Document:

Exhibit
4.12

 

EXECUTION COPY

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT dated as of August 24, 2004
(the “Agreement”) is entered into by and between MQ Associates, Inc., a
Delaware corporation (the “Company”) and J.P. Morgan Securities Inc.
(“JPMorgan”) and Wachovia Capital Markets, LLC (the “Initial Purchasers”).

 

The Company and the Initial Purchasers are parties to the Purchase
Agreement, dated as of August 19, 2004 (the “Purchase Agreement”), which
provides for the sale by the Company to the Initial Purchasers of $136,000,000
aggregate principal amount at maturity of the Company’s 121⁄4% Senior Discount
Notes due 2012 (the “Securities”).  As
an inducement to the Initial Purchasers to enter into the Purchase Agreement,
the Company has agreed to provide to the Initial Purchasers, the Market Maker
(as defined herein) and their direct and indirect transferees the registration
rights set forth in this Agreement.  The
execution and delivery of this Agreement is a condition to the closing under
the Purchase Agreement.

 

In consideration of the foregoing, the parties hereto agree as follows:

 

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

 

“Accreted Value” shall have the meaning set
forth in the Indenture.

 

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

 

“Closing Date” shall mean the Closing Date as defined in the Purchase
Agreement.

 

“Company” shall have the meaning set forth in the preamble and shall
also include the Company’s successors.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended from time to time.

 

“Exchange Dates” shall have the meaning set forth in
Section 2(a)(ii) hereof.

 

“Exchange Offer” shall mean the exchange offer by the Company of
Exchange Securities for Registrable Securities pursuant to Section 2(a)
hereof.

 

“Exchange Offer Registration” shall mean a registration under the Securities
Act effected pursuant to Section 2(a) hereof.

 

“Exchange Offer Registration Statement” shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate
form) and all amendments and

 

 

supplements to such registration statement, in each case, including the
Prospectus contained therein, all exhibits thereto and any document
incorporated by reference therein.

 

“Exchange Securities” shall mean senior discount notes issued by the
Company under the Indenture containing terms identical to the Securities
(except that the Exchange Securities will not be subject to restrictions on
transfer or to any increase in annual interest rate for failure to comply with
this Agreement) and to be offered to Holders of Securities in exchange for
Securities pursuant to the Exchange Offer.

 

“Holders” shall mean the Initial Purchasers, for so long as they own
any Registrable Securities, and each of their successors, assigns and direct
and indirect transferees who become owners of Registrable Securities under the
Indenture; provided that for purposes of Sections 4 and 6 of this
Agreement, the term “Holders” shall include Participating Broker-Dealers; and provided,
further, that for purposes of Section 6 of this Agreement, the term
Holders shall include, where the context requires, the Market Maker.

 

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

 

“Indenture” shall mean the Indenture relating to the Securities, dated
as of August 24, 2004, between the Company and Wachovia Bank, National
Association, as trustee, and as the same may be amended from time to time in
accordance with the terms thereof.

 

“Inspector” shall have the meaning set forth in Section 3(a)(xiii)
hereof.

 

“JPMorgan” shall have the meaning set forth in the preamble.

 

“Majority Holders” shall mean the Holders of a majority of the
aggregate principal amount at maturity of outstanding Registrable Securities; provided
that whenever the consent or approval of Holders of a specified percentage of
Registrable Securities is required hereunder, Registrable Securities owned
directly or indirectly by the Company or any of its affiliates (other than the
Market Maker) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage or amount.

 

“Market Maker” shall have the meaning set forth in Section 5(a)
hereof.

 

“Market Making Registration Statement” shall have the meaning set forth
in Section 5(a)(i).

 

“Participating Broker-Dealers” shall have the meaning set forth in
Section 4(a) hereof.

 

“Person” shall mean an individual, partnership, limited liability
company, corporation, trust or unincorporated organization, or a government or
agency or political subdivision thereof.

 

“Prospectus” shall mean the prospectus included in a Registration
Statement, including (i) any preliminary prospectus, (ii) any such prospectus
as amended or supplemented by any prospectus supplement, including a prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to such prospectus and (iii) except where the

 

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context otherwise requires, any prospectus (or amendment or supplement
thereto) filed with the SEC pursuant to Section 5 hereof, and in each case
including any document incorporated by reference therein.

 

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

 

“Registrable Securities” shall mean the Securities; provided
that the Securities shall cease to be Registrable Securities (i) when a
Registration Statement with respect to such Securities has been declared
effective under the Securities Act and such Securities have been exchanged for
Exchange Securities or disposed of pursuant to such Registration Statement,
(ii) when such Securities are eligible to be sold pursuant to Rule 144(k) (or
any similar provision then in force, but not Rule 144A) under the Securities
Act or (iii) when such Securities cease to be outstanding.

 

“Registration Expenses” shall mean any and all expenses incident to
performance of or compliance by the Company with this Agreement, including
without limitation (i) all SEC and any National Association of Securities
Dealers, Inc. registration and filing fees, (ii) all fees and expenses incurred
in connection with compliance with state securities or blue sky laws (including
reasonable fees and disbursements of counsel for any Underwriters or Holders in
connection with blue sky qualification of any Exchange Securities or
Registrable Securities), (iii) all expenses of any Persons in preparing or
assisting in preparing, word processing, printing and distributing any
Registration Statement, any Prospectus and any amendments or supplements
thereto, any underwriting agreements, securities sales agreements or other
similar agreements and any other documents relating to the performance of and
compliance with this Agreement, (iv) all rating agency fees, (v) all fees and
disbursements relating to the qualification of the Indenture under applicable
securities laws, (vi) the fees and disbursements of the Trustee and its
counsel, (vii) the fees and disbursements of counsel for the Company and, in
the case of a Shelf Registration Statement, the fees and disbursements of one
counsel for the Holders (which counsel shall be selected by the Majority
Holders and which counsel may also be counsel for the Initial Purchasers),
(viii) the reasonable fees and disbursements of counsel for the Market Maker
(other than in-house counsel for the Market Maker) and (ix) the fees and
disbursements of the independent public accountants of the Company, including
the expenses of any special audits or “comfort” letters required by or incident
to the performance of and compliance with this Agreement; provided that
Registration Expenses shall exclude fees and expenses of counsel to the
Underwriters (other than fees and expenses set forth in clause (ii) above) and
fees and expenses of the Holders, including underwriting or broker-dealer
discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of Registrable Securities by a Holder (other than fees and expenses
set forth in clause (vii) above).

 

“Registration Statement” shall mean any registration statement of the
Company that covers any of the Exchange Securities or Registrable Securities
pursuant to the provisions of this Agreement, including, without limitation,
the Market Making Registration Statement, and all amendments and supplements to
any such registration statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and any
document incorporated by reference therein.

 

“SEC” shall mean the United States Securities and Exchange Commission.

 

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

 

“Securities Act” shall mean the Securities Act of 1933, as amended from
time to time.

 

“Shelf Additional Interest Date” shall have the meaning set forth in
Section 2(d) hereof.

 

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

 

“Shelf Registration” shall mean a registration effected pursuant to
Section 2(b) hereof.

 

“Shelf Registration Statement” shall mean a “shelf” registration
statement of the Company that covers all or a portion of the Registrable
Securities (but no other securities unless approved by the Holders whose
Registrable Securities are to be covered by such Shelf Registration Statement)
on an appropriate form under Rule 415 under the Securities Act, or any similar
rule that may be adopted by the SEC, and all amendments and supplements to such
registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and any
document incorporated by reference therein.

 

“Shelf Request” shall have the meaning set forth in Section 2(b)
hereof.

 

“Staff” shall mean the staff of the SEC.

 

“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as
amended from time to time.

 

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

 

“Underwriter” shall have the meaning set forth in Section 3(e)
hereof.

 

“Underwritten Offering” shall mean an offering in which Registrable
Securities are sold by the Holders to an Underwriter for reoffering to the
public.

 

2.                                       Registration
Under the Securities Act.  (a)  To the extent not prohibited by any
applicable law or applicable interpretations of the Staff, the Company shall
use its reasonable best efforts to (i) cause to be filed an Exchange Offer
Registration Statement covering an offer to the Holders to exchange all the
Registrable Securities for Exchange Securities and (ii) have such Registration
Statement remain effective until 180 days after the closing of the Exchange
Offer (the “Applicable Period”).  The
Company shall commence the Exchange Offer promptly after the Exchange Offer
Registration Statement is declared effective by the SEC and use its reasonable
best efforts to complete the Exchange Offer not later than 60 days after such
effective date.

 

The Company shall commence the Exchange Offer by mailing the related
Prospectus, appropriate letters of transmittal and other accompanying documents
to each Holder stating, in addition to such other disclosures as are required
by applicable law, substantially the following:

 

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(i)                                     that
the Exchange Offer is being made pursuant to this Agreement and that all
Registrable Securities validly tendered and not properly withdrawn will be
accepted for exchange;

 

(ii)                                  the
dates of acceptance for exchange (which shall be a period of at least 20
Business Days from the date such notice is mailed) (the “Exchange Dates”);

 

(iii)                               that
any Registrable Security not tendered will remain outstanding and continue to
accrue interest but will not retain any rights under this Agreement;

 

(iv)                              that
any Holder electing to have a Registrable Security exchanged pursuant to the
Exchange Offer will be required to surrender such Registrable Security,
together with the appropriate letters of transmittal, to the institution and at
the address (located in the Borough of Manhattan, The City of New York) and in
the manner specified in the notice, prior to the close of business on the last
Exchange Date; and

 

(v)                                 that
any Holder will be entitled to withdraw its election, not later than the close
of business on the last Exchange Date, by sending to the institution and at the
address (located in the Borough of Manhattan, The City of New York) specified
in the notice, a telegram, telex, facsimile transmission or letter setting
forth the name of such Holder, the principal amount at maturity of Registrable
Securities delivered for exchange and a statement that such Holder is
withdrawing its election to have such Securities exchanged.

 

As a condition to participating in the Exchange Offer, a Holder will be
required to represent to the Company in writing in the applicable letter of transmittal
that (i) any Exchange Securities to be received by it will be acquired in the
ordinary course of its business, (ii) at the time of the commencement of the
Exchange Offer and at the time of the consummation of the Exchange Offer it has
no arrangement or understanding with any Person to participate in the
distribution (within the meaning of the Securities Act) of the Exchange
Securities in violation of the provisions of the Securities Act, (iii) it is
not an “affiliate” (within the meaning of Rule 405 under the Securities Act) of
the Company and (iv) if such Holder is a broker-dealer that will receive
Exchange Securities for its own account in exchange for Registrable Securities,
such Holder acquired the Registrable Securities as a result of market making or
other trading activities, and such Holder will deliver a Prospectus in
connection with any resale of such Exchange Securities.

