Document:

Exhibit
10(c)

 

EXECUTION COPY

 

 

 

REGISTRATION RIGHTS AGREEMENT

 

by and among

 

SUPERIOR ESSEX COMMUNICATIONS LLC,

 

ESSEX GROUP, INC.

 

THE GUARANTORS NAMED HEREIN

 

and

 

THE HOLDERS OF SECOND PRIORITY SECURED NOTES NAMED HEREIN

 

Dated as of November 10, 2003

 

 

 

 

Table of Contents

 

	
  1.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Initial
  Registration Under the Securities Act

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Securities Act
  Registration on Request.

  	
   

  
	
   

  	
  (a)     Request

  	
   

  
	
   

  	
  (b)     Shelf
  Registration

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Piggyback
  Registration

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Expenses.

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  General.

  	
   

  
	
   

  	
  (a)     RESERVED

  	
   

  
	
   

  	
  (b)     Registration Statement Form

  	
   

  
	
   

  	
  (c)     Effective
  Registration Statement

  	
   

  
	
   

  	
  (d)     Selection of
  Underwriters

  	
   

  
	
   

  	
  (e)     Priority
  in Requested Registration

  	
   

  
	
   

  	
  (f)      Registration
  Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Underwritten
  Offerings

  	
   

  
	
   

  	
  (a)     Requested
  Underwritten Offerings

  	
   

  
	
   

  	
  (b)     Holders of Registrable
  Notes to be Parties to Underwriting Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Preparation:
  Reasonable Investigation

  	
   

  
	
   

  	
  (a)     Registration
  Statements

  	
   

  
	
   

  	
  (b)     Confidentiality

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Postponements

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Indemnification

  	
   

  
	
   

  	
  (a)     Indemnification by the
  Issuers

  	
   

  
	
   

  	
  (b)     Indemnification by the
  Offerors and Sellers

  	
   

  
	
   

  	
  (c)     Notices
  of Losses, etc.

  	
   

  
	
   

  	
  (d)     Contribution

  	
   

  
	
   

  	
  (e)     Other
  Indemnification

  	
   

  
	
   

  	
  (f)      Indemnification
  Payments

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Registration Rights to
  Others

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Rule
  144 and Rule 144A

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Amendments
  and Waivers

  	
   

  

 

i

 

	
  14.

  	
  Nominees for Beneficial
  Owners

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Assignment

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Calculation of Percentage
  or Aggregate Principal Amount of Registrable Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Termination of
  Registration Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Miscellaneous.

  	
   

  
	
   

  	
  (a)     Further
  Assurances

  	
   

  
	
   

  	
  (b)     Headings

  	
   

  
	
   

  	
  (c)     Remedies

  	
   

  
	
   

  	
  (d)     Entire
  Agreement

  	
   

  
	
   

  	
  (e)     Notices

  	
   

  
	
   

  	
  (f)      Governing Law

  	
   

  
	
   

  	
  (g)     Severability

  	
   

  
	
   

  	
  (h)     Counterparts

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  
	
   

  	
   

  
	
  SCHEDULE
  A – HOLDERS OF REGISTRABLE NOTES

  	
   

  
	
  SCHEDULE
  B – NOTICES

  	
   

  

 

ii

 

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT, dated as of
November 10, 2003 (this “Agreement”), by and among Superior Essex
Communications LLC, a Delaware
limited liability company (the “LLC”), Essex Group, Inc., a Michigan
corporation (“Essex”), the Guarantors party to this Agreement (the “Guarantors”,
and, together with the LLC and Essex, the “Issuers”), and the holders of Registrable
Notes (as hereinafter defined) who are listed on Schedule A to this Agreement
(the “Original Holders”) and such other Persons who may become a party
hereto pursuant to Section 15.

 

This Agreement is being entered into in
connection with the acquisition of Notes (as hereinafter defined) on the date
hereof by the Original Holders pursuant to the Plan (as hereinafter defined).  Upon
the issuance of the Notes pursuant to the Plan, each Original Holder will own the
principal amount of Notes specified with respect to such Original Holder in
Schedule A hereto.

 

To induce the Original Holders to vote in
favor of the Plan and to accept the Notes under the Plan, the Issuers are
herewith agreeing to register Registrable Notes under the Securities Act (as
hereinafter defined) and to take certain other actions with respect to the
Registrable Notes, subject to the terms and conditions of such undertaking of
this Agreement.

 

Concurrently with the effective date of the
Plan, Superior Essex Inc., a Delaware Corporation (“SEI”), will enter
into a registration rights agreement (the “Common Stock Registration Rights
Agreement”) to induce the holders of Common Stock (as defined below) of SEI
to vote in favor of the Plan and to accept the issuance of Common Stock under
the Plan.

 

In consideration of the premises and the
mutual agreements set forth herein, the parties hereto hereby agree as follows:

 

1.                Definitions. 
Unless otherwise defined herein, capitalized terms used herein and in
the recitals above shall have the following meanings:

 

“Affiliate” of a Person means any
Person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, such other
Person.  For purposes of this
definition, “control” means the ability of one Person to direct the
management and policies of another Person.

 

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

 

“Business Day” means any day except a
Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to be closed.

 

“Commission” means the U.S. Securities
and Exchange Commission.

 

“Common Stock” means the shares of
Common Stock, $.01 par value per share, of SEI, as adjusted to reflect any
merger, consolidation, recapitalization, reclassification, split-up, stock
dividend, rights offering or reverse stock split made, declared or effected with respect
to the Common Stock.

 

 

 “Effective
Date” means the effective date of the Plan pursuant to the terms thereof.

 

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

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder, or
any similar or successor statute.

 

“Expenses” means all expenses incident
to the Issuers’ performance of or compliance with their obligations under this
Agreement, including, without limitation, all registration, filing, listing,
national securities exchange and NASD fees (including, without limitation, all
fees and expenses of any “qualified independent underwriter” required by the
rules of the NASD), all fees and expenses of complying with state securities or
blue sky laws (including the reasonable fees, disbursements and other charges
of counsel for the underwriters in connection with blue sky filings), all word
processing, duplicating and printing expenses, messenger, telephone and
delivery expenses, all rating agency fees, the fees, disbursements and other
charges of counsel for the Issuers and of their independent public accountants,
including the expenses incurred in connection with “cold comfort” letters
required by or incident to such performance and compliance, any fees and
expenses incurred in connection with the listing of the securities to be registered
on PORTAL or any other securities exchange or national market system on which
similar securities issued by the Issuers or SEI are then listed, the reasonable
fees, disbursements and other charges of one firm of counsel (per registration
statement prepared in accordance with the terms hereof) to the holders of
Registrable Notes selling Notes under such registration statement pursuant to
Section 2 or Section 4 hereof (selected by the Holders holding a majority of
the Registrable Notes covered by such registration), the fees and expenses of any special
experts retained by the Issuers in connection with such registration, the fees
and expenses of the Trustee and counsel retained by the Trustee in connection
with such registration, and the fees and expenses of other persons retained by
the Issuers, but excluding underwriting discounts and commissions and
applicable transfer taxes, if any, which discounts, commissions and transfer
taxes shall be borne by the seller or sellers of Registrable Notes in all cases;
provided, that, if the Issuers shall, in accordance with Section
4 or Section 9 hereof, not register any securities with respect to which it had
given written notice of their intention to register to holders of Registrable
Notes, notwithstanding anything to the contrary in the foregoing, all
reasonable out-of-pocket expenses incurred by Requesting Holders in connection
with such registration (other than the reasonable fees, disbursements and other
charges of counsel other than the one firm of counsel referred to above), if
any, shall be deemed to be Expenses.

 

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

 

“Holders” means the Original Holders
and such other Persons who may become party hereto pursuant to Section 15.

 

“Holder Indemnitee” has the meaning
set forth in Section 10(b) hereof.

 

 “Indenture” means the indenture dated
November 10, 2003 by and among the Issuer, the Guarantors and The
Bank of New York as Trustee, pursuant to which the Notes are to

 

2

 

be issued, as such Indenture is amended and supplemented from time to
time in accordance with the terms thereof.

 

“Initial Registration Period” has the
meaning set forth in Section 2 hereof.

 

“Initial Registration Statement” has
the meaning set forth in Section 2 hereof.

 

“Initiating Request” has the meaning
set forth in Section 3(a) hereof.

 

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

 

“Issuers
Indemnitee” has the meaning set forth in Section 10(a) hereof.

 

“Loss” and “Losses” have the
meanings set forth in Section 10(a) hereof.

 

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

 

“Notes” means the aggregate principal
amount of second priority secured notes due 2008 issued in accordance with the
Plan pursuant to the Indenture, including any Secondary Senior Notes (as
defined in the Indenture).

 

 “Offering
Documents” has the meaning set forth in Section 10(a) hereof.

 

“Original Holders” has the meaning set
forth in the preamble hereto.

 

“Person” means any individual,
corporation, limited liability company, partnership, firm, joint venture,
association, joint stock company, trust, unincorporated organization,
governmental or regulatory body or subdivision thereof or other entity.

 

“Piggyback Requesting Holder” has the
meaning set forth in Section 4 hereof.

 

“Plan” means the Joint Plan of
Reorganization under Chapter 11 of the United States Bankruptcy Code for
Superior Telecom Inc. and certain of its domestic subsidiaries, as the same may
be amended, modified or supplemented from time to time in accordance with the
terms thereof.

 

“PORTAL” means The PORTAL Market.

 

“Public Offering” means a public
offering and sale of the Notes pursuant to an effective registration statement
under the Securities Act.

 

“Public Offering of Common Stock”
means a public offering and sale of Common Stock pursuant to an effective
registration statement under the Securities Act.

 

“Registrable Notes” means any of the
Notes issued pursuant to the Indenture and owned by the Holders from time to
time; provided, however, that a Note shall cease to be a Registrable
Note after it has been sold under a registration statement effected pursuant
hereto or pursuant to Rule 144 promulgated under the Securities Act or has
otherwise been Transferred

 

3

 

without a valid assignment by the Transferor to the Transferee of the
rights and obligations hereunder pursuant to Section 15 hereof.

 

“Requesting
Holders” means one or more Holders which, together with their Affiliates,
collectively beneficially own at least 15% of the outstanding aggregate
principal amount of Notes.

 

“Securities Act” means the Securities
Act of 1933, as amended, and the rules and regulations thereunder, or any
similar or successor statute.

 

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

 

“Selling Holders” means the holders of
Registrable Notes that have requested that some or all of their Notes be
registered pursuant hereto.

 

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

 

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

 

“Shelf Request Date” has the meaning
set forth in Section 3(b) hereof.

 

“Transfer” means any transfer, sale,
assignment, pledge, hypothecation or other disposition of any interest.  “Transferor” and “Transferee” have
correlative meanings.

 

“Trustee” means The Bank of New York
in its capacity as Trustee under the Indenture.

 

2.                Initial Registration Under the
Securities Act.  The Issuers
shall use their reasonable best efforts to file and have declared effective by
the Commission, as promptly as practicable after the Issuers’ registration
statement on Form 10 becomes effective under the Exchange Act (but in no event
more than 30 days thereafter), which registration statement on Form 10 shall be
filed with the Commission as promptly as practicable after the Effective Date
(but in no event more than 30 days thereafter), a shelf registration statement
on Form S-1 pursuant to Rule 415 promulgated under the Securities Act (the “Initial
Registration Statement”) providing for the sale by the Holders of all of
the Registrable Notes.  The Issuers
agree to use their reasonable best efforts to have such Form 10 declared
effective as promptly as practicable after it is filed.  Subject to Section 9(b), the Issuers agree to
use their reasonable best efforts to keep the Initial Registration Statement
continuously current and effective until the third anniversary of the date such
Initial Registration Statement is declared effective by the Commission (plus a
number of Business Days equal to the number of Business Days, if any, that the
Initial Registration Statement is not kept effective after the initial date of
its effectiveness and prior to the third anniversary thereof) or such shorter
period which will terminate when all of the Registrable Notes covered by the
Initial Registration Statement have been sold pursuant to the Initial
Registration Statement or such Notes covered by the Registration Statement
cease to be Registrable Notes (the “Initial Registration Period”).  As promptly as practicable after becoming
eligible to file a registration statement on Form S-3 under the Securities Act,
the Issuers shall amend the Initial Registration Statement utilizing Form S-3.  Holders may effect underwritten offerings
pursuant to the Initial Registration Statement without reducing the number of

 

4

 

registrations that the Issuers are required to effect pursuant to
Section 3 hereof, provided that at least 180 days must elapse between
the initiation of an underwritten offering and the closing of a prior
underwritten offering.  In the case of a
registration statement pursuant to this Section 2, the Issuers agree to cause
the Indenture to continue to be qualified under the Trust Indenture Act of
1939, as amended, and in the event that such qualification would require the
appointment of a new trustee under the Indenture, the Issuers shall appoint a
new trustee pursuant to the applicable provisions of the Indenture.

 

3.                Securities Act Registration on
Request.

 

(a)  Request.  At any time and from time to time during the
period commencing 180 days after the expiration of the Initial Registration
Period, the Requesting Holders may make a written request (the “Initiating
Request”) to SEI, acting for itself and as agent for the other Issuers, for
the registration with the Commission under the Securities Act of all or part of
such Requesting Holders’ Registrable Notes, which Initiating Request shall
specify the principal amount of Notes proposed to be disposed of by such
Requesting Holders and the proposed plan of distribution therefor.  Upon the receipt of any Initiating Request
for registration pursuant to this Section 3(a), SEI shall cause the Issuers to
promptly shall notify in writing all other Holders of the receipt of such
request and will use their reasonable best efforts to effect, at the earliest
practicable date, such registration under the Securities Act, including a Shelf
Registration, if applicable, of

 

(i)                                     the
Registrable Notes which the Issuers have been so requested to register by such
Requesting Holder or Holders, and

 

(ii)                                  all
other Registrable Notes which the Issuers have been requested to register by
any other Holders by written request given to the Issuers within 30 days after
the giving of written notice by the Issuers to such other Holders of the
Initiating Request,

 

all to the
extent necessary to permit the disposition (in accordance with Section 6(c)
hereof) of the Registrable Notes so to be registered; provided, that,

 

(A)  the Issuers shall not be
required to effect more than a total of four registrations pursuant to this
Section 3(a) (including a Shelf Registration effected pursuant to Section
3(b)),

 

(B)  if the intended method of
distribution is an underwritten Public Offering of the Notes, the Issuers shall
not be required to effect such registration pursuant to this Section 3(a)
unless such underwriting shall be conducted on a “firm commitment” basis,

 

(C)  if the Issuers shall have previously
effected a registration pursuant to this Section 3(a) (including one
registration effected pursuant to Section 3(b)) or shall have previously
effected a registration of which notice has been given to the Holders pursuant
to Section 4 hereof, the Issuers shall not be required to effect any
registration or file a Registration Statement pursuant to this

 

5

 

Section 3(a)
until a period of 180 days shall have elapsed from the date on which the
previous such registration ceased to be effective,

 

(D)  any Holder whose
Registrable Notes were to be included in any such registration pursuant to this
Section 3(a), by written notice to the Issuers, may withdraw such request and,
on receipt of such notice of the withdrawal of such request from Holders
holding a percentage of Registrable Notes, such that the Holders that have not
elected to withdraw do not hold, in the aggregate, the requisite percentage of
the Registrable Notes to initiate a request under this Section 3(a), the
Issuers shall not effect such registration, and

 

(E)  the Issuers shall not be
required to effect any registration pursuant to this Section 3(a) unless at
least 15% of the aggregate principal amount of Registrable Notes outstanding at
the time of such request are to be included in such registration.

 

(b)  Shelf
Registration.  One Initiating
Request may be made for a shelf registration statement (a “Shelf
Registration Statement”) pursuant to Rule 415 promulgated under the
Securities Act (a “Shelf Registration”) providing for the sale by the
Holders of any or all of the Registrable Notes (the date of such request, the “Shelf
Request Date”).  After the Shelf
Request Date, the Issuers shall (i) use their reasonable best efforts to file,
at the earliest practicable date, such Shelf Registration Statement under the
Securities Act and (ii) use their reasonable best efforts to have such Shelf
Registration Statement thereafter declared effective by the Commission at the
earliest practicable date, but in any event not later than 120 days after the
Shelf Request Date or, if a Shelf Registration Statement is reviewed by the
Staff of the Commission, not later than 180 days after the Shelf Request
Date.  Subject to Section 9(b), the
Issuers agree to use their reasonable best efforts to keep the Shelf
Registration Statement continuously effective under Rule 415 of the Securities
Act until the earliest to occur of (i) the first anniversary of the date such
Shelf Registration Statement initially is declared effective by the Commission
(plus a number of Business Days equal to the number of Business Days, if any,
that the Shelf Registration Statement is not kept effective after the initial
date of its effectiveness and prior to the first anniversary thereof), (ii) the
day after the date on which all of the Registrable Notes covered by the Shelf
Registration Statement have been sold pursuant to the Shelf Registration
Statement or (iii) the first date on which there shall cease to be any
Registrable Notes.  In the case of a
registration statement pursuant to this Section 3(b), the Issuers agree to
cause the Indenture to continue to be qualified under the Trust Indenture Act
of 1939, as amended, and in the event that such qualification would require the
appointment of a new trustee under the Indenture, the Issuer shall appoint a
new trustee pursuant to the applicable provisions of the Indenture.

