Document:

EX-10.1

 

Exhibit 10.1

$110,000,000

World Acceptance Corporation

3.00% Convertible Senior Subordinated Notes due 2011

Registration Rights Agreement

October 10, 2006

J.P. Morgan Securities Inc.

As Representative of the Initial Purchasers

270 Park Avenue

New York, New York 10017

Ladies and Gentlemen:

     World Acceptance Corporation, a South Carolina corporation (the “Company”), proposes to issue
and sell to the initial purchasers (the “Initial Purchasers”) listed on Schedule 1 to the purchase
agreement dated October 3, 2006 (the “Purchase Agreement”), for whom J.P. Morgan Securities Inc. is
acting as representative (the “Representative”), $110,000,000 aggregate principal amount of its
3.00% Convertible Senior Subordinated Notes due 2011 (the “Notes”), upon the terms and subject to
the conditions set forth in the Purchase Agreement.

     In satisfaction of a condition to the obligations of the Initial Purchasers under the Purchase
Agreement, the Company agrees with the Initial Purchasers, for the benefit of the holders
(including the Initial Purchasers) of the Notes and the Shares (as defined below), as follows:

     1. Certain Definitions.

     Capitalized terms used but not defined herein shall have the meanings given to such terms in
the Purchase Agreement. For purposes of this Registration Rights Agreement, the following terms
shall have the following meanings:

     (a) “Additional Interest” has the meaning assigned thereto in Section 2(e).

     (b) “Additional Interest Payment Date” has the meaning assigned thereto in Section
2(e).

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     (c) “Affiliate” has the meaning set forth in Rule 405 under the Securities Act, except
as otherwise expressly provided herein.

     (d) “Agreement” means this Registration Rights Agreement, as the same may be amended
from time to time pursuant to the terms hereof.

     (e) “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed.

     (f) “Closing Date” means the date on which any Notes are initially issued.

     (g) “Commission” means the Securities and Exchange Commission, or any other federal
agency at the time administering the Exchange Act or the Securities Act, whichever is the
relevant statute for the particular purpose.

     (h) “Company” has the meaning specified in the first paragraph of this Agreement.

     (i) “Deferral Notice” has the meaning assigned thereto in Section 3(b).

     (j) “Deferral Period” has the meaning assigned thereto in Section 3(b).

     (k) “Effective Period” has the meaning assigned thereto in Section 2(a).

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

     (m) “Holder” means each holder, from time to time, of Registrable Securities (including
the Initial Purchasers).

     (n) “Indenture” means the Indenture dated as of October 10, 2006 among the Company and
U.S. Bank National Association, as Trustee, pursuant to which the Notes are being issued.

     (o) “Initial Purchasers” has the meaning specified in the first paragraph of this
Agreement.

     (p) “Material Event” has the meaning assigned thereto in Section 3(a)(iii).

     (q) “Majority Holders” shall mean, on any date, Holders of the majority of the Shares
constituting Registrable Securities hereunder; for the purposes of this definition, Holders
of Notes constituting Registrable Securities shall be deemed to be the Holders of the number
of Shares equal to the applicable Conversion Rate (as defined in the Indenture) as of such
date multiplied by the aggregate number of $1,000 principal amount of Notes held by such
Holder.

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     (r) “NASD” shall mean the National Association of Securities Dealers, Inc.

     (s) “Notes” has the meaning specified in the first paragraph of this Agreement.

     (t) “Notice and Questionnaire” means a written notice delivered to the Company
containing substantially the information called for by the Form of Selling Securityholder
Notice and Questionnaire attached as Annex A to the Offering Memorandum.

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

     (v) “Offering Memorandum” means the Offering Memorandum dated October 3, 2006 relating
to the offer and sale of the Notes.

     (w) “Person” means a corporation, limited liability company, association, partnership,
organization, business, individual, government or political subdivision thereof or
governmental agency.

     (x) “Prospectus” means the prospectus included in any 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 Securities Act), as amended or supplemented by any amendment or prospectus
supplement, including post-effective amendments, and all materials incorporated by reference
or explicitly deemed to be incorporated by reference in such Prospectus.

     (y) “Purchase Agreement” has the meaning specified in the first paragraph of this
Agreement.

     (z) “Registrable Securities” means the Securities; provided, however, that such
Securities shall cease to be Registrable Securities when (i) such Securities shall cease to
be outstanding (including, in the case of the Notes, upon conversion into Shares); (ii) a
registration statement registering such Securities under the Securities Act has been
declared or becomes effective and such Securities have been sold or otherwise transferred or
disposed of by the Holder thereof pursuant to such effective registration statement; (iii)
such Securities are sold or distributed pursuant to Rule 144 under circumstances in which
any legend borne by such Securities relating to restrictions on transferability thereof,
under the Securities Act or otherwise, is removed pursuant to the Indenture; or (iv) such
Securities are eligible to be sold pursuant to Rule 144(k) or any successor provision
(assuming such Securities are not then owned, and were not previously owned, by an Affiliate
of the Company).

     (aa) “Registration Default” has the meaning assigned thereto in Section 2(e).

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     (bb) “Registration Expenses” has the meaning assigned thereto in Section 5.

     (cc) “Restricted Securities” has the meaning set forth under Rule 144.

     (dd) “Rule 144,” “Rule 144A,” “Rule 405” and “Rule 415” mean, in each case, such rule
as promulgated under the Securities Act.

     (ee) “Securities” means, collectively, the Notes and the Shares.

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

     (gg) “Shares” means the shares of Common Stock of the Company (as defined in the
Indenture), into which the Notes are convertible or that have been issued upon any
conversion of Notes.

     (hh) “Shelf Registration Statement” means the shelf registration statement referred to
in Section 2(a), as amended or supplemented by any amendment or supplement, including
post-effective amendments and any additional information contained in a form of prospectus
or prospectus supplement that is deemed retroactively to be a part of the shelf registration
statement pursuant to Rules 430A, 430B or 430C, and all materials incorporated by reference
or explicitly deemed to be incorporated by reference in such Shelf Registration Statement.

     (ii) “Special Counsel” shall have the meaning assigned thereto in Section 5.

     (jj) “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, or any
successor thereto, and the rules, regulations and forms promulgated thereunder, all as the
same shall be amended from time to time.

     (kk) “Trustee” shall have the meaning assigned such term in the Indenture.

     Unless the context otherwise requires, any reference herein to a “Section” or “clause” refers
to a Section or clause, as the case may be, of this Agreement, and the words “herein,” “hereof” and
“hereunder” and other words of similar import refer to this Agreement as a whole and not to any
particular Section or other subdivision. Unless the context otherwise requires, any reference to a
statute, rule or regulation refers to the same (including any successor statute, rule or regulation
thereto) as it may be amended from time to time.

     2. Registration Under the Securities Act.

     (a) The Company agrees to file under the Securities Act as soon as practicable, but in
any event within 90 days after the Closing Date, 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 Registrable Securities, pursuant to Rule 415 or any similar

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rule that may be
adopted by the Commission; provided, that such registration statement shall be an “automatic
shelf registration statement,” as such term is defined in Rule 405 under the Securities Act,
if the Company is eligible to use automatic shelf registration
statements at the time of filing. If the Shelf Registration Statement is not an
automatic shelf registration statement, the Company agrees to use commercially reasonable
efforts to cause the Shelf Registration Statement to be declared effective as promptly as
possible, but in any event no later than 180 days after the Closing Date. The Company
agrees to use commercially reasonable efforts to keep such Shelf Registration Statement
continuously effective until the earlier of (i) the second anniversary of the Closing Date
or (ii) such time as each of the Registrable Securities covered by the Shelf Registration
Statement ceases to be a Registrable Security (as defined herein) (the “Effective Period”).