 

As soon as practicable after the last Exchange Date, the Company shall:

 

(i)                                     accept
for exchange Registrable Securities or portions thereof validly tendered and
not properly withdrawn pursuant to the Exchange Offer; and

 

(ii)                                  deliver,
or cause to be delivered, to the Trustee for cancellation all Registrable
Securities or portions thereof so accepted for exchange by the Company and
issue, and cause the Trustee to promptly authenticate and deliver to each
Holder, Exchange Securities equal in Accreted Value and principal amount at
maturity to the Accreted Value and principal amount at maturity of the
Registrable Securities surrendered by such Holder, provided that, in the
case of any Registrable Securities held

 

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in global form by a depositary, the delivery
to such depositary of one or more authenticated Exchange Securities in global
form in an equivalent Accreted Value and principal amount at maturity for the
account of such Holders or a nominee thereof in accordance with the Indenture
shall satisfy such authentication and delivery requirements.

 

For each Registrable Security surrendered in the Exchange Offer, the
Holder will receive an Exchange Security having an Accreted Value and principal
amount at maturity equal to that of the surrendered Registrable Security.  Cash interest on each Exchange Security
issued pursuant to the Exchange Offer will accrue from the last interest
payment date on which cash interest was paid on the Securities surrendered in
exchange therefor or, if no interest has been paid on the Securities, from
August 15, 2008.

 

The Company shall use its reasonable best efforts to complete the
Exchange Offer as provided above and shall comply with the applicable
requirements of the Securities Act, the Exchange Act and other applicable laws
and regulations in connection with the Exchange Offer.  The Exchange Offer shall not be subject to
any conditions, other than (i) that the Exchange Offer does not violate any
applicable law or applicable interpretations of the Staff, (ii) that no action
or proceeding shall have been instituted or threatened in any court or by any
governmental agency with respect to the Exchange Offer which, in the Company’s
judgment, would reasonably be expected to impair its ability to proceed with
the Exchange Offer and (iii) any such other conditions as shall be agreed upon
by the Company and the Initial Purchasers.

 

(b)                                 In
the event that (i) the Company determines that the Exchange Offer Registration
provided for in Section 2(a) above is not available or may not be
completed as soon as practicable after the last Exchange Date because it would
violate any applicable law or applicable interpretations of the Staff, (ii) the
Exchange Offer is not for any other reason completed by April 6, 2005, or
(iii) upon the receipt of a written request (a “Shelf Request”) from any
Initial Purchaser that it holds Registrable Securities that are ineligible to
be exchanged in the Exchange Offer, then the Company shall use its reasonable
best efforts to cause to be filed as soon as practicable after such
determination, date or request, as the case may be, a Shelf Registration
Statement providing for the sale of all the Registrable Securities by the
Holders thereof and to have such Shelf Registration Statement declared
effective by the SEC.  In the event the
Initial Purchasers hold an unsold allotment of the Securities on
February 19, 2005, J.P. Morgan Securities Inc. or the relevant Initial
Purchaser shall notify the Company of such unsold allotment.

 

In the event that the Company is required to file a Shelf Registration
Statement pursuant to clause (iii) of the preceding sentence, the Company shall
use its reasonable best efforts to file and have declared effective by the SEC
both an Exchange Offer Registration Statement pursuant to Section 2(a)
with respect to all Registrable Securities and a Shelf Registration Statement
(which may be a combined Registration Statement with the Exchange Offer
Registration Statement) with respect to offers and sales of Registrable
Securities held by the Initial Purchasers after completion of the Exchange
Offer.

 

The Company agrees to use its reasonable best efforts to keep the Shelf
Registration Statement continuously effective until the expiration of the
earlier of (i) the period referred to in

 

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Rule 144(k) (or any similar rule then in force but not Rule 144A) under
the Securities Act with respect to the Registrable Securities or (ii) such
shorter period that will terminate when all the Registrable Securities covered
by the Shelf Registration Statement have been sold pursuant to the Shelf
Registration Statement (in any such case, the “Shelf Effectiveness
Period”).  The Company further agrees to
supplement or amend the Shelf Registration Statement and the related Prospectus
if required by the rules, regulations or instructions applicable to the
registration form used by the Company for such Shelf Registration Statement or
by the Securities Act or by any other rules and regulations thereunder for
shelf registration or if reasonably requested by a Holder of Registrable
Securities with respect to information relating to such Holder, and to use its
reasonable best efforts to cause any such amendment to become effective and
such Shelf Registration Statement and Prospectus to become usable as soon as
thereafter practicable.  The Company
agrees to furnish to the Holders of Registrable Securities copies of any such
supplement or amendment promptly after its being used or filed with the SEC.

 

(c)                                  The
Company shall pay all Registration Expenses in connection with the registration
pursuant to Section 2(a) and Section 2(b) hereof.  Each Holder shall pay all underwriting or
broker-dealer discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of such Holder’s Registrable Securities pursuant to the
Shelf Registration Statement and transfer taxes, if any, relating to the sale
or disposition of such Holder’s Registrable Securities pursuant to the Exchange
Offer Registration Statement if the Holder instructs the Company to register
the Exchange Securities in the name of a person other than such Holder.

 

(d)                                 An
Exchange Offer Registration Statement pursuant to Section 2(a) hereof or a
Shelf Registration Statement pursuant to Section 2(b) hereof will not be
deemed to have become effective unless it has been declared effective by the
SEC.

 

In the event that either the Exchange Offer is not completed or the
Shelf Registration Statement, if required pursuant to Section 2(b)(i) or
Section 2(b)(ii) hereof, is not declared effective on or prior to
April 7, 2005, the interest rate on the Registrable Securities will be
increased by 1.00% per annum payable commencing from April 7, 2005 to and
until the date the Exchange Offer is completed or the Shelf Registration
Statement, if required hereby, is declared effective by the SEC or the Securities
become freely tradable under the Securities Act.  In the event the Company receives a Shelf Request pursuant to
Section 2(b)(iii), and the Shelf Registration Statement required to be
filed thereby is not declared effective by the later of (x) March 7, 2005
or (y) 90 days after the delivery of such Shelf Request (such later date being
hereinafter referred to as the “Shelf Additional Interest Date”), then interest
rate on the Registrable Securities will be increased by 1.00% per annum payable
commencing from one day after the Shelf Additional Interest Date until the
Shelf Registration Statement is declared effective.

 

Notwithstanding the foregoing, the Company may, pending the
announcement of a potential acquisition, divestiture of assets or other material
corporate transaction, issue a notice that the Shelf Registration Statement is
no longer effective or the Prospectus contained therein is no longer usable for
offers and sales of Registrable Securities and may issue any notice suspending
use of the Shelf Registration Statement or the Prospectus contained therein and
in the event that the aggregate number of days in any consecutive 360-day
period for which all such

 

7

 

notices are issued and effective exceed 45 days in the aggregate, then
the interest rate on the Registrable Securities will be increased by 1.00% per
annum commencing on the 46th day in such 12-month period.  The Company may give any such notice only
twice during any 365-day period and any such suspensions shall not exceed 30
days for each suspension and there shall not be more than two suspensions in
effect during any 365-day period.  The
provisions of the foregoing sentence shall also be applicable to the Exchange
Offer Registration Statement during the Applicable Period, provided that
the Applicable Period shall be extended for the number of days that the use of
the Exchange Offer Registration Statement is suspended.  If the Shelf Registration Statement has been
declared effective and thereafter either ceases to be effective or the
Prospectus contained therein ceases to be usable at any time during the Shelf
Effectiveness Period, and such failure to remain effective or usable exists for
more than 45 days (whether or not consecutive) in any 12-month period, then the
interest rate on the Registrable Securities will be increased by 1.00% per
annum commencing on the 46th day in such 12-month period and ending on such
date that the Shelf Registration Statement has again been declared effective or
the Prospectus again becomes usable.

 

All additional interest paid on the Registrable Securities pursuant to
this Section 2(d) that accrues prior to August 15, 2008 will be added
to increase the Accreted Value of each Registrable Security; provided,
that the Company, at its option, may elect to pay such additional interest in
cash on the next scheduled interest payment date (the “Additional Interest
Date”). The amount of additional interest for Registrable Securities will
be determined by multiplying the applicable rate of additional interest by the
Accreted Value of all such Registrable Securities outstanding on the Additional
Interest Date following such registration default with respect to the first
such payment of additional interest with respect to such registration default
(and thereafter at the next succeeding Additional Interest Date until the cure
of the such registration default), and multiplying such product by a fraction,
the numerator of which is the number of days such additional interest rate was applicable
during such period (determined on the basis of 360-day year comprised of twelve
30-day months and, in the case of a partial month, the actual number of days
elapsed), and the denominator of which is 360.

 

Notwithstanding anything to the contrary in this Section 2(d), the
Company shall not be required to pay an increased interest rate on the
Registrable Securities to a Holder of Registrable Securities during the period
such Holder failed to comply with its obligations to make the representations set
forth in the third paragraph of Section 2(a) in connection with any
Exchange Offer or, in the case of a Shelf Registration Statement failed to
provide the information required to be provided by it, if any, pursuant to
Section 3(b), and the obligations to pay the increased rate of interest
shall resume upon the curing of such Holder’s default.

 

(e)                                  Without
limiting the remedies available to the Initial Purchasers and the Holders, the
Company acknowledges that any failure by the Company to comply with its obligations
under Section 2(a) and Section 2(b) hereof may result in material
irreparable injury to the Initial Purchasers or the Holders for which there is
no adequate remedy at law, that it will not be possible to measure damages for
such injuries precisely and that, in the event of any such failure, the Initial
Purchasers or any Holder may obtain such relief as may be required to
specifically enforce the Company’s obligations under Section 2(a) and
Section 2(b) hereof. 
Notwithstanding anything to the contrary in this Section 2(e), any
Holder that failed to comply with its obligations to make the representations
set forth in the third paragraph of Section 2(a) in connection with any

 

8

 

Exchange Offer or, in the case of a Shelf Registration Statement failed
to provide the information requested to be provided by it, if any, pursuant to
Section 3(b), shall not be entitled to the relief described in this
Section 2(e) unless such failure is cured or the Company’s failure to
comply was not caused by such Holder’s default.

