Document:

Exhibit
4.2

 

EXECUTION VERSION

 

REGISTRATION RIGHTS AGREEMENT

by and among

Ferrellgas, L.P.

Ferrellgas Finance Corp.

and

J.P. Morgan Securities Inc.

Banc of America Securities LLC

Wells Fargo Securities, LLC

BNP Paribas Securities Corp.

Fifth Third Securities, Inc.

PNC Capital Markets LLC

SG Americas Securities, LLC

Dated as of September 14, 2009

 

 

REGISTRATION RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is made and entered into as of
September 14, 2009, by and among Ferrellgas, L.P., a Delaware limited
partnership (the “Company”), Ferrellgas Finance Corp., a Delaware corporation (“Finance
Corp.” and, together with the Company, the “Issuers”), and J.P. Morgan
Securities Inc., Banc of America Securities LLC, Wells Fargo Securities, LLC,
BNP Paribas Securities Corp., Fifth Third Securities, Inc., PNC Capital
Markets LLC and SG Americas Securities, LLC (collectively, the “Initial
Purchasers”), each of whom has agreed to purchase the Issuers’ 9.125% Senior
Notes due 2017 (the “Securities”) pursuant to the Purchase Agreement (as
defined below).

 

This Agreement is made pursuant to the Purchase
Agreement, dated September 9, 2009 (the “Purchase Agreement”), among the
Issuers and the Initial Purchasers (i) for the benefit of the Initial
Purchasers and (ii) for the benefit of the holders from time to time of
Transfer Restricted Securities (as
defined below), including the Initial Purchasers.  In order to induce the Initial Purchasers to
purchase the Securities, the Issuers have agreed to provide the registration
rights set forth in this Agreement.  The
execution and delivery of this Agreement is a condition to the obligations of
the Initial Purchasers set forth in Section 4(h) of the Purchase
Agreement.

 

The parties hereby agree as follows:

 

SECTION 1.         Definitions.

 

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

 

Additional Interest Payment
Date:  With respect to the Transfer
Restricted Securities, each Interest Payment Date.

 

Advice:  As
defined in the last paragraph of Section 6(c) hereof.

 

Agreement:  As
defined in the preamble hereto.

 

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

 

Business Day:  Any day other than a Saturday, Sunday or U.S.
federal holiday or a day on which banking institutions or trust companies
located in New York, New York are authorized or obligated to be closed.

 

Closing Date:  The date of this Agreement.

 

Commission:  The Securities and Exchange
Commission.

 

Company:  As
defined in the preamble hereto.

 

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Consummate:  A registered Exchange Offer
shall be deemed “Consummated” for purposes of this Agreement upon the
occurrence of (i) the filing and effectiveness under the Securities Act of
the Exchange Offer Registration Statement relating to the Exchange Securities
to be issued in the Exchange Offer, (ii) the maintenance of such
Registration Statement continuously effective and the keeping of the Exchange
Offer open for a period not less than the minimum period required pursuant to Section 3(b) hereof,
and (iii) the delivery by the Issuers to the Registrar under the Indenture
of Exchange Securities in the same aggregate principal amount as the aggregate
principal amount of Transfer Restricted Securities that were tendered by
Holders thereof pursuant to the Exchange Offer.

 

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

 

Exchange Date:  As defined in Section 3(b) hereto.

 

Exchange Offer:  The registration by the
Issuers under the Securities Act of the Exchange Securities pursuant to a
Registration Statement pursuant to which the Issuers offer the Holders of all
outstanding Transfer Restricted Securities the opportunity to exchange all such
outstanding Transfer Restricted Securities held by such Holders for Exchange
Securities in an aggregate principal amount equal to the aggregate principal
amount of the Transfer Restricted Securities tendered in such exchange offer by
such Holders.

 

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

 

Exempt Resales:  The transactions in which
the Initial Purchasers propose to sell the Transfer Restricted Securities to
certain “qualified institutional buyers,” as such term is defined in Rule 144A
under the Securities Act and to certain non-U.S. persons pursuant to Regulation
S under the Securities Act.

 

Exchange Securities:  The 9.125% Senior Notes due
2017, of the same series under the Indenture as the Transfer Restricted
Securities, to be issued to Holders in exchange for Transfer Restricted
Securities pursuant to this Agreement.

 

Finance
Corp.:  As
defined in the preamble hereto.

 

FINRA:  Financial Industry Regulatory Authority, Inc.

 

Holders:  As defined in Section 2(b) hereof.

 

Indemnified Holder:  As defined in Section 8(a) hereof.

 

Indenture:  The Indenture, dated as of September 14,
2009, by and among the Issuers and U.S. Bank National Association, as trustee
(the “Trustee”), pursuant to which the Securities are to be issued, as such
Indenture is amended or supplemented from time to time in accordance with the
terms thereof.

 

Initial Purchasers:  As defined in the preamble
hereto.

 

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Initial Placement:  The issuance and sale by the
Issuers of the Securities to the Initial Purchasers pursuant to the Purchase
Agreement.

 

Interest Payment Date:  As defined in the Indenture
and the Securities.

 

Person:  An individual, partnership,
corporation, trust or unincorporated organization, or a government or agency or
political subdivision thereof.

 

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

 

Registration Default:  As defined in Section 5
hereof.

 

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

 

Rule 144:  Rule 144
as promulgated under the Securities Act.

 

Securities:  As defined in the preamble
hereto.

 

Securities Act:  The Securities Act of 1933,
as amended.

 

Shelf Filing Deadline:  As defined in Section 4(a) hereof.

 

Shelf Registration Statement:  As defined in Section 4(a) hereof.

 

Transfer Restricted Securities:  The Securities; provided that the Securities
shall cease to be Transfer Restricted Securities on the earliest to occur of (i) the
date on which a Registration Statement with respect to such Securities has
become effective under the Securities Act and such Securities have been
exchanged or disposed of pursuant to such Registration Statement and (ii) the
date on which such Securities cease to be outstanding.

 

Trust Indenture Act:  The Trust Indenture Act of
1939, as amended.

 

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

 

SECTION 2.         Securities
Subject to this Agreement.

 

(a)           Transfer Restricted Securities.  The securities entitled to the
benefits of this Agreement are the Transfer Restricted Securities.

 

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(b)                                 Holders
of Transfer Restricted Securities.  A Person is
deemed to be a holder of Transfer Restricted Securities (each, a “Holder”)
whenever such Person owns Transfer Restricted Securities.

 

SECTION 3.         Registered
Exchange Offer.