 

4.                Piggyback Registration.  If any one of LLC, Essex or SEI, at any time
when the Initial Registration Statement or a Shelf Registration Statement
covering all outstanding Registrable Notes is not effective, proposes to
register any of their respective securities under the Securities Act by
registration on any forms other than Form S-4 or S-8 (or any successor or
similar form(s)), whether or not pursuant to registration rights granted to
other holders of their securities and whether or not for sale for their own
accounts, the Issuers, jointly, shall give prompt written notice to all of the
Holders of the Registrable Notes of such intention to do so and

 

6

 

of such Holders’ rights (if any) under this Section 4, which notice,
shall be given at least 30 days prior to such proposed registration.  Upon the written request of any Holder that
is a holder of Registrable Notes receiving notice of such proposed registration
(a “Piggyback Requesting Holder”) made within 20 days after the receipt
of any such notice (ten days if the Issuers state in such written notice to the
relevant security holders stating that (i) such registration will be on Form
S-3 and (ii) such shorter period of time is required because of a planned
filing date), which request shall specify the Registrable Notes intended to be
disposed of by such Piggyback Requesting Holder and, in the case of an
underwritten offering the minimum offering price at which such Piggyback
Requesting Holder is willing to sell its Registrable Notes, the Issuers shall,
jointly, subject to Section 7(b) hereof, effect the registration under the Securities
Act of all Registrable Notes which the Issuers have been so requested to
register by the Piggyback Requesting Holders thereof; provided  that,

 

(A)  prior to the effective date
of the registration statement filed in connection with such registration pursuant
to this Section 4, promptly following receipt of notification by the Issuers
from the managing underwriter (if an underwritten offering) of the price or
range of prices at which such securities are proposed to be sold, the Issuers
shall so advise each Piggyback Requesting Holder of such price, and if such
price is below the minimum price which any Piggyback Requesting Holder shall
have indicated to be acceptable to such Piggyback Requesting Holder, such
Piggyback Requesting Holder shall then have the right irrevocably to withdraw
its request to have its Registrable Notes included in such registration
statement, by delivery of written notice of such withdrawal to the Issuers
within one (1) Business Day of its being notified in writing of such price, without
prejudice to the rights of any holder or holders of Registrable Notes to
include Registrable Notes in any future registration (or registrations)
pursuant to this Section 4 or to cause such registration to be effected as a
registration under Section 3(a) hereof, as the case may be;

 

(B)  if at any time after giving
written notice of their intention to register any securities and prior to the
effective date of the registration statement filed in connection with such
registration, any one of the Issuers shall determine for any reason not to
register or to delay registration of all of such securities, the Issuers may,
at their election, give written notice of such determination to each Piggyback
Requesting Holder and (i) in the case of a determination not to register, shall
be relieved of their obligation to register any Registrable Notes in connection
with such registration (but not from any obligation of the Issuers to pay the
Expenses in connection therewith), without prejudice, however, to the rights of
any Holder to include Registrable Notes in any future registration (or
registrations) pursuant to this Section 4 or to cause such registration to be
effected as a registration under Section 3 hereof, as the case may be, and (ii)
in the case of a determination to delay registering, shall be permitted to
delay registering any Registrable Notes, for the same period as the delay in
registering such other securities; and

 

(C)  RESERVED.

 

7

 

No registration effected under this Section 4
shall relieve the Issuers of their obligation to effect any registration upon
request under Section 3(a) or 3(b) hereof and no registration effected pursuant
to this Section 4 shall be deemed to have been effected pursuant to Section
3(a) or 3(b) hereof.

 

Notwithstanding anything in this Agreement to
the contrary, the Issuers shall have no obligation under this Section 4 to make
any offering of their securities, or to complete an offering of their
securities that they proposes to make, and shall incur no liability to any
Holder for their failure to do so.

 

5.                       Expenses.

 

(a)                                  The Issuers shall pay
all Expenses in connection with any registration initiated pursuant to Section
2, 3 or 4 hereof, whether or not such registration shall become effective and
whether or not all or any portion of the Registrable Notes originally requested
to be included in such registration are ultimately included in such
registration.

 

(b)                                 Notwithstanding
anything in Section 5(a) to the contrary, the Issuers shall not be required to
pay for any Expenses of any registration proceeding begun pursuant to Section 2
or 3 if the registration request is subsequently withdrawn at the request of
Holders of a majority of the Registrable Notes to be registered (in which case
all participating Holders shall bear such expenses pro rata based upon the
aggregate principal amount of Registrable Notes that were requested to be
included in the withdrawn registration), unless (i) in the case of a
registration requested under Section 3, the Holders of a majority of the
Registrable Notes agree to forfeit their right to one demand registration
pursuant to Section 3 or (ii) such withdrawal was effected in accordance with
Section 9 hereof.

 

6.                       General.

 

(a)  RESERVED.

 

(b)  Registration Statement
Form.  Registrations under Section 2
or 3 hereof shall be on such appropriate registration form prescribed by the
Commission under the Securities Act as shall be selected by the Issuers and as
shall permit the disposition of the Registrable Notes pursuant to an
underwritten offering unless the Selling Holders holding at least a majority of
the aggregate principal amount of Registrable Notes requested to be included in
such registration statement determine otherwise, in which case pursuant to the
method of disposition determined by such Selling Holders.  The Issuers agree to include in any such
registration statement filed pursuant to Section 2 or 3 hereof all information
which the Selling Holders holding the majority of aggregate principal amount of
the Registrable Notes covered by such registration statement effected pursuant
hereto, upon advice of counsel, shall reasonably request.  The Issuers may, if permitted by law, effect
any registration requested under Section 2 or 3 by the filing of a registration
statement on Form S-3 (or any successor or similar short form registration
statement).

 

(c)  Effective
Registration Statement.  A
registration requested pursuant to Section 2 or 3 hereof shall not be deemed to
have been effected

 

8

 

(i)                                     unless
a registration statement with respect thereto has been declared effective by
the Commission and remains effective in compliance with the provisions of the
Securities Act and the laws of any state or other jurisdiction applicable to
the disposition of Registrable Notes covered by such registration statement
until such time as all of such Registrable Notes have been disposed of in
accordance with the method of disposition set forth in such registration
statement or there shall cease to be any Registrable Notes, provided, that,
except with respect to the Initial Registration or Shelf Registration, such
period need not exceed 90 days, and, provided, further, that with
respect to the Initial Registration or Shelf Registration, such period need not
extend beyond the applicable period provided for in Section 2 or, as the case
may be, 3(b) hereof,

 

(ii)                                  if,
after it has become effective, such registration is interfered with by any stop
order, injunction or other order or requirement of the Commission or other
governmental or regulatory agency or court for any reason other than a
violation of applicable law or regulation solely by any Selling Holder and has
not thereafter become effective or,

 

(iii)                               if,
in the case of an underwritten offering pursuant to a registration statement
requested under Section 3(a) hereof, the conditions to closing specified in an
underwriting agreement to which the Issuers are parties are not satisfied or
waived other than by reason of any breach or failure by any Selling Holder, or
are not otherwise waived.

 

The Holders of Registrable Notes to be
included in a registration statement may at any time terminate a request for
registration made pursuant to Section 3(a) in accordance with Section 3(a)(ii)(D).

 

(d)  Selection
of Underwriters.  The
underwriter or underwriters of each underwritten offering, if any, of the
Registrable Notes pursuant to a registration statement effected under Section 2
or 3 hereof shall be mutually selected by the Selling Holders owning at least a
majority of the aggregate principal amount of Registrable Notes to be
registered and the Issuers.

 

(e)  Priority
in Requested Registration.  If a
registration under Section 3(a) hereof involves an underwritten Public Offering
or if an underwritten Public Offering is being effected pursuant to a shelf
registration statement, and the managing underwriter of such underwritten
offering shall advise the Issuers in writing (with a copy to each Selling
Holder requesting that Registrable Notes be included in such underwritten
offering) that, in its opinion, the aggregate principal amount of Registrable
Notes requested to be included in such underwritten offering exceeds the
aggregate principal amount of Receivable Notes that can be sold in such
offering within a price range stated to such managing underwriter by Selling
Holders owning at least a majority of the aggregate principal amount of
Registrable Notes requested to be included in such underwritten offering to be
acceptable to such Selling Holders, the Issuers shall include in such
underwritten offering, to the extent of the number and type of securities which
the Issuers are advised can be sold in such offering, all Registrable Notes
requested to be included, pro rata among the Selling Holders requested to be
included in such underwritten offering on the basis of

 

9

 

the aggregate principal amount of Registrable Notes requested to be
included by all such Selling Holders, and no other Registrable Notes, whether
to be sold by the Issuers or any other Person.

 

(f)                                    Registration Procedures.  If and whenever the Issuers are required to
effect any registration under the Securities Act as provided in Section 2, 3 or
4 hereof, the Issuers shall, as expeditiously as possible:

 

(i)                                     jointly
prepare and file as co-registrants with the Commission (promptly and, in the
case of any registration pursuant to Section 3(a), in any event on or before
the date that is (A) 90 days after the date that an Initiating Request is made
in accordance with Section 3(a) or (B) if, as of such ninetieth day, both of
the Issuers do not have any audited financial statements required to be
included in the registration statement, 30 days after the date both Issuers
have received from their independent public accountants their respective
audited financial statements, which the Issuers shall use their reasonable best
efforts to obtain as promptly as practicable) the requisite registration
statement to effect such registration and thereafter use their reasonable best
efforts to cause such registration statement to become and remain effective; provided,
however, that the Issuers may discontinue any registration of their
securities that are not Registrable Notes at any time prior to the effective
date of the registration statement relating thereto;

 

(ii)                                  prepare
and file with the Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may
be necessary to keep such registration statement effective and to comply with
the provisions of the Securities Act and the Exchange Act with respect to the
disposition of all Registrable Notes covered by such registration statement
until such time as all of such Registrable Notes has been disposed of in
accordance with the method of disposition set forth in such registration
statement; provided, that, except with respect to any Initial
Registration or Shelf Registration, such period need not extend beyond 90 days
after the effective date of the registration statement; and provided, further,
that with respect to the Initial Registration or Shelf Registration, such
period need not extend beyond the applicable period provided for in Section 2
or, as the case may be, 3(b) hereof;

 

(iii)                               furnish
to each seller of Registrable Notes covered by such registration statement and
their representatives designated pursuant to Section 8(a), if any, and each
underwriter, if any, such number of copies of such drafts and final conformed
versions of such registration statement and of each such amendment and
supplement thereto (in each case including all exhibits and any documents
incorporated by reference), such number of copies of such drafts and final
versions of the prospectus contained in such registration statement (including
each preliminary prospectus and any summary prospectus) and any other
prospectus filed under Rule 424 under the Securities Act, in conformity with
the requirements of the Securities Act, and such other documents, including
without limitation notification of whether such registration statement or
amendment or supplement thereto will be reviewed by the Commission or any

 

10

 

other regulatory authority and any oral or written comments on such registration
statement or amendment or supplement thereto delivered to the Issuers by the
Commission or any other regulatory authority, as the sellers of a majority of
the Registrable Notes covered by such registration statement or any underwriter
may reasonably request in writing; provided, that all drafts of such
registration statement or amendment or supplement thereto shall be furnished to
each seller of Registrable Notes covered by such registration statement and
their representatives designated pursuant to Section 8(a) whether or not so
requested;

 

(iv)                              use
their reasonable best efforts (i) to register or qualify all Registrable Notes
and other securities, if any, covered by such registration statement under such
other securities or blue sky laws of such states or other jurisdictions of the
United States of America as the sellers of a majority of the Registrable Notes
covered by such registration statement shall reasonably request in writing,
(ii) to keep such registration or qualification in effect for so long as such
registration statement remains in effect and (iii) to take any other action
that may be necessary or reasonably advisable to enable such sellers to
consummate the disposition in such jurisdictions of the securities to be sold
by such sellers, except that the Issuers shall not for any such purpose be
required to qualify generally to do business as a foreign corporation in any
jurisdiction wherein it would not but for the requirements of this Section
6(f)(iv) be obligated to be so qualified, to subject itself to taxation in such
jurisdiction or to consent to general service of process in any such
jurisdiction;

 

(v)                                 use
their reasonable best efforts to cause all Registrable Notes and other
securities, if any, covered by such registration statement to be registered
with or approved by such other federal or state governmental agencies or
authorities as may be necessary in the opinion of counsel to the Issuers and
counsel to the seller or sellers of Registrable Notes to enable the seller or
sellers thereof to consummate the disposition of such Registrable Notes;

 

(vi)                              furnish
to each seller of Registrable Notes, and each such seller’s underwriters, if
any, a signed

 

(A)                 opinions of counsel for the respective
Issuers, dated the effective date of such registration statement (and, if such
registration involves an underwritten offering, dated the date of the closing
under the underwriting agreement and addressed to the underwriters), reasonably
satisfactory (based on the customary form and substance of opinions of issuers’
counsel customarily given in such an offering) in form and substance to such
Selling Holders holding a majority of the Registrable Notes being sold, and

 

(B)                   “cold comfort” letters, dated the
effective date of such registration statement (and, if such registration
involves an underwritten offering, dated the date of the closing under the
underwriting agreement and addressed to the underwriters) and signed by the
independent public accountants who have certified the each of the Issuers’ financial
statements included or incorporated by reference in such registration
statement, reasonably satisfactory (based on the customary form and substance
of “cold comfort” letters of issuers’ independent public accountant customarily
given in such an offering) in form and substance to

 

11

 

Selling
Holders holding a majority of the Registrable Notes being sold, in each case,
covering substantially the same matters with respect to such registration
statement (and the prospectus included therein) and, in the case of the
accountants’ comfort letter, with respect to events subsequent to the date of
such financial statements, as are customarily covered in accountants’ comfort
letters delivered to underwriters in underwritten public offerings of
securities;

 

(vii)                           notify
each seller of Registrable Notes and other securities covered by such
registration statement, if any, at any time when a prospectus relating thereto
is required to be delivered under the Securities Act, upon discovery that, or
upon the happening of any event as a result of which, the prospectus included
in such registration statement, as then in effect, includes an untrue statement
of a material fact or omits to state any material fact required to be stated
therein or necessary to make the statements therein not misleading in the light
of the circumstances under which they were made, and, at the written request of
any such seller of Registrable Notes, promptly prepare and furnish to it a
reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such securities, such prospectus, as supplemented or amended,
shall not include 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 in the light of the circumstances under which they were
made;

 

(viii)                        use
their reasonable best efforts to obtain the withdrawal of any order suspending
the effectiveness of a registration statement relating to the Registrable Notes
at the earliest possible moment;

 

(ix)                                otherwise
comply with all applicable rules and regulations of the Commission and any
other governmental agency or authority having jurisdiction over the offering,
and make available to their security holders, as soon as reasonably practicable
but in no event later than 60 days following the end of the earnings period, an
earnings statement covering the period of at least 12 months, but not more than
18 months, beginning with the first full calendar month after the effective
date of such registration statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the Securities Act and Rule 158 promulgated
thereunder, and furnish to each seller of Registrable Notes and to the managing
underwriter, if any, at least ten days prior to the filing thereof (or such
shorter period as may be necessary to comply with applicable rules and
regulations or to correct any material misstatement or deficiency) a copy of
any amendment or supplement to such registration statement or prospectus;

 

(x)                                   subject
to the Issuers being able to comply with the listing and other requirements of
a national securities exchange or PORTAL, use their reasonable best efforts to
cause all Registrable Notes covered by a Registration Statement to be listed on
PORTAL or any other national securities exchange on which similar securities
issued by the Issuers are then listed, if the listing of such Registrable Notes
is then permitted under the rules of such exchange;

 

12

 

(xi)                                provide
a CUSIP number for all Registrable Notes covered by a Registration Statement no
later than the effective date thereof and provide the Trustee under the
Indenture with printed certificates for the Registrable Notes which are in a
form eligible for deposit with The Depository Trust Company;

 

(xii)                             enter
into such agreements (including an underwriting agreement in customary form)
and take such other actions as the Holders holding a majority of the aggregate
principal amount of Registrable Notes covered by such registration statement
shall reasonably request in order to expedite or facilitate the disposition of
such Registrable Notes, including customary indemnification;

 

(xiii)                          if
requested by the managing underwriter(s) or the Holders holding a majority of
the aggregate principal amount of Registrable Notes being sold in connection
with an underwritten offering, subject to applicable law, promptly incorporate
in a prospectus supplement or post-effective amendment such information as the
managing underwriter(s) and the Holders of a majority of the Registrable Notes
being sold agree should be included therein relating to the plan of
distribution with respect to such Registrable Notes, including without
limitation, information with respect to the aggregate principal amount of
Registrable Notes being sold to such underwriters, the purchase price being
paid therefor by such underwriters and with respect to any other terms of the
underwritten offering of the Registrable Notes to be sold in such offering; and
make all required filings of such prospectus supplement or post-effective
amendment as soon as notified of the matters to be incorporated in such
prospectus supplement or post-effective amendment; and

 

(xiv)                         if
requested by the Selling Holders holding a majority of the aggregate principal
amount of Registrable Notes being sold, reasonably cooperate with the Selling
Holders of Registrable Notes and the managing underwriter(s), if any, to
facilitate the timely preparation and delivery of certificates representing
Registrable Notes to be sold and not bearing any restrictive legends; and
enable such Registrable Notes to be in such amounts and registered in such
names as the managing underwriter(s) or, if none, the Selling Holders holding a
majority of the aggregate principal amount of Registrable Notes being sold, may
request at least three Business Days prior to any sale of Registrable Notes to
the underwriters.