 

3.                                       Registration
Procedures.  (a) In connection with
its obligations pursuant to Section 2(a) and Section 2(b) hereof, the
Company shall:

 

(i)                                     prepare
and file with the SEC a Registration Statement on the appropriate form under
the Securities Act, which form (x) shall be selected by the Company, (y) shall,
in the case of a Shelf Registration, be available for the sale of the
Registrable Securities by the selling Holders thereof in accordance with Section 2(b),
and (z) shall comply as to form in all material respects with the requirements
of the applicable form and include all financial statements required by the SEC
to be filed therewith; and use its reasonable best efforts to cause such Registration
Statement to become effective and remain effective for the applicable period in
accordance with Section 2 hereof;

 

(ii)                                  prepare
and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement
effective for the applicable period in accordance with Section 2 hereof
and cause each 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 keep each Prospectus current during the period described in
Section 4(3) of and Rule 174 under the Securities Act that is applicable
to transactions by brokers or dealers with respect to the Registrable
Securities or Exchange Securities;

 

(iii)                               in
the case of a Shelf Registration, furnish to each Holder of Registrable
Securities included within the coverage of the Shelf Registration Statement, to
counsel for the Initial Purchasers, to counsel for such Holders and to each
Underwriter of an Underwritten Offering of Registrable Securities, if any,
without charge, as many copies of each Prospectus, including each preliminary
Prospectus, and any amendment or supplement thereto, in order to facilitate the
sale or other disposition of the Registrable Securities thereunder; and the
Company consents to the use of such Prospectus and any amendment or supplement
thereto in accordance with applicable law by each of the selling Holders of
Registrable Securities and any such Underwriters in connection with the
offering and sale of the Registrable Securities covered by and in the manner
described in such Prospectus or any amendment or supplement thereto in
accordance with applicable law;

 

(iv)                              use
its reasonable best efforts to register or qualify the Registrable Securities
under all applicable state securities or blue sky laws of such jurisdictions as
any Holder of Registrable Securities covered by a Registration Statement shall
reasonably request in writing by the time the applicable Registration Statement
is declared effective by the SEC; cooperate with the Holders in connection with
any filings required to be made with the National Association of Securities
Dealers, Inc.; and do any and all other acts and things that may be reasonably
necessary or advisable to enable each Holder to complete the disposition in
each such jurisdiction of the Registrable Securities

 

9

 

owned by such Holder; provided that
the Company shall not be required to (1) qualify as a foreign corporation or
other entity or as a dealer in securities in any such jurisdiction where it
would not otherwise be required to so qualify, (2) file any general consent or
subject itself to service of process in any such jurisdiction or (3) subject
itself to taxation in any such jurisdiction if it is not so subject;

 

(v)                                 in
the case of a Shelf Registration, notify each Holder of Registrable Securities
included within the coverage of the Shelf Registration Statement, counsel for
such Holders and counsel for the Initial Purchasers promptly and, if requested
by any such Holder or counsel, confirm such advice in writing (1) when a
Registration Statement has become effective and when any post-effective
amendment thereto has been filed and becomes effective, (2) of any request by
the SEC or any state securities authority for amendments and supplements to a
Registration Statement and Prospectus or for additional information after the
Registration Statement has become effective, (3) of the issuance by the SEC or
any state securities authority of any stop order suspending the effectiveness
of a Registration Statement or the initiation of any proceedings for that
purpose, (4) if, between the effective date of a Registration Statement and the
closing of any sale of Registrable Securities covered thereby, the
representations and warranties of the Company contained in any underwriting
agreement, securities sales agreement or other similar agreement, if any,
relating to an offering of such Registrable Securities cease to be true and
correct in all material respects or if the Company receives any notification
with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation of any proceeding for
such purpose, (5) of the happening of any event during the period a Shelf
Registration Statement is effective that makes any statement made in such
Registration Statement or the related Prospectus untrue in any material respect
or that requires the making of any changes in such Registration Statement or
Prospectus in order to make the statements therein not misleading and (6) of
any determination by the Company that a post-effective amendment to a
Registration Statement would be appropriate;

 

(vi)                              use
its reasonable best efforts to obtain the withdrawal of any order suspending
the effectiveness of a Registration Statement at the earliest possible moment
and provide immediate notice to each Holder of the withdrawal of any such
order;

 

(vii)                           in
the case of a Shelf Registration, furnish to each Holder of Registrable
Securities included within the coverage of the Shelf Registration Statement,
without charge, at least one conformed copy of each Registration Statement and
any post-effective amendment thereto (without any documents incorporated
therein by reference or exhibits thereto, unless requested in writing);

 

(viii)                        in
the case of a Shelf Registration, cooperate with the Holders of Registrable
Securities included within the coverage of such Shelf Registration to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends and
enable such Registrable Securities to be issued in such denominations and
registered in such names (consistent with the provisions of the Indenture) as
the selling Holders may reasonably request in

 

10

 

writing at least one Business Day prior to
the closing of any sale of Registrable Securities;

 

(ix)                                in
the case of a Shelf Registration, upon the occurrence of any event contemplated
by Section 3(a)(v)(5) hereof, use its reasonable best efforts to prepare
and file with the SEC a supplement or post-effective amendment to a
Registration Statement or the related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter
delivered to purchasers of the Registrable Securities, such Prospectus will not
contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; and the Company shall
notify the Holders of Registrable Securities to suspend use of the Prospectus
as promptly as practicable after the occurrence of such an event, and such
Holders hereby agree (a) to suspend use of the Prospectus until the Company has
amended or supplemented the Prospectus to correct such misstatement or omission
and (b) to maintain the information contained in such notice and the existence
of such notice confidential unless and until the information is made publicly
available by the Company or otherwise (other than by action of the Holders)
becomes publicly available;

 

(x)                                   a
reasonable time prior to the filing of any Registration Statement, any
Prospectus, any amendment to a Registration Statement or amendment or
supplement to a Prospectus or of any document that is to be incorporated by
reference into a Registration Statement or a Prospectus after initial filing of
a Registration Statement, provide copies of such document to the Initial
Purchasers and their counsel (and, in the case of a Shelf Registration
Statement, to the Holders of Registrable Securities included within the
coverage of such Shelf Registration and their counsel) and make such of the
representatives of the Company as shall be reasonably requested by the Initial
Purchasers or their counsel (and, in the case of a Shelf Registration
Statement, the Holders of Registrable Securities included within the coverage
of such Shelf Registration or their counsel) available for discussion of such
document; and the Company shall not, at any time after initial filing of a
Registration Statement, file any Prospectus, any amendment of or supplement to
a Registration Statement or a Prospectus, or any document that is to be
incorporated by reference into a Registration Statement or a Prospectus, of
which the Initial Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, the Holders of Registrable Securities included within
the coverage of such Shelf Registration and their counsel) shall not have
previously been advised and furnished a copy or to which the Initial Purchasers
or their counsel (and, in the case of a Shelf Registration Statement, the
Holders of Registrable Securities included within the coverage of such Shelf
Registration or their counsel) shall reasonably object within a reasonable
period of time after receipt of such documents and in each case after having
been afforded the opportunity to diligence such matters with the Company;

 

(xi)                                obtain
a CUSIP number for all Exchange Securities or Registrable Securities, as the
case may be, not later than the effective date of a Registration Statement;

 

11

 

(xii)                             cause
the Indenture to be qualified under the Trust Indenture Act in connection with
the registration of the Exchange Securities or Registrable Securities, as the
case may be; cooperate with the Trustee and the Holders to effect such changes
to the Indenture as may be required for the Indenture to be so qualified in
accordance with the terms of the Trust Indenture Act; and execute, and use its
reasonable best efforts to cause the Trustee to execute, all documents as may
be required to effect such changes and all other forms and documents required
to be filed with the SEC to enable the Indenture to be so qualified in a timely
manner;

 

(xiii)                          in
the case of a Shelf Registration, make available for inspection by a
representative of the Holders of the Registrable Securities included within the
coverage of such Shelf Registration (an “Inspector”), any Underwriter
participating in any disposition pursuant to such Shelf Registration Statement,
any attorneys and accountants designated by the Holders and any such
Underwriter, at reasonable times and in a reasonable manner, all pertinent
financial and other records, documents and properties of the Company, and cause
the respective officers, directors and employees of the Company to supply all information
reasonably requested by any such Inspector, Underwriter, attorney or accountant
in connection with the performance of their “due diligence” investigation or
marketing efforts with respect to a Shelf Registration Statement; provided that if any such information is identified by the Company as being
confidential or proprietary and the disclosure of such information is not
necessary so that the Prospectus does not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, each Person receiving
such information shall take such actions as are reasonably necessary to protect
the confidentiality of such information to the extent such action is otherwise
not inconsistent with, an impairment of or in derogation of the rights and
interests of any Inspector, Holder or Underwriter;

 

(xiv)                         in
the case of a Shelf Registration, use its reasonable best efforts to cause all
Registrable Securities included within the coverage of such Shelf Registration
to be listed on any securities exchange or any automated quotation system on
which similar securities issued or guaranteed by the Company are then listed if
requested by the Majority Holders, to the extent such Registrable Securities
satisfy applicable listing requirements;

 

(xv)                            if
reasonably requested by any Holder of Registrable Securities covered by a
Registration Statement, promptly incorporate in a Prospectus supplement or
post-effective amendment such information with respect to such Holder as such
Holder reasonably requests to be included therein so that such Prospectus does
not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading with respect to the information required to be stated therein
with respect to such Holder and make all required filings of such Prospectus
supplement or such post-effective amendment as soon as the Company has received
notification of the matters to be incorporated in such filing; and

 

12

 

(xvi)                         in
the case of a Shelf Registration, enter into such customary agreements and take
all such other actions in connection therewith (including those requested by
the Holders of a majority in principal amount at maturity of the Registrable
Securities included within the coverage of such Shelf Registration) in order to
expedite or facilitate the disposition of such Registrable Securities
including, but not limited to, an Underwritten Offering and in such connection,
(i) to the extent possible, make such representations and warranties to the
Holders and any Underwriters of such Registrable Securities with respect to the
business of the Company and its subsidiaries, the Registration Statement,
Prospectus and documents incorporated by reference or deemed incorporated by
reference, if any, in each case, in form, substance and scope as are
customarily made by issuers to underwriters in underwritten offerings and
confirm the same if and when requested, (ii) in the case of an Underwritten
Offering obtain opinions of counsel to the Company (which counsel and opinions,
in form, scope and substance, shall be reasonably satisfactory to the Holders
and such Underwriters and their respective counsel) addressed to each selling
Holder and Underwriter of Registrable Securities included within the coverage
of such Shelf Registration, covering the matters customarily covered in
opinions requested in underwritten offerings, (iii) in the case of an
Underwritten Offering obtain “comfort” letters from the independent certified
public accountants of the Company (and, if necessary, any other certified
public accountant of any subsidiary of the Company, or of any business acquired
by the Company for which financial statements and financial data are or are
required to be included in the Registration Statement) addressed to each
selling Holder and Underwriter of Registrable Securities included within the
coverage of such Shelf Registration, such letters to be in customary form and
covering matters of the type customarily covered in “comfort” letters in
connection with underwritten offerings and (iv) deliver such documents and
certificates as may be reasonably requested by the Holders of a majority in
principal amount at maturity of the Registrable Securities included within the
coverage of such Shelf Registration being sold or the Underwriters, and which
are customarily delivered in underwritten offerings, to evidence the continued
validity of the representations and warranties of the Company made pursuant to
clause (i) above and in the case of an Underwritten Offering to evidence
compliance with any customary conditions contained in an underwriting
agreement.