 

(a)                                  Unless the
Exchange Offer shall not be permissible under applicable law or Commission
policy (after the procedures set forth in Section 6(a) hereof have
been complied with), each of the Issuers shall (i) cause to be filed with
the Commission, a Registration Statement under the Securities Act relating to
the Exchange Securities and the Exchange Offer, (ii) use its reasonable
best efforts to cause such Registration Statement to become effective, (iii) in
connection with the foregoing, file (A) all pre-effective amendments to
such Registration Statement as may be necessary in order to cause such
Registration Statement to become effective under the Securities Act, (B) if
applicable, a post-effective amendment to such Registration Statement pursuant
to Rule 430A under the Securities Act and (C) cause all necessary
filings in connection with the registration and qualification of the Exchange
Securities to be made under the state securities or blue sky laws of such
jurisdictions as are necessary to permit Consummation of the Exchange Offer,
and (iv) upon the effectiveness of such Registration Statement, promptly
commence the Exchange Offer.  The
Exchange Offer shall be on the appropriate form permitting registration of the
Exchange Securities to be offered in exchange for the Transfer Restricted
Securities and to permit resales of Transfer Restricted Securities held by
Broker-Dealers as contemplated by Section 3(c) hereof.

 

(b)                                 The Issuers
shall cause the Exchange Offer Registration Statement to be effective
continuously and shall keep the Exchange Offer open for a period of not less
than the minimum period required under applicable federal and state securities
laws to Consummate the Exchange Offer; provided, however,
that in no event shall such period be less than 30 days after the date notice
of the Exchange Offer is mailed to the Holders. 
The Issuers shall cause the Exchange Offer to comply with all applicable
federal and state securities laws.  No
securities other than the Exchange Securities shall be included in the Exchange
Offer Registration Statement.  The
Issuers shall use their reasonable best efforts to cause the Exchange Offer to
be Consummated no later than 300 days from the Closing Date (the “Exchange Date”).

 

(c)                                  The Issuers
shall indicate in a “Plan of Distribution” section contained in the Prospectus
forming a part of the Exchange Offer Registration Statement that any
Broker-Dealer who holds Transfer Restricted Securities that were acquired for its
own account as a result of market-making activities or other trading activities
(other than Transfer Restricted Securities acquired directly from the Issuers),
may exchange such Transfer Restricted Securities pursuant to the Exchange
Offer; however, such Broker-Dealer may be deemed to be an “underwriter” within
the meaning of the Securities Act and must, therefore, deliver a prospectus
meeting the requirements of the Securities Act in connection with any resales
of the Exchange Securities received by such Broker-Dealer in the Exchange
Offer, which prospectus delivery requirement may be satisfied by the delivery
by such Broker-Dealer of the Prospectus contained in the Exchange Offer
Registration Statement.  Such “Plan of
Distribution” section shall also contain all other information with respect to
such resales by Broker-Dealers that the Commission may require in order to
permit such resales pursuant thereto, but such “Plan of Distribution” shall not
name any such Broker-Dealer or disclose the amount of Transfer Restricted
Securities held by 

 

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any such Broker-Dealer except to the extent required by the Commission
as a result of a change in policy after the date of this Agreement.

 

Each of the Issuers shall use its reasonable best
efforts to keep the Exchange Offer Registration Statement continuously
effective, supplemented and amended as required by the provisions of Section 6(c) hereof
to the extent necessary to ensure that it is available for resales of Transfer
Restricted Securities acquired by Broker-Dealers for their own accounts as a
result of market-making activities or other trading activities, and to ensure
that it conforms with the requirements of this Agreement, the Securities Act
and the policies, rules and regulations of the Commission as announced
from time to time, for a period ending on the earlier of (i) 180 days from
the date on which the Exchange Offer Registration Statement is declared
effective and (ii) the date on which a Broker-Dealer is no longer required
to deliver a prospectus in connection with market-making or other trading
activities.

 

The Issuers shall provide sufficient copies of the
latest version of such Prospectus to Broker-Dealers promptly upon request at
any time during such 180-day (or shorter as provided in the foregoing sentence)
period in order to facilitate such resales.

 

SECTION 4.         Shelf
Registration.

 

(a)                                  Shelf
Registration.  If (i) the
Issuers are not required to file an Exchange Offer Registration Statement or to
consummate the Exchange Offer solely because the Exchange Offer is not
permitted by applicable law or Commission policy (after the procedures set
forth in Section 6(a) hereof have been complied with), (ii) for
any reason the Exchange Offer is required
by Section 3 hereof to be but is not Consummated by the Exchange Date, or (iii) prior to the Exchange Date:  (A) the Initial Purchasers request from
the Issuers with respect to Transfer Restricted Securities not eligible to be
exchanged for Exchange Securities in the Exchange Offer, (B) with respect
to any Holder of Transfer Restricted Securities such Holder notifies the
Issuers that (1) such Holder is prohibited by applicable law or Commission
policy from participating in the Exchange Offer, (2) such Holder may not
resell the Exchange Securities acquired by it in the Exchange Offer to the
public without delivering a prospectus and that the Prospectus contained in the
Exchange Offer Registration Statement is not appropriate or available for such
resales by such Holder, or (3) such Holder is a Broker-Dealer and holds
Transfer Restricted Securities acquired directly from either of the Issuers or
one of their respective affiliates or (C) in the case of any Initial
Purchaser, such Initial Purchaser notifies the Issuers it will not receive
freely tradable Exchange Securities in exchange for Transfer Restricted
Securities constituting any portion of such Initial Purchaser’s unsold
allotment, then the Issuers shall

 

(x)            cause
to be filed a shelf registration statement pursuant to Rule 415 under the
Securities Act, which may be an amendment to the Exchange Offer Registration
Statement (in either event, the “Shelf Registration Statement”) on or prior to
the 90th day after the date such obligation arises (or if such 90th day is not
a Business Day, the next succeeding Business Day) (such date being the “Shelf
Filing Deadline”), which Shelf Registration Statement shall provide for resales
of all Transfer Restricted Securities the Holders of which shall have provided
the information required pursuant to Section 4(b) hereof; and

 

5

 

(y)           use
their reasonable best efforts to cause such Shelf Registration Statement to be
declared effective by the Commission on or before the 90th day after the Shelf
Filing Deadline (or if such 90th day is not a Business Day, the next succeeding
Business Day).

 

Each of the Issuers shall use its reasonable best
efforts to keep such Shelf Registration Statement continuously effective,
supplemented and amended as required by the provisions of Sections 6(b) and
(c) hereof to the extent necessary to ensure that it is available for
resales of Transfer Restricted Securities by the Holders of such Securities
entitled to the benefit of this Section 4(a), and to ensure that it
conforms with the requirements of this Agreement, the Securities Act and the
policies, rules and regulations of the Commission as announced from time
to time, for a period of two years following the effective date of such Shelf
Registration Statement (or shorter period that will terminate when all the
Transfer Restricted Securities covered by such Shelf Registration Statement
have been sold pursuant to such Shelf Registration Statement).

 

(b)                                 Provision
by Holders of Certain Information in Connection with the Shelf Registration
Statement.  No Holder of
Transfer Restricted Securities may include any of its Transfer Restricted
Securities in any Shelf Registration Statement pursuant to this Agreement
unless and until such Holder furnishes to the Issuers in writing, within 20
Business Days after receipt of a request therefor, such information as the
Issuers may reasonably request for use in connection with any Shelf
Registration Statement or Prospectus or preliminary Prospectus included
therein.  Each Holder as to which any
Shelf Registration Statement is being effected agrees to furnish promptly to
the Issuers all information required to be disclosed in order to make the
information previously furnished to the Issuers by such Holder not materially
misleading.