 

As a condition to the obligations of the
Issuers to complete any registration pursuant to this Agreement with respect to
the Registrable Notes of a Holder, such Holder must furnish to the Issuers in
writing such information regarding itself, the Registrable Notes held by it and
the intended methods of disposition of the Registrable Notes held by it as is
necessary to effect the registration of such Holders’ Registrable Notes and is
requested in writing by the Issuers.  At
least 20 days prior to the first anticipated filing date of a Registration
Statement for any registration under this Agreement, the Issuers will notify in
writing each Holder as to the information referred to in the preceding sentence
which the Issuers are requesting from that Holder whether or not such Holder
has elected to have any of its Registrable Notes included in the Registration
Statement.  If, within 10 days prior to
the anticipated filing date, the Issuers have not received the requested information
from a Holder, then the Issuers may file the Registration

 

13

 

Statement without including Registrable Notes of that Holder, if, in
the opinion of the Issuers’ counsel, such information is required to be
included in such Registration Statement.

 

Each Holder agrees that as of the date that a
final prospectus is made available to it for distribution to prospective
purchasers of Registrable Notes it shall cease to distribute copies of any
preliminary prospectus prepared in connection with the offer and sale of such
Registrable Notes.  Each Holder further
agrees that, upon receipt of any written notice from the Issuers of the
happening of any event of the kind described in Section 6(f)(vii), such Holder
shall forthwith discontinue such Holder’s disposition of Registrable Notes
pursuant to the registration statement relating to such Registrable Notes until
such Holder’s receipt of the copies of the supplemented or amended prospectus
contemplated by Section 6(f)(vii) and, if so directed by the Issuers, shall
deliver to the Issuers (at the Issuers’ expense) all copies, other than
permanent file copies, then in such Holder’s possession of the prospectus
relating to such Registrable Notes current at the time of receipt of such
notice.  If any event of the kind
described in Section 6(f)(vii) occurs and such event is the fault solely of a
Holder (or Holders), such Holder (or Holders) shall pay all Expenses
attributable to the preparation, filing and delivery of any supplemented or
amended prospectus contemplated by Section 6(f)(vii).

 

7.                Underwritten Offerings.

 

(a)  Requested
Underwritten Offerings.  If
requested by the underwriters in connection with an underwritten Public
Offering pursuant to a registration under Section 2 or 3 hereof, the Issuers
shall enter into a firm commitment underwriting agreement with such
underwriters for such offering, such agreement to be reasonably satisfactory in
substance and form to the Issuers and a majority of the Selling Holders whose
Registered Notes is included in such offering, and the underwriters and to
contain such representations and warranties by the Issuers and the Selling
Holders and such other terms as are customary in agreements of that type,
including, without limitation, indemnification and contribution to the effect
and to the extent provided in Section 10 hereof.

 

(b)  Holders
of Registrable Notes to be Parties to Underwriting Agreement.  The holders of Registrable Notes to be
distributed by underwriters in an underwritten offering contemplated by Section
7(a) shall be parties to the underwriting agreement between the Issuers and
such underwriters and any such Holder, at its option, may reasonably require
that any or all of the representations and warranties by, and the other
agreements on the part of, the Issuers to and for the benefit of such
underwriters shall also be made to and for the benefit of such Holders and that
any or all of the conditions precedent to the obligations of such underwriters
under such underwriting agreement be conditions precedent to the obligations of
such Holders.  No such Holder shall be
required to make any representations or warranties to or agreements with the
Issuers or the underwriters other than representations, warranties or
agreements regarding such Holder, such Holder’s Registrable Notes and such
Holder’s intended method of distribution; provided that any liability of
such Holder shall be limited to the proceeds received from such distribution in
accordance with Section 10(b) or (d) hereof.

 

14

 

8.                Preparation: Reasonable
Investigation.

 

(a)  Registration
Statements.  In connection with
the preparation and filing of each registration statement under the Securities
Act pursuant to this Agreement, the Issuers shall (i) give representatives
(designated to the Issuers in writing) of each Holder or group of Holders
holding at least 10% of the aggregate principal amount of Registrable Notes
registered under such registration statement, the underwriters, if any, and one
firm of counsel, one firm of accountants and one firm of other agents retained
on behalf of all underwriters and one firm of counsel, one firm of accountants
and one firm of other agents retained on behalf of Holders holding a majority
of the aggregate principal amount of Registrable Notes covered by such
registration statement, the reasonable opportunity to participate in the
preparation of such registration statement, each prospectus included therein or
filed with the Commission, and each amendment thereof or supplement thereto,
(ii) upon reasonable advance notice to the Issuers, give each of them such
reasonable access to all financial and other records, corporate documents and
properties of the Issuers and their subsidiaries, as shall be necessary, in the
reasonable opinion of such Holders’ and such underwriters’ counsel, to conduct
a reasonable due diligence investigation for purposes of the Securities Act,
and (iii) upon reasonable advance notice to the Issuers, provide such reasonable
opportunities to discuss the respective businesses of the Issuers with their
respective officers, directors, employees and the independent public
accountants who have certified each of their respective financial statements as
shall be necessary, in the reasonable opinion of such Holders’ and such
underwriters’ counsel, to conduct a reasonable due diligence investigation for
purposes of the Securities Act.

 

(b)  Confidentiality.  Each Holder of Registrable Notes shall
maintain, and shall cause its agents referred to in Section 8(a) to maintain,
the confidentiality of any confidential information received from or otherwise
made available by the Issuers to such Holder of Registrable Notes.  Information that (i) is or becomes available
to a Holder of Registrable Notes from a public source other than as a result of
a disclosure by such Holder or any of its Affiliates, (ii) is disclosed to a
Holder of Registrable Notes by a third-party source who the Holder of
Registrable Notes reasonably believes is not bound by an obligation of
confidentiality to the Issuers or (iii) is or becomes required to be disclosed
by a Holder of Registrable Notes by law, including by court order, shall not be
deemed to be confidential information for purposes of this Agreement.  The Holders of Registrable Notes shall not
grant access, and the Issuers shall not be required to grant access, to
information under this Section 8 to any Person who will not agree to maintain
the confidentiality (to the same extent a Holder is required to maintain
confidentiality) of any confidential information received from or otherwise
made available to it by the Issuers or the holders of Registrable Notes under
this Agreement.

 

9.                Postponements.

 

(a)  If the Issuers shall fail to file or delay
filing for more than 90 days after receipt of any Initiating Request any
registration statement to be filed pursuant to a request for registration under
Section 3 hereof (whether or not pursuant to Section 9(b)), the Holders
requesting such registration shall have the right to withdraw the request for
registration if such withdrawal shall be made by Holders of Notes holding an
aggregate principal amount of Notes such that the Holders that have not elected
to withdraw do not hold the requisite percentage or amount of Notes to initiate
a request under Section 3.  Any such
withdrawal shall be made by

 

15

 

giving written notice to the Issuers within 20 days after, in the case
of a request pursuant to Section 3 hereof, the date on which a registration
statement would otherwise have been required to have been filed with the
Commission under clause (A) of Section 6(f)(i) hereof (i.e., 20 days
after the date that is 90 days after the conclusion of the period within which
requests for registration may be given to the Issuers, or, if, as of such
ninetieth day, the Issuers do not have the audited financial statements
required to be included in the registration statement, 30 days after the
receipt by the Issuers from their independent public accountants of such
audited financial statements).  In the
event of such withdrawal, the request for registration shall not be counted for
purposes of determining the number of registrations to which Holders are
entitled pursuant to Section 3 hereof.

 

(b)  The Issuers shall not be obligated to file
any registration statement, or file any amendment or supplement to any
registration statement, and may suspend any Selling Holder’s rights to make
sales pursuant to any effective registration statement, at any time (but not to
exceed one time in any 12-month period) when either of the Issuers, in the good
faith judgment of its Board of Directors, reasonably believes that the filing
thereof at the time requested, or the offering of securities pursuant thereto,
would adversely affect a pending or proposed Public Offering of such Issuer’s
securities, a material financing, or a material acquisition, merger,
recapitalization, consolidation, reorganization or similar transaction, or
negotiations, discussions or pending proposals with respect thereto or would
require the disclosure of material non-public information that, in the good
faith judgment of such Issuer’s Board of Directors, individually or in the
aggregate, would have a material adverse effect on such Issuer and its
subsidiaries taken as a whole.  The
filing of a registration statement, or any amendment or supplement thereto, by
the Issuers cannot be deferred, and the Selling Holders’ rights to make sales
pursuant to an effective registration statement cannot be suspended, pursuant
to the provisions of the preceding sentence for more than 10 days after the
abandonment or consummation of any of the foregoing proposals or transactions
or for more than 90 days after the date of the Board’s determination referenced
in the preceding sentence.  If any
Issuer suspends the sellers’ rights to make sales pursuant hereto, the
applicable registration period shall be extended by the same number of days of
such suspension.

 

10.          Indemnification.

 

(a)  Indemnification
by the Issuers.  In connection
with any registration statement filed by the Issuers pursuant to Section 2, 3
or 4 hereof, to the fullest extent permitted by law the Issuers shall, and
hereby agree to, jointly and severally, indemnify and hold harmless, each Holder
of any Registrable Notes covered by such registration statement and each other
Person, if any, who controls (within the meaning of the Exchange Act) such
Holder, and their respective stockholders, directors, officers, employees,
partners, agents and Affiliates (each, an “Issuers Indemnitee” for
purposes of this Section 10(a)), against any losses, claims, damages,
liabilities (or actions or proceedings, whether commenced or threatened, in
respect thereof and whether or not such Indemnified Party is a party thereto),
joint or several, and expenses, including, without limitation, the reasonable
fees, disbursements and other charges of legal counsel and reasonable costs of
investigation, to which such Issuers Indemnitee may become subject under the
Securities Act or otherwise (collectively, a “Loss” or “Losses”),
insofar as such Losses arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in any registration
statement under which such securities were registered or otherwise offered or

 

16

 

sold under the Securities Act or otherwise, any preliminary prospectus,
final prospectus or summary prospectus related thereto, or any amendment or
supplement thereto (collectively, “Offering Documents”), or any omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein in the light of the
circumstances in which they were made not misleading, or any violation by the
Issuers of any federal or state law, rule or regulation applicable to the
Issuers and relating to action required of or inaction by the Issuers in
connection with any such registration; provided, that, the Issuers shall
not be liable in any such case to the extent that any such Loss arises out of
or is based upon an untrue statement or omission made in such Offering
Documents in reliance upon and in conformity with information furnished to the
Issuers in a writing duly executed by a Issuers Indemnitee specifically stating
that it is expressly for use therein; and provided, further, that the Issuers
shall not be liable to any Person who participates as an underwriter in the
offering or sale of Registrable Notes or any other person, if any, who controls
(within the meaning of the Exchange Act) such underwriter, in any such case to
the extent that any such Loss arises out of such Person’s failure to send or
give a copy of the final prospectus (including any documents incorporated by
reference therein), as the same may be then supplemented or amended, to the
Person asserting an untrue statement or alleged untrue statement or omission or
alleged omission at or prior to the written confirmation of the sale of
Registrable Notes to such Person if such statement or omission was corrected in
such final prospectus.  Such indemnity
shall remain in full force and effect regardless of any investigation made by
or on behalf of a Issuers Indemnitee and shall survive the transfer of such
securities by such Issuers Indemnitee.

 

(b)  Indemnification
by the Offerors and Sellers. 
In connection with any registration statement filed by the Issuers
pursuant to Section 2, 3 or 4 hereof in which a Holder has registered for sale
Registrable Notes, each such Holder of Registrable Notes shall, and hereby
agrees to, indemnify and hold harmless to the fullest extent permitted by law
the Issuers and each of their directors, officers, employees, agents, partners,
stockholders, Affiliates and each other Person, if any, who controls (within
the meaning of the Exchange Act) the Issuers and each other seller under such
registration statement and such seller’s employees, directors, officers,
stockholders, partners, agents and Affiliates (each, a “Holder Indemnitee”
for purposes of this Section 10(b)), against all Losses insofar as such Losses
arise out of or are based upon any untrue statement of a material fact
contained in any Offering Documents (or any document incorporated by reference
therein) or any omission to state therein a material fact required to be stated
therein or necessary to make the statements therein in the light of
circumstances in which they were made not misleading, if such untrue statement
or omission was made in reliance upon and in conformity with information
furnished to the Issuers in a writing duly executed by such Holder of
Registrable Notes specifically stating that it is expressly for use therein; provided,
however, that the liability of such indemnifying party under this
Section 10(b) shall be limited to the amount of the net proceeds received by
such indemnifying party in the sale of Registrable Notes giving rise to such
liability.  Such indemnity shall remain
in full force and effect, regardless of any investigation made by or on behalf
of a Holder Indemnitee and shall survive the transfer of such securities by
such indemnifying party.

 

(c)  Notices of Losses,
etc.  Promptly after receipt by an
indemnified party of written notice of the commencement of any action or
proceeding involving a Loss referred to in Section 10(a) or (b), such
indemnified party will, if a claim in respect thereof is to be made against an
indemnifying party, give written notice to the latter of the commencement of
such

 

17

 

action; provided, however, that the failure of any
indemnified party to give notice as provided herein shall not relieve the
indemnifying party of its obligations under Section 10(a) or (b), except to the
extent that the indemnifying party is materially and actually prejudiced by
such failure to give notice.  In case
any such action is brought against an indemnified party, the indemnifying party
shall be entitled to participate in and, unless in such indemnified party’s
reasonable judgment, after consultation with its separate counsel, a conflict
of interest between such indemnified and indemnifying parties may exist in
respect of such Loss, to assume and control the defense thereof, in each case
at its own expense, jointly with any other indemnifying party similarly
notified, to the extent that it may wish, with counsel reasonably satisfactory
to such indemnified party, and after its assumption of the defense thereof, the
indemnifying party shall not be liable to such indemnified party for any legal
or other expenses subsequently incurred by the latter in connection with the
defense thereof other than reasonable costs of investigation, unless in such
indemnified party’s reasonable judgment, after consultation with its separate
counsel, a conflict of interest between such indemnified and indemnifying
parties arises in respect of such claim after the assumption of the defense
thereof, in which event the indemnifying party shall be liable for the legal
expenses of one counsel (plus local counsel) representing the indemnified party
or parties.  No indemnifying party shall
be liable for any settlement of any action or proceeding effected without its
written consent, which shall not be unreasonably withheld.  No indemnifying party shall, without the
consent of the indemnified party, consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from
all liability in respect of such Loss or which requires action on the part of
such indemnified party or otherwise subjects the indemnified party to any
obligation or restriction to which it would not otherwise be subject.

 

(d)  Contribution.  If the indemnification provided for in this
Section 10 shall for any reason be unavailable to an indemnified party under
Section 10(a) or (b) in respect of any Loss, then, in lieu of the amount paid
or payable under Section 10(a) or (b), the indemnified party and the
indemnifying party under Section 10(a) or (b) shall contribute to the aggregate
Losses (including legal or other expenses reasonably incurred in connection
with investigating the same) (i) in such proportion as is appropriate to
reflect the relative fault of the Issuers on the one hand and the prospective
sellers of Registrable Notes on the other hand covered by the registration
statement which resulted in such Loss or action in respect thereof, with
respect to the statements, omissions or action which resulted in such Loss or
action in respect thereof, as well as any other relevant equitable
considerations, or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as shall be appropriate to
reflect the relative benefits received by the Issuers, on the one hand, and
such prospective sellers, on the other hand, from their sale of Registrable
Notes; provided, that, for purposes of this clause (ii), the relative
benefits received by the prospective sellers shall be deemed not to exceed the
amount received by such sellers in the sale of their Registrable Notes.  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.  The
obligations, if any, of the selling holders of Registrable Notes to contribute
as provided in this Section 10(d) are several in proportion to the relative
value of their respective Registrable Notes covered by such registration statement
and not joint.  In addition, no Person
shall be obligated to contribute hereunder any amounts in payment for any
settlement of any action or Loss effected without such Person’s consent.