 

(b) In the case of a Shelf Registration Statement, upon request of the
Company, each Holder of Registrable Securities included within the coverage of
such Shelf Registration shall be required to furnish to the Company in writing
after receipt of request therefor (within a reasonable period of time of such
request) the information with respect to such Holder specified in Items 507 and
508 (as applicable) of Regulation S-K under the Securities Act, and such other
information regarding such Holder and the proposed disposition by such Holder
of such Registrable Securities as the Company may from time to time reasonably
request in writing, and the Company may exclude from such Shelf Registration
Statement the Registrable Securities of any Holder that fails to furnish such
information within a reasonable period of time of such request until the
delivery of such written information. 
Each Holder of Registrable Securities included within the coverage of a
Shelf Registration Statement, by its participation in the Shelf Statement,
shall be deemed to agree to furnish the Company all information concerning such
Holder required to be described in order to make the information previously
furnished by such Holder to the Company and not materially misleading.

 

13

 

(c) In the case of a Shelf Registration Statement, each Holder of
Registrable Securities included within the coverage of such Shelf Registration
agrees that, upon receipt of any notice from the Company of the happening of
any event of the kind described in Section 3(a)(v)(3) or 3(a)(v)(5)
hereof, such Holder will forthwith discontinue disposition of Registrable
Securities pursuant to a Shelf Registration Statement until such Holder’s
receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 3(a)(ix) hereof and, if so directed by the Company, such Holder
will deliver to the Company all copies in its possession, other than permanent
file copies then in such Holder’s possession, of the Prospectus covering such
Registrable Securities that is current at the time of receipt of such notice.

 

(d) If the Company shall give any such notice to suspend the
disposition of Registrable Securities pursuant to a Registration Statement, the
Company shall extend the period during which the Registration Statement shall
be maintained effective pursuant to this Agreement by the number of days during
the period from and including the date of the giving of such notice to and
including the date when the Holders shall have received copies of the
supplemented or amended Prospectus necessary to resume such dispositions.  The Company may give any such notice only
twice during any 365-day period and any such suspensions shall not exceed 30 days
for each suspension and there shall not be more than two suspensions in effect
during any 365-day period.

 

(e) The Holders of Registrable Securities included within the coverage
of a Shelf Registration Statement who desire to do so may sell such Registrable
Securities in an Underwritten Offering. 
In any such Underwritten Offering, the investment banker or investment
bankers and manager or managers (the “Underwriters”) that will administer the
offering will be selected by the Majority Holders of the Registrable Securities
included in such offering, subject to the consent of the Company (which consent
shall not be unreasonably withheld or delayed), and such Holders shall be
responsible for all underwriting commissions and discounts in connection
therewith.

 

4.                                       Participation
of Broker-Dealers in Exchange Offer. 
(a)  The Staff has taken the
position that any broker-dealer that receives Exchange Securities for its own
account in the Exchange Offer in exchange for Securities that were acquired by
such broker-dealer as a result of market making or other trading activities (a
“Participating Broker-Dealer”) may be deemed to be an “underwriter” within the
meaning of the Securities Act and must deliver a prospectus meeting the
requirements of the Securities Act in connection with any resale of such Exchange
Securities.

 

The Company understands that it is the Staff’s position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a
plan of distribution containing a statement to the above effect and the means
by which Participating Broker-Dealers may resell the Exchange Securities,
without naming the Participating Broker-Dealers or specifying the amount of
Exchange Securities owned by them, such Prospectus may be delivered by
Participating Broker-Dealers to satisfy their prospectus delivery obligation
under the Securities Act in connection with resales of Exchange Securities for
their own accounts, so long as the Prospectus otherwise meets the requirements
of the Securities Act.

 

(b)                                 In
light of the above, and notwithstanding the other provisions of this Agreement,
the Company agrees to amend or supplement the Prospectus contained in the
Exchange Offer Registration Statement, as would otherwise be contemplated by
Section 3(a)(ix), for a period of

 

14

 

up to 180 days after the last Exchange Date (as such period may be
extended pursuant to Section 3(d) of this Agreement), if requested in
writing by the Initial Purchasers or by one or more Participating
Broker-Dealers, in order to expedite or facilitate the disposition of any
Exchange Securities by Participating Broker-Dealers consistent with the
positions of the Staff recited in Section 4(a) above.  The Company further agrees that Participating
Broker-Dealers shall be authorized to deliver such Prospectus during such
period in connection with the resales contemplated by this Section 4.

 

(c)                                  The
Initial Purchasers shall have no liability to the Company or any Holder with
respect to any request that they may make pursuant to Section 4(b) above.

 

5.                                       Market
Making.  (a)  For so long as any of the Securities or
Exchange Securities are outstanding and JPMorgan (in such capacity, the “Market
Maker”) or any of its affiliates (as defined in the rules and regulations of
the SEC) owns any equity securities of the Company or any of its affiliates and
proposes to make a market in the Securities or Exchange Securities as part of
its business in the ordinary course, the following provisions shall apply for
the sole benefit of the Market Maker:

 

(i)                                     The
Company shall (A) on the earlier of the date that the Exchange Offer
Registration Statement or, if required hereby, the Shelf Registration Statement
is filed with the SEC, file a registration statement (the “Market Making
Registration Statement”) (which may be the Exchange Offer Registration
Statement or the Shelf Registration Statement if permitted by the rules and
regulations of the SEC) and use its best efforts to cause such Market Making
Registration Statement to be declared effective by the SEC on or prior to the
consummation of the Exchange Offer or the effective date of the Shelf
Registration Statement, as applicable; (B) periodically amend such Market
Making Registration Statement so that the information contained therein
complies with the requirements of Section 10(a) under the Securities Act;
(C) amend the Market Making Registration Statement or amend or supplement
the related Prospectus when necessary to reflect any material changes in the
information provided therein; and (D) amend the Market Making Registration
Statement when required to do so in order to comply with Section 10(a)(3)
of the Securities Act; provided, however, that (1) prior
to filing the Market Making Registration Statement, any amendment thereto or
any supplement to the related Prospectus, the Company will furnish to the
Market Maker copies of all such documents proposed to be filed, which documents
will be subject to the review of the Market Maker and its counsel (which may be
in-house counsel), (2) the Company will not file the Market Making
Registration Statement, any amendment thereto or any amendment or supplement to
the related Prospectus to which the Market Maker and its counsel shall
reasonably object unless the Company is advised by counsel that such Market
Making Registration Statement, amendment or supplement in the form presented to
the Market Maker is required to be filed under applicable securities laws and
(3) the Company will provide the Market Maker and its counsel with copies of
the Market Making Registration Statement and each amendment and supplement
filed.

 

(ii)                                  The
Company shall notify the Market Maker and, if requested by the Market Maker,
confirm such advice in writing, (A) when any Market Making Registration
Statement, or any post-effective amendment to the Market Making

 

15

 

Registration Statement or any amendment or
supplement to the related Prospectus has been filed, and, with respect to any
post-effective amendment, when the same has become effective; (B) of any
request by the SEC for any post-effective amendment to the Market Making
Registration Statement, any supplement or amendment to the related Prospectus
or for additional information; (C) the issuance by the SEC of any stop
order suspending the effectiveness of the Market Making Registration Statement
or the initiation of any proceedings for that purpose; (D) of the receipt
by the Company of any notification with respect to the suspension of the
qualification of the Securities or Exchange Securities for sale in any
jurisdiction or the initiation or threatening of any proceedings for such
purpose; (E) of the happening of any event that makes any statement made
in the Market Making Registration Statement, the related Prospectus or any
amendment or supplement thereto untrue or that requires the making of any
changes in the Market Making Registration Statement, such Prospectus or any
amendment or supplement thereto, in order to make the statements therein not
misleading; and (F) of any advice from a nationally recognized statistical
rating organization that such organization has placed the Company under
surveillance or review with negative implications or has determined to
downgrade the rating of the Securities or Exchange Securities or any other debt
obligation of the Company whether or not such downgrade shall have been
publicly announced.

 

(iii)                               If
any event contemplated by Section 5(a)(ii)(B) through (E) occurs during
the period for which the Company is required to maintain an effective Market
Making Registration Statement, the Company shall promptly prepare and file with
the SEC a post-effective amendment to the Market Making Registration Statement
or an amendment or a supplement to the related Prospectus or file any other
required document so that the Prospectus will not include an untrue statement
of a material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading.

 

(iv)                              In
the event of the issuance of any stop order suspending the effectiveness of the
Market Making Registration Statement or of any order suspending the
qualification of the Securities or Exchange Securities for sale in any
jurisdiction, the Company shall use promptly its reasonable best efforts to
obtain its withdrawal.

 

(v)                                 The
Company shall furnish to the Market Maker, without charge, (i) at least one
conformed copy of the Market Making Registration Statement and any
post-effective amendment thereto; and (ii) as many copies of the related
Prospectus and any amendment or supplement thereto as the Market Maker may
reasonably request.

 

(vi)                              The
Company shall consent to the use of the Prospectus contained in the Market
Making Registration Statement or any amendment or supplement thereto by the
Market Maker in connection its market making activities.