 

SECTION 5.        Additional
Interest.

 

If (i) the Exchange Offer has not been
Consummated on or prior to the Exchange Date, (ii) any Shelf Registration
Statement, if required hereby, has not been filed or declared effective by the
Commission (or otherwise automatically
becomes effective) when so required or (iii) any Registration
Statement required by this Agreement has been declared effective but ceases to
be effective at any time at which it is required to be effective under this
Agreement (each such event referred to in clauses (i) through (iii), a “Registration
Default”), each of the Issuers hereby agree that the interest rate borne by the
Transfer Restricted Securities shall be increased by 0.25% per annum during the
90-day period immediately following the occurrence of any Registration Default
and shall increase by 0.25% per annum at the end of each subsequent 90-day
period, but in no event shall such increase exceed 1.00% per annum.  Following the cure of all Registration
Defaults relating to the particular Transfer Restricted Securities, the
interest rate borne by the relevant Transfer Restricted Securities will be
reduced to the original interest rate borne by such Transfer Restricted
Securities; provided, however, that, if after any
such reduction in interest rate, a different Registration Default occurs, the
interest rate borne by the relevant Transfer Restricted Securities shall again
be increased pursuant to the foregoing provisions.  The Issuers shall not be required
to pay additional interest pursuant to this Section 5 for more than one
Registration Default at any given time.

 

6

 

All obligations of the Issuers set forth in the
preceding paragraph that are outstanding with respect to any Transfer Restricted
Security at the time such security ceases to be a Transfer Restricted Security
shall survive until such time as all such obligations with respect to such
security shall have been satisfied in full.

 

SECTION 6.         Registration
Procedures.

 

(a)                                  Exchange
Offer Registration Statement.  In connection
with the Exchange Offer, the Issuers shall comply with all of the provisions of
Section 6(c) hereof, shall use their reasonable best efforts to
effect such exchange to permit the sale of Transfer Restricted Securities being
sold in accordance with the intended method or methods of distribution thereof,
and shall comply with all of the following provisions:

 

(i)            If in the
reasonable opinion of counsel to the Issuers there is a question as to whether
the Exchange Offer is permitted by applicable law, each of the Issuers hereby
agrees to seek a no-action letter or other favorable decision from the
Commission allowing the Issuers to Consummate an Exchange Offer for such
Transfer Restricted Securities.  Each of
the Issuers hereby agrees to pursue the issuance of such a decision to the
Commission staff level but shall not be required to take commercially
unreasonable action to effect a change of Commission policy.  Each of the Issuers hereby agrees, however,
to (A) participate in telephonic conferences with the Commission, (B) deliver
to the Commission staff an analysis prepared by counsel to the Issuers setting
forth the legal bases, if any, upon which such counsel has concluded that such
an Exchange Offer should be permitted and (C) diligently pursue a
favorable resolution by the Commission staff of such submission. 
Notwithstanding the above in this clause (i), after the Exchange Date,
the Issuers shall not be precluded from complying with the provision of Section 4
hereof and abandoning the requirement of this clause (i).

 

(ii)           As a condition to
its participation in the Exchange Offer pursuant to the terms of this
Agreement, each Holder of Transfer Restricted Securities shall furnish, upon
the request of the Issuers, prior to the Consummation thereof, a written
representation to the Issuers (which may be contained in the letter of
transmittal contemplated by the Exchange Offer Registration Statement) to the
effect that (A) it is not an affiliate of either of the Issuers, (B) it
is not engaged in, and does not intend to engage in, and has no arrangement or
understanding with any Person to participate in, a distribution of the Exchange
Securities to be issued in the Exchange Offer and (C) it is acquiring the
Exchange Securities in its ordinary course of business.  In addition, all such Holders of Transfer
Restricted Securities shall otherwise cooperate in the Issuers’ preparations
for the Exchange Offer.  Each Holder
hereby acknowledges and agrees that any Broker-Dealer and any such Holder using
the Exchange Offer to participate in a distribution of the securities to be
acquired in the Exchange Offer (1) could not under Commission policy as in
effect on the date of this Agreement rely on the position of the Commission
enunciated in Morgan Stanley and Co., Inc. (available June 5,
1991) and Exxon Capital Holdings Corporation (available May 13,
1988), as interpreted in the Commission’s letter to Shearman &
Sterling dated July 2, 1993, and similar no-action letters (which may
include any no-action letter obtained pursuant to clause (i) above), and (2) must
comply with the registration and prospectus delivery requirements of the
Securities Act in 

 

7

 

connection
with a secondary resale transaction and that such a secondary resale
transaction should be covered by an effective registration statement containing
the selling security holder information required by Item 507 or 508, as
applicable, of Regulation S-K if the resales are of Exchange Securities
obtained by such Holder in exchange for Transfer Restricted Securities acquired
by such Holder directly from the Issuers.

 

(b)                                 Shelf
Registration Statement.  If required
pursuant to Section 4, in connection with the Shelf Registration
Statement, each of the Issuers shall comply with all the provisions of Section 6(c) hereof
and shall use its reasonable best efforts to effect such registration to permit
the sale of the Transfer Restricted Securities being sold in accordance with
the intended method or methods of distribution thereof, and pursuant thereto
each of the Issuers will as expeditiously as possible prepare and file with the
Commission a Registration Statement relating to the registration on any
appropriate form under the Securities Act, which form shall be available for
the sale of the Transfer Restricted Securities in accordance with the intended
method or methods of distribution thereof.

 

(c)                                  General
Provisions.  In connection
with any Registration Statement and any Prospectus required by this Agreement
to permit the sale or resale of Transfer Restricted Securities (including,
without limitation, any Registration Statement and the related Prospectus
required to permit resales of Transfer Restricted Securities by
Broker-Dealers), each of the Issuers shall:

 

(i)            use its reasonable
best efforts to keep such Registration Statement continuously effective and
provide all requisite financial statements for the period specified in Section 3
or 4 hereof, as applicable; upon the occurrence of any event that would cause
any such Registration Statement or the Prospectus contained therein (A) to
contain a material misstatement or omission or (B) not to be effective and
usable for resale of Transfer Restricted Securities during the period required
by this Agreement, the Issuers shall file promptly an appropriate amendment to
such Registration Statement, in the case of clause (A), correcting any such
misstatement or omission, and, in the case of either clause (A) or (B),
use its reasonable best efforts to cause such amendment to be declared
effective and such Registration Statement and the related Prospectus to become
usable for their intended purpose(s) as soon as practicable thereafter;

 

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

 

8

 

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

 