     (b) The Company further agrees that it shall cause the Shelf Registration Statement,
the related Prospectus and any amendment or supplement thereto, as of the effective date of
the Shelf Registration Statement, and as of the date of any such amendment or supplement,
(i) to comply in all material respects with the applicable requirements of the Securities
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, and the Company agrees to furnish to the Holders of the
Registrable Securities seeking to sell Securities pursuant to such amendment or supplement,
and to any other Holder, such number of copies as such Holders may reasonably request of any
supplement or amendment prior to its being used or promptly following its filing with the
Commission; provided, however, that the Company shall have no obligation to deliver to
Holders of Registrable Securities copies of any amendment consisting exclusively of an
Exchange Act report or other Exchange Act filing otherwise publicly available through links
on the Company’s website or in the Commission’s EDGAR database. If the Shelf Registration
Statement, as amended or supplemented from time to time, ceases to be effective for any
reason at any time during the Effective Period (other than because all Registrable
Securities registered thereunder shall have been sold pursuant thereto or shall have
otherwise ceased to be Registrable Securities), the Company shall use commercially
reasonable efforts to obtain the prompt withdrawal of any order suspending the effectiveness
thereof.

     (c) Notwithstanding any other provision hereof, no Holder of Registrable Securities
shall be entitled to include any of their Registrable Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to the Company
the Notice and Questionnaire and such other information in writing as the Company may
reasonably request in writing for use in connection with the Shelf Registration Statement or
Prospectus included therein. The Company shall issue one or more press releases through a
reputable national newswire service of its filing of (or intention to designate an automatic
shelf registration statement as) the Shelf Registration Statement and of the anticipated
filing date thereof. In order to be named as a selling securityholder in the Prospectus at
the time it is first made available for use, each Holder

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must furnish the completed Notice
and Questionnaire and such other information that the Company may reasonably request in
writing, if any, to the Company in writing no later than the tenth Business Day prior to the
effective date of the Shelf Registration Statement.

     (d) From and after the date the Shelf Registration Statement is initially effective,
the Company shall, as promptly as is practicable after the date a proper Notice and
Questionnaire is delivered, and in any event within (x) ten (10) Business Days after the
date such Notice and Questionnaire is received by the Company or (y) if a Notice and
Questionnaire is so received during a Deferral Period, the later of the tenth (10th)
Business Day after the date such Notice and Questionnaire is received by the Company or the
fifth (5th) Business Day after the expiration of such Deferral Period,

     (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 a supplement or
amendment to any document incorporated therein by reference or file any other
required document so that the Holder delivering such Notice and Questionnaire is
named as a selling security holder in the Shelf Registration Statement and the
related Prospectus in such a manner as to permit such Holder to deliver such
Prospectus to purchasers of the Registrable Securities in accordance with applicable
law and, if the Company shall file a post-effective amendment to the Shelf
Registration Statement and such amendment is not automatically effective, use
commercially reasonable efforts to cause such post-effective amendment to be
declared or to otherwise become effective under the Securities Act as promptly as is
practicable;

     (ii) provide such Holder with as many copies of any documents filed pursuant to
Section 2(d)(i) as such Holder may reasonably request in connection with the
Securities covered by such Holder’s Notice and Questionnaire; and

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

provided that if such Notice and Questionnaire is delivered during a Deferral Period, the
Company shall so inform the Holder delivering such Notice and Questionnaire and shall take
the actions set forth in clauses (i), (ii) and (iii) above upon expiration of the Deferral
Period in accordance with Section 3(b). 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 securityholder in any 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 or otherwise become effective) shall

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be named
as a selling securityholder in the Shelf Registration Statement or related Prospectus in
accordance with the requirements of this Section 2(d).

     (e) If any of the following events (any such event a “Registration Default”) shall
occur, then additional interest (the “Additional Interest”) shall become payable by the
Company to Holders in respect of the Notes as follows:

     (i) if the Shelf Registration Statement is not filed with the Commission within
90 days following the Closing Date (other than a Registration Default relating to a
failure to file a Shelf Registration Statement with respect to the Shares), then
commencing on the 91st day after the Closing Date, Additional Interest shall accrue
on the principal amount of the outstanding Notes at a rate of 0.25% per annum for
the first 90 days following such 90th day and at a rate of 0.5% per annum
thereafter; or

     (ii) if the Shelf Registration Statement has not become or is not declared
effective by the Commission within 180 days following the Closing Date (other than a
Registration Default relating to a failure to have a Shelf Registration Statement
effective with respect to Shares), then commencing on the 181st day after the
Closing Date, Additional Interest shall accrue on the principal amount of the
outstanding Notes at a rate of 0.25% per annum for the first 90 days following such
180th day and at a rate of 0.5% per annum thereafter; or

     (iii) if the Company has failed to perform its obligations set forth in Section
2(d) hereof within the time periods required therein, then, commencing on the first
day after the date by which the Company was required to perform such obligations,
Additional Interest shall accrue on the principal amount of the outstanding Notes
that are Registrable Securities at a rate of 0.25% per annum for the first 90 days
and at a rate of 0.5% per annum thereafter;

     (iv) if the Shelf Registration Statement has become or been declared effective
but such Shelf Registration Statement ceases to be effective at any time during the
Effective Period (other than a Registration Default relating to a failure to have a
Shelf Registration Statement effective with respect to Shares) or pursuant to
Section 3(b) hereof), then, commencing on the day such Shelf Registration Statement
ceases to be effective, Additional Interest shall accrue on the principal amount of
the outstanding Notes at a rate of 0.25% per annum for the first 90 days following
such date on which the Shelf Registration Statement ceases to be effective and at a
rate of 0.5% per annum thereafter; or

     (v) 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(b) 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 (and again on the
first day of any subsequent Deferral Period during such period),

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Additional Interest
shall accrue on the principal amount of the outstanding Notes that are Registrable
Securities at a rate of 0.25% per annum for the first 90 days and at a rate of 0.5%
per annum thereafter;

provided, however, that the Additional Interest rate on the Notes shall not exceed in the
aggregate 0.5% per annum and shall not be payable under more than one clause above for any
given period of time, except that if Additional Interest would be payable under more than
one clause above, but at a rate of 0.25% per annum under one clause and at a rate of
0.5% per annum under the other, then the Additional Interest rate shall be the higher rate
of 0.5% per annum; provided further, however, that (1) upon the filing of the Shelf
Registration Statement (in the case of clause (i) above), (2) upon the effectiveness of the
Shelf Registration Statement (in the case of clause (ii) above), (3) upon the performance by
the Company of its obligations set forth in Section 2(d) hereof (in the case of clause (iii)
above), (4) upon the effectiveness of the Shelf Registration Statement which had ceased to
remain effective (in the case of clause (iv) above), (5) 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(b) to be exceeded (in the case of clause (v) above) or (6)
when the Notes are no longer Registrable Securities (in the case of each of clauses (i) –
(v) above), Additional Interest on the Notes as a result of such clause, as the case may be,
shall cease to accrue.