 

18

 

(e)  Other
Indemnification.  The Issuers,
jointly and severally, and, in connection with the Initial Registration
Statement, each Holder, severally and not jointly, shall, and, in connection
with any registration statement filed by the Issuers pursuant to Section 3 or
4, each Holder who has registered for sale Registrable Notes, severally and not
jointly, shall, with respect to any required registration or other
qualification of securities under any Federal or state law or regulation of any
governmental authority other than the Securities Act, indemnify Holder
Indemnitees and Issuers Indemnitees, respectively, against Losses, or, to the
extent that indemnification shall be unavailable to a Holder Indemnitee or
Issuers Indemnitee, contribute to the aggregate Losses of such Holder
Indemnitee or Issuers Indemnitee in a manner similar to that specified in the
preceding subsections of this Section 10 (with appropriate modifications).

 

(f)  Indemnification
Payments.  The indemnification
and contribution required by this Section 10 shall be made by periodic payments
of the amount thereof during the course of any investigation or defense, as and
when any Loss is incurred and is due and payable.

 

11.          Registration Rights to Others.

 

If the Issuers shall at any time hereafter provide
to any holder of any securities of the Issuers rights with respect to the
registration of such securities under the Securities Act or the Exchange Act,
such rights shall not be in conflict (in a manner that adversely affects the
Holders of Registrable Notes) with or adversely affect any of the rights
provided to the holders of Registrable Notes in, or conflict (in a manner that
adversely affects holders of Registrable Notes) with any other provisions
included in, this Agreement.

 

12.          Rule 144 and Rule 144A.

 

The Issuers shall take all actions reasonably
necessary to enable Holders to sell Registrable Notes without registration
under the Securities Act within the limitation of the exemptions provided by
(a) Rule 144 under the Securities Act, as such Rule may be amended from time to
time, (b) Rule 144A under the Securities Act, as such Rule may be amended from
time to time, or (c) any similar rules or regulations hereafter adopted by the
Commission, including, without limiting the generality of the foregoing, filing
on a timely basis all reports required to be filed under the Exchange Act.  Upon the written request of any Holder, each
of the the Issuers shall deliver to such Holder a written statement as to
whether it has complied with such requirements.

 

13.          Amendments and Waivers.

 

Any provision of this Agreement may be
amended, modified or waived if, but only if, the written consent to such
amendment, modification or waiver has been obtained from (i) except as provided
in clause (ii) below, the Holder or Holders of at least a majority of the
aggregate principal amount of Registrable Notes affected by such amendment,
modification or waiver and (ii) in the case of any amendment, modification or
waiver of any provision of Section 2, 5, 9 or 10 or any provisions as to the
number of requests for registration to which holders of Registrable Notes are
entitled under Section 3 or 4 hereof, or this Section 14, the written consent
of each Holder so affected.

 

19

 

14.          Nominees for Beneficial Owners.

 

Except as provided otherwise below, a person
or entity is deemed to be a holder of Registrable Notes whenever such person or
entity owns of record such Registrable Notes. 
If any Registrable Notes are held by a nominee for the beneficial owner
thereof, the beneficial owner thereof may, at its election in writing delivered
to the Issuers, be treated as the Holder of such Registrable Notes for purposes
of any request or other action by any Holder or Holders pursuant to this Agreement
or any determination of the percentage of aggregate principal amount of
Registrable Notes held by any Holder or Holders contemplated by this
Agreement.  The Issuers may require
assurances reasonably satisfactory to it of such owner’s beneficial ownership
of such Registrable Notes.  If the
Issuers receives conflicting instructions, notices or elections from two or
more persons or entities with respect to the same Registrable Notes, the
Issuers will act upon the basis of instructions, notice or election received
from the registered owner of such Registrable Notes.

 

15.          Assignment.

 

The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective heirs, successors and permitted assigns.  Any Holder may assign to any permitted Transferee (as permitted
under applicable law) of its Registrable Notes its rights and obligations under
this Agreement, provided  that the provisions of this Agreement
shall only be binding and inure to such Transferee if, after giving effect to
such Transferee, such Transferee shall hold 5% or more of the outstanding
aggregate principal amount of Notes or shall be a director or an executive
officer of either of the Issuers; and, provided  further, that
such Transferee shall agree in writing with the parties hereto prior to the
assignment to be bound by this Agreement as if it were an original party
hereto, whereupon such assignee shall for all purposes be deemed to be a Holder
under this Agreement.  Except as
provided above or otherwise permitted by this Agreement, neither this Agreement
nor any right, remedy, obligation or liability arising hereunder or by reason
hereof shall be assignable by any Holder without the prior written consent of
the other parties hereto.  The Issuers
may not assign this Agreement or any right, remedy, obligation or liability
arising hereunder or by reason hereof.

 

16.          Calculation of Percentage or
Aggregate Principal Amount of Registrable Notes.  For purposes of this Agreement, all references to a percentage or
amount of Registrable Notes shall be calculated based upon the principal amount
of Notes outstanding at the time such calculation is made and shall exclude any
Registrable Notes owned by the Issuers or any subsidiary of either of the
Issuers.  For the purposes of
calculating any percentage or amount of Registrable Notes as contemplated by
the previous sentence, the terms “Holder” and “Original Holder”
shall include all Affiliates thereof owning any Registrable Notes.

 

17.          Termination of Registration Rights.  The Issuers’ obligations under Sections 2, 3
and 4 hereof to register Notes for sale under the Securities Act shall
terminate on the earlier to occur of (i) the first date on which no Registrable
Notes are held by any Original Holder or their permitted Transferees or (ii)
the first date on which (A) no Holder of Notes, together with its Affiliates,
holds 5% or more of the outstanding aggregate principal amount of Notes or (B)
less than 25% of the aggregate principal amount of Notes issued pursuant to the
Plan are held by the Original Holders or their Affiliates.

 

20

 

18.          Miscellaneous.

 

(a)  Further
Assurances.  Each of the parties
hereto shall execute such documents and other papers and perform such further
acts as may be reasonably required or advisable to carry out the provisions of
this Agreement and the transactions contemplated hereby.

 

(b)  Headings.  The headings in this Agreement are for
convenience of reference only and shall not control or affect the meaning or
construction of any provisions hereof.

 

(c)  Remedies.  Each Holder, in addition to being entitled
to exercise all rights granted by law, including recovery of damages, will be
entitled to specific performance of its rights under this Agreement.  The Issuers agree 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 the Issuers hereby agree to waive
the defense in any action for specific performance that a remedy at law would
be adequate.

 

(d)  Entire Agreement.  This Agreement constitutes the entire
agreement and understanding of the parties hereto with respect to the subject
matter hereof, and there are no restrictions, promises, representations,
warranties, covenants or undertakings with respect to the subject matter
hereof, other than those expressly set forth or referred to herein.  This Agreement supersedes all prior
agreements and understandings among the parties hereto with respect to the
subject matter hereof.

 

(e)  Notices.  Any notices or other communications to be
given hereunder by any party to another party shall be in writing, shall be
delivered personally, by telecopy, by certified or registered mail, postage
prepaid, return receipt requested, or by Federal Express or other comparable
delivery service, to the address of the party set forth on Schedule B hereto or
to such other address as the party to whom notice is to be given may provide in
a written notice to the other parties hereto, a copy of which shall be on file
with the Secretary of LLC.  Notice shall
be effective when delivered if given personally, when receipt is acknowledged
if telecopied, three days after mailing if given by registered or certified
mail as described above, and one business day after deposit if given by Federal
Express or comparable delivery service.

 

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

 

(g)  Severability.  Notwithstanding any other provision of this
Agreement, neither the Issuers nor any other party hereto shall be required to
take any action which would be in violation of any applicable Federal or state
securities law.  The invalidity or
unenforceability of any provision of this Agreement in any jurisdiction shall
not affect the validity, legality or enforceability of any other provision of
this Agreement in such jurisdiction or the validity, legality or enforceability
of this Agreement, including any such provision, in any other jurisdiction, it
being intended that all rights and obligations of the parties hereunder shall
be enforceable to the fullest extent permitted by law.

 

(h)  Counterparts.  This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original but all of which
shall constitute one and the same Agreement.

 

21

 

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

	
   

  	
  SUPERIOR
  ESSEX COMMUNICATIONS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ESSEX GROUP,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  On behalf of
  each entity named on the attached

  
	
   

  	
  Schedule I

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

[ADDITIONAL SIGNATURE PAGE FOLLOWS]

 

22

 

	
   

  	
  GENERAL
  ELECTRIC CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

23

 

SCHEDULE A

 

HOLDERS OF REGISTRABLE NOTES

 

	
  Original Holder

  	
   

  	
  Aggregate
  Principal

  Amount Owned

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

SCHEDULE B

 

NOTICES

 

If to SEI or
the Issuers, to:

 

Superior Essex
Communications LLC

Essex Group, Inc.

Attention: Secretary, Superior Essex Communications LLC

150 Interstate North Parkway

Suite 300

Atlanta, Georgia  30339

 

Tel:                            (770)
953-8338

Fax:                           (770)
303-8892

 

with a copy
to:

 

Proskauer Rose
LLP

Attention: Jack P. Jackson, Esq.

1585 Broadway

New York, New York 10036-8299

 

Tel:                            (212) 969-3000

Fax:                           (212) 969-2900

 

If to the
Holders, to:

 

such Holder,
at such Holder’s address or to such Holder’s telephone or telecopy number
reflected in the Issuers’ books and records

 

with a copy
to:

 

Simpson
Thacher & Bartlett LLP

Attention:  Risë B. Norman, Esq. 

425 Lexington Avenue

New York, New York 10017

 

Tel:                            (212)
455-3080

Fax:                           (212)
455-2502Exhibit
10(d)

 

EXECUTION COPY

 

WARRANT
AGREEMENT

 

Dated as of

 

November 10,
2003

 

between

 

SUPERIOR ESSEX
INC.

 

and

 

AMERICAN STOCK
TRANSFER & TRUST COMPANY

 

as the Warrant
Agent

 

 

Table of Contents

 

	
  ARTICLE 1.
  Defined Terms

  	
   

  
	
   

  	
  SECTION 1.1.   Definitions

  	
   

  
	
   

  	
  SECTION 1.2.   Other Definitions

  	
   

  
	
   

  	
  SECTION 1.3.   Rules of
  Construction

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.
  Warrant Certificates

  	
   

  
	
   

  	
  SECTION 2.1.   Issuance and
  Dating

  	
   

  
	
   

  	
  SECTION 2.2.   Execution and
  Countersignature

  	
   

  
	
   

  	
  SECTION 2.3.   Certificate
  Register

  	
   

  
	
   

  	
  SECTION 2.4.   Transfer and
  Exchange

  	
   

  
	
   

  	
  SECTION 2.5.   Replacement
  Certificates

  	
   

  
	
   

  	
  SECTION 2.6.   Temporary
  Certificates

  	
   

  
	
   

  	
  SECTION 2.7.   Cancellation

  	
   

  
	
   

  	
  SECTION 2.8.   Payment of Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.
  Exercise Terms

  	
   

  
	
   

  	
  SECTION 3.1.   Exercise Price

  	
   

  
	
   

  	
  SECTION 3.2.   Exercise Periods

  	
   

  
	
   

  	
  SECTION 3.3.   Expiration

  	
   

  
	
   

  	
  SECTION 3.4.   Manner of Exercise

  	
   

  
	
   

  	
  SECTION 3.5.   Issuance of
  Warrant Shares

  	
   

  
	
   

  	
  SECTION 3.6.   Fractional Warrant
  Shares

  	
   

  
	
   

  	
  SECTION 3.7.   Reservation of
  Warrant Shares; Restrictive Legends

  	
   

  
	
   

  	
  SECTION 3.8.   Compliance with
  Law

  	
   

  
	
   

  	
  SECTION 3.9.   Payment of Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4.
  Antidilution Provisions

  	
   

  
	
   

  	
  SECTION 4.1.   Changes in Common
  Stock

  	
   

  
	
   

  	
  SECTION 4.2.   Cash Dividends and
  Other Distributions

  	
   

  
	
   

  	
  SECTION 4.3.   Fundamental
  Change; Liquidation

  	
   

  
	
   

  	
  SECTION 4.4.   Other Adjustments

  	
   

  
	
   

  	
  SECTION 4.5.   Excluded Issuances

  	
   

  
	
   

  	
  SECTION 4.6.   Current Market
  Value

  	
   

  
	
   

  	
  SECTION 4.7.   Adjustment to
  Exercise Price

  	
   

  
	
   

  	
  SECTION 4.8.   Superseding
  Adjustment

  	
   

  
	
   

  	
  SECTION 4.9.   Minimum Adjustment

  	
   

  
	
   

  	
  SECTION 4.10.   Notice of
  Adjustment

  	
   

  
	
   

  	
  SECTION 4.11.   Notice of
  Certain Transactions

  	
   

  
	
   

  	
  SECTION 4.12.   Adjustment to
  Warrant Certificate

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5.
  Warrant Agent

  	
   

  
	
   

  	
  SECTION 5.1.   Appointment of
  Warrant Agent

  	
   

  
	
   

  	
  SECTION 5.2.   Rights and Duties
  of Warrant Agent

  	
   

  

 

i

 

	
   

  	
  SECTION 5.3.   Individual Rights
  of Warrant Agent

  	
   

  
	
   

  	
  SECTION 5.4.   Warrant Agent’s
  Disclaimer

  	
   

  
	
   

  	
  SECTION 5.5.   Compensation and
  Indemnity

  	
   

  
	
   

  	
  SECTION 5.6.   Successor Warrant
  Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6.
  Representations, Warranties and Agreements

  	
   

  
	
   

  	
  SECTION 6.1.   Agreement of
  Warrant Holders

  	
   

  
	
   

  	
  SECTION 6.2.   Representations
  and Warranties of the Company

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7.
  Miscellaneous

  	
   

  
	
   

  	
  SECTION 7.1.   Agreements
  Respecting Warrants; Impairment

  	
   

  
	
   

  	
  SECTION 7.2.   SEC Reports

  	
   

  
	
   

  	
  SECTION 7.3.   Persons Benefiting

  	
   

  
	
   

  	
  SECTION 7.4.   Rights of Holders

  	
   

  
	
   

  	
  SECTION 7.5.   Amendment

  	
   

  
	
   

  	
  SECTION 7.6.   Notices

  	
   

  
	
   

  	
  SECTION 7.7.   GOVERNING LAW

  	
   

  
	
   

  	
  SECTION 7.8.   Successors

  	
   

  
	
   

  	
  SECTION 7.9.   Counterparts

  	
   

  
	
   

  	
  SECTION 7.10.   Headings

  	
   

  
	
   

  	
  SECTION 7.11.   Severability

  	
   

  
	
   

  	
  SECTION 7.12.   Beneficiaries of
  this Agreement

  	
   

  
	
   

  	
  SECTION 7.13.   Termination

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  
	
  EXHIBIT A 
  —  Form of Warrant Certificate

  	
   

  
	
  EXHIBIT B  —  Form of Election to
  Purchase Warrant Shares At Exercise Price

  	
   

  

 

ii

 

WARRANT
AGREEMENT, dated as of November 10, 2003 (this “Agreement”), between SUPERIOR
ESSEX INC., a Delaware corporation (the “Company”), and American Stock Transfer
& Trust Company, a New York corporation, as Warrant Agent (in such
capacity, the “Warrant Agent”).

 

WITNESSETH:

 

WHEREAS,
pursuant to the Plan of Reorganization (as defined below), the Company has
agreed to issue warrants to purchase from the Company 868,421 shares of Common
Stock (the “Warrants”) representing in the aggregate approximately 5% of the
fully diluted Common Stock on the Plan Effective Date to certain of the holders
of Senior Subordinated Note Claims (such term, and all other capitalized terms
used herein without being otherwise defined, having the meanings referred to in
Section 1.1 below);

 

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

 

ARTICLE 1.

 

DEFINED TERMS

 

SECTION 1.1.
Definitions.  All terms defined
in the Plan of Reorganization shall have such defined meanings when used herein
or in any Exhibit hereto unless otherwise defined herein or therein. As used in
this Agreement, the following terms shall have the following meanings:

 

“Affiliate”
means, as to any Person, any other Person that, directly or indirectly, is in
control of, is controlled by, or is under common control with, such
Person.  For purposes of this
definition, “control” of a Person means the power, directly or indirectly,
either to (a) vote 50% or more of the securities having ordinary voting power
for the election of directors of such Person or (b) direct or cause the
direction of the management and policies of such Person, whether by contract or
otherwise.