(iv)          furnish without
charge to each of the Initial Purchasers, each selling Holder named in any
Registration Statement, and each of the underwriter(s), if any, before filing
with the Commission, copies of any Registration Statement or any Prospectus
included therein or any amendments or supplements to any such Registration
Statement or Prospectus (including all documents incorporated by reference
after the initial filing of such Registration Statement), which documents will
be subject to the review and comment of such Holders and underwriter(s) in
connection with such sale, if any, for a period of at least five Business Days,
and neither of the Issuers will file any such Registration Statement or
Prospectus or any amendment or supplement to any such Registration Statement or
Prospectus (including all such documents incorporated by reference) to which an
Initial Purchaser of Transfer Restricted Securities covered by such Registration
Statement or the underwriter(s), if any, shall reasonably object in writing
within five Business Days after the receipt thereof (such objection to be
deemed timely made upon confirmation of telecopy transmission within such
period); provided, however, that this
clause (iv) shall not apply to any filing by the Issuers of any Annual
Report on Form 10-K, Quarterly Report on Form 10-Q or Current Report
on Form 8-K with respect to matters unrelated to the Securities and the
offering or exchange therefor. 
The objection of an Initial Purchaser or underwriter, if any, shall be
deemed to be reasonable if such Registration Statement, amendment, Prospectus
or supplement, as applicable, as proposed to be filed, contains a material
misstatement or omission;

 

(v)           make available, during normal business hours upon
reasonable prior notice, for
inspection by the Initial Purchasers, the managing underwriter(s), if any,
participating in any disposition pursuant to such Registration Statement and
any attorney 

 

9

 

or
accountant retained by such Initial Purchasers or any of the underwriter(s),
all financial and other records, pertinent corporate documents and properties
of each of the Issuers and cause the Issuers’ officers, directors and employees
to supply all information reasonably requested by any such Holder, underwriter,
attorney or accountant in connection with such Registration Statement or any
post-effective amendment thereto subsequent to the filing thereof and prior to
its effectiveness and to participate in meetings with investors to the extent
requested by the managing underwriter(s), if any;

 

(vi)          if requested by any
selling Holders or the underwriter(s), if any, promptly incorporate in any
Registration Statement or Prospectus, pursuant to a supplement or
post-effective amendment if necessary, such information as such selling Holders
and underwriter(s), if any, may reasonably request to have included therein,
including, without limitation, information relating to the “Plan of
Distribution” of the Transfer Restricted Securities, information with respect
to the principal amount of Transfer Restricted Securities being sold to such
underwriter(s), the purchase price being paid therefor and any other terms of
the offering of the Transfer Restricted Securities to be sold in such offering;
and make all required filings of such Prospectus supplement or post-effective
amendment as soon as practicable after the Issuers are notified of the matters
to be incorporated in such Prospectus supplement or post-effective amendment;

 

(vii)         cause the Transfer
Restricted Securities covered by the Registration Statement to be rated with
the appropriate rating agencies, if so requested by the Holders of a majority
in aggregate principal amount of Securities covered thereby or the
underwriter(s), if any;

 

(viii)        furnish to each
Initial Purchaser, each selling Holder and each of the underwriter(s), if any,
without charge, at least one copy of the Registration Statement, as first filed
with the Commission, and of each amendment thereto, including, if they so request, financial
statements and schedules, all documents incorporated by reference therein and
all exhibits (including exhibits incorporated therein by reference);

 

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

 

(x)            enter into such
agreements (including an underwriting agreement), and make such representations
and warranties, and take all such other actions in connection therewith in
order to expedite or facilitate the disposition of the Transfer Restricted
Securities pursuant to any Shelf Registration
Statement contemplated by this Agreement, all to such extent as may be
requested by any Initial Purchaser or by any Holder of Transfer Restricted
Securities or underwriter in connection with any sale or resale pursuant to any Shelf Registration Statement
contemplated by this Agreement; and

 

10

 

whether
or not an underwriting agreement is entered into and whether or not the
registration is an Underwritten Registration, each of the Issuers shall:

 

(A)                               furnish to each
Initial Purchaser, each selling Holder and each underwriter, if any, in such
substance and scope as they may request and as are customarily made by issuers
to underwriters in primary underwritten offerings, upon the date of the
effectiveness of the Shelf Registration Statement:

 

(1)           a certificate, dated
the date of effectiveness of the Shelf Registration Statement signed by (y) the
President or any Vice President and (z) a principal financial or
accounting officer of each of the Issuers, confirming, as of the date thereof,
the matters set forth in paragraphs (i), (ii) and (iii) of Section 4(e) of
the Purchase Agreement and such other matters as such parties may reasonably
request;

 

(2)           an opinion, dated
the date of effectiveness of the Shelf Registration Statement of counsel for
the Issuers, covering the relevant
matters set forth in Section 4(c) of the Purchase Agreement and such
other matters as such parties may reasonably request, and in any event
including a statement to the effect that such counsel has participated in
conferences with officers and other representatives of each of the Issuers,
representatives of the independent public accountants for the Issuers,
representatives of the underwriter(s), if any, and counsel to the
underwriter(s), if any, in connection with the preparation of such Registration
Statement and the related Prospectus and have considered the matters required
to be stated therein and the statements contained therein, although such
counsel has not independently verified the accuracy, completeness or fairness
of such statements; and that such counsel advises that, on the basis of the
foregoing, no facts came to such counsel’s attention that caused such counsel
to believe that the applicable Registration Statement, at the time such
Registration Statement or any post-effective amendment thereto became effective
contained an untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading, or that the Prospectus contained in such Registration Statement
as of its date contained an untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading. 
Without limiting the foregoing, such counsel may state further that such
counsel assumes no responsibility for, and has not independently verified, the
accuracy, completeness or fairness of the financial statements, notes and
schedules and other financial data included in any Registration Statement
contemplated by this Agreement or the related Prospectus; and

 

(3)           a customary comfort
letter, dated the date of effectiveness of the Shelf Registration Statement,
from the Issuers’ independent 

 

11

 

accountants,
in the customary form and covering matters of the type customarily requested to
be covered in comfort letters by underwriters in connection with primary
underwritten offerings, and covering or affirming the matters set forth in the
comfort letters delivered pursuant to Sections 4(a) and 4(f) of the
Purchase Agreement, without exception;

 

(B)                               set forth in
full or incorporate by reference in the underwriting agreement, if any, the
indemnification provisions and procedures of Section 8 hereof with respect
to all parties to be indemnified pursuant to said Section; and

 

(C)                               deliver such
other documents and certificates as may be reasonably requested by such parties
to evidence compliance with Section 6(c)(x)(A) hereof and with any customary conditions contained in
the underwriting agreement or other agreement entered into by either of the
Issuers pursuant to this Section 6(c)(x), if any.