     Additional Interest on the Notes, if any, will be payable in cash on April 1 and
October 1 of each year (the “Additional Interest Payment Date”) to holders of record of
outstanding Notes that are Registrable Securities at the close of business on March 15 or
September 15 (whether or not a Business Day), as the case may be, immediately preceding the
relevant interest payment date; provided that in the case of an event of the type described
in clause (iii) above, such Additional Interest shall be paid only to the Holders of
Restricted Securities; provided further that any Additional Interest accrued with respect to
any Notes or portion thereof submitted for repurchase on a repurchase date or converted into
Shares on a conversion date prior to the Registration Default shall, in any such event, be
paid instead to the Holder who submitted such Notes or portion thereof for repurchase or
conversion on the applicable repurchase date or conversion date, as the case may be, on such
date (or promptly following the conversion date, in the case of conversion). Following the
cure of all Registration Defaults requiring the payment of Additional Interest to the
Holders of Notes that are Registrable Securities pursuant to this Section, the accrual of
Additional Interest will cease (without in any way limiting the effect of any subsequent
Registration Default requiring the payment of Additional Interest).

     Additional Interest will be computed on the basis of a 360-day year composed of twelve
30-day months.

     The Company shall notify the Trustee immediately upon the happening of each and every
Registration Default. The Trustee shall be entitled, on behalf of Holders of

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Securities, to
seek any available remedy for the enforcement of this Agreement, including for the payment
of any Additional Interest. Notwithstanding the foregoing, the parties agree that the sole
monetary damages payable for a violation of the terms of this Agreement with respect to
which additional monetary amounts are expressly provided shall be as set forth in this
Section 2(e). Nothing shall preclude a Notice Holder or Holder of Registrable Securities
from pursuing or obtaining specific performance or other equitable relief with respect to
this Agreement.

     3. Registration Procedures.

     The following provisions shall apply to the Shelf Registration Statement filed pursuant to
Section 2:

     (a) The Company shall:

     (i) before filing any Shelf Registration Statement or Prospectus or any
amendments or supplements thereto with the Commission, furnish to the Initial
Purchasers copies of all such documents proposed to be filed and use commercially
reasonable efforts to reflect in each such document when so filed with the
Commission such comments as the Initial Purchasers reasonably shall propose within
three (3) Business Days of the delivery of such copies to the Initial Purchasers;

     (ii) use commercially reasonable efforts to prepare and file with the
Commission such amendments and post-effective amendments to the Shelf Registration
Statement and file with the Commission any other required document as may be
necessary to keep such Shelf Registration Statement continuously effective until the
expiration of the Effective Period; cause the related Prospectus to be supplemented
by any required prospectus supplement, and as so supplemented to be filed pursuant
to Rule 424 (or any similar provisions then in force) under the Securities Act; and
comply with the provisions of the Securities Act applicable to it with respect to
the disposition of all Securities covered by such Shelf Registration Statement
during the Effective Period in accordance with the intended methods of disposition
by the sellers thereof set forth in such Shelf Registration Statement as so amended
or such Prospectus as so supplemented;

     (iii) as promptly as reasonably practicable, notify the Notice Holders of
Registrable Securities (A) when such Shelf Registration Statement or the Prospectus
included therein or any amendment or supplement to the Prospectus or post-effective
amendment has been filed with the Commission, and, with respect to such Shelf
Registration Statement or any post-effective amendment, when the same is declared or
has become effective, (B) of any request, following the effectiveness of the Shelf
Registration Statement, by the Commission or any other Federal or state governmental
authority for amendments or supplements to the Shelf Registration Statement or
related Prospectus, (C) of the issuance by the

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Commission of any stop order
suspending the effectiveness of such Shelf Registration Statement or the initiation
or written threat of any proceedings for that purpose, (D) of the receipt by the
Company of any notification with respect to the suspension of the qualification of
the Registrable Securities for sale in any jurisdiction or the initiation or written
threat of any proceeding for such purpose, (E) of the occurrence of (but not the
nature of or details concerning) any event or the existence of any fact (a “Material
Event”) as a result of which any Shelf Registration Statement shall contain any
untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make
the statements therein not misleading, or any Prospectus shall contain any
untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading (provided, however, that no
notice by the Company shall be required pursuant to this clause (E) in the event
that the Company either promptly files a prospectus supplement to update the
Prospectus or a Form 8-K or other appropriate Exchange Act report that is
incorporated by reference into the Shelf Registration Statement, which, in either
case, contains the requisite information with respect to such Material Event that
results in such Shelf Registration Statement or Prospectus, as the case may be, no
longer containing any untrue statement of material fact or omitting to state a
material fact necessary to make the statements contained therein, in the case of the
Prospectus, in light of the circumstances under which they were made, not
misleading), (F) of the determination by the Company that a post-effective amendment
to the Shelf Registration Statement (other than for the purpose of naming a Notice
Holder as a selling security holder therein) will be filed with the Commission,
which notice may, at the discretion of the Company (or as required pursuant to
Section 3(b)), state that it constitutes a Deferral Notice, in which event the
provisions of Section 3(b) shall apply or (G) at any time when a Prospectus is
required (or but for the exemption contained in Rule 172 would be required) to be
delivered under the Securities Act, that the Shelf Registration Statement,
Prospectus, Prospectus amendment, supplement or post-effective amendment does not
conform in all material respects to the applicable requirements of the Securities
Act and the Trust Indenture Act and the rules and regulations of the Commission
thereunder;

     (iv) prior to any public offering of the Registrable Securities pursuant to the
Shelf Registration Statement, use commercially reasonable efforts to register or
qualify, or cooperate with the Notice Holders of Securities included therein and
their respective counsel in connection with the registration or qualification of
such Securities for offer and sale under the securities or blue sky laws of such
jurisdictions in the United States as any such Notice Holders reasonably requests in
writing and do any and all other acts or things reasonably necessary or advisable to
enable the offer and sale in such jurisdictions of the Securities covered by the
Shelf Registration Statement; prior to any public

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offering of the Registrable
Securities pursuant to the Shelf Registration Statement, use commercially reasonable
efforts to keep each such registration or qualification (or exemption therefrom)
effective during the Effective Period in connection with such Notice Holder’s offer
and sale of Registrable Securities pursuant to such registration or qualification
(or exemption therefrom) and do any and all other acts or things reasonably
necessary or advisable to enable the disposition in such jurisdictions of such
Registrable Securities in the manner set forth in the Shelf Registration Statement
and the related Prospectus; provided that the Company will not be required to
qualify generally to do business in any jurisdiction where it is not then so
qualified or to take any action which would subject it to general
service of process or to taxation in any such jurisdiction where it is not then
so subject;

     (v) use commercially reasonable efforts to prevent the issuance of, and if
issued, to obtain the withdrawal of any order suspending the effectiveness of the
Shelf Registration Statement or any post-effective amendment thereto, and to lift
any suspension of the qualification of any of the Registrable Securities for sale in
any jurisdiction in which they have been qualified for sale, in each case at the
earliest practicable date;

