 508, as applicable, of Regulation
         S-K.

                                       6
<PAGE>
                           (ii) Prior to effectiveness of the Exchange Offer
         Registration Statement, the Company shall provide a supplemental letter
         to the Commission (A) stating that the Company is registering the
         Exchange Offer in reliance on the position of the Commission enunciated
         in Exxon Capital Holdings Corporation (available May 13, 1988), Morgan
         Stanley and Co., Inc. (available June 5, 1991) as interpreted in the
         Commission's letter to Shearman & Sterling dated July 2, 1993, and, if
         applicable, any no-action letter obtained pursuant to clause (i) above,
         (B) including a representation that the Company has not entered into
         any arrangement or understanding with any Person to distribute the
         Series B Notes to be received in the Exchange Offer and that, to the
         best of the Company's information and belief, each Holder participating
         in the Exchange Offer is acquiring the Series B Notes in its ordinary
         course of business and has no arrangement or understanding with any
         Person to participate in the distribution of the Series B Notes
         received in the Exchange Offer and (C) any other undertaking or
         representation required by the Commission as set forth in any no-action
         letter obtained pursuant to clause (i) above, if applicable.

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

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

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

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

                           (i) use its reasonable best efforts to keep such
         Registration Statement continuously effective and provide all requisite
         financial statements for the period specified in Section 3 or 4 of this
         Agreement, as applicable. Upon the occurrence of any event that would
         cause any such Registration Statement or the Prospectus contained
         therein (A) to contain an untrue statement of material fact or omit to
         state any material fact necessary to make the statements therein not
         misleading or (B) not to be effective

                                       7
<PAGE>
         and usable for resale of Transfer Restricted Securities during the
         period required by this Agreement, the Company shall file promptly an
         appropriate amendment to such Registration Statement curing such
         defect, and, if Commission review is required, use its reasonable best
         efforts to cause such amendment to be declared effective as soon as
         practicable.

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

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

                           (iv) subject to Section 6(c)(i), if any fact or event
         contemplated by Section 6(c)(iii)(D) above shall exist or have
         occurred, prepare a supplement or post-effective amendment to the
         Registration Statement or related Prospectus or any document
         incorporated therein by reference or file any other required document
         so that, as thereafter delivered to the purchasers of Transfer
         Restricted Securities, the Prospectus

                                       8
<PAGE>
         will not contain an untrue statement of a material fact or omit to
         state any material fact necessary to make the statements therein, in
         the light of the circumstances under which they were made, not
         misleading;

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

                           (vi) if (1) a Shelf Registration Statement is filed
         pursuant to Section 4 hereof or (2) a Prospectus contained in an
         Exchange Offer Registration Statement filed pursuant to Section 3
         hereof is required to be delivered under the Securities Act by any
         Broker-Dealer who seeks to sell Series B Notes during the Applicable
         Period, upon reasonable advance notice make available for inspection by
         any selling Holder of such Transfer Restricted Securities being sold,
         or each such Broker-Dealer, as the case may be, any underwriter
         participating in any such disposition of Transfer Restricted
         Securities, if any, and any attorney, accountant or other agent
         retained by any such selling Holder or each such Broker-Dealer, as the
         case may be, or underwriter (collectively, the "Inspectors"), at the
         offices where normally kept, during reasonable business hours without
         interfering in the orderly business of the Company, all financial and
         other records, pertinent corporate documents and instruments of the
         Company and its subsidiaries (collectively, the "Records") as shall be
         reasonably necessary to enable them to exercise any applicable due
         diligence responsibilities, and cause the officers, directors and
         employees of the Company and its subsidiaries to supply all information
         reasonably requested by any such Inspector in connection with such
         Registration Statement. Records that the Company determines, in good
         faith, to be confidential and any Records that they notify the
         Inspectors are confidential shall not be disclosed by the Inspectors
         unless (i) the disclosure of such Records is necessary to avoid or
         correct a material misstatement or omission in such Registration
         Statement, (ii) the release of such Records is ordered pursuant to a
         subpoena or other order from a court of competent jurisdiction, (iii)
         after giving reasonable prior notice to the Company, disclosure of such
         information is, in the opinion of counsel for any Inspector, necessary
         or advisable in connection with any action, claim, suit or proceeding,
         directly or indirectly, involving or potentially involving such
         Inspector and arising out of, based upon, relating to or involving this
         Agreement or any transactions contemplated hereby or arising hereunder
         or (iv) the information in such Records has been made generally
         available to the public. Each