 

If at any time the representations and
warranties of the Issuers contemplated in Section 6(c)(x)(A)(1) hereof cease to be true and
correct, the Company or Finance Corp. shall so advise the Initial Purchasers
and the underwriter(s), if any, and each selling Holder promptly and, if
requested by such Persons, shall confirm such advice in writing;

 

(xi)                              prior to any
public offering of Transfer Restricted Securities pursuant to a Shelf Registration Statement, cooperate with the
selling Holders, the underwriter(s), if any, and their respective counsel in
connection with the registration and qualification of the Transfer Restricted
Securities under the state securities or blue sky laws of such jurisdictions as
the selling Holders or underwriter(s), if any, may request and do any and all
other acts or things necessary or advisable to enable the disposition in such
jurisdictions of the Transfer Restricted Securities covered by the Shelf
Registration Statement; provided, however,
that neither of the Issuers shall be required to register or qualify as a
foreign corporation where it is not then so qualified or to take any action
that would subject it to the service of process in suits or to taxation, other
than as to matters and transactions relating to the Registration Statement, in
any jurisdiction where it is not then so subject;

 

(xii)                           shall issue,
upon the request of any Holder of Transfer Restricted Securities covered by the
Shelf Registration Statement, Exchange Securities having an aggregate principal
amount equal to the aggregate principal amount of Transfer Restricted
Securities surrendered to the Issuers by such Holder in exchange therefor or
being sold by such Holder; such Exchange Securities to be registered in the
name of such Holder or in the name of the purchaser(s) of such Securities,
as the case may be; in return, the Transfer Restricted Securities held by such
Holder shall be surrendered to the Issuers for cancellation;

 

(xiii)                        cooperate with
the selling Holders and the underwriter(s), if any, to facilitate the timely
preparation and delivery of certificates representing Transfer Restricted
Securities to be sold and not bearing any restrictive legends; and enable such
Transfer Restricted Securities to be in such denominations and registered in
such names 

 

12

 

as
the Holders or the underwriter(s), if any, may request at least two Business
Days prior to any sale of Transfer Restricted Securities made by such Holders
or underwriter(s);

 

(xiv)                       use its
reasonable best efforts to cause the Transfer Restricted Securities covered by
the Registration Statement to be registered with or approved by such other United
States governmental agencies or authorities as may be necessary to enable the
seller or sellers thereof or the underwriter(s), if any, to consummate the
disposition of such Transfer Restricted Securities, subject to the proviso
contained in Section 6(c)(xii) hereof;

 

(xv)                          if any fact or
event contemplated by Section 6(c)(iii)(D) hereof shall exist or have
occurred, prepare a supplement or post-effective amendment to the Registration
Statement or related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered
to the purchasers of Transfer Restricted Securities, the Prospectus will not
contain an untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading;

 

(xvi)                       provide a CUSIP
number for all Securities not later than the effective date of the Registration
Statement covering such Securities and provide the Trustee under the Indenture
with printed certificates for such Securities which are in a form eligible for
deposit with the Depository Trust Company and take all other action necessary
to ensure that all such Securities are eligible for deposit with the Depository
Trust Company;

 

(xvii)                    cooperate and assist in any
filings required to be made with the FINRA and in the performance of any due
diligence investigation by any underwriter (including any “qualified
independent underwriter”) that is required to be retained in accordance with
the rules and regulations of the FINRA;

 

(xviii)                 otherwise use its reasonable
best efforts to comply with all applicable rules and regulations of the
Commission, and make generally available to its security holders, as soon as
practicable, a consolidated earnings statement meeting the requirements of Rule 158
under the Securities Act (which need not be audited) for the twelve-month
period (A) commencing at the end of any fiscal quarter in which Transfer
Restricted Securities are sold to underwriters in a firm commitment or best
efforts Underwritten Offering or (B) if not sold to underwriters in such
an offering, beginning with the first month of the Issuers’ first fiscal
quarter commencing after the effective date of the Registration Statement;

 

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

 

13

 

(xx)                          cause all
Securities covered by the Registration Statement to be listed on each
securities exchange or automated quotation system on which similar securities
issued by the Issuers are then listed if requested by the Holders of a majority
in aggregate principal amount of Securities or the managing underwriter(s), if
any

 

Each Holder agrees by acquisition of a Transfer
Restricted Security that, upon receipt of any notice from the Issuers of the
existence of any fact of the kind described in Section 6(c)(iii)(D) hereof,
such Holder will forthwith discontinue disposition of Transfer Restricted
Securities pursuant to the applicable Registration Statement until such Holder’s
receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 6(c)(xvi) hereof, or until it is advised in writing (the “Advice”)
by the Issuers that the use of the Prospectus may be resumed, and has received
copies of any additional or supplemental filings that are incorporated by
reference in the Prospectus.  If so
directed by the Issuers, each Holder will deliver to the Issuers (at the
Issuers’ expense) all copies, other than permanent file copies then in such
Holder’s possession, of the Prospectus covering such Transfer Restricted
Securities that was current at the time of receipt of such notice.  In the event the Issuers shall give any such
notice, the time period regarding the effectiveness of such Registration
Statement set forth in Section 3 or 4 hereof, as applicable, shall be
extended by the number of days during the period from and including the date of
the giving of such notice pursuant to Section 6(c)(iii)(D) hereof to
and including the date when each selling Holder covered by such Registration
Statement shall have received the copies of the supplemented or amended
Prospectus contemplated by Section 6(c)(xvi) hereof or shall have received
the Advice; provided, however,
that no such extension shall be taken into account in determining whether additional interest is due pursuant to
Section 5 hereof or the amount of such additional interest, it being agreed that the Issuer’s option to
suspend use of a Registration Statement pursuant to this paragraph shall be
treated as a Registration Default for purposes of Section 5 hereof.

 

SECTION 7.       Registration
Expenses.

 

(a)           All
expenses incident to the Issuers’ performance of or compliance with this
Agreement will be borne by the Issuers, jointly and severally, regardless of
whether a Registration Statement becomes effective, including, without limitation:
(i) all registration and filing fees and expenses (including filings made
by any Initial Purchaser or Holder with the FINRA (and, if applicable, the fees
and expenses of any “qualified independent underwriter” and its counsel that
may be required by the rules and regulations of the FINRA)); (ii) all
fees and expenses of compliance with federal securities and state securities or
blue sky laws; (iii) all expenses of printing (including printing
certificates for the Exchange Securities to be issued in the Exchange Offer and
printing of Prospectuses), messenger and delivery services and telephone; (iv) all
fees and disbursements of counsel for the Issuers and, subject to Section 7(b) hereof,
the Holders of Transfer Restricted Securities; (v) all application and
filing fees in connection with listing the Exchange Securities on a securities
exchange or automated quotation system pursuant to the requirements thereof; (vi) all
fees and disbursements of independent certified public accountants of the
Issuers (including the expenses of any special audit and comfort letters
required by or incident to such performance); (vii) all rating agency
fees; (viii) all fees and disbursements relating to the qualification of
the Indenture under applicable securities laws; and (ix) all fees and
disbursements of the Trustee and its counsel.

 

14

 

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

 

(b)           In
connection with any Registration Statement required by this Agreement
(including, without limitation, the Exchange Offer Registration Statement and
the Shelf Registration Statement), the Issuers, jointly and severally, will
reimburse the Initial Purchasers and the Holders of Transfer Restricted
Securities being tendered in the Exchange Offer and/or resold pursuant to the “Plan
of Distribution” contained in the Exchange Offer Registration Statement or
registered pursuant to the Shelf Registration Statement, as applicable, for the
reasonable fees and disbursements of not more than one counsel, who shall be
Fried, Frank, Harris, Shriver & Jacobson LLP, or such other counsel as
may be chosen by the Holders of a majority in principal amount of the Transfer
Restricted Securities for whose benefit such Registration Statement is being
prepared.