 

“Board” means
the Board of Directors of the Company or any committee thereof duly authorized
to act on behalf of such Board of Directors.

 

“Business Day”
means a day other than a Saturday, Sunday or other day on which commercial
banks in New York City and Atlanta, Georgia are authorized or required by law
to close.

 

“Code” means
the Internal Revenue Code of 1986, as amended.

 

“Common Stock”
means the common stock, par value $.01 per share, of the Company to be issued
on the Plan Effective Date or reserved for issuance after the Plan Effective
Date, together with any other equity securities that may be issued by the
Company in substitution therefor.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

 

“Expiration
Date” means May 10, 2006.

 

“Fundamental
Change” means an event in which the Company consolidates with, merges with or
into, or sells its property and assets as an entirety or substantially as an
entirety to, another Person.

 

“Holder” means
the duly registered holder of a Warrant under the terms of this Agreement.

 

“New Incentive
Equity Plan” means the Stock Incentive Plan adopted by the Company in
connection with the Plan of Reorganization, as the same may be amended,
modified, restated or supplemented from time to time.

 

“Officer”
means the Chief Executive Officer, the President, any Vice President, the Chief
Financial Officer, the Treasurer or the Controller of the Company.

 

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

 

“Plan
Effective Date” means the date that the Plan of Reorganization becomes
effective in accordance with Article IX thereof.

 

“Plan of
Reorganization” means the Amended Joint Plan of Reorganization for Superior
TeleCom Inc. and its Affiliates, as confirmed by an order of the United States
Bankruptcy Court for the District of Delaware, dated October 22, 2003,
including all schedules and exhibits thereto and all documents incorporated by
reference therein or contained in the documentary supplement thereto.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Warrant
Certificates” means the certificates evidencing the Warrants to be delivered
pursuant to this Agreement, substantially in the form of Exhibit A hereto.

 

“Warrant
Shares” means the shares of Common Stock to be issued and received, or issued
and received, as the case may be, upon exercise of the Warrants.

 

SECTION 1.2.  Other Definitions.

 

	
  “Agreement”

  	
   

  	
  Preamble

  
	
  “Certificate Register”

  	
   

  	
  2.3

  
	
  “Company”

  	
   

  	
  Preamble

  
	
  “Current Market Value”

  	
   

  	
  4.7

  
	
  “Exercise Price”

  	
   

  	
  3.1

  
	
  “Fair Value”

  	
   

  	
  4.2

  
	
  “Successor Company”

  	
   

  	
  4.5

  
	
  “Time of Determination”

  	
   

  	
  4.7

  
	
  “Transfer Agent”

  	
   

  	
  3.5

  
	
  “Warrant Agent”

  	
   

  	
  Preamble

  
	
  “Warrants”

  	
   

  	
  Recitals

  

 

2

 

SECTION 1.3.  Rules of Construction.  Unless the text otherwise requires:

 

(a)                                  a term has the
meaning assigned to it;

 

(b)                                 an accounting term not
otherwise defined has the meaning assigned to it in accordance with generally
accepted accounting principles as in effect as of the date hereof;

 

(c)                                  “or” is not
exclusive;

 

(d)                                 “including” means including,
without limitation, except when preceded by a negative predicate; and

 

(e)                                  words in the singular
include the plural and words in the plural include the singular.

 

ARTICLE 2.

 

WARRANT CERTIFICATES

 

SECTION 2.1.  Issuance and Dating.  The Warrants shall be initially issued on
the Plan Effective Date or as soon as practicable thereafter in accordance with
the terms of the Plan of Reorganization. 
The Warrant Certificates will be issued in registered form as definitive
Warrant Certificates, substantially in the form of Exhibit A, which is
hereby incorporated in and expressly made a part of this Agreement.  The Warrant Certificates may have notations,
legends or endorsements required by law, stock exchange rules, agreements to
which the Company is subject, if any (provided that any such notation, legend
or endorsement is in a form acceptable to the Company).  Each Warrant Certificate shall be dated as
of the date of its countersignature. 
The terms of the Warrants set forth in Exhibit A are part of the
terms of this Agreement.

 

SECTION 2.2.
Execution and Countersignature. 
(a)  With respect to the Warrants
to be initially issued pursuant to the terms hereof, Warrant Certificates
registered in such names and representing such number of Warrants as specified by
the Warrant Agent shall be executed on behalf of the Company by manual or
facsimile signature by one Officer and attested by its Secretary or an
Assistant Secretary.  The Warrant Agent
shall countersign such Warrant Certificate(s) by manual or facsimile signature,
and such Warrant Certificate(s) shall be delivered in accordance with the terms
of the Plan of Reorganization and Section 2.1 hereof.  With respect to all other Warrants, the
Warrant Certificates therefor shall be executed on behalf of the Company by one
Officer and attested by its Secretary or an Assistant Secretary. Such signature
may be by manual or facsimile signature. 
If an Officer whose signature is on a Warrant Certificate no longer
holds that office at the time the Warrant Agent countersigns the Warrant
Certificate, the Warrant Certificate shall be valid nevertheless.  A Warrant Certificate shall not be valid
until an authorized signatory of the Warrant Agent either manually or by
facsimile countersigns the Warrant Certificate.  The signature shall be conclusive evidence that the Warrant
Certificate has been countersigned under this Agreement.

 

3

 

(b)                                 The Warrant Agent may
appoint an agent reasonably acceptable to the Company to countersign the
Warrant Certificate.  Unless limited by
the terms of such appointment, such agent may countersign the Warrant
Certificate whenever the Warrant Agent may do so.  Each reference in this Agreement to countersignature by the
Warrant Agent includes by such agent. 
Such agent will have the same rights as the Warrant Agent for service of
notices and demands.

 

SECTION 2.3.  Certificate Register.  The Warrants shall be numbered and the
Warrant Agent shall keep a register (“Certificate Register”) of the Warrant Certificates
and of their transfer and exchange.  The
Certificate Register shall show the names and addresses of the respective
Holders and the date and number of Warrants evidenced on the face of each of
the Warrant Certificates.  The Company
and the Warrant Agent may deem and treat the Person in whose name a Warrant
Certificate is reflected as registered on the Certificate Register as the
absolute owner of such Warrant Certificate (notwithstanding any notation of
ownership or other writing thereon made by anyone) for all purposes whatsoever
and neither the Company nor the Warrant Agent shall be affected by notice to
the contrary.

 

SECTION 2.4.  Transfer and Exchange.  (a) 
Subject to Section 2.4(b) and (c), when Warrants are presented to
the Warrant Agent with a request to register the transfer of such Warrants or
to exchange such Warrants for an equal number of Warrants of other authorized
denominations, the Warrant Agent shall register the transfer or make the
exchange as requested if its reasonable requirements for such transaction are
met; provided, however, that the Warrant Certificates representing such
Warrants surrendered for transfer or exchange shall be duly endorsed or
accompanied by a written instrument of transfer on the reverse of the Warrant Certificates
or in form reasonably satisfactory to the Company and the Warrant Agent, duly
executed by the Holder thereof or his attorney duly authorized in writing.  Upon any such registration of transfer, a
new Warrant Certificate shall be issued to the transferee.  The Warrant Agent shall provide the Company
with prompt written notice of any proposed transfer of a Warrant.

 

(b)                                 No Warrants may be
sold, exchanged or otherwise transferred in violation of the Securities Act of
1933, as amended (the “Securities Act”), or state securities laws.  Further, no transfer shall be permitted if,
after giving effect to such transfer, the Company shall become a reporting
company the Exchange Act and solely as a consequence thereof.  In connection with any proposed transfer of
a Warrant, the Company shall be entitled to request, at the expense of the
Holder, an opinion of counsel reasonably satisfactory to the Company, that the
proposed transfer will not result in a violation of applicable federal or state
securities laws; provided, however, that the Company must make such request
within five Business Days of receiving notice from the Warrant Agent of a
proposed transfer.  The provisions of
this paragraph (b) shall not apply to the exercise of any Warrant to the extent
that the Shares issued upon such exercise (and any unexercised portion of the
Warrant so exercised) shall be issued to the same registered holder that
exercised such Warrant.

 

(c)                                  (i)  To permit registrations of transfers and
exchanges, the Company shall execute and the Warrant Agent shall countersign
Warrant Certificates as required pursuant to the provisions of
Section 2.2.

 

4

 

(ii)                                  Warrant
Certificates issued upon any registration of transfer or exchange of Warrants
shall be the valid obligations of the Company, entitled to the same benefits
under this Agreement, as the Warrant Certificates surrendered upon such
registration of transfer or exchange. 
Any Warrant issued upon the transfer or exchange of a Warrant shall
continue to bear the same restrictive legends, if any, appearing upon the
Warrant transferred or exchanged, unless the Company receives an opinion of
counsel, reasonably satisfactory to it, that such legends are not required
under applicable federal or state securities laws.

 

(iii)                               The
Company shall not be required to issue any Warrant Certificate evidencing a
fraction of a Warrant or to issue fractions of shares of securities on the
exercise of the Warrants, and any fractional interest in a Warrant alone shall
be of no value whatsoever.  By accepting
a Warrant Certificate, the holder thereof expressly waives any right to receive
(A) a Warrant Certificate evidencing any fraction of a Warrant, (B) any
fractional share of securities upon exercise of a Warrant or (C) any value
whatsoever upon exercise of a fractional interest in a Warrant.

 

(iv)                              No
service charge shall be made to a Holder for any registration of transfer or
exchange upon surrender of any Warrant Certificate at the office of the Warrant
Agent maintained for that purpose. 
However, the Company may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Warrant Certificates.

 

(v)                                 In
the event of any purported transfer in violation of the provisions of this
Agreement, such purported transfer shall be void and of no effect and the
Warrant Agent shall not give effect to such transfer.

 

SECTION 2.5.  Replacement Certificates.  If a mutilated Warrant Certificate is
surrendered to the Warrant Agent or if the Holder of a Warrant Certificate
claims that the Warrant Certificate has been lost, destroyed or wrongfully
taken, the Company shall issue and the Warrant Agent shall countersign a replacement
Warrant Certificate if the reasonable requirements of the Warrant Agent and of
Section 8-405 of the Uniform Commercial Code as in effect in the State of
Delaware are met.  If required by the
Warrant Agent or the Company, such Holder shall furnish evidence of such loss,
destruction or theft reasonably satisfactory to the Company and the Warrant
Agent and shall furnish an indemnity bond sufficient in the judgment of the
Company and the Warrant Agent to protect the Company and the Warrant Agent from
any loss which either of them may suffer if such a replacement Warrant
Certificate is issued.  The Company and
the Warrant Agent may charge the Holder for their expenses in replacing a
Warrant Certificate.

 

SECTION 2.6.  Temporary Certificates.  Until definitive Warrant Certificates are
ready for delivery, the Company may prepare and the Warrant Agent shall
countersign temporary Warrant Certificates. 
Temporary Warrant Certificates shall be substantially in the form of definitive
Warrant Certificates but may have variations that the Company considers
appropriate for temporary Warrant Certificates.  Without unreasonable delay, the Company shall prepare and

 

5

 

the Warrant Agent shall countersign definitive Warrant Certificates and
deliver them in exchange for temporary Warrant Certificates.

 

SECTION 2.7.  Cancellation.  (a) 
If the Company shall purchase or otherwise acquire Warrants (other than
Warrants held by the Company for distribution in accordance with the terms of
the Plan), the Warrant Certificates in respect thereof shall thereupon be
delivered to the Warrant Agent for cancellation.

 

(b)                                 The
Warrant Agent shall cancel and destroy all Warrant Certificates surrendered for
transfer, exchange, replacement, exercise or cancellation and deliver a
certificate of such destruction to the Company unless the Company directs the
Warrant Agent to deliver canceled Warrant Certificates to the Company.  The Company may not issue new Warrant
Certificates to replace Warrant Certificates to the extent they evidence
Warrants that have been exercised or Warrants that the Company has purchased or
otherwise acquired.

 

SECTION 2.8.  Payment of Taxes.  The Company will pay all documentary or
stamp taxes, if any, attributable to the initial issuance of the Warrants
pursuant to Section 2.1 and 2.2 and the initial issuance of the Warrant
Shares upon the exercise of Warrants, if the Warrant Shares are issued in the
name of the Holder to whom such Warrants were initially issued; provided, however,
that the Holder shall reasonably cooperate with the Company and the Warrant
Agent to minimize or eliminate any such taxes. 
Neither the Company nor the Warrant Agent will be required to pay any
tax or governmental charge that may be payable in connection with any transfer,
split up, combination or exchange of Warrants or Warrant Certificates.

 

ARTICLE 3.

 

EXERCISE TERMS

 

SECTION 3.1.  Exercise Price.  Each Warrant shall initially entitle the
Holder thereof, subject to adjustment pursuant to the terms of this Agreement,
to purchase (and the Company shall issue and sell to such Holder) one fully
paid and nonassessable share of Common Stock for a per share exercise price of
$25.00 (as the same may be adjusted pursuant to Article 4, the “Exercise Price”).

 

SECTION 3.2.  Exercise Periods.  (a) 
Subject to the terms and conditions set forth herein, each Warrant shall
be exercisable at any time or from time to time on or after the Plan Effective
Date.

 

(b)                                 No Warrant shall be
exercisable after 5:00 p.m., New York City time, on the Expiration Date.

 

SECTION 3.3.  Expiration.  A Warrant shall terminate and become void as of the earlier of
(a) 5:00 p.m., New York City time on the Expiration Date and (b) the time and
date such Warrant is exercised.

 

SECTION 3.4.
 Manner of Exercise.  Warrants may be exercised upon (a) surrender
to the Warrant Agent of the Warrant Certificates, together with the form of
election to purchase Common Stock (attached hereto as Exhibit B) duly
filled in and signed by the Holder thereof or

 

6

 

by such Holder’s duly authorized attorney and (b) payment to the
Warrant Agent, for the account of the Company, of the Exercise Price multiplied
by the number of Warrant Shares in respect of which such Warrant is then
exercised.  Such payment shall be made
in cash or by certified or official bank check payable to the order of the
Company or by wire transfer of immediately available funds to an account
designated by the Company for such purpose. 
Subject to Section 3.2, the rights represented by the Warrants
shall be exercisable at the election of the Holders thereof either in full at
any time or from time to time in part and in the event that a Warrant
Certificate is surrendered for exercise in respect of less than all the Warrant
Shares purchasable on such exercise at any time prior to the Expiration Date a
new Warrant Certificate exercisable for the remaining number of full Warrant
Shares will be issued.  The Warrant
Agent shall countersign and deliver the required new Warrant Certificates, and
the Company, at the Warrant Agent’s request, shall supply the Warrant Agent
with Warrant Certificates duly signed on behalf of the Company in accordance
with Section 2.2 for such purpose.

 

SECTION 3.5.  Issuance of Warrant Shares.  (a) 
Upon the surrender of Warrant Certificates and payment of the per share
Exercise Price, as set forth in Section 3.4, the Company shall, as soon as
practicable and in any event within three (3) Business Days after such
exercise, issue and cause the Warrant Agent or, if appointed, a transfer agent
for the Common Stock (“Transfer Agent”) to countersign and deliver to or upon
the written order of the Holder and in such name or names as the Holder may
designate, a certificate or certificates for the number of full Warrant Shares
so purchased upon the exercise of such Warrants or other securities or property
to which it is entitled, registered or otherwise to the Person or Persons
entitled to receive the same, together with cash as provided in
Section 3.6 in respect of any fractional Warrant Shares otherwise issuable
upon such exercise; provided, however, that if the Company is requested to
issue Common Stock upon the exercise of a Warrant to any Person other than the
Holder, then the Company shall be entitled to request, at the expense of the
Holder, an opinion of counsel for the Holder, reasonably satisfactory to the
Company, that the requested issuance will not violate applicable federal or
state securities laws.  Such certificate
or certificates shall be deemed to have been issued and any Person so
designated to be named therein shall be deemed to have become a holder of
record of such Warrant Shares as of the date of the surrender of such Warrant
Certificates and payment of the per share Exercise Price.

 

(b)                                 The Warrant Agent
shall account promptly to the Company with respect to Warrants exercised and
concurrently pay or deliver to the Company all moneys and other consideration
received by it in connection with the purchase of Warrant Shares through the
exercise of Warrants.

 

SECTION 3.6.  Fractional Warrant Shares.  The Company shall not be required to issue
fractional Warrant Shares on the exercise of Warrants.  If more than one Warrant shall be exercised
in full at the same time by the same Holder, the number of full Warrant Shares
which shall be issuable upon such exercise shall be computed on the basis of
the aggregate number of Warrant Shares purchasable pursuant thereto.  If any fraction of a Warrant Share would,
except for the provisions of this Section 3.6, be issuable on the exercise
of any Warrant, the Company shall pay an amount in cash equal to the Current
Market Value for one Warrant Share on the Business Day immediately preceding
the date the Warrant is exercised, multiplied by such fraction, computed to the
nearest whole cent.