                                       9
<PAGE>
         selling Holder of such Transfer Restricted Securities and each such
         Broker-Dealer will be required to agree that information obtained by it
         as a result of such inspections shall be deemed confidential and shall
         not be used by it as the basis for any market transactions in the
         securities of the Company unless and until such information is
         generally available to the public. Each selling Holder of such Transfer
         Restricted Securities and each such Broker-Dealer will be required to
         further agree that it will, upon learning that disclosure of such
         Records is sought in a court of competent jurisdiction, give notice to
         the Company and allow the Company to undertake appropriate action to
         prevent disclosure of the Records deemed confidential at the Company's
         sole expense.

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

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

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

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

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

                                             (1) a certificate, dated such date,
                           signed on behalf of the Company by (x) the President
                           or any Vice President and (y) a principal financial
                           or accounting officer of the Company, confirming, as
                           of the date thereof, the matters set forth in
                           Sections 8(a), 8(b), 8(c) and 8(d) of the

                                       10
<PAGE>
                           Purchase Agreement and such other similar matters as
                           such Holders may reasonably request;

                                             (2) with respect to an Underwritten
                           Registration, an opinion, dated the date of
                           effectiveness of the Shelf Registration Statement, of
                           counsel for the Company covering matters similar to
                           those set forth in paragraph (e) of Section 8 of the
                           Purchase Agreement and such other matters as such
                           Holder may reasonably request, and in any event
                           including a statement to the effect that such counsel
                           has participated in conferences with officers and
                           other representatives of the Company, representatives
                           of the independent public accountants for the Company
                           and have considered the matters required to be stated
                           therein and the statements contained therein,
                           although such counsel has not independently verified
                           the accuracy, completeness or fairness of such
                           statements; and that such counsel advises that, on
                           the basis of the foregoing (relying as to materiality
                           to the extent such counsel deems appropriate upon the
                           statements of officers and other representatives of
                           the Company) and without independent check or
                           verification, no facts came to such counsel's
                           attention that caused such counsel to believe that
                           the applicable Registration Statement, at the time
                           such Registration Statement or any post-effective
                           amendment thereto became effective and, in the case
                           of the Exchange Offer Registration Statement, as of
                           the date of Consummation of the Exchange Offer,
                           contained an untrue statement of a material fact or
                           omitted to state a material fact required to be
                           stated therein or necessary to make the statements
                           therein not misleading, or that the Prospectus
                           contained in such Registration Statement as of its
                           date and, in the case of the opinion dated the date
                           of Consummation of the Exchange Offer, as of the date
                           of Consummation, contained an untrue statement of a
                           material fact or omitted to state a material fact
                           necessary in order to make the statements therein, in
                           the light of the circumstances under which they were
                           made, not misleading. Without limiting the foregoing,
                           such counsel may state further that such counsel
                           assumes no responsibility for, and has not
                           independently verified, the accuracy, completeness or
                           fairness of the financial statements, notes and
                           schedules and other financial data included in any
                           Registration Statement contemplated by this Agreement
                           or the related Prospectus; and

                                             (3) with respect to an Underwritten
                           Registration, a customary comfort letter, dated the
                           date of effectiveness of the Shelf Registration
                           Statement, from the Company's independent
                           accountants, in the customary form and covering
                           matters of the type customarily covered in comfort
                           letters to underwriters in connection with
                           underwritten offerings, and affirming the matters set
                           forth in the comfort letters delivered pursuant to
                           Section 8(g) of the Purchase Agreement; and