 

SECTION 8.       Indemnification.

 

(a)           Each
of the Issuers, jointly and severally, agrees to indemnify and hold harmless (i) each
Initial Purchaser and Holder and (ii) each Person, if any, who controls
(within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) any Initial Purchaser or any Holder (any of the Persons
referred to in this clause (ii) being hereinafter referred to as a “controlling
person”) and (iii) the respective officers, directors, partners, employees,
representatives and agents of any Initial Purchaser or any Holder or any
controlling person (any Person referred to in clause (i), (ii) or (iii) may
hereinafter be referred to as an “Indemnified Holder”), to the fullest extent
lawful, from and against any and all losses, claims, damages, liabilities,
judgments, actions and expenses (including, without limitation, and as
incurred, reimbursement of all reasonable costs of investigating, preparing,
pursuing, settling, compromising, paying or defending any claim or action, or
any investigation or proceeding by any governmental agency or body, commenced
or threatened, including the reasonable fees and expenses of not more than one counsel to the Indemnified Holders related to any particular situation),
joint or several, directly or indirectly caused by, related to, based upon,
arising out of or in connection with any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement or
Prospectus (or any amendment or supplement thereto), 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 light of the circumstances under which they were made, not
misleading, except insofar as such losses, claims, damages, liabilities or
expenses are caused by an untrue statement or omission or alleged untrue
statement or omission that is made in reliance upon and in conformity with
information relating to any of the Holders furnished in writing to the Issuers
by any of the Holders expressly for use therein.  In connection with any Underwritten Offering
permitted by Section 11, each of the Issuers, jointly and severally, will
also indemnify the Underwriters, if any, selling brokers, dealers and similar
securities industry professional participating in the distribution, their
respective affiliates and each Person, if any, who controls (within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange
Act) such Persons to the same extent as provided above with respect to the
indemnification of the Indemnified Holders, if requested in connection with any

 

15

 

Registration Statement or Prospectus (or any amendment or supplement
thereto). This indemnity agreement shall be in addition to any liability which
any of the Issuers may otherwise have.

 

In case any action or proceeding (including any
governmental or regulatory investigation or proceeding) shall be brought or
asserted against any of the Indemnified Holders with respect to which indemnity
may be sought against the Issuers, such Indemnified Holder (or the Indemnified
Holder controlled by such controlling person) shall promptly notify the Issuers
in writing; provided, however,
that the failure to give such notice shall not relieve any of the Issuers of
its obligations pursuant to this Agreement. 
Such Indemnified Holder shall have the right to employ its own counsel
in any such action and the fees and expenses of such counsel shall be paid, as
incurred, by the Issuers (regardless of whether it is ultimately determined
that an Indemnified Holder is not entitled to indemnification hereunder).  The Issuers shall not, in connection with any
one such action or proceeding or separate but substantially similar or related
actions or proceedings in the same jurisdiction arising out of the same general
allegations or circumstances, be liable for the reasonable fees and expenses of
more than one separate firm of attorneys (in addition to any local counsel) at
any time for such Indemnified Holders. 
Any such separate firm (i) for any Initial Purchaser, its
respective officers, directors, partners, employees, representatives and agents
and any control Persons of such Initial Purchaser shall be designated in
writing by J.P. Morgan Securities Inc. and (ii) for any Holder, its
respective officers, directors, partners, employees, representatives and agents
and any control Persons of such Holder shall be designated in writing by the
majority in aggregate principal amount of the Transfer Restricted
Securities.  The Issuers shall be liable
for any settlement of any such action or proceeding effected with the Issuers’
prior written consent, which consent shall not be withheld unreasonably, and
each of the Issuers agrees to indemnify and hold harmless any Indemnified
Holder from and against any loss, claim, damage, liability or expense by reason
of any settlement of any action effected with the written consent of the
Issuers.  The Issuers shall not, without
the prior written consent of each Indemnified Holder, settle or compromise or
consent to the entry of judgment in or otherwise seek to terminate any pending
or threatened action, claim, litigation or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not any
Indemnified Holder is a party thereto), unless such settlement, compromise,
consent or termination (i) includes an unconditional release of each
Indemnified Holder from all liability arising out of such action, claim,
litigation or proceeding and (ii) does not include any statement as to any
admission of fault, culpability or a failure to act by or on behalf of any
Indemnified Holder.

 

(b)           Each
Holder of Transfer Restricted Securities agrees, severally and not jointly, to
indemnify and hold harmless each of the Issuers and their respective directors,
officers of the Issuers who sign a Registration Statement, and any Person
controlling (within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) either such Issuer, the respective officers, directors,
partners, employees, representatives and agents of each such Person, the
Initial Purchasers and the other selling Holders and any Person controlling
(within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) any Initial Purchasers or any other selling Holder, to the
same extent as the foregoing indemnity from the Issuers to each of the
Indemnified Holders, but only with respect to claims and actions based upon any
untrue statement or omission or alleged untrue statement or omission made in
reliance on and in conformity with information relating to such Holder
furnished in writing by such Holder expressly for use in any Registration
Statement or Prospectus.  In case any action or 

 

16

 

proceeding shall be brought against either Issuer or their respective
directors or officers or any such controlling person in respect of which
indemnity may be sought against a Holder of Transfer Restricted Securities or
an Initial Purchaser, such Holder or Initial Purchaser shall have the rights
and duties given such Issuer, and its directors and officers and such
controlling person shall have the rights and duties given to each Holder and
Initial Purchaser by the preceding paragraph.

 

(c)           If
the indemnification provided for in this Section 8 is unavailable to an
indemnified party under Section 8(a) or (b) hereof (other than
by reason of exceptions provided in those Sections) or insufficient in respect
of any losses, claims, damages, liabilities, judgments, actions or expenses
referred to therein, then each applicable indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages,
liabilities or expenses in such proportion as is appropriate to reflect the
relative benefits received by the Issuers, on the one hand, and the Holders, on
the other hand, from the Initial Placement (which in the case of the Issuers
shall be deemed to be equal to the total net proceeds to the Issuers from the Initial Placement), the
amount of Additional Interest which did not become payable as a result of the
filing of the Registration Statement resulting in such losses, claims, damages,
liabilities, judgments actions or expenses, and such Registration Statement, or
if such allocation is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to above, but
also the relative fault of the Issuers, on the one hand, and the Holders, on
the other hand, in connection with the statements or omissions which resulted
in such losses, claims, damages, liabilities or expenses, as well as any other
relevant equitable considerations.  The
relative fault of the Issuers on the one hand and of the Indemnified Holder on
the other shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
either of the Issuers, on the one hand, or the Indemnified Holders, on the
other hand, and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.  The amount paid or payable by a party as a
result of the losses, claims, damages, liabilities and expenses referred to
above shall be deemed to include, subject to the limitations set forth in the
second paragraph of Section 8(a) hereof, any legal or other fees or
expenses reasonably incurred by such party in connection with investigating or
defending any action or claim.