     (vi) upon reasonable notice, for a reasonable period prior to the filing of the
Shelf Registration Statement, and throughout the Effective Period, (i) make
reasonably available for inspection by a representative of, and Special Counsel
acting for, Majority Holders of the Securities being sold and any underwriter (and
its counsel) participating in any disposition of Securities pursuant to such Shelf
Registration Statement (collectively, the “Shelf Inspectors”), all relevant
financial and other records and pertinent corporate documents of the Company and its
subsidiaries and (ii) use commercially reasonable efforts to have its officers,
directors, employees, accountants and counsel supply all relevant information
reasonably requested by such representative, Special Counsel or any such underwriter
in connection with such Shelf Registration Statement, in each case as is reasonable
and customary for similar “due diligence” examinations; provided, however, that with
respect to any Special Counsel engaged by the Majority Holders, the foregoing
inspection and information gathering shall be coordinated by one counsel designated
by the Majority Holders and provided further that as a condition to the Company’s
obligations under this clause (vi), the Shelf Inspectors shall expressly agree to
maintain disclosed information in confidence to the extent the Company’s disclosure
of such information to the Shelf Inspectors would otherwise violate Regulation FD of
the Commission;

     (vii) if requested by Majority Holders of the Securities being sold in an
underwriting, its Special Counsel or the managing underwriters (if any) in
connection with such Shelf Registration Statement, use commercially reasonable
efforts to cause (i) its counsel to deliver an opinion relating to the Shelf
Registration Statement and the Securities in a customary form, (ii) its officers to

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execute and deliver all customary documents and certificates requested by the
Majority Holders of the Securities being sold, their Special Counsel or the managing
underwriters (if any) and (iii) its independent registered public accounting firm to
provide a comfort letter or letters relating to the Shelf Registration Statement in
a reasonable and customary form, subject to receipt of appropriate documentation as
contemplated, and only if permitted, by Statement of Auditing Standards No. 72 or
any successor statement thereto, covering matters of the type customarily covered in
comfort letters in connection with secondary underwritten offerings;

     (viii) if reasonably requested by the Initial Purchasers or any Notice Holder
as a result of the “due diligence” examinations referred to in Section 3(a)(vi)
above, promptly incorporate in a prospectus supplement or post-effective amendment
to the Shelf Registration Statement such information as the Initial Purchasers or
such Notice Holder shall, on the basis of a written opinion of nationally recognized
counsel experienced in such matters, determine to be required to be included therein
by applicable law and make any required filings of such prospectus supplement or
such post-effective amendment; provided, that the Company shall not be required to
take any actions under this Section 3(a)(viii) that are not, in the reasonable
opinion of counsel for the Company, in compliance with applicable law;

     (ix) as promptly as practicable furnish to each Notice Holder and the Initial
Purchasers, upon their request and without charge, at least one (1) conformed copy
of the Shelf Registration Statement and any amendments thereto, including financial
statements but excluding schedules, all documents incorporated or deemed to be
incorporated therein by reference and all exhibits; provided, however, that the
Company shall have no obligation to deliver to Notice Holders or the Initial
Purchasers a copy of any amendment consisting exclusively of an Exchange Act report
or other Exchange Act filing otherwise publicly available on the Company’s website
or in the Commission’s EDGAR database;

     (x) during the Effective Period, deliver to each Notice Holder in connection
with any sale of Registrable Securities pursuant to the Shelf Registration
Statement, upon their request and without charge, as many copies of the Prospectus
relating to such Registrable Securities (including each preliminary prospectus) and
any amendment or supplement thereto as such Notice Holder may reasonably request;
and the Company hereby consents (except during such periods that a Deferral Notice
is outstanding and has not been revoked) to the use of such Prospectus or each
amendment or supplement thereto by each Notice Holder in connection with any
offering and sale of the Registrable Securities covered by such Prospectus or any
amendment or supplement thereto in the manner set forth therein and subject to
applicable law;

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     (xi) cooperate with the Notice Holders to facilitate the timely preparation and
delivery of certificates representing Securities to be sold pursuant to the Shelf
Registration Statement free of any restrictive legends and in such denominations as
permitted by the Indenture and registered in such names as the Holders thereof may
request in writing at least two (2) Business Days prior to sales of Securities
pursuant to such Shelf Registration Statement; and

     (xii) not use, authorize the use of, refer to, or participate in the planning
for use of, any “free writing prospectus”, as defined in Rule 405 under the
Securities Act, in connection with the offering or sale of the Securities, without
the consent of Holders of Registrable Securities who are seeking to sell Securities
pursuant to the Shelf Registration Statement or relevant supplement or
amendment thereto, which consent shall not be unreasonably withheld.

     (b) Upon (A) the issuance by the Commission of a stop order suspending the
effectiveness of the Shelf Registration Statement or the initiation of proceedings with
respect to the Shelf Registration Statement under Section 8(d) or 8(e) of the Securities
Act, (B) the occurrence of any event or the existence of any Material Event as a result of
which the Shelf Registration Statement shall contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to make the
statements therein not misleading, or any Prospectus shall contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were
made, not misleading, or (C) the occurrence or existence of any corporate development that,
in the discretion of the Company, makes it appropriate to suspend the availability of the
Shelf Registration Statement and the related Prospectus, the Company will (i) in the case of
clause (B) above, subject to the second sentence of this provision, as promptly as
practicable prepare and file an amendment to such Shelf Registration Statement or a
supplement to the related Prospectus or any document incorporated therein by reference or
file any other required document that would be incorporated by reference into such Shelf
Registration Statement and Prospectus so that such Shelf Registration Statement does not
contain any untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not misleading, and such
Prospectus does not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading, as thereafter
delivered or made available to the purchasers of the Registrable Securities being sold
thereunder, and, in the case of a post-effective amendment to the Shelf Registration
Statement, subject to the second sentence of this provision, use commercially reasonable
efforts to cause it to be declared effective or otherwise become effective as promptly as
practicable and (ii) give notice to the Notice Holders that the availability of the Shelf
Registration Statement is suspended (a “Deferral Notice”). The Company will use
commercially reasonable efforts to ensure that the use of the Prospectus may be resumed (x)
in the case of clause (A) above, as promptly as practicable, (y) in the case of clause (B)
above, as soon as, in the sole judgment of the

- 13 -

 

Company, public disclosure of such Material
Event would not be prejudicial to or contrary to the interests of the Company or, if
necessary to avoid unreasonable burden or expense, as soon as practicable thereafter and (z)
in the case of clause (C) above, as soon as, in the discretion of the Company, such
suspension is no longer appropriate; provided that the period during which the availability
of the Shelf Registration Statement and any Prospectus is suspended (the “Deferral Period”),
without the Company incurring any obligation to pay Additional Interest pursuant to Section
2(e), shall not exceed one hundred and twenty (120) days in the aggregate in any twelve (12)
month period. The Company need not specify the nature of the event giving rise to a
Deferral Notice in any notice to holders of the notes of the existing of a Deferral Notice.

     (c) Each Holder of Registrable Securities agrees that upon receipt of any Deferral
Notice from the Company, such Holder shall forthwith discontinue (and cause any placement or
sales agent or underwriters acting on their behalf to discontinue) the disposition of
Registrable Securities pursuant to the Shelf Registration Statement until such Holder (i)
shall have received copies of such amended or supplemented Prospectus (including copies of
any additional or supplemental filings that are incorporated or deemed incorporated by
reference in such Prospectus) required under clause (i) of Section 3(b) and, if so directed
by the Company, such Holder shall 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 Registrable Securities at the time of receipt of such notice and (ii) shall
have received notice from the Company that the disposition of Registrable Securities
pursuant to the Shelf Registration Statement may continue.