                                    (B) deliver such other documents and
                  certificates as may be reasonably requested by the selling
                  Holders to evidence compliance with the

                                       11
<PAGE>
                  matters covered in clause (A) above and with any customary
                  conditions contained in the any agreement entered into by the
                  Company pursuant to this clause (x);

                           (xi) prior to any public offering of Transfer
         Restricted Securities, cooperate with the selling Holders and their
         counsel in connection with the registration and qualification of the
         Transfer Restricted Securities under the securities or Blue Sky laws of
         such jurisdictions as the selling Holders may request and do any and
         all other acts or things necessary or advisable to enable the
         disposition in such jurisdictions of the Transfer Restricted Securities
         covered by the applicable Registration Statement; provided, however,
         that the Company shall not be required to register or qualify as a
         foreign corporation where it is not now so qualified or to take any
         action that would subject it to the service of process in suits or to
         taxation, other than as to matters and transactions relating to the
         Registration Statement, in any jurisdiction where it is not now so
         subject;

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

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

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

                           (xv) cause the Indenture to be qualified under the
         TIA not later than the effective date of the first Registration
         Statement required by this Agreement and, in connection therewith,
         cooperate with the Trustee and the Holders to effect such changes to
         the Indenture as may be required for such Indenture to be so qualified
         in accordance with the terms of the TIA; and execute and use its best
         efforts to cause the Trustee to execute, all documents that may be
         required to effect such changes and all other forms and documents
         required to be filed with the Commission to enable such Indenture to be
         so qualified in a timely manner.

                  (d) Restrictions on Holders. Each Holder agrees by acquisition
of a Transfer Restricted Security that, upon receipt of the notice referred to
in Section 6(c)(iii)(C) or any notice from the Company of the existence of any
fact of the kind described in Section 6(c)(iii)(D)

                                       12
<PAGE>
hereof (in each case, a "Suspension Notice"), such Holder will forthwith
discontinue disposition of Transfer Restricted Securities pursuant to the
applicable Registration Statement until (i) such Holder has received copies of
the supplemented or amended Prospectus contemplated by Section 6(c)(iv) hereof,
or (ii) such Holder is advised in writing by the Company that the use of the
Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus (in
each case, the "Recommencement Date"). Each Holder receiving a Suspension Notice
hereby agrees that it will either (i) destroy any Prospectuses, other than
permanent file copies, then in such Holder's possession which have been replaced
by the Company with more recently dated Prospectuses or (ii) deliver to the
Company (at the Company's expense) all copies, other than permanent file copies,
then in such Holder's possession of the Prospectus covering such Transfer
Restricted Securities that was current at the time of receipt of the Suspension
Notice. The time period regarding the effectiveness of such Registration
Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended
by a number of days equal to the number of days in the period from and including
the date of delivery of the Suspension Notice to the date of delivery of the
Recommencement Date.

                  Section 7. Registration Expenses.

                  (a) All expenses incident to the Company's performance of or
compliance with this Agreement will be borne by the Company, regardless of
whether a Registration Statement becomes effective, including without
limitation: (i) all registration and filing fees and expenses; (ii) all fees and
expenses of compliance with federal securities and state Blue Sky or securities
laws; (iii) all expenses of printing (including printing certificates for the
Series B Notes to be issued in the Exchange Offer and printing of Prospectuses),
messenger and delivery services and telephone; (iv) all fees and disbursements
of counsel for the Company and the Holders of Transfer Restricted Securities
(subject to Section 7(b) hereof); (v) all application and filing fees in
connection with listing the Series B Notes on a national securities exchange or
automated quotation system pursuant to the requirements hereof; and (vi) all
fees and disbursements of independent certified public accountants of the
Company (including the expenses of any special audit and comfort letters
required by or incident to such performance).

