Document:

Exhibit 4.3

 

 

Registration Rights Agreement

 

Dated As of June 3, 2007

 

among

 

SYMBION, INC.,

 

THE GUARANTORS LISTED ON SCHEDULE
A HERETO

 

and

 

MERRILL LYNCH, PIERCE, FENNER &
SMITH INCORPORATED,

 

BANC OF AMERICA SECURITIES LLC

 

and

 

GREENWICH CAPITAL MARKETS, INC.

 

 

 

REGISTRATION RIGHTS
AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made
and entered into as of June 3, 2008 by and among SYMBION, INC., a Delaware
corporation (the “Company”), each of the guarantors listed in Schedule A
attached hereto (the “Guarantors”) and MERRILL LYNCH, PIERCE, FENNER &
SMITH INCORPORATED, BANC OF AMERICA SECURITIES LLC and GREENWICH CAPITAL
MARKETS, INC. (collectively, the “Initial Purchasers”).

 

This Agreement is made pursuant to the Purchase
Agreement, dated as of May 29, 2008, by and among the Company, the
Guarantors and the Initial Purchasers (the “Purchase Agreement”), which
provides for, among other things, the sale by the Company to the Initial
Purchasers of an aggregate of $179,937,000 principal amount of the Company’s
11%/113⁄4% Senior PIK Toggle Notes due 2015 (the “Notes”). The Notes are
issued under an indenture, dated as of the date hereof between the Company, the
Guarantors and U.S. Bank National Association, as trustee (the “Trustee”)
(the “Indenture”).  Pursuant to
the Purchase Agreement and the Indenture, the Guarantors are required to guarantee
(collectively, the “Guarantees”) the Issuer’s obligations under the
Notes and the Indenture.  References to
the “Securities” shall mean, collectively, the Notes and, when issued,
the Guarantees.  References to the “Issuer”
refer to the Company.  In order to induce
the Initial Purchasers to enter into the Purchase Agreement, the Issuer has
agreed to provide the registration rights set forth in this Agreement for the
benefit of the Initial Purchasers and any subsequent holder or holders of the
Securities.  The execution and delivery
of this Agreement is a condition to the Initial Purchasers’ obligations under
the Purchase Agreement.

 

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

 

1.         Definitions.

 

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

 

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

 

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

 

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

 

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

 

“Depositary” shall mean The Depository Trust
Company, or any other depositary appointed by the Company, provided,
however, that such depositary must have an address in the Borough of
Manhattan, in the City of New York.

 

 

“Exchange Offer” shall mean the exchange
offer by the Company and the Guarantors of Exchange Securities for Registrable
Securities pursuant to Section 2.1 hereof.

 

“Exchange Offer Registration” shall
mean a registration under the 1933 Act effected pursuant to Section 2.1
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, including the Prospectus contained therein, all
exhibits thereto and all documents incorporated by reference therein.  For the avoidance of doubt, all guarantors in
respect of the Securities (regardless of whether each such person is a
Guarantor on the date hereof) shall be included as registrants in any Exchange
Offer Registration Statement.

 

“Exchange Period” shall have the meaning set
forth in Section 2.1 hereof.

 

“Exchange Securities” shall mean the
11%/113⁄4% Senior PIK Toggle Notes due 2015, issued by the Company under the
Indenture containing terms identical to the Securities in all material respects
(except that the additional interest rate, restrictions on transfers and
restrictive legends provisions thereof shall be eliminated), to be offered to
Holders of Securities in exchange for Securities pursuant to the Exchange
Offer.

 

“Free Writing Prospectus” shall mean each
free writing prospectus (as defined in Rule 405 under the 1933 Act)
prepared by or on behalf of the Issuer (or any of its agents or representatives)
or used or referred to by the Issuer (or any of its agents or representatives)
in connection with the sale of the Securities or the Exchange Securities.

 

“Holder” shall mean an Initial Purchaser, for
so long as it owns any Registrable Securities, and each of its successors,
assigns and direct and indirect transferees who become registered owners of
Registrable Securities under the Indenture and each Participating Broker-Dealer
that holds Exchange Securities for so long as such Participating Broker-Dealer
is required to deliver a prospectus meeting the requirements of the 1933 Act in
connection with any resale of such Exchange Securities.

 

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

 

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

 

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

 

“Majority Holders” shall mean the
Holders of a majority of the aggregate principal amount 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 held by
the Company, the Guarantors and any other guarantors of the Securities or any
Affiliate (as defined in the Indenture) of the Company or the Guarantors (or
any 

 

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other guarantor of the
Securities) shall be disregarded in determining whether such consent or
approval was given by the Holders of such required percentage amount.

 

“Participating Broker-Dealer” shall mean
any of Merrill Lynch, Pierce, Fenner & Smith Incorporated, Banc of
America Securities LLC, Greenwich Capital Markets, Inc. and any other
broker-dealer, in each case, which makes a market in the Securities and
exchanges Registrable Securities in the Exchange Offer for Exchange Securities.

 

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

 

“Private Exchange” shall have the meaning set
forth in Section 2.1 hereof.

 

“Private Exchange Securities” shall have the
meaning set forth in Section 2.1 hereof.

 

“Prospectus” shall mean the prospectus
included in a Registration Statement, including any preliminary prospectus, and
any such prospectus as amended or supplemented by any prospectus supplement,
including any such 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 a
prospectus, including post-effective amendments, and in each case including all
material incorporated by reference therein.