     (d) The Company may require each Holder of Registrable Securities as to which any
registration pursuant to Section 2(a) is being effected to furnish to the Company such
information regarding such Holder and such Holder’s intended method of distribution of such
Registrable Securities as the Company may from time to time reasonably request in writing,
but only to the extent that such information is required in order to comply with the
Securities Act.

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

     (f) The Company shall provide a CUSIP number for all Registrable Securities covered by
the Shelf Registration Statement not later than the effective date of such Shelf
Registration Statement and provide the Trustee and the transfer agent for the Shares with

- 14 -

 

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

     (g) The Company shall use commercially reasonable efforts to provide such information
as is required for any filings required to be made with the NASD.

     (h) Until the expiration of the Effective Period, the Company will not, and will not
permit any of its Affiliates, to the extent the Company controls such Affiliates, to, resell
any of the Securities that have been reacquired by any of them except pursuant to an
effective registration statement under the Securities Act.

     (i) The Company shall cause the Indenture to be qualified under the Trust Indenture Act
in a timely manner and shall enter into any necessary supplemental indentures in connection
therewith.

     (j) The Company shall enter into such customary agreements and take such other
reasonable and lawful actions in connection therewith (including those requested by the
Majority Holders of the Registrable Securities being sold) in order to expedite or
facilitate disposition of such Registrable Securities.

     4. Holders’ Obligations.

     (a) Each Holder agrees, by acquisition of the Registrable Securities, that no Holder of
Registrable Securities shall be entitled to sell any of such Registrable Securities pursuant
to the Shelf Registration Statement or to receive a Prospectus relating thereto, unless such
Holder has furnished the Company with a Notice and Questionnaire as required pursuant to
Section 2(c) hereof (including the information required to be included in such Notice and
Questionnaire) and the information set forth in the next sentence. Each Notice Holder
agrees to notify the Company as promptly as practicable of any inaccuracy or change in
information previously furnished by such Notice Holder to the Company or of the occurrence
of any event in either case as a result of which any Prospectus relating to such
registration contains or would contain an untrue statement of a material fact regarding such
Notice Holder or such Notice Holder’s intended method of disposition of such Registrable
Securities or omits to state any material fact regarding such Notice Holder or such Notice
Holder’s intended method of disposition of such Registrable Securities required to be stated
therein or necessary to make the statements therein not misleading, and promptly to furnish
to the Company (i) any additional information required to correct and update any previously
furnished information or required so that such Prospectus shall not contain, with respect to
such Notice Holder or the disposition of such Registrable Securities, an untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading and (ii) any other information regarding such
Notice Holder and the distribution of such Registrable Securities as may be reasonably
required to be disclosed in the Shelf Registration Statement under applicable law. Each
Holder further agrees not to sell any Registrable Securities pursuant to the Shelf
Registration

- 15 -

 

Statement without delivering, causing to be delivered, or, if permitted by
applicable law, making available, a Prospectus to the purchaser thereof and, following
termination of the Effective Period, to notify the Company, within ten (10) Business Days of
a request by the Company, of the amount of Registrable Securities sold pursuant to the Shelf
Registration Statement and, in the absence of a response, the Company may assume that all of
the Holder’s Registrable Securities were so sold in compliance with applicable law and this
Agreement.

     (b) Any sale of any Registrable Securities by any Holder shall constitute a
representation and warranty by such Holder that the information relating to such Holder and
its plan of distribution is as set forth in the Prospectus delivered by such Holder in
connection with such disposition, that such Prospectus does not as of the time of such
sale contain any untrue statement of a material fact relating to or provided by such
Holder or its plan of distribution and that such Prospectus does not as of the time of such
sale omit to state any material fact relating to or provided by such Holder or its plan of
distribution necessary to make the statements in such Prospectus, in the light of the
circumstances under which they were made, not misleading. Each Holder further agrees that
such Holder will not make any offer relating to the Registrable Securities that would
constitute an “issuer free writing prospectus” (as defined in Rule 433 under the Securities
Act) or that would otherwise constitute a “free writing prospectus” (as defined in Rule 405
under the Securities Act) required to be filed by the Company with the Commission or
retained by the Company under Rule 433 of the Securities Act, unless it has obtained the
prior written consent of the Company.

     5. Registration Expenses.

     The Company agrees to bear and to pay or cause to be paid promptly after request being made
therefor all fees and expenses incident to the Company’s performance of or compliance with this
Agreement, including, but not limited to, (a) all Commission and any NASD registration and filing
fees and expenses, (b) all fees and expenses in connection with the qualification of the Securities
for offering and sale under the State securities and Blue Sky laws referred to in Section 3(a)(v)
hereof, including reasonable fees and disbursements of one counsel for the placement agent or
underwriters, if any, in connection with such qualifications, (c) all expenses relating to the
preparation, printing, distribution and reproduction of the Shelf Registration Statement, the
related Prospectus, each amendment or supplement to each of the foregoing, the certificates
representing the Securities and all other documents relating hereto, (d) fees and expenses of the
Trustee under the Indenture, any escrow agent or custodian, and of the registrar and transfer agent
for the Shares, (e) fees, disbursements and expenses of counsel and independent certified public
accountants of the Company (including the expenses of any opinions or “cold comfort” letters
required by or incident to such performance and compliance) and (f) reasonable fees, disbursements
and expenses of one counsel for all Holders of Registrable Securities retained in connection with
the Shelf Registration Statement, as selected by the Company (unless reasonably objected to by the
Majority Holders of the Registrable Securities being registered, in which case the Majority Holders
shall select such counsel for the Holders) (“Special Counsel”), and fees, expenses and
disbursements of any other Persons, including

- 16 -

 

special experts, retained by the Company in
connection with such registration (collectively, the “Registration Expenses”). To the extent that
any Registration Expenses are incurred, assumed or paid by any Holder of Registrable Securities or
any underwriter or placement agent therefor, the Company shall reimburse such Person for the full
amount of the Registration Expenses so incurred, assumed or paid promptly after receipt of a
documented request therefor. Notwithstanding the foregoing, the Holders of the Registrable
Securities being registered shall pay all underwriting discounts and commissions and placement
agent fees and commissions attributable to the sale of such Registrable Securities and the fees and
disbursements of any counsel or other advisors or experts retained by such Holders (severally or
jointly), other than the counsel and experts specifically referred to above.

     6. Indemnification.

     (a) The Company shall indemnify and hold harmless each Notice Holder (including,
without limitation, any Initial Purchaser), its Affiliates, their respective officers,
directors, employees, representatives and agents, and each person, if any, who controls such
Notice Holder within the meaning of the Securities Act or the Exchange Act (collectively
referred to for purposes of this Section 6 and Section 7 as an “Indemnified Holder”) from
and against any loss, claim, damage or liability, joint or several, or any action in respect
thereof (including, without limitation, any loss, claim, damage, liability or action
relating to purchases and sales of Securities), to which that Indemnified Holder may become
subject, whether commenced or threatened, under the Securities Act, the Exchange Act, any
other federal or state statutory law or regulation, at common law or otherwise, insofar as
such loss, claim, damage, liability or action arises out of, or is based upon, (i) any
untrue statement or alleged untrue statement of a material fact contained in any such Shelf
Registration Statement or any Prospectus forming part thereof, or (ii) the omission or
alleged omission to state therein a material fact required to be stated therein or necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading, and shall reimburse each Indemnified Holder promptly upon demand
for any legal or other expenses reasonably incurred by that Indemnified Holder in connection
with investigating or defending or preparing to defend against or appearing as a third party
witness in connection with any such loss, claim, damage, liability or action as such
expenses are incurred; provided, however, that the Company shall not be liable in any such
case to the extent that any such loss, claim, damage, liability or action arises out of, or
is based upon, an untrue statement or alleged untrue statement in or omission or alleged
omission from any of such documents in reliance upon and in conformity with any information
provided by such Indemnified Holder in its Notice and Questionnaire or otherwise provided by
such Indemnified Holder in writing to the Company expressly for use therein. This indemnity
agreement shall be in addition to any liability that the Company may otherwise have.