 

7

 

SECTION 3.7.  Reservation of Warrant Shares;
Restrictive Legends.  (a)  The Company shall at all times keep reserved
out of its authorized shares of Common Stock a number of shares of Common Stock
sufficient to provide for the exercise of all outstanding Warrants.  The registrar for the Common Stock shall at
all times until the Expiration Date, or the time at which all Warrants have
been exercised or cancelled, reserve such number of authorized shares as shall
be required for such purpose.  The
Company will keep a copy of this Agreement on file with the Transfer
Agent.  All Warrant Shares which may be
issued upon exercise of Warrants shall, upon issue, be fully paid,
nonassessable, free of preemptive rights and free from all taxes, liens,
charges and security interests imposed or created by the Company.  The Company will supply such Transfer Agent
with duly executed stock certificates for such purpose and will itself provide
or otherwise make available any cash which may be payable as provided in
Section 3.6.  The Company will
furnish to such Transfer Agent a copy of all notices of adjustments and
certificates related thereto transmitted to each Holder.

 

(b)                                 Before taking any
action that would cause an adjustment pursuant to Article 4 reducing any
Exercise Price below the then par value (if any) of the Warrant Shares, the
Company will take any reasonable corporate action that may, in the opinion of
its counsel, be necessary in order that the Company may validly and legally
issue fully paid and nonassessable Shares at such Exercise Price as so
adjusted.

 

(c)                                  Each certificate
representing Warrant Shares and each certificate representing securities issued
upon the direct or indirect transfer of any such Common Stock shall be stamped
or otherwise imprinted with a legend in the following or a comparable form:

 

“The securities
represented by this certificate have not been registered under the Securities
Act of 1933, as amended, and may not be transferred in the absence of such
registration or an exemption therefrom under such Act.”

 

The holder (or its transferee, as applicable)
of any restricted shares of Common Stock shall be entitled to receive from the
Company, without expense, new securities of like tenor not bearing the legend
set forth above when such securities shall have been (i) effectively registered
under the Securities Act and disposed of in accordance with a registration
statement covering such securities, (ii) disposed of pursuant to the provisions
of Rule 144 or any comparable rule under the Securities Act, or (iii) when, in
the written reasonable opinion of independent counsel for the holder thereof
experienced in Securities Act matters, which counsel and opinion shall be
reasonably satisfactory to the Company, such restrictions are no longer
required in order to insure compliance with the Securities Act (including when
the provisions of Rule 144(k) or any comparable rule under the Securities Act
have been satisfied).

 

Such certificates representing shares of
Registrable Common Stock (as defined in the Registration Rights Agreement (the
“Registration Rights Agreement”), dated as of the date hereof, among the
Company and certain securityholders of the Company), so long as the
Registration Rights Agreement is in effect, shall be stamped or otherwise
imprinted with a legend in the following or a comparable form:

 

8

 

“The sale, encumbrance or
other disposition of the shares represented by this certificate are subject to
the provisions of a Registration Rights Agreement to which the issuer and
certain of its stockholders are party, a copy of which may be inspected at the
principal office of the issuer or obtained from the issuer without charge.”

 

SECTION 3.8.  Compliance with Law.  If any shares of Common Stock required to be
reserved for purposes of the exercise of Warrants require, under any federal or
state law or applicable governing rule or regulation of any national securities
exchange or national market system, registration with or approval of any
governmental authority, or listing on any such national securities exchange or
national market system before such shares may be issued upon exercise, the
Company will use its reasonable best efforts to cause such shares to be duly
registered or approved by such governmental authority or listed on the relevant
national securities exchange or national market system; provided that the
Company shall not have any obligation under this Agreement, other than as set
forth in Section 5.1, to register the Warrant Shares under the Securities
Act or state securities laws.

 

SECTION 3.9.  Payment of Taxes.  The Company will pay all expenses, taxes and
other charges payable in connection with the preparation, issuance and delivery
of certificates representing Warrant Shares or Warrant Certificates
representing unexercised Warrants in connection with any exercise of Warrants
in accordance with Section 3.4, except that, if any such certificates
representing Warrant Shares or any such Warrant Certificates are to be
registered in a name or names other than that of the Holder at the time of any
such exercise of Warrants, funds sufficient to pay all transfer or similar
taxes payable as a result of such transfer shall be paid by the Holder at the
time of such exercise or promptly upon receipt of a written request of the
Company for payment thereof.  In
connection with any exercise of Warrants in accordance with Section 3.4,
the Warrants will be deemed to have been exercised, any certificate
representing Warrant Shares or any Warrant Certificate issued on account
thereof will be deemed to have been issued, and the Person in whose name any
such certificate or Warrant Certificate is issued will be deemed for all
purposes to have become a holder of record of the Warrant Shares or Warrants,
as the case may be, represented thereby as of the date of surrender of the
subject Warrant Certificate and payment of the per share Exercise Price.

 

ARTICLE 4.

 

ANTIDILUTION PROVISIONS

 

SECTION 4.1.  Changes
in Common Stock.  In the event that
at any time or from time to time after the date hereof the Company shall (a)
pay a dividend in shares of its Common Stock or make a distribution on its
Common Stock in shares of its Common Stock, (b) subdivide its outstanding
shares of Common Stock into a larger number of shares of Common Stock,
(c) combine its outstanding shares of Common Stock into a smaller number
of shares of Common Stock or (d) increase or decrease the number of shares of
Common Stock outstanding by reclassification of its Common Stock, then, except
as provided in Section 4.3 below, the number of shares of Common Stock
purchasable upon exercise of each Warrant immediately after the happening of such
event shall be adjusted so that, after giving affect to such adjustment,

 

9

 

the Holder of each Warrant shall be entitled to receive the number of
shares of Common Stock upon exercise that such Holder would have owned had such
Warrant been exercised immediately prior to the happening of the events
described above (or, in the case of a dividend or distribution of Common Stock,
immediately prior to the record date therefor).  An adjustment made pursuant to this Section 4.1 shall become
effective immediately after the effective date of any such event described
above, retroactive to the record date therefor in the case of a dividend or
distribution in shares of Common Stock, and shall become effective immediately
after the effective date in the case of a subdivision, combination or
reclassification.

 

SECTION 4.2.  Cash Dividends and Other Distributions.  In the event that at any time or from time
to time after the date hereof the Company shall distribute to all holders of
Common Stock (a) any dividend or other distribution of cash, evidences of its
indebtedness, shares of its capital stock (other than its Common Stock) or any
other properties or securities or (b) any options, warrants or other rights to
subscribe for or purchase any of the foregoing (other than, in each case set
forth in (a) and (b), (i) any dividend or distribution described in
Section 4.1 or (ii) any regular cash dividend, including increases
thereof), then the number of shares of Common Stock thereafter purchasable upon
the exercise of each Warrant shall be increased to a number determined by
multiplying the number of shares of Common Stock purchasable upon the exercise
of such Warrant immediately prior to the record date for any such dividend or
distribution by a fraction, the numerator of which shall be the Current Market
Value per share of Common Stock on the record date for such distribution, and
the denominator of which shall be such Current Market Value per share of Common
Stock less the sum of (x) any cash distributed per share of Common Stock
(excluding any regular cash dividends, including increases thereof) and (y) the
fair value (the “Fair Value”) (as determined in good faith by the Board, whose
determination shall be evidenced by a board resolution filed with the Warrant
Agent, a copy of which will be sent to Holders upon request) of the portion, if
any, of the distribution applicable to one share of Common Stock consisting of
evidences of indebtedness, shares of stock, securities, other property,
warrants, options or subscription of purchase rights (notwithstanding the
foregoing, if the Fair Value per share of Common Stock in the above formula
equals or exceeds the Current Market Value per share of Common Stock in the
above formula, then the Current Market Value per share of Common Stock shall be
equal to the Fair Value per share of the Common Stock on the record date as
determined in good faith by the Board, whose determination shall be evidenced
by a board resolution filed with the Warrant Agent, a copy of which will be
sent to the Holders upon request). Such adjustments shall be made whenever any
distribution is made and shall become effective as of the date of distribution,
retroactive to the record date for any such distribution; provided, however,
that the Company is not required to make an adjustment pursuant to this
Section 4.2 if at the time of such distribution the Company makes the same
distribution to Holders of Warrants as it makes to holders of Common Stock
based on the number of shares of Common Stock for which such Warrants are
exercisable (whether or not currently exercisable).

 

SECTION 4.3.  Fundamental Change; Liquidation.  (a) 
Except as provided in Section 4.3(b), in the event of any
Fundamental Change, the Holders shall have the right to receive upon the
exercise of each Warrant such number of shares of capital stock or other
securities or property (including cash) which such Holder would have been
entitled to receive upon or as a result of such Fundamental Change had such Warrant
been exercised immediately prior to such event. The provisions of this
Section 4.3(a) shall similarly apply to successive

 

10

 

Fundamental Changes involving any surviving or acquiring Person (the
“Successor Company”) in such Fundamental Change.

 

(b)                                 In the event of (i) a
Fundamental Change where consideration to holders of Common Stock in exchange
for their shares is payable solely in cash, or (ii) the dissolution,
liquidation or winding-up of the Company in which holders of Common Stock shall
receive a cash payment or other consideration in respect of their shares of
Common Stock, then the Holders of the Warrants will be entitled to receive
distributions on an equal basis with the holders of Common Stock or other
securities issuable upon exercise of the Warrants, as if the Warrants had been
exercised immediately prior to such event, less the aggregate Exercise Price.

 

(c)                                  In case of any
Fundamental Change described in Section 4.3(b), the Successor Company and,
in the event of any dissolution, liquidation or winding-up of the Company in
which holders of the Common Stock will receive a cash payment or other
consideration in respect of their shares of Common Stock, the Company shall
deposit with the Warrant Agent, prior to the effective time of such Fundamental
Change or such dissolution, liquidation, or winding-up, the funds, if any,
necessary to pay to the holders of the Warrants the amounts to which they are
entitled as described above.  After such
funds and the surrendered Warrant Certificates are received, the Warrant Agent
shall make payment to the Holders by delivering a check or wire transfer of
immediately available funds in such amount as is appropriate (or, in the case
of consideration other than cash, such other consideration as is appropriate)
to such Person or Persons as it may be directed in writing by the Holders
surrendering such Warrants.  Upon the
deposit of sufficient funds to fulfill the Company’s obligations hereunder,
which amount shall be further adjusted in accordance with subsequent changes in
the terms of any Fundamental Change described herein, if any, the Warrants
shall thereafter represent only the right to receive such cash payments or
other consideration and the Company’s obligations in respect of the Warrants
shall be discharged; provided, however, that if such a deposit is made in
anticipation of a Fundamental Change, such Fundamental Change must actually be
consummated before the Company’s obligations in respect of the Warrants shall
be discharged.

 

SECTION 4.4.  Other Adjustments.  If any event shall occur as to which the
provisions of this Article 4 are not strictly applicable, but as to which
failure to make any adjustment would, in the reasonable judgment of the Board,
adversely affect the purchase rights of the Warrants in accordance with the
essential intent and principles of the preceding Sections of this Article 4
(which are to place the Holder of a Warrant in a position as nearly as equal as
possible to the position such Holder would have occupied had such Holder
purchased Common Stock on the date hereof), then, in each case, the Warrants
shall be adjusted in such a manner as may be equitable in the circumstances as
the Board acting in good faith shall determine is necessary to protect the
purchase rights of the Warrants.

 

SECTION 4.5.  Excluded Issuances.  Notwithstanding any other provision of this
Article 4, no adjustment shall be made pursuant to this Article 4 in
respect of the issuance of (i) Common Stock upon conversion or exercise of
any convertible securities, options, conversion or exchange rights, or
subscription calls, warrants, commitments or claims, provided that the
foregoing are issued and outstanding on the date hereof, (ii) Common Stock,
restricted or otherwise, or options issued pursuant to the New Incentive Equity
Plan or (iii) Common Stock, restricted or otherwise, or options issued to the
Chief Executive Officer of the Company and

 

11

 

other senior executive officers of the Company in connection with
employment and/or other incentive compensation arrangements.

 

SECTION 4.6.  Current Market Value.  For the purpose of any computation of
Current Market Value under Section 3.6 and Section 4.2, the “Current
Market Value” per share of Common Stock at any date shall be (a) for purposes
of Section 3.6, the closing price on the Business Day immediately prior to
the date of the exercise of the applicable Warrant pursuant to Article 3 and
(b) in all other cases, the average of the daily closing prices for the shorter
of (i) the 20 consecutive trading days ending on the last full trading day on
the exchange or market specified in the second succeeding sentence prior to the
Time of Determination (as defined below) and (ii) the period commencing on the
date next succeeding the first public announcement of the issuance, sale,
distribution or granting in question through such last full trading day prior
to the Time of Determination.  The term
“Time of Determination” as used herein shall be the time and date of the
earlier to occur of (A) the date as of which the Current Market Value is to be
computed or (B) the last full trading day on such exchange or market before the
commencement of “ex-dividend” trading in the Common Stock relating to the event
giving rise to the adjustment required by Section 4.2.  The closing price for any day shall be the
last reported sale price regular way or, in case no such reported sale takes
place on such day, the average of the closing bid and asked prices regular way
for such day, in each case (1) on the principal national securities exchange on
which the shares of Common Stock are listed or to which such shares are
admitted to trading or (2) if the Common Stock is not listed or admitted to
trading on a national securities exchange, in the over-the-counter market as
reported by the Nasdaq National Market or any comparable system or (3) if the
Common Stock is not listed on the Nasdaq National Market or a comparable
system, as furnished by two members of the NASD selected from time to time in
good faith by the Board for that purpose. 
In the absence of all of the foregoing, or if for any other reason the
Current Market Value per share cannot be determined pursuant to the foregoing
provisions of this Section 4.6, the Current Market Value per share shall
be the fair value thereof determined in good faith by the Board, whose
determination shall be evidenced by a Board resolution filed with the Warrant
Agent.

 

SECTION 4.7.  Adjustment to Exercise Price.  Upon each event that provides for an
adjustment of the number of shares of Common Stock issuable upon exercise of
each Warrant pursuant to this Article 4, each Warrant outstanding prior to the
making of the adjustment shall thereafter have an adjusted Exercise Price
(calculated to the nearest hundredth) equal to an amount determined by
multiplying the Exercise Price immediately prior to adjustment by a fraction,
the numerator of which shall be the number of shares of Common Stock issuable
upon exercise of a Warrant prior to adjustment and the denominator of which
shall be the adjusted number of shares of Common Stock issuable upon exercise
of a Warrant subsequent to such adjustment pursuant to this Article 4.

 

SECTION 4.8.  Superseding Adjustment.  Upon the expiration of any rights, options,
warrants or conversion or exchange privileges which resulted in the adjustments
pursuant to this Article 4, if any thereof shall not have been exercised, the
number of Warrant Shares purchasable upon the exercise of each Warrant shall be
readjusted as if (a) the only shares of Common Stock issuable upon exercise of
such rights, options, warrants, conversion or exchange privileges were the
shares of Common Stock, if any, actually issued upon the exercise of such
rights, options, warrants or conversion or exchange privileges and (b) shares
of Common Stock actually issued,

 

12

 

if any, were issuable for the consideration actually received by the
Company upon such exercise plus the aggregate consideration, if any, actually
received by the Company for the issuance, sale or grant of all such rights,
options, warrants or conversion or exchange privileges whether or not
exercised; provided, however, that no such readjustment shall (except by reason
of an intervening adjustment under Section 4.1) have the effect of
decreasing the number of Warrant Shares purchasable upon the exercise of each
Warrant by an amount in excess of the amount of the adjustment initially made
in respect of the issuance, sale or grant of such rights, options, warrants or
conversion or exchange privileges.

 

SECTION 4.9.  Minimum Adjustment.  The adjustments required by the preceding
Sections of this Article 4 shall be made whenever and as often as any specified
event requiring an adjustment shall occur, except that no adjustment of the
number of shares of Common Stock purchasable upon exercise of Warrants that
would otherwise be required shall be made unless and until such adjustment
either by itself or with other adjustments not previously made increases or
decreases by at least 1% the number of shares of Common Stock purchasable upon
exercise of Warrants immediately prior to the making of such adjustment.  Any adjustment representing a change of less
than such minimum amount shall be carried forward and made as soon as such
adjustment, together with other adjustments required by this Article 4 and not
previously made, would result in at least a minimum adjustment.  For the purpose of any adjustment, any
specified event shall be deemed to have occurred at the close of business on
the date of its occurrence.  In
computing adjustments under this Article 4, fractional interests in Common
Stock shall be disregarded.