 

(vii)                           Notwithstanding
the foregoing provisions of this Section 5, the Company may for valid
business reasons, including, without limitation, a potential material
acquisition, divestiture of assets or other material corporate transaction,
issue a notice that the Market Making Registration Statement is no longer
effective or the Prospectus

 

16

 

included therein is no longer usable for
offers and sales of Securities or Exchange Securities and may issue any notice
suspending use of the Market Making Registration Statement required under
applicable securities laws to be issued; provided that the use of the Market Making Registration
Statement or Prospectus contained therein shall not be suspended for more than
60 days (whether or not consecutive) in the aggregate in any consecutive 12
month period.  The Market Maker agrees
that upon receipt of any notice from the Company pursuant to this
Section 5(a)(vii), it will discontinue use of the Prospectus contained in
the Market Making Registration Statement until receipt of copies of the
supplemented or amended Prospectus relating thereto or until advised in writing
by the Company that the use of the Prospectus contained in the Market Making
Registration Statement may be resumed.

 

(b)                                 In
connection with the Market Making Registration Statement, the Company shall
(i) make reasonably available for inspection by a representative of, and
counsel acting for, the Market Maker all relevant financial and other records,
pertinent corporate documents and properties of the Company and its
subsidiaries and (ii) use its reasonable best efforts to have its officers,
directors, employees, accountants and counsel supply all relevant information
reasonably requested by such representative or counsel or the Market Maker.

 

(c)                                  Prior
to the effective date of the Market Making Registration Statement, the Company
will use its reasonable best efforts to register or qualify such Securities or
Exchange Securities for offer and sale under the securities or blue sky laws of
such jurisdictions as the Market Maker reasonably requests in writing and do
any and all other acts or things necessary or advisable to enable the offer and
sale in such jurisdictions of the Securities or Exchange Securities covered by
the Market Making Registration Statement; provided that the Company shall not be required to (i)
qualify as a foreign corporation or other entity or as a dealer in securities
in any jurisdiction where it would not otherwise be required to so qualify,
(ii) file any general consent to subject itself to service of process in any
such jurisdiction or (iii) subject itself to taxation in any such jurisdiction
if it is not subject.

 

(d)                                 The
Company represents that the Market Making Registration Statement, any
post-effective amendments thereto, any amendments or supplements to the related
Prospectus and any documents filed by them under the Exchange Act will, when
they become effective or are filed with the SEC, as the case may be, conform in
all respects to the requirements of the Securities Act and the Exchange Act and
the rules and regulations of the SEC thereunder and will not, as of the
effective date of such Market Making Registration Statement or post-effective
amendments and as of the filing date of amendments or supplements to such
Prospectus or filings under the Exchange Act, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein in light of the circumstances under
which they were made not misleading; provided
that no representation or warranty is made as to information contained in or
omitted from the Market Making Registration Statement or the related Prospectus
in reliance upon and in conformity with written information furnished to the
Company by the Market Maker specifically for inclusion therein, which
information the parties hereto agree will be limited to the statements
concerning the market making activities of the Market Maker to be set forth on
the cover page and in the “Plan of Distribution” section of the Prospectus
(the “Market Maker’s Information”).

 

17

 

(e)                                  At
the time of effectiveness of the Market Making Registration Statement (unless
it is the same as the time of effectiveness of the Exchange Offer Registration
Statement) and concurrently with each time the Market Making Registration
Statement or the related Prospectus shall be amended or such Prospectus shall
be supplemented, the Company shall (if requested in writing by the Market
Maker) furnish the Market Maker and its counsel with a certificate of its
Chairman of the Board of Directors or Chief Financial Officer to the effect that:

 

(i)                                     the
Market Making Registration Statement has been declared effective;

 

(ii)                                  in
the case of an amendment to the Market Making Registration Statement, such
amendment has become effective under the Securities Act as of the date and time
specified in such certificate, if applicable; and in the case of an amendment
or supplement to the Prospectus, such amendment or supplement to the Prospectus
was filed with the SEC pursuant to the subparagraph of Rule 424(b) under the
Securities Act specified in such certificate on the date specified therein;

 

(iii)                               to
the knowledge of such officers, no stop order suspending the effectiveness of
the Market Making Registration Statement has been issued and no proceeding for
that purpose is pending or threatened by the SEC; and

 

(iv)                              such
officers have carefully examined the Market Making Registration Statement and
the Prospectus (and, in the case of an amendment or supplement, such amendment
or supplement) and as of the date of such Market Making Registration Statement,
amendment or supplement, as applicable, the Market Making Registration
Statement and the Prospectus, as amended or supplemented, if applicable, did
not include any untrue statement of a material fact and did not omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading.

 

(f)                                    At
the time of effectiveness of the Market Making Registration Statement (unless
it is the same as the time of effectiveness of the Exchange Offer Registration
Statement) and concurrently with each time the Market Making Registration
Statement or the related Prospectus shall be amended or such Prospectus shall
be supplemented, the Company shall (if requested in writing by the Market
Maker) furnish the Market Maker and its counsel with the written opinion of
counsel for the Company satisfactory to the Market Maker to the effect that:

 

(i)                                     the
Market Making Registration Statement has been declared effective;

 

(ii)                                  in
the case of an amendment to the Market Making Registration Statement, such
amendment has become effective under the Securities Act as of the date and time
specified in such opinion, if applicable; and in the case of an amendment or
supplement to the Prospectus, such amendment or supplement to the Prospectus
was filed with the SEC pursuant to the subparagraph of Rule 424(b) under
the Securities Act specified in such opinion on the date specified therein;

 

(iii)                               to
the knowledge of such counsel, no stop order suspending the effectiveness of
the Market Making Registration Statement has been issued and no proceeding for
that purpose is pending or threatened by the SEC; and

 

18

 

(iv)                              such
counsel has reviewed the Market Making Registration Statement and the
Prospectus (and, in the case of an amendment or supplement, such amendment or
supplement) and participated with officers of the Company and independent
public accountants for the Company in the preparation of such Market Making
Registration Statement and Prospectus (and, in the case of an amendment or
supplement, such amendment or supplement) and has no reason to believe that
(except for the financial statements and other financial and statistical data
contained therein as to which no belief is required) as of the date of such Market
Making Registration Statement, amendment or supplement, as applicable, the
Market Making Registration Statement and the Prospectus, as amended or
supplemented, if applicable, contained any 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.

 

(g)                                 At
the time of effectiveness of the Market Making Registration Statement (unless
it is the same as the time of effectiveness of the Exchange Offer Registration
Statement) and concurrently with each time the Market Making Registration
Statement or the related Prospectus shall be amended or such Prospectus shall
be supplemented to include audited annual financial information, the Company
shall (if requested in writing by the Market Maker) furnish the Market Maker
and its counsel with a letter of PricewaterhouseCoopers
LLP (or other independent public accountants for the Company of nationally
recognized standing) in form satisfactory to the Market Maker, addressed to the
Market Maker and dated the date of delivery of such letter, (i) confirming that
they are independent public accountants within the meaning of the Securities
Act and are in compliance with the applicable requirements relating to the
qualification of accountants under Rule 2-01 of Regulation S-X of the SEC
and, (ii) in all other respects, substantially in the form of the letter
delivered to the Initial Purchasers pursuant to Section 5(f) of the
Purchase Agreement, with, in the case of an amendment or supplement that
includes audited financial information, such changes as may be necessary to
reflect the amended or supplemented financial information.

 

(h)                                 The
Company, on the one hand, and the Market Maker, on the other hand, hereby agree
to indemnify each other, and, if applicable, contribute to the other, in
accordance with Section 6 of this Agreement.

 

(i)                                     The
Company will comply with the provisions of this Section 5 at its own
expense and will reimburse the Market Maker for its expenses associated with
this Section 5 (including reasonable fees of counsel, other than in-house
counsel of the Market Maker).

 

(j)                                     The
agreements contained in this Section 5 and the representations, warranties
and agreements contained in this Agreement shall survive all offers and sales
of the Securities and Exchange Securities and shall remain in full force and
effect, regardless of any termination or cancellation of this Agreement or any
investigation made by or on behalf of any indemnified party.

 

(k)                                  For
purposes of this Section 5, (i) any reference to the terms “amend”,
“amendment” or “supplement” with respect to the Market Making Registration
Statement or the Prospectus contained therein shall be deemed to refer to and
include the filing under the Exchange Act of any document deemed to be
incorporated therein by reference and (ii) any

 

19

 

reference to the terms “Securities” or “Exchange Securities” shall be
deemed to refer to and include any securities issued in exchange for or with
respect to such Securities or Exchange Securities.

 

6.                                       Indemnification
and Contribution.  (a)  The Company agrees to indemnify and hold
harmless (i) each Initial Purchaser, the Market Maker and each Holder, their
respective affiliates, directors and officers and each Person, if any, who
controls any Initial Purchaser, the Market Maker or any Holder within the
meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages and
liabilities (including, without limitation, legal fees and other expenses
reasonably incurred in connection with any suit, action or proceeding or any
claim asserted, as such fees and expenses are incurred), joint or several, that
arise out of, or are based upon, any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement or Market
Making Registration Statement or any Prospectus or any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, except insofar as
such losses, claims, damages or liabilities arise out of, or are based upon,
(x) any untrue statement or omission or alleged untrue statement or omission
made in reliance upon and in conformity with any information relating to any
Initial Purchaser, information relating to any Holder or the Market Maker’s
Information furnished to the Company in writing through JPMorgan, the Market
Maker or any selling Holder expressly for use therein and (y) any untrue
statement or omission or alleged untrue statement or omission that was
contained or made in any related preliminary Prospectus, if both (A) a copy of
the final Prospectus was not sent or given by such Initial Purchaser, Market
Maker or Holder to such Person asserting any such loss, claim, damage or
liability on or prior to the written confirmation of the sale of such
Securities or Exchange Securities to such Person and (B) the untrue statement
in or omission from the related preliminary Prospectus was corrected in the
final Prospectus and the Company complied with its agreements in
Section 3(a)(ii), 3(a)(iii), 3(a)(vii), 3(a)(ix) or 5(a)(v), as applicable
and (ii) the Market Maker from and against any and all losses, claims, damages
and liabilities (including, without limitation, legal fees and other expenses
incurred in connection with any suit, action or proceeding or any claim
asserted, as such fees and expenses are incurred), joint or several that arise
out of, or are based upon, any material breach by the Company of its
representations, warranties and agreements contained in Section 5.  In connection with any Underwritten Offering
permitted by Section 3, the Company will also indemnify the Underwriters,
if any, selling brokers, dealers and similar securities industry professionals
participating in the distribution, their respective affiliates and each Person
who controls such Persons (within the meaning of the Securities Act and the
Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders, if requested in connection with any
Registration Statement.