     (b) Each Notice Holder shall indemnify and hold harmless the Company, its Affiliates,
their respective officers, directors, employees, representatives and agents, and each
person, if any, who controls the Company within the meaning of the Securities Act or the
Exchange Act (collectively referred to for purposes of this Section 6(b) and Section

- 17 -

 

7 as
the Company), from and against any loss, claim, damage or liability, joint or several, or
any action in respect thereof, to which the Company may become subject, whether commenced or
threatened, under the Securities Act, the Exchange Act, any other federal or state statutory
law or regulation, at common law or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement or alleged
untrue statement of a material fact contained in any such Shelf Registration Statement or
any Prospectus forming part thereof, or (ii) the omission or alleged omission to state
therein a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, but in each case only to the extent that the untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in conformity with
any information furnished to the Company by the Notice Holder in its Notice and
Questionnaire or otherwise in writing by such Notice Holder expressly for use therein,
and shall reimburse the Company for any legal or other expenses reasonably incurred by the
Company in connection with investigating or defending or preparing to defend against or
appearing as a third party witness in connection with any such loss, claim, damage,
liability or action as such expenses are incurred; provided, however, that no such Notice
Holder shall be liable for any indemnity claims hereunder in excess of the amount of net
proceeds received by such Notice Holder from the sale of Securities pursuant to such Shelf
Registration Statement. This indemnity agreement will be in addition to any liability which
any such Notice Holder may otherwise have.

     (c) If any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any person in respect
of which indemnification may be sought pursuant to either paragraph 6(a) or 6(b) above, the
indemnified party shall promptly notify the person against whom such indemnification may be
sought in writing of such suit, action, proceeding, claim or demand; provided, however, that
the failure to notify the indemnifying party shall not relieve it from any liability that it
may have under this Section 6 except to the extent that it has been materially prejudiced
(through the forfeiture of substantive rights or defenses) by such failure; and provided,
further, that the failure to notify the indemnifying party shall not relieve it from any
liability that it may have to an indemnified party otherwise than under this Section 6. If
any such proceeding shall be brought or asserted against an indemnified party and it shall
have notified the indemnifying party thereof, the indemnifying party shall retain counsel
reasonably satisfactory to the indemnified party (who shall not, without the consent of the
indemnified party, be counsel to the indemnifying party) to represent the indemnified party
and any others entitled to indemnification pursuant to this Section 6 that the indemnifying
party may designate in such proceeding and shall pay the fees and expenses of such
proceeding and shall pay the fees and expenses of such counsel related to such proceeding,
as incurred. In any such proceeding, any indemnified party shall have the right to retain
its own counsel, but the fees and expenses of such counsel shall be at the expense of such
indemnified party unless (i) the indemnifying party and the indemnified party shall have
mutually agreed to the contrary; (ii) the indemnifying party has failed within a reasonable
time to retain counsel reasonably satisfactory to the

- 18 -

 

indemnified party; (iii) the
indemnified party shall have reasonably concluded that there may be legal defenses available
to it that are different from or in addition to those available to the indemnifying party;
or (iv) the named parties in any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both parties by
the same counsel would be inappropriate due to actual or potential differing interests
between them. It is understood and agreed that the indemnifying party shall not, in
connection with any proceeding or related proceeding in the same jurisdiction, be liable for
the reasonable fees and expenses of more than one separate firm (in addition to any local
counsel) for all indemnified parties, and that all such fees and expenses shall be
reimbursed as they are incurred. Any such separate firm for any Initial Purchaser, its
affiliates, directors and officers and any control persons of such Initial Purchaser shall
be designated in writing by J.P. Morgan Securities Inc. and any such separate firm for the
Company, its directors and officers and
any control persons of the Company shall be designated in writing by the Company. The
indemnifying party shall not be liable for any settlement of any proceeding effected without
its written consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the indemnifying party agrees to indemnify each indemnified party from and
against any loss or liability by reason of such settlement or judgment. Notwithstanding the
foregoing sentence, if at any time an indemnified party shall have requested that an
indemnifying party reimburse the indemnified party for fees and expenses of counsel as
contemplated by this paragraph, the indemnifying party shall be liable for any settlement of
any proceeding effected without its written consent if (i) such settlement is entered into
more than 60 days after receipt by the indemnifying party of such request and more than 30
days after notice of such settlement is received by the indemnifying party and (ii) the
indemnifying party shall not have reimbursed the indemnified party in accordance with such
request prior to the date of such settlement. No indemnifying party shall, without the
prior written consent of the indemnified party, effect any settlement of any pending or
threatened proceeding in respect of which any indemnified party is or could have been a
party and indemnification could have been sought hereunder by such indemnified party, unless
such settlement (x) includes an unconditional release of such indemnified party, in form and
substance reasonably satisfactory to such indemnified party, from all liability on claims
that are the subject matter of such proceeding and (y) does not include any statement as to
or any admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

     (d) The provisions of this Section 6 and Section 7 shall remain in full force and
effect, regardless of any investigation made by or on behalf of any Notice Holder, the
Company, or any of the indemnified Persons referred to in this Section 6 and Section 7, and
shall survive the sale by a Notice Holder of Securities covered by the Shelf Registration
Statement.

     7. Contribution.

     If the indemnification provided for in Section 6 is unavailable or insufficient to hold
harmless an indemnified party under Section 6(a) or 6(b), then each indemnifying party shall, in

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lieu of indemnifying such indemnified party, contribute to the amount paid or payable by such
indemnified party as a result of such loss, claim, damage or liability, or action in respect
thereof, (i) in such proportion as shall be appropriate to reflect the relative benefits received
by the Company from the offering and sale of the Notes, on the one hand, and a Holder with respect
to the sale by such Holder of Securities, on the other, or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also the relative fault
of the Company on the one hand and such Holder on the other with respect to the statements or
omissions that resulted in such loss, claim, damage or liability, or action in respect thereof, as
well as any other relevant equitable considerations. The relative benefits received by the Company
on the one hand and a Holder on the other with respect to such offering and such sale shall be
deemed to be in the same proportion as the total net proceeds from the offering of the Notes
(before deducting expenses) received by or on behalf of the Company, on the one hand, and the total
net proceeds (before deducting expenses) received by such Holder upon a resale of the Securities,
on the
other, bear to the total gross proceeds from the sale of all Securities pursuant to the Shelf
Registration Statement in the offering of the Securities from which the contribution claim arises.
The relative fault shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to the Company or information supplied by the Company on the one hand or to any
information contained in the relevant Notice and Questionnaire supplied by such Holder on the
other, the intent of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission. The Notice Holders’
respective obligations to contribute pursuant to this Section 7 are several in proportion to the
respective number of Registrable Securities they have sold pursuant to the Shelf Registration
Statement and not joint. The parties hereto agree that it would not be just and equitable if
contributions pursuant to this Section 7 were to be determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable considerations referred to
herein. The amount paid or payable by an indemnified party as a result of the loss, claim, damage
or liability, or action in respect thereof, referred to above in this Section 7 shall be deemed to
include, for purposes of this Section 7, any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending or preparing to defend any such
action or claim. Notwithstanding the provisions of this Section 7, an indemnifying party that is a
Holder of Securities shall not be required to contribute any amount in excess of the amount by
which the total price at which the Securities sold by such indemnifying party to any purchaser
exceeds the amount of any damages which such indemnifying party has otherwise paid or become liable
to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