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

                  (b) The Company shall (i) reimburse the Holders of the
Transfer Restricted Securities being registered in a Shelf Registration
Statement for the reasonable fees and disbursements of not more than one counsel
chosen by the Holders of a majority in aggregate principal amount of the
Transfer Restricted Securities to be included in such Registration Statement and
(ii) reimburse reasonable out-of-pocket expenses (other than legal expenses) of
Holders of Transfer Restricted Securities incurred in connection with the
registration and sale of the Transfer Restricted Securities pursuant to a Shelf
Registration Statement or in connection with the exchange of Transfer Restricted
Securities pursuant to the Exchange Offer.

                                       13
<PAGE>
                  Section 8. Indemnification.

                  (a) The Company agrees to indemnify and hold harmless each
Holder, its directors, officers and each Person, if any, who controls such
Holder (within the meaning of Section 15 of the Act or Section 20 of the
Exchange Act), from and against any and all losses, claims, damages,
liabilities, judgments, (including without limitation, any legal or other
expenses incurred in connection with investigating or defending any matter,
including any action that could give rise to any such losses, claims, damages,
liabilities or judgments) caused by any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement,
preliminary prospectus or Prospectus (or any amendment or supplement thereto)
provided by the Company to any Holder or any prospective purchaser of Series B
Notes or registered Series A Notes, or caused by any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except (i) insofar as
such losses, claims, damages, liabilities or judgments are caused by an untrue
statement or omission or alleged untrue statement or omission that is based upon
information relating to any of the Holders furnished in writing to the Company
by any of the Holders and (ii) if such Holder sold to the Person asserting the
claim to the Transfer Restricted Securities or Series A Notes that are the
subject of such claim and such untrue statement or omission or alleged untrue
statement or omission was contained or made in any preliminary prospectus and
corrected in the Prospectus or any amendment or supplement thereto and the
Prospectus does not contain any other untrue statement or omission or alleged
untrue statement or omission of a material fact that was the subject matter of
the related proceeding and it is established by the Company in the related
proceeding that such Holder failed to deliver or provide a copy of the
Prospectus (as amended or supplemented) to such Person with or prior to the
confirmation of the sale of such Registrable Notes or Exchange Notes sold to
such Person if required by applicable law, unless such failure to deliver or
provide a copy of the Prospectus (as amended or supplemented) was a result of
noncompliance by the Company with Section 5 of this Agreement.

                  (b) Each Holder of Transfer Restricted Securities agrees,
severally and not jointly, to indemnify and hold harmless the Company, and its
directors and officers, and each person, if any, who controls (within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act) the Company,
to the same extent as the foregoing indemnity from the Company set forth in
section (a) above, but only with reference to information relating to such
Holder furnished in writing to the Company by such Holder expressly for use in
any Registration Statement. In no event shall any Holder, its directors,
officers or any Person who controls such Holder be liable or responsible for any
amount in excess of the amount by which the total amount received by such Holder
with respect to its sale of Transfer Restricted Securities pursuant to a
Registration Statement exceeds (i) the amount paid by such Holder for such
Transfer Restricted Securities and (ii) the amount of any damages that such
Holder, its directors, officers or any Person who controls such Holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission.

                  (c) In case any action shall be commenced involving any person
in respect of which indemnity may be sought pursuant to Section 8(a) or 8(b)
(the "indemnified party"), the indemnified party shall promptly notify the
person against whom such indemnity may be sought (the "indemnifying person") in
writing and the indemnifying party shall assume the defense of