 

(b)                                 Each
Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, the Initial Purchasers and the other selling Holders, their respective
affiliates, the directors of the Company, each officer of the Company who
signed the Registration Statement and each Person, if any, who controls the
Company, any Initial Purchaser and any other selling Holder within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act
to the same extent as the indemnity set forth in paragraph (a) above, but only
with respect to any losses, claims, damages or liabilities that arise out of,
or are based upon, any untrue statement or

 

20

 

omission or alleged untrue statement or omission made in reliance upon
and in conformity with any information relating to such Holder furnished to the
Company in writing by such Holder expressly for use in any Registration
Statement or any Prospectus.

 

(c)                                  The
Market Maker agrees to indemnify and hold harmless the Company and its
affiliates, directors and officers who signed the Market Marking Registration
Statement and each Person, if any, who controls the Company within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act
to the same extent as the indemnity set forth in paragraph (a) above, but only
with respect to any losses, claims, damages or liabilities that arise out of,
or are based upon, any untrue statement or omission or alleged untrue statement
or omission made in reliance upon and in conformity with any Market Maker’s
Information furnished to the Company in writing by the Market Maker expressly
for use in any Market Marking Registration Statement or any Prospectus.

 

(d)                                 If
any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any Person
in respect of which indemnification may be sought pursuant to paragraph (a),
(b) or (c) above, such Person (the “Indemnified Person”) shall promptly notify
the Person against whom such indemnification may be sought (the “Indemnifying
Person”) in writing; provided that the failure to notify the
Indemnifying Person shall not relieve it from any liability that it may have
under this Section 6 except to the extent that it has been materially
prejudiced (through the forfeiture of substantive rights or defenses) by such
failure; and provided, further, that the failure to notify the
Indemnifying Person shall not relieve it from any liability that it may have to
an Indemnified Person otherwise than under this Section 6.  If any such proceeding shall be brought or
asserted against an Indemnified Person and it shall have notified the
Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person to represent the Indemnified
Person and any others entitled to indemnification pursuant to this
Section 6 that the Indemnifying Person may designate in such proceeding
and shall pay the fees and expenses of such counsel related to such proceeding,
as incurred upon presentation of invoices. 
In any such proceeding, any Indemnified Person shall have the right to
retain its own counsel, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Person unless (i) the Indemnifying Person and the
Indemnified Person shall have mutually agreed to the contrary; (ii) the
Indemnifying Person has failed within a reasonable time to retain counsel
reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person
shall have reasonably concluded that there may be legal defenses available to
it that are different from or in addition to those available to the
Indemnifying Person; or (iv) the named parties in any such proceeding
(including any impleaded parties) include both the Indemnifying Person and the
Indemnified Person and representation of both parties by the same counsel would
be inappropriate due to actual or potential differing interests between
them.  It is understood and agreed that
the Indemnifying Person shall not, in connection with any proceeding or related
proceeding in the same jurisdiction, be liable for the fees and expenses of
more than one separate firm (in addition to any local counsel) for all
Indemnified Persons, and that all such fees and expenses shall be reimbursed as
they are incurred upon presentation of invoices.  Any such separate firm (x) for any Initial Purchaser or the
Market Maker, its affiliates, directors and officers and any control Persons of
such Initial Purchaser or the Market Maker shall be designated in writing by
JPMorgan, (y) for any Holder, its affiliates, directors and officers and any
control Persons of such Holder shall be designated in writing by the Majority
Holders and

 

21

 

(z) in all other cases shall be designated in writing by the
Company.  The Indemnifying Person shall
not be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified
Person from and against any loss or liability by reason of such settlement or
judgment.  Notwithstanding the foregoing
sentence, if at any time an Indemnified Person shall have requested that an
Indemnifying Person reimburse the Indemnified Person for the reasonable fees
and expenses of counsel as contemplated by this paragraph, the Indemnifying
Person shall be liable for any settlement of any proceeding effected without
its written consent if (i) such settlement is entered into more than 45 days
after receipt by the Indemnifying Person of such request and (ii) the
Indemnifying Person shall not have reimbursed the Indemnified Person in
accordance with such request prior to the date of such settlement.  No Indemnifying Person shall, without the
written consent of the Indemnified Person, effect any settlement of any pending
or threatened proceeding in respect of which any Indemnified Person is or could
have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (A) includes an unconditional
release of such Indemnified Person, in form and substance reasonably
satisfactory to such Indemnified Person, from all liability on claims that are
the subject matter of such proceeding and (B) does not include any statement as
to or any admission of fault, culpability or a failure to act by or on behalf
of any Indemnified Person.

 

(e)                                  If
the indemnification provided for in paragraphs (a), (b) and (c) above is unavailable
to an Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then each Indemnifying Person under
such paragraph, in lieu of indemnifying such Indemnified Person thereunder,
shall contribute to the amount paid or payable by such Indemnified Person as a
result of such losses, claims, damages or liabilities (i) in such proportion as
is appropriate to reflect the relative benefits received by the Company from
the initial offering and sale of the Securities and the Exchange Securities, on
the one hand, and by the Holders from receiving Securities or Exchange
Securities registered under the Securities Act or the Market Maker, on the
other hand, or (ii) if the allocation provided by clause (i) is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) but also the relative fault of the
Company on the one hand and the Holders or the Market Maker on the other in
connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable
considerations.  The relative fault of
the Company on the one hand and the Holders or the Market Maker 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 the Company or by
the Holders or Market Maker’s Information, as applicable, and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

 

(f)                                    The
Company, the Holders and the Market Maker agree that it would not be just and
equitable if contribution pursuant to this Section 6 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 that does not take account of the
equitable considerations referred to in paragraph (e) above.  The amount paid or payable by an Indemnified
Person as a result of the losses, claims, damages and liabilities referred to
in paragraph (e) above shall be deemed to include, subject to the limitations
set forth above, any legal or other expenses reasonably incurred by such

 

22

 

Indemnified Person in connection with any such action or claim.  Notwithstanding the provisions of this
Section 6, in no event shall a Holder be required to contribute any amount
in excess of the amount by which the total price at which the Securities or
Exchange Securities sold by such Holder exceeds the amount of any damages that
such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission, nor shall the Market
Maker be required to contribute any amount in excess of its commission from the
market making transactions at issue.  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.

 

(g)                                 The
remedies provided for in this Section 6 are not exclusive and shall not
limit any rights or remedies that may otherwise be available to any Indemnified
Person at law or in equity.

 

(h)                                 The
indemnity and contribution provisions contained in this Section 6 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, the Market Maker or any Holder, their respective affiliates or any
Person controlling any Initial Purchaser, the Market Maker or any Holder, or by
or on behalf of the Company, its respective affiliates or the officers or
directors of or any Person controlling the Company, (iii) acceptance of any of
the Exchange Securities, or (iv) any sale of Registrable Securities pursuant to
a Shelf Registration Statement or a Market Making Registration Statement.

 

7.                                       General.

 

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

 

(b)                                 Amendments and Waivers.  The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless the Company has obtained the written consent of Holders of at
least a majority in aggregate principal amount at maturity of the outstanding
Registrable Securities affected by such amendment, modification, supplement,
waiver or consent and, with respect to the provisions of Section 5, the
written consent of the Market Maker; provided that no amendment, modification,
supplement, waiver or consent to any departure from the provisions of
Section 6 hereof shall be effective as against any Holder of Registrable
Securities or the Market Maker unless consented to in writing by such Holder or
the Market Maker, as applicable.  Any
amendments, modifications, supplements, waivers or consents pursuant to this
Section 7(b) shall be by a writing executed by each of the parties hereto.

 

23

 

(c)                                  Notices. 
All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, registered first-class mail, telex,
telecopier, or any courier guaranteeing overnight delivery (i) if to a Holder
or the Market Maker, at the most current address given by such Holder to the
Company by means of a notice given in accordance with the provisions of this
Section 7(c), which address initially is, with respect to the Initial
Purchasers and the Market Maker, the address of the Initial Purchasers (including
the Market Maker) set forth in the Purchase Agreement; (ii) if to the Company,
initially at the Company’s address set forth in the Purchase Agreement and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 7(c); and (iii) to such other persons at
their respective addresses as provided in the Purchase Agreement and thereafter
at such other address, notice of which is given in accordance with the
provisions of this Section 7(c). 
All such notices and communications shall be deemed to have been duly
given (A) at the time delivered by hand, if personally delivered; (B) five
Business Days after being deposited in the mail, postage prepaid, if mailed;
(C) when answered back, if telexed; (D) when receipt is acknowledged, if
telecopied; and (E) 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.

 

(d)                                 Successors and Assigns.  This Agreement shall inure to the benefit of
and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement or the Indenture.  If any transferee of any Holder shall
acquire Registrable Securities in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to all the terms
of this Agreement, and by taking and holding such Registrable Securities such
Person shall be conclusively deemed to have agreed to be bound by and to
perform all of the terms and provisions of this Agreement and such Person shall
be entitled to receive the benefits hereof. 
The Initial Purchasers (in their capacity as Initial Purchasers) shall
have no liability or obligation to the Company with respect to any failure by a
Holder (other than by such Initial Purchasers) to comply with, or any breach by
any Holder (other than by such Initial Purchasers) of, any of the obligations
of such Holder under this Agreement.

 

(e)                                  Purchases and Sales of Securities.  The Company shall not, and shall use its
reasonable best efforts to cause its affiliates (as defined in Rule 405 under
the Securities Act) not to, purchase and then resell or otherwise transfer any
Registrable Securities, unless such Registrable Securities are resold or
transferred in a transaction registered under the Securities Act or pursuant to
Rule 144 under the Securities Act, if available.

 

(f)                                    Third Party Beneficiaries.  Each Holder shall be a third party
beneficiary to the agreements made hereunder (excluding those agreements made
in Section 5 hereof) between the Company, on the one hand, and the Initial
Purchasers, on the other hand, and shall have the right to enforce such
agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights or the rights of other Holders hereunder.

 

24

 

(g)                                 Counterparts.  This Agreement may be executed in any number of counterparts and
by the parties hereto in separate counterparts (which may each be delivered in
original form or by facsimile or email), 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,
are not a part of this Agreement 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.

 

(j)                                     Miscellaneous.  This Agreement contains the entire agreement between the parties
relating to the subject matter hereof and supersedes all oral statements and
prior writings with respect thereto.  If
any term, provision, covenant or restriction contained in this Agreement is
held by a court of competent jurisdiction to be invalid, void or unenforceable
or against public policy, the remainder of the terms, provisions, covenants and
restrictions contained herein shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.  The Company and the Initial Purchasers shall endeavor in good
faith negotiations to replace the invalid, void or unenforceable provisions
with valid provisions the economic effect of which comes as close as possible
to that of the invalid, void or unenforceable provisions.