 

SECTION 4.10.  Notice of Adjustment.  Whenever the number of shares of Common
Stock and other property, if any, purchasable upon exercise of Warrants is
adjusted, as herein provided, the Company shall, within a reasonable time,
deliver to the Warrant Agent a certificate setting forth, in reasonable detail,
the event requiring the adjustment and the method by which such adjustment was
calculated (including a description of the basis on which the Board determined
the fair market value of any evidences of indebtedness, other securities or
property or warrants, options or other subscription or purchase rights), and
specifying the number of shares of Common Stock purchasable upon exercise of
Warrants and the Exercise Price after giving effect to such adjustment.  The Company shall promptly cause the Warrant
Agent to mail a copy of such certificate to each Holder in accordance with
Section 8.6.  The Warrant Agent
shall be entitled to rely on such certificate and shall be under no duty or
responsibility with respect to any such certificate, except to exhibit the same
from time to time to any Holder desiring an inspection thereof during
reasonable business hours.  The Warrant
Agent shall not at any time be under any duty or responsibility to any Holder
to determine whether any facts exist which may require any adjustment of the
Exercise Price or the number of shares of Common Stock or other stock or
property purchasable on exercise of the Warrants, or with respect to the nature
or extent of any such adjustment when made, or with respect to the method
employed in making such adjustment or the validity or value of any shares of
Common Stock. Failure to give any such notice shall not affect the validity of
any such action.

 

SECTION 4.11.  Notice of Certain Transactions.  If the Company shall propose (a) to pay any
dividend payable in securities of any class to the holders of its Common Stock
or to make any other distribution to the holders of its Common Stock (other
than regular cash dividends or any increases thereof), (b) to offer the holders
of its Common Stock rights to subscribe for or to

 

13

 

purchase any securities convertible into shares of Common Stock or any
other securities, rights or options, (c) to effect any reclassification of its
Common Stock, capital reorganization or Fundamental Change, (d) to effect the
voluntary or involuntary dissolution, liquidation or winding-up of the Company,
(e) to register any Common Stock pursuant to the Securities Act or (f) to
effect any other event which would require adjustments under Article 4, the
Company shall within five Business Days of the adoption of a Board resolution
approving such action send to the Warrant Agent, and the Warrant Agent shall
within five Business Days thereafter send the Holders, a notice (in such form
as shall be furnished to the Warrant Agent by the Company) of such proposed
action, such notice to be mailed by the Warrant Agent to the Holders at their
addresses as they appear in the Certificate Register, which shall specify the
record date (if any) for the purposes of such dividend, distribution or rights,
or the date such issuance or event is to take place and the date of
participation therein by the holders of Common Stock, if any such date is to be
fixed, and shall briefly indicate the effect of such action on the Common Stock
and on the number and kind of any other shares of stock and on other property,
if any, and the number of shares of Common Stock and other property, if any,
purchasable upon exercise of each Warrant and the Exercise Price after giving effect
to any adjustment which will be required as a result of such action.  Such notice shall be given by the Company as
promptly as possible and, in the case of any action covered by clause (a) or
(b) above, at least 15 Business Days prior to the record date for determining
holders of the Common Stock for purposes of such action and, in the case of any
other such action, at least 20 Business Days prior to the date of the taking of
such proposed action or the date of participation therein by the holders of Common
Stock, whichever shall be the earlier.

 

SECTION 4.12.  Adjustment to Warrant Certificate.  The form of Warrant Certificate need not be
changed because of any adjustment made pursuant to this Article 4, and Warrant
Certificates issued after such adjustment may state the same number of shares
of Common Stock as are stated in any Warrant Certificates issued prior to the
adjustment.  The Company, however, may
at any time in its sole discretion make any change in the form of the Warrant
Certificate that it may deem appropriate to give effect to such adjustments and
that does not affect the substance of the Warrant Certificate, and any Warrant
Certificate thereafter issued or countersigned, whether in exchange or
substitution for an outstanding Warrant Certificate or otherwise, may be in the
form as so changed.

 

ARTICLE 5.

 

WARRANT AGENT

 

SECTION 5.1.  Appointment of Warrant Agent.  The Company hereby appoints the Warrant
Agent to act as agent for the Company in accordance with provisions of this
Agreement and the Warrant Agent hereby accepts such appointment.

 

SECTION 5.2.  Rights and Duties of Warrant Agent.  (a) 
In acting under this Agreement and in connection with the Warrant
Certificates, the Warrant Agent is acting solely as agent of the Company and does
not assume any obligation or relationship or agency or trust for or with any of
the holders of Warrant Certificates or beneficial owners of Warrants.

 

14

 

(b)                                 The Warrant Agent may
consult with counsel reasonably satisfactory to it and the Company, and the
advice of such counsel shall be full and complete authorization and protection
in respect of any action taken, suffered or omitted by it hereunder in good
faith and in accordance with the advice of such counsel.

 

(c)                                  The Warrant Agent
shall be protected and shall incur no liability for or in respect of any action
taken or thing suffered by it in reliance upon any Warrant Certificate, notice,
direction, consent, certificate, affidavit, statement or other paper or
document reasonably believed by it to be genuine and to have been presented or
signed by the proper parties.

 

(d)                                 The Warrant Agent
shall be obligated to perform only such duties as are herein and in the Warrant
Certificates specifically set forth and no implied duties or obligations shall
be read into this Agreement or the Warrant Certificates against the Warrant
Agent.  The Warrant Agent shall not be
under any obligation to take any action hereunder which may tend to involve it
in any expense or liability for which it does not receive indemnity if such
indemnity is reasonably requested.  The
Warrant Agent shall not be accountable or under any duty or responsibility for
the use by the Company of any of the Warrant Certificates countersigned by the
Warrant Agent and delivered by it to the Holders or on behalf of the Holders
pursuant to this Agreement or for the application by the Company of the
proceeds of the Warrants.  The Warrant
Agent shall have no duty or responsibility in case of any default by the
Company in the performance of its covenants or agreements contained herein or
in the Warrant Certificates or in the case of the receipt of any written demand
from a Holder with respect to such default, including any duty or
responsibility to initiate or attempt to initiate any proceedings at law or
otherwise.

 

(e)                                  The Warrant Agent
shall not at any time be under any duty or responsibility to any Holder to
determine whether any facts exist that may require an adjustment of the number
of shares of Common Stock purchasable upon exercise of each Warrant or with
respect to the nature or extent of any adjustment when made, or with respect to
the method employed, or herein or in any supplemental agreement provided to be
employed, in making the same.  The
Warrant Agent shall not be accountable with respect to the validity or value of
any shares of Common Stock or of any securities or property which may at any
time be issued or delivered upon the exercise of any Warrant or upon any
adjustment pursuant to Article 4, and it makes no representation with respect
thereto.  The Warrant Agent shall not be
responsible for any failure of the Company to make any cash payment or to
issue, transfer or deliver any shares of Common Stock or stock certificates
upon the surrender of any Warrant Certificate for the purpose of exercise or
upon any adjustment pursuant to Article 4, or to comply with any of the
covenants of the Company contained in Article 4.

 

(f)                                    The Warrant Agent
is hereby authorized and directed to accept instructions with respect to the
performance of its duties hereunder from the Chairman of the Board, the Chief
Executive Officer, the President, any Vice President, the Treasurer, the
Secretary or an Assistant Secretary of the Company, and to apply to such
officers for advice or instructions in connection with its duties, and shall
not be liable for any action taken or suffered to be taken by it in good faith
in accordance with instructions of any such officer or in good faith reliance
upon any statement signed by any one of such officers of the Company with
respect to any fact or matter

 

15

 

(unless other evidence in respect thereof is herein specifically
prescribed) which may be deemed to be conclusively proved and established by
such signed statement.

 

SECTION 5.3.  Individual Rights of Warrant Agent.  Subject to compliance with applicable
federal and state securities laws, the Warrant Agent and any stockholder,
director, officer or employee of the Warrant Agent may buy, sell or deal in any
of the Warrants or other securities of the Company or its Affiliates or obtain
a pecuniary interest in transactions in which the Company or its Affiliates may
be interested, or contract with or lend money to the Company or its Affiliates
or otherwise act as fully and freely as though it were not the Warrant Agent
under this Agreement.  Nothing herein
shall preclude the Warrant Agent from acting in any other capacity for the
Company or for any other legal entity.

 

SECTION 5.4.  Warrant Agent’s Disclaimer.  The Warrant Agent shall not be responsible
for and makes no representation as to the validity or adequacy of this
Agreement or the Warrant Certificates and it shall not be responsible for any
statement in this Agreement or the Warrant Certificates other than its
countersignature thereon.

 

SECTION 5.5.  Compensation and Indemnity.  The Company and the Warrant Agent have
entered into an agreement pursuant to which the Company agrees to pay the
Warrant Agent from time to time reasonable compensation for its services and to
reimburse the Warrant Agent upon request for all reasonable out of pocket
expenses incurred by it, including the reasonable compensation and expenses of
the Warrant Agent’s agents and counsel. 
The Company shall indemnify and hold harmless the Warrant Agent against
any loss, liability or reasonable expense (including reasonable agents’ and
attorneys’ fees and expenses) incurred by it without willful misconduct,
negligence or bad faith on its part arising out of or in connection with the
acceptance or performance of its duties under this Agreement.  The Warrant Agent shall notify the Company
promptly of any claim for which it may seek indemnity and the failure to
provide such notice shall not prejudice the Warrant Agent’s right to indemnity
hereunder unless and to the extent that the Company’s ability to defend any
such claim shall have been compromised as a result of such failure to
notify.  The Company need not reimburse
any expense or indemnify against any loss or liability incurred by the Warrant
Agent through willful misconduct, negligence or bad faith.  The Company’s payment obligations pursuant
to this Section 5.5 shall survive the termination of this Agreement.

 

SECTION 5.6.  Successor Warrant Agent.  (a) 
The Company agrees for the benefit of the Holders that there shall at
all times be a Warrant Agent hereunder until all the Warrants have been
exercised or are no longer exercisable.

 

(b)                                 The Warrant Agent may
at any time resign by giving written notice to the Company of such intention on
its part, specifying the date on which its desired resignation shall become
effective; provided, however, that such date shall not be less than 30 days
after the date on which such notice is given, unless the Company otherwise agrees.  The Warrant Agent hereunder may be removed
at any time by the filing with it of an instrument in writing signed by or on
behalf of the Company and specifying such removal and the date when it shall
become effective, which date shall not be less than 30 days after such notice
is given unless the Warrant Agent otherwise agrees.  Any removal under this Section 5.6 shall take effect upon
the appointment by the Company as hereinafter provided of a successor Warrant
Agent (which shall

 

16

 

be a bank or trust company authorized under the laws of the
jurisdiction of its organization to exercise corporate trust powers) and the
acceptance of such appointment by such successor Warrant Agent.

 

(c)                                  In case at any time the
Warrant Agent shall resign, or shall be removed, or shall become incapable of
acting, or shall be adjudged a bankrupt or insolvent, or shall commence a
voluntary case under the Federal bankruptcy laws, as now or hereafter
constituted, or under any other applicable Federal or state bankruptcy,
insolvency or similar law or shall consent to the appointment of or taking
possession by a receiver, custodian, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Warrant Agent or its property
or affairs, or shall make an assignment for the benefit of creditors, or shall
admit in writing its inability to pay its debts generally as they become due,
or shall take corporate action in furtherance of any such action, or a decree
or order for relief by a court having jurisdiction in the premises shall have
been entered in respect of the Warrant Agent in an involuntary case under the
Federal bankruptcy laws, as now or hereafter constituted, or any other
applicable Federal or State bankruptcy, insolvency or similar law; or a decree
or order for relief by a court having jurisdiction in the premises shall have
been entered for the appointment of a receiver, custodian, liquidator,
assignee, trustee, sequestrator (or similar official) of the Warrant Agent or
of its property or affairs, or any public officer shall take charge or control
of the Warrant Agent or of its property or affairs for the purpose of
rehabilitation, conservation, winding up of or liquidation, a successor Warrant
Agent, qualified as aforesaid, shall be appointed by the Company by an
instrument in writing, filed with the successor Warrant Agent.  Upon the appointment as aforesaid of a
successor Warrant Agent and acceptance by the successor Warrant Agent of such
appointment, the Warrant Agent shall cease to be Warrant Agent hereunder;
provided, however, that in the event of the resignation of the Warrant Agent
hereunder, such resignation shall be effective on the earlier of (i) the date
specified in the Warrant Agent’s notice of resignation and (ii) the appointment
and acceptance of a successor Warrant Agent hereunder.

 

(d)                                 Any successor Warrant
Agent appointed hereunder shall execute, acknowledge and deliver to its
predecessor and to the Company an instrument accepting such appointment hereunder,
and thereupon such successor Warrant Agent, without any further act, deed or
conveyance, shall become vested with all the rights and obligations of such
predecessor with like effect as if originally named as Warrant Agent hereunder,
and such predecessor, upon payment of its charges and disbursements then
unpaid, shall thereupon become obligated to transfer, deliver and pay over, and
such successor Warrant Agent shall be entitled to receive, all monies,
securities and other property on deposit with or held by such predecessor, as
Warrant Agent hereunder.  As soon as
practicable after appointment of the successor Warrant Agent, the Company shall
cause written notice of the change in the Warrant Agent to be given to each of
the registered holders of the Warrant Certificates at such holder’s address
appearing on the Certificate Register. 
Failure to give any notice provided for in this Section 5.6(d) or
any defect therein, shall not affect the legality or validity of the removal of
the Warrant Agent or the appointment of a successor Warrant Agent, as the case
may be.

 

(e)                                  Any corporation into
which the Warrant Agent hereunder may be merged or consolidated, or any
corporation resulting from any merger or consolidation to which the Warrant
Agent shall be a party, or any corporation to which the Warrant Agent shall
sell or otherwise transfer all or substantially all the assets and business of
the Warrant Agent, provided

 

17

 

that it shall be qualified as aforesaid, shall be the successor Warrant
Agent under this Agreement without the execution or filing of any paper or any
further act on the part of any of the parties hereto, provided that such
corporation would be eligible for appointment as a successor Warrant Agent
under the provisions of Section 5.6(b).

 

(f)                                    If at the time a
successor to the Warrant Agent shall succeed under this Agreement, any of the
Warrant Certificates shall have been countersigned but not delivered, any such
successor to the Warrant Agent may adopt the countersignature of the original
Warrant Agent; and if at that time any of the Warrant Certificates shall not
have been countersigned, any successor to the Warrant Agent may countersign
such Warrant Certificates either in the name of the predecessor Warrant Agent
or in the name of the successor Warrant Agent; and in all such cases such
Warrant Certificates shall have the full force provided in the Warrant
Certificates and in this Agreement.

 

(g)                                 If at any time the
name of the Warrant Agent shall be changed and at such time any of the Warrant
Certificates shall have been countersigned but not delivered, the Warrant Agent
whose name has changed may adopt the countersignature under its prior name; and
if at that time any of the Warrant Certificates shall not have been
countersigned, the Warrant Agent may countersign such Warrant Certificates
either in its prior name or in its changed name; and in all such cases such
Warrant Certificates shall have the full force provided in the Warrant
Certificates and in this Agreement.

 

ARTICLE 6.

 

REPRESENTATIONS, WARRANTIES AND AGREEMENTS

 

SECTION 6.1.  Agreement of Warrant Holders.  Every Holder by accepting a Warrant
Certificate consents and agrees with the Company and the Warrant Agent and with
every other Holder that:

 

(a)                                  the Warrant
Certificates are transferable only in accordance with the terms of this
Agreement and only on the registry books of the Warrant Agent if surrendered at
the principal office of the Warrant Agent designated for such purpose, duly
endorsed or accompanied by a proper instrument of transfer, and otherwise in
compliance with Article 2;

 

(b)                                 the Company and the
Warrant Agent may deem and treat the Person in whose name the Warrant
Certificate is registered on the Certificate Register as the absolute owner
thereof and of the Warrants evidenced thereby (notwithstanding any notations of
ownership or writing on the Warrant Certificate made by anyone other than the
Company or the Warrant Agent) for all purposes whatsoever, and neither the Company
nor the Warrant Agent will be affected by any notice to the contrary;

 

(c)                                  notwithstanding
anything in this Agreement to the contrary, the Warrant Agent will not have any
liability to any Holder or other Person as a result of its inability to perform
any of its obligations under this Agreement by reason of any preliminary or
permanent injunction or other order, decree or ruling issued by a court of
competent jurisdiction or by a governmental, regulatory or administrative
agency or commission, or any statute, rule, regulation or executive

 

18

 

order promulgated or enacted by any governmental authority, prohibiting
or otherwise restraining performance of such obligation; provided, however,
that the Company will use commercially reasonable efforts to have any such
order, decree or ruling lifted or otherwise overturned as soon as possible.