                                       14
<PAGE>
such action, including the employment of counsel reasonably satisfactory to the
indemnified party and the payment of all fees and expenses of such counsel, as
incurred (except that in the case of any action in respect of which indemnity
may be sought pursuant to both Sections 8(a) and 8(b), a Holder shall not be
required to assume the defense of such action pursuant to this Section 8(c), but
may employ separate counsel and participate in the defense thereof, but the fees
and expenses of such counsel, except as provided below, shall be at the expense
of the Holder). Any indemnified party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of the indemnified party
unless (i) the employment of such counsel shall have been specifically
authorized in writing by the indemnifying party, (ii) the indemnifying party
shall have failed to assume the defense of such action or employ counsel
reasonably satisfactory to the indemnified party or (iii) the named parties to
any such action (including any impleaded parties) include both the indemnified
party and the indemnifying party, and the indemnified party shall have been
advised by such counsel that there may be one or more legal defenses available
to it which are different from or additional to those available to the
indemnifying party (in which case the indemnifying party shall not have the
right to assume the defense of such action on behalf of the indemnified party).
In any such case, the indemnifying party shall not, in connection with any one
action or separate but substantially similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances, be
liable for the fees and expenses of more than one separate firm of attorneys (in
addition to any local counsel) for all indemnified parties and all such fees and
expenses shall be reimbursed as they are incurred. Such firm shall be designated
in writing by a majority of the Holders, in the case of the parties indemnified
pursuant to Section 8(a), and by the Company, in the case of parties indemnified
pursuant to Section 8(b). The indemnifying party shall indemnify and hold
harmless the indemnified party from and against any and all losses, claims,
damages, liabilities and judgments by reason of any settlement of any action (i)
effected with its written consent or (ii) effected without its written consent
if the settlement is entered into more than twenty business days after the
indemnifying party shall have received a request from the indemnified party for
reimbursement for the fees and expenses of counsel (in any case where such fees
and expenses are at the expense of the indemnifying party) and, prior to the
date of such settlement, the indemnifying party shall have failed to comply with
such reimbursement request. No indemnifying party shall, without the prior
written consent of the indemnified party, effect any settlement or compromise
of, or consent to the entry of judgment with respect to, any pending or
threatened action in respect of which the indemnified party is or could have
been a party and indemnity or contribution may be or could have been sought
hereunder by the indemnified party, unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party from all
liability on claims that are or could have been the subject matter of such
action and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act, by or on behalf of the indemnified party.

                  (d) To the extent that the indemnification provided for in
this Section 8 is unavailable to an indemnified party in respect of any losses,
claims, damages, liabilities or judgments referred to therein, then each
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or judgments (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company, on
the one hand, and the Holders, on the other hand, from their sale of Transfer
Restricted Securities or (ii) if the

                                       15
<PAGE>
allocation provided by clause 8(d)(i) is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause 8(d)(i) above but also the relative fault of the Company,
on the one hand, and of the Holder, on the other hand, in connection with the
statements or omissions which resulted in such losses, claims, damages,
liabilities or judgments, as well as any other relevant equitable
considerations. The relative fault of the Company, on the one hand, and of the
Holder, on the other hand, shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company, on the one hand, or by the Holder, on the other hand,
and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The amount paid or
payable by a party as a result of the losses, claims, damages, liabilities and
judgments referred to above shall be deemed to include, subject to the
limitations set forth in the second paragraph of Section 8(a), any legal or
other fees or expenses reasonably incurred by such party in connection with
investigating or defending any action or claim.

                  The Company and each Holder agree that it would not be just
and equitable if contribution pursuant to this Section 8(d) were determined by
pro rata allocation (even if the Holders were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages, liabilities or judgments referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any matter, including any
action that could have given rise to such losses, claims, damages, liabilities
or judgments. Notwithstanding the provisions of this Section 8, no Holder, its
directors, its officers or any Person, if any, who controls such Holder shall be
required to contribute, in the aggregate, any amount in excess of the amount by
which the total received by such Holder with respect to the sale of Transfer
Restricted Securities pursuant to a Registration Statement exceeds (i) the
amount paid by such Holder for such Transfer Restricted Securities and (ii) the
amount of any damages which such Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Holders'
obligations to contribute pursuant to this Section 8(d) are several in
proportion to the respective principal amount of Transfer Restricted Securities
held by each Holder hereunder and not joint.