     8. Information Requirements.

     The Company covenants that, if at any time before the end of the Effective Period the Company
is not subject to the reporting requirements of the Exchange Act, it will cooperate with

- 20 -

 

any Holder
and take such further action as any Holder may reasonably request in writing (including, without
limitation, making such representations as any such Holder may reasonably request), all to the
extent required from time to time to enable such Holder to sell Registrable Securities without
registration under the Securities Act within the limitation of the exemptions provided by Rule 144
and Rule 144A and customarily taken in connection with sales pursuant to such exemptions. Upon the
written request of any Holder, the Company shall deliver to such Holder a written statement as to
whether it has complied with such filing requirements, unless such a statement has been included in
the Company’s most recent report filed pursuant to Section 13 or Section 15(d) of Exchange Act.
Notwithstanding the foregoing, nothing in this Section 8 shall be deemed to require the Company to
register any of its securities under any section of the Exchange Act.

     9. Miscellaneous.

          (a) Amendments and Waivers. The provisions of this Agreement may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions
hereof may not be given, unless the Company has obtained the written consent of the Majority
Holders. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof
with respect to a matter that relates exclusively to the rights of Holders whose Securities are
being sold pursuant to the Shelf Registration Statement and that does not directly or indirectly
affect the rights of other Holders may be given by Holders of a majority in aggregate amount of the
Securities being sold by such Holders pursuant to the Shelf Registration Statement.
Notwithstanding the foregoing sentence, (i) this Agreement may be amended by written agreement
signed by the Company and the Initial Purchasers, without the consent of the Holders of Registrable
Securities, to cure any ambiguity or to correct or supplement any provision contained herein that
may be defective or inconsistent with any other provision contained herein, or to make such other
provisions in regard to matters or questions arising under this Agreement that shall not adversely
affect the interests of the Holders of Registrable Securities. Each Holder of Registrable
Securities outstanding at the time of any such amendment, modification, supplement, waiver or
consent or thereafter shall be bound by any such amendment, modification, supplement, waiver or
consent effected pursuant to this Section 8(a), whether or not any notice, writing or marking
indicating such amendment, modification, supplement, waiver or consent appears on the Registrable
Securities or is delivered to such Holder.

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

     (1) If to the Company, initially at the address set forth in the Purchase
Agreement;

     (2) If to the Initial Purchasers, initially at the address set forth in the
Purchase Agreement; and

- 21 -

 

     (3) If to a Holder, to the address of such Holder set forth in the security
register, the Notice and Questionnaire or other records of the Company.

          All such notices and communications shall be deemed to have been duly given: when delivered by
hand, if personally delivered; one (1) Business Day after being delivered to a next-day air
courier; five (5) Business Days after being deposited in the mail, if being delivered by
first-class mail; and when receipt is acknowledged by the recipient’s telecopier machine, if sent
by telecopier.

          (c) Successors and Assigns. This Agreement shall be binding upon the Company and each
of its successors and assigns. Any person who purchases any Registrable Securities from the
Initial Purchasers shall be deemed, for purposes of this Agreement, to be an assignee of the
Initial Purchasers. This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of each of the parties and shall inure to the benefit of and be binding upon
each Holder of any Registrable Securities, provided that nothing herein shall be deemed to permit
any assignment, transfer or other disposition of Registrable Securities in violation of the terms
of the Indenture. If any transferee of any Holder shall acquire Registrable
Securities, in any manner, whether by operation of law or otherwise, such Registrable
Securities shall be held subject to all of the terms of this Agreement, and by taking and holding
such Registrable Securities, such person shall be conclusively deemed to have agreed to be bound by
and to perform all of the terms and provisions of this Agreement and such person shall be entitled
to receive the benefits hereof.

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

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

          (f) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

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

- 22 -

 

          (h) No Inconsistent Agreements. The Company represents, warrants and agrees that (i)
it has not entered into and shall not on or after the date of this Agreement enter into any
agreement that is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof, (ii) it has not previously entered into any
agreement which remains in effect granting any registration rights with respect to any of its debt
securities to any person and (iii) without limiting the generality of the foregoing, without the
written consent of the Majority Holders, it shall not grant to any Person the right to request the
Company to register any securities of the Company under the Securities Act unless the rights so
granted are not in conflict or inconsistent with the provisions of this Agreement.

          (i) No Piggyback on Registrations. Neither the Company nor any of its security
holders (other than the Holders of Restricted Securities in such capacity) shall have the right to
include any securities of the Company in any Shelf Registration Statement other than Registrable
Securities.

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

          (k) Survival. The respective indemnities, agreements, representations, warranties and
each other provision set forth in this Agreement or made pursuant hereto shall remain in full force
and effect regardless of any investigation (or statement as to the results thereof) made by or on
behalf of any Holder of Registrable Securities, any director, officer or partner of such Holder,
any agent or underwriter or any director, officer or partner thereof, or any controlling person of
any of the foregoing, and shall survive delivery of and payment for the Registrable Securities
pursuant to the Purchase Agreement and the transfer and registration of Registrable Securities by
such Holder.

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

          (m) Termination. This Agreement and the obligations of the parties hereunder shall
terminate upon the end of the Effective Period, except for any liabilities or obligations

- 23 -

 

under
Sections 4, 5, 6 and 7 hereof and the obligations to make payments of and provide for Additional
Interest under Section 2(e) hereof to the extent such damages accrue prior to the end of the
Effective Period, each of which shall remain in effect in accordance with its terms.

- 24 -

 

          If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to us a counterpart hereof, whereupon this instrument will become a binding agreement
between the Company and the Initial Purchasers in accordance with its terms.

Very truly yours,

WORLD ACCEPTANCE CORPORATION

By: /s/ Kelly Malson Snape

Name: Kelly Malson Snape

Title: Chief Financial Officer

 

 

Accepted: October 10, 2006

By: J.P. MORGAN SECURITIES INC.

As Representative of the

several Initial Purchasers listed

in Schedule 1 to the Purchase

Agreement

By: /s/ Gautam Sareen

Name: Gautam Sareen

Title: Vice PresidentEX-4.1 Amended & Restated Memorandum of Associatio

 

Exhibit 4.1

AMENDED AND RESTATED

COMPANY LIMITED BY SHARES

MEMORANDUM OF ASSOCIATION

OF

CONSOLIDATED WATER CO. LTD.

(Amended and restated August 17, 2005)

	1.	 	The name of the Company is Consolidated Water Co. Ltd.
	 
	2.	 	The Registered Office of the Company shall be at the offices of Consolidated Water Co. Ltd.,
4th Floor, Windward Three, Regatta Office Park, West Bay Road, P. O. Box 1114,
Grand Cayman, Cayman Islands, British West Indies.
	 