 

SECTION 6.2.  Representations and Warranties of the
Company.  The Company hereby
represents and warrants to the Warrant Agent that, subject to the receipt of
any necessary approvals from the Bankruptcy Court:

 

(a)                                  the Company is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware and has all requisite corporate power and
authority to execute, deliver and perform its obligations hereunder and to
consummate the transactions contemplated hereby;

 

(b)                                 the execution,
delivery and performance of this Agreement by the Company and the consummation
by the Company of the transactions contemplated hereby have been duly
authorized by all necessary corporate action on the part of the Company;

 

(c)                                  the execution,
delivery and performance of this Agreement by the Company and the consummation
by the Company of the transactions contemplated hereby in accordance with the
terms hereof will not conflict with, violate or constitute a breach of any
material contract, agreement or instrument by which the Company is bound or any
judgment, order, decree, law, statute, rule, regulation or other judicial or
governmental restriction to which the Company is subject;

 

(d)                                 this Agreement
constitutes the legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as the enforceability
hereof may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting creditors’ rights generally;

 

(e)                                  the Warrants, when
issued and delivered to the initial Holders as provided in this Agreement, and
the Warrant Shares purchasable upon exercise of the Warrants, when issued, paid
for and delivered as provided in this Agreement, will be validly issued, fully
paid and nonassessable; and

 

(f)                                    the Company shall
at all times reserve out of its authorized shares of Common Stock a number of
shares of Common Stock sufficient for the exercise of all outstanding Warrants.

 

ARTICLE 7.

 

MISCELLANEOUS

 

SECTION 7.1.  Agreements Respecting Warrants;
Impairment.  The Company will not
enter into any agreement or instrument, which would preclude the exercise of
the Warrants as herein provided.  The
Company shall not by any action, including, without limitation, amending its
certificate of incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to

 

19

 

avoid the observance or performance of any of the terms of this
Warrant, but will at all times assist in the carrying out of all such terms and
in the taking of all such actions as may be necessary or appropriate to protect
the rights of the Holders against impairment.

 

SECTION 7.2.  SEC Reports.  If and/or when the Company shall become a
reporting company under the Exchange Act (but only for so long as it shall
continue to be a reporting company), the Company shall file its annual and
quarterly reports and other information, documents and other reports (or copies
of such portions of any of the foregoing as the SEC may by rules and regulations
prescribe) which the Company is required to file with the SEC pursuant to
Section 13 or 15(d) of the Exchange Act.

 

SECTION 7.3.  Persons Benefiting.  Nothing in this Agreement is intended or
shall be construed to confer upon any Person other than the Company, the
Warrant Agent and the Holders any right, remedy or claim under or by reason of
this Agreement or any part hereof.

 

SECTION 7.4.  Rights of Holders.  Except as otherwise specifically required
herein, holders of unexercised Warrants are not entitled (a) to receive
dividends or other distributions, (b) to receive notice of or vote at any
meeting of the stockholders, (c) to consent to any action of the stockholders,
(d) to receive notice of any other proceedings of the Company or (e) to
exercise any other rights as stockholders of the Company.

 

SECTION 7.5.  Amendment.  This Agreement may be amended by the parties hereto without the
consent of any Holder for the purpose of curing any ambiguity, or of curing,
correcting or supplementing any defective provision contained herein or making
any other provisions with respect to matters or questions arising under this
Agreement as the Company and the Warrant Agent may deem necessary or desirable;
provided, however, that such action shall not affect adversely the rights of
the Holders in any material respect. 
Any amendment or supplement to this Agreement (including any Exhibit
hereto) that has or would have an adverse effect in any material respect on the
interests of the Holders shall require the written consent of the Holders of a
majority of the outstanding Warrants. 
The consent of each Holder affected shall be required for any amendment
pursuant to which the Exercise Price would be increased or the number of Warrant
Shares purchasable upon exercise of Warrants would be decreased (other than
pursuant to any adjustments pursuant to Article 4 hereof).  In determining whether the Holders of the
required number of Warrants have concurred in any direction, waiver or consent,
Warrants owned by the Company or by any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
the Company shall be disregarded and deemed not to be outstanding, except that,
for the purpose of determining whether the Warrant Agent shall be protected in
relying on any such direction, waiver or consent, only Warrants which the
Warrant Agent knows are so owned shall be so disregarded.  Also, subject to the foregoing, only
Warrants outstanding at the time shall be considered in any such determination.

 

20

 

SECTION 7.6.  Notices.  Any notice or communication shall be in writing and delivered
either in person, overnight mail, via telecopy with machine generated receipt
confirmation, or mailed by first-class mail addressed as follows:

 

	
  if to the Company:

  	
  Superior Essex Inc.

  
	
   

  	
  150 Interstate North Parkway

  
	
   

  	
  Suite 300

  
	
   

  	
  Atlanta, GA 30336

  
	
   

  	
  Attention: 
  Chief Financial Officer

  
	
   

  	
  Telecopy: 
  (770) 302-8892

  
	
   

  	
   

  
	
  with a copy to:

  	
  Proskauer Rose LLP

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, NY 10036-8299

  
	
   

  	
  Attention: 
  Ronald R. Papa, Esq.

  
	
   

  	
  Telecopy: 
  (212) 969-2900

  
	
   

  	
   

  
	
  if to the Warrant Agent:

  
	
   

  
	
   

  	
  American Stock Transfer & Trust Company

  
	
   

  	
  59 Maiden Lane

  
	
   

  	
  Plaza Level

  
	
   

  	
  New York, NY 10038

  
	
   

  	
  Attention: 
  Herb Lemmer

  
	
   

  	
  Telecopy:  (718) 331-1852

  
	
   

  	
   

  

 

The Company or
the Warrant Agent by notice to the other may designate additional or different
addresses for subsequent notices or communications.

 

Any notice or
communication mailed to a Holder shall be mailed to the Holder at the Holder’s
address as it appears on the Certificate Register and shall be sufficiently
given if so mailed within the time prescribed.

 

Failure to
mail a notice or communication to a Holder or any defect in it shall not affect
its sufficiency with respect to other Holders. 
If a notice or communication is provided in the manner stipulated above,
it is duly given, whether or not the addressee receives it.

 

SECTION 7.7.  GOVERNING LAW.  THIS AGREEMENT AND THE WARRANT CERTIFICATES
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

 

SECTION 7.8.  Successors.  All agreements of the Company in this Agreement and the Warrant
Certificates shall bind its successors. 
All agreements of the Warrant Agent in this Agreement shall bind its successors.

 

SECTION 7.9.  Counterparts.  This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

 

21

 

SECTION 7.10.  Headings.  The headings of the Articles and Sections of this Agreement have
been inserted for convenience of reference only, are not intended to be
considered a part hereof and shall not modify or restrict any of the terms or
provisions hereof.

 

SECTION 7.11.  Severability.  The provisions of this Agreement are
severable, and if any clause or provision shall be held invalid, illegal or
unenforceable in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect in that jurisdiction only such clause or
provision, or part thereof, and shall not in any manner affect such clause or
provision in any other jurisdiction or any other clause or provision of this
Agreement in any jurisdiction.

 

SECTION 7.12.  Beneficiaries of this Agreement.  Nothing in this Agreement shall be construed
to give to any person or corporation other than the Company, the Warrant Agent
and the registered holders of the Warrant Certificates any legal or equitable
right, remedy or claim under this Agreement, and this Agreement shall be for
the sole and exclusive benefit of the Company, the Warrant Agent and the
registered holders of the Warrant Certificates.

 

SECTION 7.13.  Termination.  This Agreement shall terminate on the
Expiration Date.  Notwithstanding the
foregoing, this Agreement will terminate on any earlier date when all Warrants
have been exercised.  The provisions of
Article 5 shall survive such termination.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK]

 

22

 

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

 

 

	
   

  	
  SUPERIOR
  ESSEX INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ David S. Aldridge

  	
   

  
	
   

  	
   

  	
  Name: David
  S. Aldridge

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AMERICAN
  STOCK TRANSFER & TRUST

  COMPANY,

  as Warrant Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Herbert J. Lemmer

  	
   

  
	
   

  	
   

  	
  Name:
  Herbert J. Lemmer

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President

  	
   

  

 

23

 

EXHIBIT A

 

FORM OF FACE
OF WARRANT CERTIFICATE

 

VOID AFTER MAY
     , 2006

 

THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND ANY SECURITIES
ACQUIRED UPON THE EXERCISE OF THE WARRANTS HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW AND ARE SUBJECT
TO A WARRANT AGREEMENT BETWEEN SUPERIOR ESSEX INC. (THE “COMPANY”) AND AMERICAN
STOCK TRANSFER & TRUST COMPANY, AS WARRANT AGENT, COPIES OF WHICH ARE ON
FILE WITH THE SECRETARY OF THE COMPANY. 
NO DIRECT OR INDIRECT TRANSFER, SALE, OFFER, ASSIGNMENT, EXCHANGE,
DISTRIBUTION, MORTGAGE, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE
WARRANTS REPRESENTED BY THIS CERTIFICATE AND ANY SECURITIES ACQUIRED UPON THE
EXERCISE OF THE WARRANTS MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS
OF SUCH WARRANT AGREEMENT AND (A) PURSUANT TO A REGISTRATION STATEMENT
EFFECTIVE UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) IF THE COMPANY
HAS BEEN FURNISHED WITH AN OPINION REASONABLY SATISFACTORY IN FORM AND
SUBSTANCE TO THE COMPANY OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT
SUCH TRANSFER, SALE, OFFER, ASSIGNMENT, EXCHANGE, DISTRIBUTION, MORTGAGE,
PLEDGE, HYPOTHECATION OR OTHER DISPOSITION IS EXEMPT FROM THE PROVISIONS OF
SECTION 5 OF THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND
REGULATIONS THEREUNDER.  THE HOLDER OF
THIS CERTIFICATE, BY ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY ALL
OF THE PROVISIONS OF THE WARRANT AGREEMENT, INCLUDING RESTRICTIONS (IF ANY)
RELATING TO THE EXERCISE OF ANY VOTING RIGHTS GRANTED BY THE SECURITIES.”

 

	
  No.   

  	
   

  	
  Certificate
  for             Warrants

  

 

WARRANTS TO
PURCHASE COMMON STOCK OF

SUPERIOR ESSEX INC.

 

THIS CERTIFIES
THAT,
                       ,
or its registered assigns, is the registered holder of the number of Warrants
set forth above (the “Warrants”).  Each
Warrant entitles the holder thereof (the “Holder”), at its option and subject
to the provisions contained herein and in the Agreement referred to below, to
purchase from Superior Essex Inc., a Delaware corporation (the “Company”), one
fully paid and nonassessable share of Common Stock, $.01 par value, of the
Company (the “Common Stock”) at the per share exercise price of $25.00 (the
“Exercise Price”).  This Warrant
Certificate shall terminate and become void as of 5:00 p.m. New York

 

24

 

City time on May [   ], 2006
(the “Expiration Date”) or upon the exercise hereof as to all the shares of
Common Stock subject hereto.  The number
of shares purchasable upon exercise of the Warrants and the Exercise Price
shall be subject to adjustment from time to time as set forth in the Agreement.

 

This Warrant
Certificate is issued under and in accordance with a Warrant Agreement dated as
of November [  ], 2003 (the
“Agreement”), between the Company and American Stock Transfer & Trust
Company (the “Warrant Agent”, which term includes any successor Warrant Agent
under the Agreement), and is subject to the terms and provisions contained in
the Agreement, all of which terms and provisions the Holder of this Warrant
Certificate consents by acceptance hereof. 
The Agreement is hereby incorporated herein by reference and made a part
hereof.  Reference is hereby made to the
Agreement for a full statement of the respective rights, limitations of rights,
duties and obligations of the Company, the Warrant Agent and the Holders of the
Warrants.  Capitalized terms used but
not defined herein shall have the meanings ascribed thereto in the
Agreement.  A copy of the Agreement may
be obtained for inspection by the Holder hereof upon written request to the
Warrant Agent at American Stock Transfer & Trust Company, 59 Maiden Lane,
Plaza Level, New York, NY 10038.

 

Subject to the
terms of the Agreement, the Warrants may be exercised in whole or in part by
surrender of this Warrant Certificate with the form of election to purchase
Warrant Shares attached hereto duly executed and with the simultaneous payment
of the Exercise Price in cash to the Warrant Agent for the account of the
Company at the office of the Warrant Agent. 
Payment of the Exercise Price shall be made in cash or by certified or
official bank check payable to the order of the Company or by wire transfer of
immediately available funds to an account designated by the Company for such
purpose.

 

As provided in
the Agreement and subject to the terms and conditions therein set forth, the
Warrants shall be exercisable at any time from and after the Plan Effective
Date; provided, however, that no Warrant shall be exercisable after 5:00 p.m.
New York City time on the Expiration Date.

 

The Company
may require payment of a sum sufficient to pay all taxes, assessments or other
governmental charges in connection with the transfer or exchange of the Warrant
Certificates pursuant to Section 2.4 of the Agreement but not transfer
taxes in connection with any exchange or original issuance with respect to
temporary Warrant Certificates, the exercise of the Warrants or the Warrant
Shares (not involving a transfer).

 

Upon any partial
exercise of the Warrants, there shall be countersigned and issued to the Holder
hereof a new Warrant Certificate in respect of the shares of Common Stock as to
which the Warrants shall not have been exercised.  This Warrant Certificate may be exchanged at the office of the
Warrant Agent by presenting this Warrant Certificate properly endorsed with a
request to exchange this Warrant Certificate for other Warrant Certificates
evidencing an equal number of Warrants. 
No fractional Warrant Shares will be issued upon the exercise of the
Warrants, but the Company shall pay an amount in cash equal to the Current
Market Value for one Warrant Share on the Business Day immediately preceding
the date the Warrant is exercised, multiplied by such fraction, computed to the
nearest whole cent.

 

25

 

The Warrants
do not entitle any holder hereof to any of the rights of a stockholder of the
Company.  All shares of Common Stock
issuable by the Company upon the exercise of the Warrants shall, upon such
issue, be duly and validly issued and fully paid and non-assessable.

 

The holder in
whose name the Warrant Certificate is registered may be deemed and treated by
the Company and the Warrant Agent as the absolute owner of the Warrant
Certificate for all purposes whatsoever and neither the Company nor the Warrant
Agent shall be affected by notice to the contrary.

 

This Warrant
Certificate shall not be valid or obligatory for any purpose until it shall
have been countersigned by the Warrant Agent.

 

 

	
   

  	
  SUPERIOR
  ESSEX INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  DATED:

  	
   

  
	
   

  	
   

  
	
  Countersigned:

  	
   

  
	
   

  	
   

  
	
  AMERICAN
  STOCK TRANSFER & TRUST COMPANY

  as Warrant Agent,

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authorized
  Signatory

  	
   

  
					

 

26

 

FORM OF REVERSE
OF WARRANT CERTIFICATE

 

FORM OF
ASSIGNMENT

 

(To be
executed if the Holder desires to transfer Warrants)

 

FOR VALUE RECEIVED,
                                                             hereby
sells, assigns, and transfers unto
                                                                                                                                                                                                                                               (Please
print name and address of transferee) this Warrant Certificate, together with
all right, title, and interest therein, and does hereby irrevocably constitute
and appoint
                          Attorney,
to transfer the within Warrant Certificate on the books of the within-named
Company, with full power of substitution.

 

 

	
   

  	
   

  	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
   

  
								

 

27

 

EXHIBIT B

 

FORM OF
ELECTION TO PURCHASE WARRANT SHARES

AT PER SHARE EXERCISE PRICE

 

(TO BE
EXECUTED ONLY UPON EXERCISE OF WARRANTS)

 

SUPERIOR ESSEX
INC.

 

The
undersigned hereby irrevocably elects to exercise
[          ] Warrants at an
exercise price per share (subject to adjustment in accordance with Article 4 of
the Agreement) of $25.00 to acquire the number of shares of Common Stock of Superior
Essex Inc. purchasable upon exercise of such Warrants, on the terms and
conditions specified in the within Warrant Certificate and the Agreement
therein referred to, surrenders this Warrant Certificate and all right, title
and interest therein to American Stock Transfer & Trust Company,  and directs that the shares of Common Stock
deliverable upon the exercise of such Warrants be registered or placed in the
name and at the address specified below and delivered thereto.

 

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  

 

 

	
   

  	
   

  
	
   

  	
  (Signature
  of Holder)(1)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Street
  Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (City)

  	
  (State)

  	
  (Zip Code)

  

 

(1)           The signature must correspond with the name
as written upon the face of the within Warrant Certificate in every particular,
without alteration or enlargement or any change whatever, and must be
guaranteed by a national bank or trust company or by a member firm of any
national securities exchange.

 

28

 

Securities
and/or check to be issued to:

 

Please insert
social security or identifying number:

Name:

Street Address:

City, State and Zip Code:

 

Any
unexercised Warrants evidenced by the within Warrant Certificate to be issued
to:

 

Please insert
social security or identifying number:

Name:

Street Address:

City, State and Zip Code:

 

29

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