                  Section 9. Rule 144A And Rule 144. The Company agrees with
each Holder, for so long as any Transfer Restricted Securities remain
outstanding and during any period in which the Company (i) is not subject to
Section 13 or 15(d) of the Exchange Act, to make available, upon request of any
Holder, to such Holder or beneficial owner of Transfer Restricted Securities in
connection with any sale thereof and any prospective purchaser of such Transfer
Restricted Securities designated by such Holder or beneficial owner, the
information required by Rule 144A(d)(4) under the Act in order to permit resales
of such Transfer Restricted Securities pursuant to Rule 144A, and (ii) is
subject to Section 13 or 15 (d) of the Exchange Act, to make all filings
required thereby in a timely manner in order to permit resales of such Transfer
Restricted Securities pursuant to Rule 144.

                                       16
<PAGE>
                  Section 10. Miscellaneous.

                  (a) Remedies. The Company acknowledges and agrees that any
failure by the Company to comply with its obligations under Sections 3 and 4
hereof may result in material irreparable injury to the Initial Purchaser or the
Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Initial Purchaser or any Holder may obtain such relief
as may be required to specifically enforce the Company's obligations under
Sections 3 and 4 hereof. The Company further agree 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 that is
inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The Company has not previously
entered into any agreement granting any registration rights with respect to its
securities to any Person, other than in connection with the 8 7/8% Series A
Senior Notes due 2008, issued April 2, 2001, and/or as otherwise set forth in
the Offering Memorandum, dated June 2, 2003 relating to the Series A Notes. The
rights granted to the Holders hereunder do not in any way conflict with and are
not inconsistent with the rights granted to the holders of the Company's
securities under any agreement in effect on the date hereof.

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

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

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

                                       17
<PAGE>
                           (i) if to a Holder, at the address set forth on the
         records of the Registrar under the Indenture, with a copy to the
         Registrar under the Indenture; and

                           (ii) if to the Company:

                                Sequa Corporation
                                200 Park Avenue
                                New York, NY  10166
                                Facsimile:  (212) 570-3419

                                Attention:  Chief Financial Officer

                                With a copy to:

                                Cahill Gordon & Reindel LLP
                                80 Pine Street
                                New York, New York 10005
                                Facsimile:  (212) 269-5420
                                Attention: W. Leslie Duffy, 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 receipt acknowledged, if telecopied; and on the next business day, if
timely delivered to an air courier guaranteeing overnight delivery.

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

                  (f) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the
parties, including without limitation and without the need for an express
assignment, subsequent Holders; provided, that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Transfer Restricted
Securities in violation of the terms hereof or of the Purchase Agreement or the
Indenture. If any transferee of any Holder shall acquire Transfer Restricted
Securities in any manner, whether by operation of law or otherwise, such
Transfer Restricted Securities shall be held subject to all of the terms of this
Agreement, and by taking and holding such Transfer Restricted Securities such
Person shall be conclusively deemed to have agreed to be bound by and to perform
all of the terms and provisions of this Agreement, including the restrictions on
resale set forth in this Agreement and, if applicable, the Purchase Agreement,
and such Person shall be entitled to receive the benefits hereof.

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

                                       18
<PAGE>
                  (h) Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

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

                  (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, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

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

                                       19
<PAGE>
                  In Witness Whereof, the parties have executed this Agreement
as of the date first written above.

                                          SEQUA CORPORATION

                                          By: /s/ Kenneth A. Drucker
                                              ----------------------------------
                                              Name:  Kenneth A. Drucker
                                              Title: Vice President & Treasurer

BEAR, STEARNS & CO. INC.

By: /s/ James B. Nish
    ------------------------------------
    Name:  James B. Nish
    Title: Senior Marketing Director

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