 

Each of the Issuers and each Holder of Transfer
Restricted Securities agree that it would not be just and equitable if
contribution pursuant to this Section 8(c) were determined by pro
rata allocation (even if the Holders were treated as one entity for such
purpose) or by any other method of allocation which does not take account of
the equitable considerations referred to in the immediately preceding
paragraph.  The amount paid or payable by
an indemnified party as a result of the losses, claims, damages, liabilities or
expenses referred to in the immediately preceding paragraph shall be deemed to
include, subject to the limitations set forth above, any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim.  Notwithstanding the provisions of this Section 8,
none of the Holders (and its related Indemnified Holders) shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the
total discount received by such Holder with respect to the Transfer Restricted
Securities exceeds the amount of any damages which such Holder has otherwise
been required to pay by reason of such untrue or 

 

17

 

alleged untrue statement or
omission or alleged omission.  No Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.  The Holders’ obligations to contribute
pursuant to this Section 8(c) are several in proportion to the
respective principal amount of Transfer Restricted Securities held by each of
the Holders hereunder and not joint.

 

(d)           The
remedies provided for in this Section 8 are not exclusive and shall not
limit any rights or remedies that may otherwise be available to the Issuers or
any Indemnified Holder at law or equity.

 

(e)           The
indemnity and contribution provisions contained in this Section 8 shall
remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf
of the Initial Purchasers or any Holder or any Person controlling any Initial
Purchaser or any Holder, or by or on behalf of the Issuers or the officers,
directors, partners, employees, representatives and agents of or any Person
controlling the Issuers, (iii) acceptance of any of the Exchange
Securities and (iv)  any sale of Transfer Restricted Securities pursuant
to a Shelf Registration Statement.

 

SECTION 9.       Rule 144A.

 

Each of the Issuers hereby agrees with each Holder,
for so long as any Transfer Restricted Securities remain outstanding, to make
available to any Holder or beneficial owner of Transfer Restricted Securities
in connection with any sale thereof and any prospective purchaser of such
Transfer Restricted Securities from such Holder or beneficial owner, the
information required by Rule 144A(d)(4) under the Securities Act in
order to permit resales of such Transfer Restricted Securities pursuant to Rule 144A
under the Securities Act.

 

SECTION 10.             Participation
in Underwritten Registrations.

 

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

 

SECTION 11.    Selection of Underwriters.

 

The Holders of Transfer Restricted Securities
covered by the Shelf Registration Statement who desire to do so may sell such
Transfer Restricted Securities in an Underwritten Offering.  In any such Underwritten Offering, the
investment banker(s) and managing underwriter(s) that will administer
such offering will be selected by the Holders of a majority in aggregate
principal amount of the Transfer Restricted Securities included in such
offering; provided, however, that such investment banker(s) and managing
underwriter(s) must be reasonably satisfactory to the Issuers.

 

18

 

SECTION 12.     Miscellaneous.

 

(a)           Remedies.  Each
of the Issuers hereby agrees that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the
provisions of this Agreement and hereby agree to waive the defense in any
action for specific performance that a remedy at law would be adequate.

 

(b)           No Inconsistent Agreements.  Each of the Issuers will not on or
after the date of this Agreement enter into any agreement with respect to its
securities that is inconsistent with the rights granted to the Holders in this
Agreement or otherwise conflicts with the provisions hereof.  Neither of the Issuers has previously entered
into any agreement granting any registration rights with respect to its
securities to any Person.  The rights
granted to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of the any of the Issuers’
securities under any agreement in effect on the date hereof.

 

(c)           Adjustments Affecting the Securities.  The Issuers will not take any
action with respect to the Securities that would materially and adversely
affect the ability of the Holders to Consummate any Exchange Offer to the extent such Exchange Offer is
required to and can be Consummated pursuant to the terms hereof.

 

(d)           Amendments and Waivers.  The provisions of this Agreement
may not be amended, modified or supplemented, and waivers or consents to or
departures from the provisions hereof may not be given unless the Issuers have (i) in
the case of Section 5 hereof and this Section 12(d)(i), obtained the
written consent of Holders of all outstanding Transfer Restricted Securities
and (ii) in the case of all other provisions hereof, obtained the written
consent of Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities (excluding any Transfer Restricted Securities
held by the Issuers or their respective Affiliates).  Notwithstanding the foregoing, a waiver or
consent to departure from the provisions hereof that relates exclusively to the
rights of Holders whose securities are being tendered pursuant to the Exchange
Offer and that does not affect directly or indirectly the rights of other
Holders whose securities are not being tendered pursuant to such Exchange Offer
may be given by the Holders of a majority of the outstanding principal amount
of Transfer Restricted Securities being tendered or registered; provided, however, that, with respect to
any matter that directly or indirectly affects the rights of any Initial
Purchaser hereunder, the Issuers shall obtain the written consent of each such
Initial Purchaser with respect to which such amendment, qualification,
supplement, waiver, consent or departure is to be effective.

 

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

 

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

 

(ii)               if to the Issuers:

 

Ferrellgas, L.P.

7500 College Boulevard, Suite 1000

Liberty, MO 64068

 

19

 

Facsimile: (913) 661-1537

Attention: Ryan VanWinkle

With a copy to:

Greenberg Traurig, LLP

1000 Louisiana, Suite 1700

Houston, Texas 77002

Facsimile: (713) 754-6625

Attention: David Ronn, Esq.

 

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

 

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

 

(f)            Successors and Assigns.  This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the
parties, including, without limitation, and without the need for an express
assignment, subsequent Holders of Transfer Restricted Securities; provided, however, that this Agreement
shall not inure to the benefit of or be binding upon a successor or assign of a
Holder unless and to the extent such successor or assign acquired Transfer
Restricted Securities from such Holder.

 

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

 

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

 

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

 

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

 

(k)           Entire Agreement. 
This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect
of the subject matter contained herein. 
There are 

 

20

 

no restrictions, promises, warranties or undertakings, other than those
set forth or referred to herein with respect to the registration rights granted
by the Issuers with respect to the Transfer Restricted Securities.  This Agreement supersedes all prior
agreements and understandings among
the parties with respect to such subject matter.

 

21

 

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

 

	
   

  	
  FERRELLGAS,
  L.P.

  
	
   

  	
   

  
	
   

  	
  By:
  Ferrellgas, Inc., its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J. Ryan VanWinkle

  
	
   

  	
   

  	
  J.
  Ryan VanWinkle

  
	
   

  	
   

  	
  Senior
  Vice President & Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FERRELLGAS
  FINANCE CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J. Ryan VanWinkle

  
	
   

  	
   

  	
  J.
  Ryan VanWinkle

  
	
   

  	
   

  	
  Chief
  Financial Officer and Sole Director

  

 

22

 

The foregoing Registration Rights Agreement is
hereby confirmed and accepted as of the date first above written:

 

J.P.
MORGAN SECURITIES INC.

BANC
OF AMERICA SECURITIES LLC

WELLS
FARGO SECURITIES, LLC

BNP
PARIBAS SECURITIES CORP.

FIFTH
THIRD SECURITIES, INC.