 

25

 

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

 

	
   

  	
  MQ ASSOCIATES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas
  C. Gentry

  	
   

  
	
   

  	
   

  	
  Name: 
  Thomas C. Gentry

  
	
   

  	
   

  	
  Title: 
  Chief Financial Officer

  

 

 

Confirmed and accepted as of the date first above written:

 

J.P. MORGAN SECURITIES INC.

 

For itself and on behalf of the

several Initial Purchasers

 

	
  By:

  	
  /s/ James
  McHale

  	
   

  
	
   

  	
  Authorized SignatoryExhibit
10.20

 

FIRST AMENDMENT

TO

AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as
of August 16, 2004 (this “Amendment”), is made among MQ ASSOCIATES,
INC., a Delaware corporation (“Holdings”), MEDQUEST, INC., a Delaware
corporation (the “Borrower”), the Lenders (as defined in the Credit
Agreement referred to below) identified on the signature pages hereto, and
WACHOVIA BANK, NATIONAL ASSOCIATION (“Wachovia”), as administrative
agent for the Lenders (in such capacity, the “Administrative Agent”).

 

RECITALS

 

A.                                   Holdings,
the Borrower, the Lenders, JPMorgan Chase Bank, as Syndication Agent, Wachovia
and General Electric Capital Corporation, as Co-Documentation Agents, and
Wachovia, as Administrative Agent, are parties to an Amended and Restated
Credit Agreement, dated as of September 3, 2003 (as amended, supplemented,
restated or otherwise modified from time to time, the “Credit Agreement”),
providing for the availability of certain credit facilities to the Borrower
upon the terms and conditions set forth therein.  Capitalized terms used herein without definition shall have the
meanings given to them in the Credit Agreement.

 

B.                                     Holdings
and the Borrower have requested that the Required Lenders agree to make certain
amendments to the Credit Agreement to permit, among other things and subject to
the terms and conditions set forth herein, the issuance by Holdings from time
to time of Specified Holdings Securities (as defined below).  The Required Lenders have agreed to make
such amendments upon the terms and conditions set forth herein.

 

STATEMENT OF
AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.                                       Defined
Terms.

 

(a)                                  The
following defined terms are hereby added to Section 1.1 of the Credit
Agreement in proper alphabetical order:

 

“ ‘Catch-Up Payments’: with respect to any
issue of Specified Holdings Securities, the payment in cash of all or any
portion of the accrued and unpaid interest (including, if necessary,
capitalized interest and pay-in-kind interest) and original issue discount on
such Specified Holdings Securities (with such accrued and unpaid interest and
original issue discount calculated to the end of the first accrual period
following the fifth anniversary of the date of issuance thereof) in excess of
the Maximum Accrual with respect thereto, if such a payment is required or
permitted to be made pursuant to the terms of such Specified Holdings
Securities which amount
shall not be less than the minimum amount necessary to

 

 

ensure that such Specified Holdings
Securities are not issued with “significant original issue discount” with the
meaning of Section 163(i)(2) of the Code.”

 

“ ‘Consolidated
Holdings Total Debt’: at any date, the aggregate principal amount of all
Indebtedness, without duplication, of Holdings and its Subsidiaries at such
date, determined on a consolidated basis in accordance with GAAP, but excluding
Indebtedness of the type described in clause (f) of the definition thereof
and, to the extent relating to such clause (f), the types described in
clauses (h) and (i) of the definition thereof, unless such Indebtedness
has been fully liquidated and is no longer a contingent obligation.”

 

“ ‘First Amendment’:
the First Amendment to Amended and Restated Credit Agreement, dated as of
August 16, 2004, among Holdings, the Borrower, the Lenders party thereto
and the Administrative Agent.”

 

“ ‘Holdings Leverage
Ratio’: as at the last day of any period of four consecutive fiscal
quarters, the ratio of (a) Consolidated Holdings Total Debt on such day to
(b) Consolidated EBITDA for such period.”

 

“ ‘Maximum Accrual’:
with respect to any issue of Specified Holdings Securities, an amount equal to
the product of (i) the initial issue price (as defined in Sections 1273(b)
and 1274(a) of the Code) of such Specified Holdings Securities and
(ii) the yield to maturity (interpreted in accordance with
Section 163(i) of the Code) of such Specified Holdings Securities.”

 

“ ‘Specified Holdings
Securities’: unsecured notes and/or Disqualified Capital Stock issued by
Holdings, in one or more series from time to time, together
with any accretion in the principal amount or liquidation value thereof and any
pay-in-kind notes or Capital Stock issued for the payment of interest or
dividends thereon.”

 

(b)                                 The
definition of “Consolidated Fixed Charges” set forth in Section 1.1
of the Credit Agreement is hereby amended and restated in its entirety as
follows:

 

“ ‘Consolidated Fixed
Charges’: for any period, the sum (without duplication) of
(a) Consolidated Interest Expense for such period, (b) Consolidated
Lease Expense for such period, (c) income tax expenses for the Borrower
and its Subsidiaries for such period paid in cash, (d) scheduled payments
made during such period on account of principal of Indebtedness of the Borrower
or any of its Subsidiaries, and (e) the aggregate (without duplication) of
all Restricted Payments made by the Borrower or any of its Subsidiaries during
such period pursuant to Sections 7.6(h)(i) and 7.6(h)(ii).”

 

(c)                                  The
definition of “Excess Cash Flow” set forth in Section 1.1 of the
Credit Agreement is hereby amended by (i) deleting the word “and” from the
end of clause (b)(ix) thereof and (ii) adding the following
immediately before the period at the end thereof:

 

2

 

“, and (xi) the
aggregate amount of dividends and other distributions actually paid by the
Borrower and its Subsidiaries (without duplication) in cash during such period
to Holdings in accordance with Section 7.6(h)”

 

2.                                       Certain
Information.  Section 6.2 of
the Credit Agreement is hereby amended by (i) deleting the word “and” from
the end of clause (f) thereof, (ii) replacing the period at the end
of clause (g) thereof with a semicolon and adding the word “and”
immediately thereafter, and (iii) adding a new clause (h) thereof as
follows:

 

“(h)                           promptly
upon execution and/or delivery thereof, copies of any indenture, purchase
agreement and other material documents and instruments entered into by Holdings
and any offering memorandum or prospectus distributed by Holdings in connection
with the issuance of any Specified Holdings Securities.”

 

3.                                       Financial
Covenants.

 

(a)                                  Section 7.1(a)
of the Credit Agreement is hereby amended by adding the words “and thereafter”
immediately after the words “March 31, 2007” in the last row of the
Consolidated Leverage Ratio table set forth therein.

 

(b)                                 Section 7.1(c)
of the Credit Agreement is hereby amended by adding the words “and thereafter”
immediately after the words “March 31, 2007” in the last row of the
Consolidated Fixed Charge Coverage Ratio table set forth therein.

 

4.                                       Indebtedness.  Section 7.2 of the Credit Agreement is
hereby amended by (i) deleting the word “and” from the end of
clause (j) thereof, (ii) replacing the period at the end of
clause (k) thereof with a semicolon and adding the word “and” immediately
thereafter, and (iii) adding a new clause (l) thereof as follows:

 

“(l)                               Indebtedness
of Holdings in respect of Specified Holdings Securities, so long as (i) on
the date of incurrence thereof, no Default or Event of Default shall have
occurred and be continuing or would result therefrom, (ii) after giving
Pro Forma Effect in the calculation of Consolidated Holdings Total Debt to the
incurrence thereof, the use of the proceeds thereof to repay Indebtedness and
any Indebtedness repaid since the end of the last fiscal quarter ending prior
to the incurrence thereof for which financial statements have been delivered to
the Lenders, the Holdings Leverage Ratio (as calculated as of the end of the
last fiscal quarter ending prior to the incurrence of Indebtedness in respect
of such Specified Holdings Securities for which financial statements have been
delivered to the Lenders) does not exceed 5.75 to 1.0, and (iii) such
Indebtedness has a final maturity date at least 91 days after, and does not
provide for any scheduled payments of principal thereon or (other than pursuant
to customary requirements to make prepayment or redemption offers upon asset
sales or change of control events) any mandatory redemption or redemption at
the option of the holder thereof (in whole or in part) prior to, the later of
the Tranche B Term Maturity Date and the latest Incremental Term Maturity
Date.  For purposes of clarification, the conditions in clauses (i)-(iii) in
the immediately preceding sentence shall not apply to any accretion in the
principal amount or liquidation value of any Specified Holdings Securities or
any

 

3

 

pay-in-kind notes or Capital Stock issued for
the payment of interest or dividends thereon.”

 

5.                                       Restricted
Payments.  Section 7.6 of the
Credit Agreement is hereby amended by (i) deleting the word “and” from the
end of clause (e) thereof, (ii) replacing the period at the end of
clause (f) thereof with a semicolon and adding the word “and” immediately
thereafter, and (iii) adding new clauses (g) and (h) thereof as
follows:

 

“(g)                           Holdings
may at any time and from time to time pay dividends or make other distributions
on, or repurchase or redeem, shares of its Qualified or Disqualified Capital
Stock with the proceeds of any issuance of Specified Holdings Securities
permitted under Section 7.2(l) or the issuance of any Qualified Capital
Stock or, with respect to dividends or other distributions on shares of
Disqualified Capital Stock, in shares of Disqualified Capital Stock permitted
under Section 7.2(l); and

 

(h)                                 so
long as no Default or Event of Default shall have occurred and be continuing or
would result therefrom:

 

(i)                                     the
Borrower may, from time to time at any time after August 16, 2008, pay
dividends or make other distributions to Holdings to permit Holdings to, and
Holdings may, make required cash interest or dividend payments with respect to
Specified Holdings Securities;

 

(ii)                                  the
Borrower may at any time and from time to time pay dividends or make other
distributions to Holdings, which dividends or other distributions may be used by
Holdings to pay dividends and make other distributions on, or repurchase or
redeem, shares of its Capital Stock, to make payments in respect of
Indebtedness permitted to be incurred hereunder, or for any other lawful
purpose not otherwise prohibited by this Agreement, in an aggregate amount not
to exceed $10,000,000 during any fiscal year (it being understood that any
unused amounts under this clause (ii) during any fiscal year may be
carried forward to the immediately succeeding fiscal year but may not be
further carried forward to any subsequent fiscal year); and

 

(iii)                               the
Borrower may, from time to time at any time after August 16, 2008, pay
dividends or make other distributions to Holdings to permit Holdings to, and
Holdings may, make Catch-Up Payments with respect to Specified Holdings
Securities;

 

so long as after giving
Pro Forma Effect to any such payment or distribution by the Borrower
in the calculation of Consolidated Fixed Charges thereto
(and to any Indebtedness incurred by the Borrower in connection therewith)
(x) in each case under clauses (i)-(iii) above, the Borrower would be
in compliance with the covenants contained in Section 7.1 as of the end
of the last fiscal quarter ending prior to such payment or distribution
for which financial statements have been delivered to the Lenders and
(y) in the case of clauses (ii) and (iii) above, the sum of
(1) the aggregate Available Revolving Commitments of the Lenders at the
date of determination and (2) all

 

4

 

transferable cash and Cash Equivalents of the
Borrower and its Domestic Subsidiaries at such date is not less than
$15,000,000 (in each case under clauses (x) and (y) above, as demonstrated
by delivery to the Administrative Agent of a certificate of the Borrower to
such effect showing such calculation in reasonable detail).”