	3.	 	Subject to the following provisions of this Memorandum, the objects for which the Company is
established are unrestricted.
	 
	4.	 	Subject to the following provisions of this Memorandum, the Company shall have and be capable
of exercising all the functions of a natural person of full capacity irrespective of any
question of corporate benefit, as provided by Section 26(2) of The Companies Law (1998
Revision).
	 
	5.	 	Without limiting the generality of paragraphs 3 and 4, the objects and powers of the Company
shall include but not be limited to the following:

	 	(i)	 	To supply water for domestic and all other purposes in the Cayman
Islands and to construct the necessary works for such supply.
	 
	 	(ii)	 	To purchase take on lease hire or otherwise acquire waterworks or the
right to supply and work water undertakings.
	 
	 	(iii)	 	To fit out maintain and work with any form of mechanical steam or
electric or other power the necessary works for the supply of water including
the construction and fitting out of pumping stations reservoirs desalinators
reverse osmosis equipment pipe lines and all other works necessary or
reasonably required for the supply of water for the purposes aforesaid.
	 
	 	(iv)	 	To acquire manufacture repair maintain all machines machinery pipes
utensils — apparatus: and materials required for the supply
aforesaid.
	 
	 	(v)	 	To make from time to time such applications to the Cayman Islands
Government or other authority as may be thought necessary or desirable for
powers to construct maintain and work the business of the Company or to acquire
or lease land buildings easements water rights water and other

 

 

	 	 	 	works and any extensions thereof and to execute any works in connection
therewith.

	 	 	 	To purchase take upon lease or otherwise acquire or build upon or improve any lands
or buildings or any estates or interest therein and any licenses rights easements
or privileges which may be considered necessary or expedient for the purposes of
the business of the Company and to do any such things notwithstanding that in any
case the whole of the land may not be required for such purposes.
	 
	 	(vii)	 	To manufacture buy sell let upon hire with or without an option of
purchase, all pipes taps valves engines tools machines and other chattels and
things used or which may at any time hereafter be used in the establishment
maintenance equipping or working of the aforesaid.
	 
	 	(viii)	 	To sell grant let exchange or otherwise dispose of absolutely or conditionally
or for any limited estate or interest all or any part or section of the
undertaking worked by the Company or any of them or any or any part of the
property or properties rights or powers thereof or any licenses rights or
privileges in over or in relation to any such property or any part thereof.
	 
	 	(ix)	 	To purchase or otherwise acquire any lands and buildings, and to utilise
the same for the treatment re-use and disposal of sewage, and to construct erect
and lay down any buildings engines pumps sewers tanks drains culverts channels
sewage or other works or things that may be necessary or convenient for any of
the objects of the Company.
	 
	 	(x)	 	To manufacture purchase sell deal in or otherwise dispose of chemical
vegetable and other manures and other substances materials and things that may
be conveniently dealt with in connection with sewage works.
	 
	 	(xi)	 	To engage in or carry on any other lawful trade, business or enterprise
which may at any time appear to the Directors or the Company capable of being
conveniently carried on in conjunction with any of the aforementioned businesses
or activities or which may appear to the Directors or the Company likely to be
profitable to the Company.

		 	And it is hereby declared that the intention is that each of the objects specified in each
clause of this paragraph shall, except where otherwise expressed in such clause, be an
independent main object and be in no way limited or restricted by reference to or inference
from the terms of any other clause or the name of the Company.
	 
	6.	 	Nothing in this Memorandum shall permit the Company to carry on a business for which a
license is required under the laws of the Cayman Islands unless duly licensed.
	 
	7.	 	The liability of each member is limited to the amount from time to time unpaid on such
member’s shares.

-2-

 

	8.	 	The share capital of the Company is CI$10,000,000.00 divided into 19,800,000 ordinary shares
of a nominal or par value of CI$0.50 each and 200,000 redeemable preference shares of a
nominal or par value of CI$0.50 each.
	 
	9.(a)	 	The Ordinary Shares and the Redeemable Preference Shares shall rank pari passu for all
purposes except as follows:-

	 	(i)	 	Any Redeemable Shares in issue and outstanding shall subject to the terms of
issue, be redeemable at any time at the option of the Company by written notice to
the address of the holder shown in the Register of Members;
	 
	 	(ii)	 	The price per Redeemable Preference Share payable upon redemption shall,
subject to the terms of issue, be a sum equal to the par value and premium paid or
credited as paid up on the Redeemable Preference Share at the time of issue thereof,
plus such additional premium, if any, as the Directors may deem fair and reasonable,
provided that the redemption payment shall not exceed the amount payable on a winding
up;
	 
	 	(iii)	 	Redemption of a Redeemable Preference Share shall take place with effect
from such date as may be specified by the Directors;
	 
	 	(iv)	 	On or before the date of redemption the certificate representing the Redeemable
Preference Shares being redeemed shall be submitted for cancellation but
submission of such certificate shall not be a condition of redemption unless the
Directors so decide;
	 
	 	(v)	 	Where a certificate representing both Redeemable Preference Shares to be
redeemed and Redeemable Preference Shares not to be redeemed is submitted to the
Company, it shall issue a new certificate for the balance of the Redeemable
Preference Shares not being redeemed;
	 
	 	(vi)	 	In a winding up, the surplus assets if any available for distribution to
Members shall be applied first in paying to the holders of the Redeemable Preference
Shares a sum equal to the par value and premium paid up or credited as paid up
thereon at the time of issue. Secondly in paying to the holders of the Ordinary
Shares a sum equal to the par value and premium paid up or credited as paid up
thereon at the time of issue and thirdly to the holders of the Ordinary Shares and
Redeemable Preference Shares according to the number of shares held;
	 
	 	(vii)	 	The Ordinary Shares and the Redeemable Preference Shares shall rank equally
for voting and dividend purposes.

	 	(b)	 	The Directors may allot issue grant options over or otherwise dispose of shares of the
Company to such persons at such times and on such terms as they think proper.

-3-

 

We, the undersigned, are desirous of being formed into a Company pursuant to this Memorandum of
Association and the Companies Law, and we hereby agree to take the numbers of shares set opposite
our respective names below.

Dated this 29th day of August, 1973.

 

	 	 	 
	SIGNATURE, NAME, OCCUPATION, 

AND ADDRESS OF SUBSCRIBER

	 	NUMBER OF SHARES

TAKEN BY SUBSCRIBER

 

	 	 	 	 	 
	Signed

	 	1		 
	 
	 	 	 	 
	_____________________________________________
	 	 	 	 
	John Cohien, Solicitor
	 	 	 	 
	P.O. Box 309, Grand Cayman
	 	 	 	 
	 
	 	 	 	 
	Signed _______________________________________

	 	1		 
	Douglas Calder, Solicitor Grand Cayman
	 	 	 	 
	 
	 	 	 	 
	Signed
	 	 	 	 
	Angela Crichton, Solicitor P.O.
	 	 	 	 
	Box 381, Grand Cayman
	 	 	 	 
	 
	 	 	 	 
	(Signed) _____________________________________

	 	1		 
	M. Boyle
	 	 	 	 
	Witness to the above signatures
	 	 	 	 

I, Lee
Alfonso Ebanks, Registrar of Companies in and for the Cayman Islands, DO HEREBY CERTIFY that
this is a true copy of the Memorandum of Association of Consolidated Water Co. Ltd.

Dated this 29th day of August, 1973.

-4-

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