PNC
CAPITAL MARKETS LLC

SG
AMERICAS SECURITIES, LLC

 

 

	
  By:

  	
  J.P.
  MORGAN SECURITIES INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Robert Mertensotto

  	
   

  
	
   

  	
  Robert
  Mertensotto

  	
   

  
	
   

  	
  Managing
  Director

  	
   

  

 

23EXHIBIT 4.1

 

AMENDMENT TO

SHAREHOLDER RIGHTS AGREEMENT

 

THIS AMENDMENT TO SHAREHOLDER RIGHTS AGREEMENT (this “Amendment”) is entered into as of September 8,
2009, by and between NEUROMETRIX, INC., a Delaware corporation (the “Company”), and AMERICAN STOCK TRANSFER &
TRUST COMPANY, a New York corporation (the “Rights Agent”).

 

WITNESSETH:

 

WHEREAS, the Company and the Rights Agent are parties to
that certain Shareholder Rights Agreement dated March 7, 2007 (the “Rights Agreement”); and

 

WHEREAS, the Company desires to enter into Securities
Purchase Agreements with investors under which the Company will issue and sell
up to 8,816,521 shares of the common stock of the Company and warrants to
purchase up to 8,375,695 shares of common stock of the Company in a private
placement; and

 

WHEREAS, pursuant to Section 27 of the Rights
Agreement, the Company and the Rights Agent may from time to time supplement or
amend the Rights Agreement subject to the terms of the Rights Agreement; and

 

WHEREAS, the Board of Directors of the Company has
determined that an amendment to the Rights Agreement as set forth herein is
necessary and desirable in connection with the foregoing and the Company and
the Rights Agent desire to evidence such amendment in writing.

 

NOW, THEREFORE, in consideration of these premises and
mutual agreements set forth herein, the parties agree as follows:

 

1.                                       Amendment of Section 1.  Section 1
of the Rights Agreement, “Certain Definitions” is supplemented to add the
following definitions in the appropriate locations:

 

“Investor” shall mean
Deerfield Special Situations Fund, L.P. and Deerfield Special Situations Fund
International Limited.

 

“Securities Purchase
Agreement” shall mean the Securities Purchase Agreement, dated September 8,
2009, by and between the Company and the Investor that incorporates the
Securities Purchase Agreement — Standard Terms.

 

“Transactions” shall
mean the issuance of (x) 2,548,673 shares of Common Stock, and (y) the
Warrant, in each case, and the exercise of the Warrant in accordance with its
terms.

 

“Warrant” shall mean
the warrant to purchase 2,421,239 shares of Common Stock pursuant to the
Securities Purchase Agreement.

 

1

 

2.                                       Amendment of the definition of “Acquiring
Person”.  The definition of “Acquiring Person” in Section 1
of the Rights Agreement is amended by adding the following sentence at the end
thereof:

 

“Notwithstanding anything in
this Rights Agreement to the contrary, neither Investor nor any of its
Affiliates or Associates shall be deemed to be an Acquiring Person solely as a
result of (i) the execution of the Securities Purchase Agreement or the
Warrant or (ii) the consummation of the Transactions or any other
transaction contemplated by the Securities Purchase Agreement or the Warrant.”

 

3.                                       Amendment of the definition of “Section 11(a)(ii) Event”. 
The definition of “Section 11(a)(ii) Event” in Section 1
of the Rights Agreement is amended by adding the following sentence at the end
thereof:

 

“Notwithstanding anything in
this Rights Agreement to the contrary, a Section 11(a)(ii) Event
shall not be deemed to have occurred solely as a result of (i) the
execution of the Securities Purchase Agreement or the Warrant or (ii) the
consummation of the Transactions or any other transaction contemplated by the
Securities Purchase Agreement or the Warrant.”

 

4.                                       Amendment of the definition of “Stock
Acquisition Date”.  The definition of “Stock Acquisition Date” in
Section 1 of the Rights Agreement is amended by adding the following sentence
at the end thereof:

 

“Notwithstanding anything
in this Rights Agreement to the contrary, a Stock Acquisition Date shall not be
deemed to have occurred solely as a result of (i) the execution of the
Securities Purchase Agreement or the Warrant or (ii) the consummation of
the Transactions or any other transaction contemplated by the Securities
Purchase Agreement or the Warrant.”

 

5.                                       Amendment to Section 30.  Section 30
of the Rights Agreement is amended by adding the following sentence at the end
thereof:

 

“Nothing in this Agreement
shall be construed to give any holder of Rights or any other Person any legal
or equitable rights, remedies or claims under this Agreement by virtue of (i) the
execution of the Securities Purchase Agreement or the Warrant or (ii) the
consummation of the Transactions or any other transaction contemplated by the
Securities Purchase Agreement or the Warrant.”

 

6.                                       The Rights Agreement, as supplemented and
modified by this Amendment, which such Amendment shall be deemed effective as
of the date first written above, as if executed on such date, together with the
other writings referred to in the Rights Agreement or delivered pursuant
thereto which form a part thereof, contain the entire agreement among the
parties with respect to the subject matter thereof and amend, restate and
supersede all prior and contemporaneous arrangements or understandings with
respect thereto.

 

7.                                       Upon the effectiveness of this Amendment,
on and after the date hereof, each reference in the Rights Agreement to “this
Agreement,” “hereunder,” “hereof,” or words of like import, shall mean and be a
reference to the Rights Agreement, as amended hereby.  Except as 

 

2

 

specifically amended
above, the Rights Agreement shall remain in full force and effect and is hereby
ratified and confirmed.

 

8.                                       This Amendment shall be governed by the
laws of the State of Delaware applicable to contracts to be made and to be
performed entirely within the State.

 

9.                                       This Amendment may be executed in any
number of counterparts, and each such counterpart shall be deemed to be an
original instrument, but all such counterparts together shall constitute but
one agreement.

 

SIGNATURES
ON THE FOLLOWING PAGE

 

3

 

IN WITNESS WHEREOF, the parties have duly executed this Amendment to be
duly executed as an instrument under seal and attested, all as of the day and
year first above written.

 

	
  ATTEST:  

  	
  NEUROMETRIX,
  INC.  

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Joseph A. Calo

  	
   

  	
  By:

  	
  /s/ Shai N. Gozani

  
	
  Name:

  	
  Joseph A. Calo

  	
   

  	
  Name:

  	
  Shai N. Gozani, M.D., Ph.D.

  
	
  Title:

  	
  Acting
  Chief Financial Officer & Treasurer

  	
   

  	
  Title:

  	
  Chief
  Executive Officer & President

  
	
   

  	
   

  
	
   

  	
   

  
	
  ATTEST:  

  	
  AMERICAN
  STOCK TRANSFER & TRUST COMPANY, as Rights Agent  

  
	
   

  	
   

  
	
  By:

  	
  /s/ Isaac J. Kagan

  	
   

  	
  By:

  	
  /s/ Herbert J. Lemmer

  
	
  Name:

  	
  Isaac J. Kagan

  	
   

  	
  Name:

  	
  Herbert J. Lemmer

  
	
  Title:

  	
  Vice
  President

  	
   

  	
  Title:

  	
  Vice
  President

  

 

4

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