 

6.                                       Optional
Payments and Modifications of Certain Debt Instruments.

 

(a)                                  Section 7.8
of the Credit Agreement is hereby amended by adding the following at the end of
clause (a) thereof:

 

“provided that, at
any time and from time to time prior to August 15, 2005, the Borrower may
redeem in the aggregate up to 35% of the original principal amount of the
Senior Subordinated Notes with the Net Cash Proceeds of one or more Equity
Offerings received by, or contributed by Holdings to, the Borrower, subject to
the applicable terms and conditions of the Senior Subordinated Note Indenture
(for this purpose, the terms “Net Cash Proceeds” and “Equity Offerings” have
the meanings given to them in the Senior Subordinated Note Indenture);”

 

(b)                                 Section 7.8
of the Credit Agreement is hereby further amended by adding the words “or any
Specified Holdings Securities that are not Disqualified Capital Stock” immediately
after the words “Permitted Investor Preferred Stock” in clause (c)
thereof.

 

(c)                                  Section 7.8
of the Credit Agreement is hereby further amended by (i) deleting the word
“or” from the end of clause (c) thereof, (ii) replacing the period at
the end of clause (d) thereof with a semicolon and adding the word “or”
immediately thereafter, and (iii) adding a new clause (e) thereof as
follows:

 

“(e) except as
contemplated by Sections 7.6(g) and (h), make or
offer to make any optional or voluntary payment, prepayment, repurchase or
redemption of or otherwise optionally or voluntarily defease or segregate funds
with respect to any Specified Holdings Securities, except with proceeds of
additional Specified Holdings Securities issued by Holdings in accordance with
Section 7.2(l), proceeds of Qualified Capital Stock issued by Holdings, or
proceeds of dividends or other distributions permitted under
Section 7.6(h)(ii).”

 

7.                                       Transactions
with Affiliates.  Section 7.9
of the Credit Agreement is hereby amended by adding the words “(other than any
transaction permitted by Section 7.6)” immediately after the words “Enter
into any transaction” at the beginning of such Section 7.9.

 

8.                                       Negative
Pledge Clauses.  Clause (b)(ii)
of Section 7.12 of the Credit Agreement is hereby amended and restated in
its entirety as follows:

 

“(ii) any
Indebtedness permitted under Sections 7.2(f), (g), (i) and (l), and”

 

9.                                       Clauses
Restricting Subsidiary Distributions. 
Clause (iii)(x) of Section 7.13 of the Credit Agreement is
hereby amended and restated in its entirety as follows:

 

“(x) any
Indebtedness permitted under Sections 7.2(f), (g), (i) and (l), and”

 

5

 

10.                                 Events
of Default. 
Clause (iii) of Section 8(l) of the Credit Agreement is hereby
amended and restated in its entirety as follows:

 

“(iii) own, lease,
manage or otherwise operate any properties or assets (including cash and cash
equivalents (other than (x) cash received in connection with dividends
made by the Borrower in accordance with Section 7.6 pending application in
the manner contemplated by said Section, and (y) cash proceeds of any
issuance of Specified Holdings Securities pending application in the manner
contemplated by Section 7.6) other than the ownership of shares of Capital
Stock of the Borrower or otherwise in connection with or incidental to any of
the foregoing;”

 

11.                                 Representations
and Warranties.  In order to induce
the Administrative Agent and the Lenders to enter into this Amendment, each of
Holdings and the Borrower hereby represents and warrants to the Lenders as of
the First Amendment Effective Date (as hereinafter defined) that:

 

(a)                                  This
Amendment has been duly executed and delivered by it and constitutes its legal,
valid and binding obligation, enforceable against it in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law).

 

(b)                                 No
Default or Event or Default has occurred and is continuing.

 

(c)                                  Each
of the representations and warranties made by any Loan Party in or pursuant to
the Loan Documents is true and correct in all material respects on and as of
the First Amendment Effective Date as if made on and as of the First Amendment
Effective Date, except to the extent such representations and warranties
expressly relate to an earlier date (in which case such representations and
warranties shall be true and correct in all material respects as of such
earlier date).

 

12.                                 Conditions
of Effectiveness.  This Amendment
shall become effective as of the date first set forth above upon the
satisfaction of the following conditions precedent (the effective date of this
Amendment, the “First Amendment Effective Date”):

 

(a)                                  Execution
of Amendment.  The Administrative
Agent shall have received an executed counterpart hereof from each of Holdings,
the Borrower and the Required Lenders, and an acknowledgment and consent hereto
from each of the Subsidiary Guarantors in form and substance reasonably
satisfactory to the Administrative Agent.

 

(b)                                 Approval
Fee.  In consideration of this
Amendment and the amendments made herein, the Borrower shall have paid to the
Administrative Agent, for the account of each Lender executing this Amendment
by 5:00 p.m. (New York time) on the First Amendment Effective Date, a fee in
the amount of 12.5 basis points (0.125%) on the aggregate principal amount of
such Lender’s Revolving Commitment and outstanding Term Loans.

 

(c)                                  Ratings.  The Administrative Agent shall have received
evidence satisfactory to it that, after giving effect to the initial issuance
of Specified Holdings Securities (which is expected

 

6

 

to be in the form of senior discount notes,
(i) the Senior Subordinated Notes shall be rated not lower than “B3” by
Moody’s Investors Service, Inc. (“Moody’s”) and not lower than “B-” by
Standard & Poor’s Ratings Group (“S&P”), (ii) the
Borrower’s issuer rating shall not be lower than “B2” by Moody’s and shall not
be lower than “B+” by S&P, and (iii) the Borrower’s senior bank loan
debt rating shall not be lower than “B1” by Moody’s and the Term Loan rating
shall not be lower than “BB-” by S&P.

 

13.                                 Effect
of Amendment.  Except as expressly
set forth herein, this Amendment shall not, by implication or otherwise, limit,
impair, constitute a waiver of, or otherwise affect the rights and remedies of
the Lenders, the Administrative Agent, the Borrower, Holdings or any other Loan
Party under the Credit Agreement or any other Loan Document, and shall not
alter, modify, amend or in any way affect any of the terms, conditions,
obligations, covenants or agreements contained in the Credit Agreement or any
other Loan Document, all of which are ratified and affirmed in all respects and
shall continue in full force and effect. 
Nothing herein shall be deemed to entitle the Borrower, Holdings or any
other Loan Party to a consent to, or a waiver, amendment, modification or other
change of, any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement or any other Loan Document in similar or
different circumstances.  From and after
the date hereof, all references to the Credit Agreement or any section or
subsection thereof set forth in this Amendment, in any other Loan Document
or other agreement or instrument shall, unless otherwise specifically provided,
be references to the Credit Agreement or such section or
subsection as amended by this Amendment and as may be further amended,
modified, restated or supplemented from time to time.

 

14.                                 Governing
Law.  THIS AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

15.                                 Severability.  Any provision of this Amendment that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

16.                                 Successors
and Assigns.  This Amendment shall
be binding upon, inure to the benefit of and be enforceable by the respective
successors and assigns of the parties hereto.

 

17.                                 Construction.  The headings of the various sections and
subsections of this Amendment have been inserted for convenience only and shall
not in any way affect the meaning or construction of any of the provisions
hereof.

 

18.                                 Counterparts.  This Amendment may be executed by one or
more of the parties to this Amendment on any number of separate counterparts,
and all of said counterparts taken together shall be deemed to constitute one
and the same instrument.  Delivery of an
executed signature page of this Amendment by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof.

 

7

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be executed by their duly
authorized officers as of the date first above written.

 

	
   

  	
  MEDQUEST, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Gene Venesky

  
	
   

  	
   

  	
  Name:  Gene Venesky

  
	
   

  	
   

  	
  Title:  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MQ ASSOCIATES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Gene Venesky

  
	
   

  	
   

  	
  Name:  Gene Venesky

  
	
   

  	
   

  	
  Title:  Chief Executive Officer

  

 

 

(signatures
continued on following pages)

 

Signature Page to
First Amendment to Amended and Restated Credit Agreement

MedQuest, Inc.

 

 

	
   

  	
  WACHOVIA BANK,
  NATIONAL

  ASSOCIATION, as Administrative
  Agent and as a

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leanne Phillips

  
	
   

  	
   

  	
  Name:  Leanne S. Phillips

  
	
   

  	
   

  	
  Title:  Director

  

 

 

	
   

  	
  JPMORGAN CHASE
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas T. Hou

  
	
   

  	
   

  	
  Name:  Thomas T. Hou

  
	
   

  	
   

  	
  Title:  Vice President

  

 

 

	
   

  	
  GENERAL ELECTRIC
  CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steve J. Warner

  
	
   

  	
   

  	
  Name:  Steve J. Warner

  
	
   

  	
   

  	
  Title:  Duly Authorized Signatory

  

 

 

	
   

  	
  UBS AG, STAMFORD
  BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wilfred V. Salmt

  
	
   

  	
   

  	
  Name:  Wilfred V. Salmt

  
	
   

  	
   

  	
  Title:  Director Banking Products Services, US

  

 

 

	
   

  	
  By:

  	
  /s/ Anthony N. Joseph

  
	
   

  	
   

  	
  Name:  Anthony N. Joseph

  
	
   

  	
   

  	
  Title: 
  Associate Director, Banking Products Services, US

  

 

 

	
   

  	
  Loan Funding VI
  LLC

  
	
   

  	
  By:  Blackstone Debt Advisors L.P.

  As Attorney-in-Fact

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dean Criares

  
	
   

  	
   

  	
  Name:  Dean Criares

  
	
   

  	
   

  	
  Title: 
  Managing Director

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