 

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

 

“Registrable Securities” shall mean the
Securities and, if issued, the Private Exchange Securities; provided, however, that Securities and, if issued, the
Private Exchange Securities, shall cease to be Registrable Securities when (i) a
Registration Statement with respect to such Securities or Private Exchange
Securities shall have been declared effective under the 1933 Act and such
Securities or Private Exchange Securities shall have been disposed of pursuant
to such Registration Statement, (ii) such Securities or Private Exchange
Securities shall have ceased to be outstanding or (iii) the Exchange Offer
is consummated (except in the case of Private Exchange Securities and
Securities purchased from the Issuer and continued to be held by the Initial
Purchasers).

 

“Registration Expenses” shall mean any
and all expenses incident to or incurred in connection with the performance by
the Issuer of, or compliance by the Issuer with, this Agreement, including
without limitation:  (i) all SEC,
stock exchange or Financial Industry Regulatory Authority (“FINRA”)
registration and filing fees, including, if applicable, the fees and expenses
of any “qualified independent underwriter” (and its counsel) that is required
to be retained by any holder of Registrable Securities in accordance with the rules and
regulations of FINRA, (ii) all fees and expenses incurred in connection
with compliance with state securities or blue sky laws and compliance with the rules of
FINRA (including reasonable fees and disbursements of counsel for any
underwriters or Holders in connection with blue sky qualification of any of the
Exchange Securities or Registrable Securities and any filings with 

 

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FINRA), (iii) all
expenses of any Persons in preparing or assisting in preparing, word
processing, printing and distributing any Registration Statement, any
Prospectus, any amendments or supplements thereto, any underwriting agreements,
securities sales agreements and other documents relating to the performance of
and compliance with this Agreement, (iv) all fees and expenses incurred in
connection with the listing, if any, of any of the Registrable Securities on
any securities exchange or exchanges, (v) all rating agency fees, (vi) the
fees and disbursements of counsel for the Issuer and of the independent public
accountants of the Issuer, including the expenses of any special audits or “cold
comfort” letters required by or incident to such performance and compliance, (vii) the
fees and expenses of the Trustee, and any escrow agent or custodian, (viii) in
the case of a Shelf Registration Statement, the reasonable fees and
disbursements of one special counsel (and any reasonably requested local
counsel) representing the Holders of Registrable Securities (which counsel
shall be elected by the Majority Holders and which counsel may also be the
counsel for the Initial Purchasers) and (ix) any fees and disbursements of
the underwriters customarily required to be paid by issuers or sellers of
securities and shall be reasonably acceptable to the Company) and (x) the
fees and expenses of any special experts retained by the Issuer in connection
with any Shelf Registration Statement, but excluding underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of
Registrable Securities by a Holder.

 

“Registration Statement” shall mean any
registration statement of the Issuer which covers any of the Exchange
Securities or Registrable Securities pursuant to the provisions of this
Agreement, 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 all material incorporated
by reference therein.

 

“SEC” shall mean the Securities and Exchange
Commission or any successor agency or government body performing the functions
currently performed by the United States Securities and Exchange Commission.

 

“Shelf Registration” shall mean a
registration effected pursuant to Section 2.2 hereof.

 

“Shelf Registration Statement”
shall mean a “shelf” registration statement of the Issuer pursuant to the
provisions of Section 2.2 of this Agreement which covers all of the
Registrable Securities or all of the Private Exchange Securities on an
appropriate form under Rule 415 under the 1933 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 all
material incorporated by reference therein. 
For the avoidance of doubt, all guarantors in respect of the Securities
(regardless of whether each such person is a Guarantor on the date hereof)
shall be included as registrants in any Shelf Registration Statement.

 

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

 

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2.         Registration Under the 1933 Act.

 

2.1.  Exchange Offer.  The Issuer shall, for the benefit of the
Holders, at the Issuer’s cost, (A) prepare and file with the SEC not later
than 180 days after the date hereof an Exchange Offer Registration Statement on
an appropriate form under the 1933 Act with respect to a proposed Exchange
Offer and the issuance and delivery to the Holders, in exchange for the
Registrable Securities (other than Private Exchange Securities), of a like
principal amount of Exchange Securities, (B) use its commercially
reasonable efforts to cause the Exchange Offer Registration Statement to be
declared effective under the 1933 Act not later than 270 days after the date
hereof, (C) use its commercially reasonable efforts to keep the Exchange
Offer Registration Statement effective until the closing of the Exchange Offer
and (D) use its commercially reasonable efforts to cause the Exchange
Offer to be consummated not later than 300 days after the date hereof, and (E) upon
the effectiveness of the Exchange Offer Registration Statement, promptly
commence the Exchange Offer, it being the objective of such Exchange Offer to
enable each Holder eligible and electing to exchange Registrable Securities for
Exchange Securities (assuming that such Holder (a) is not an affiliate of
the Issuer within the meaning of Rule 405 under the 1933 Act, (b) is
not a broker-dealer tendering Registrable Securities acquired directly from the
Company for its own account, (c) acquired the Exchange Securities in the
ordinary course of such Holder’s business and (d) has no arrangements or
understandings with any Person to participate in the Exchange Offer for the
purpose of distributing the Exchange Securities) to transfer such Exchange
Securities from and after their receipt without any limitations or restrictions
under the 1933 Act and under state securities or blue sky laws.

 

In connection with the Exchange Offer, the Issuer
shall:

 

(a)                                  mail as
promptly as reasonably practicable to each Holder a copy of the Prospectus
forming part of the Exchange Offer Registration Statement, together with an
appropriate letter of transmittal and related documents;

 

(b)                                 keep the
Exchange Offer open for acceptance for a period of not less than
20 business days after the date notice thereof is mailed to the Holders
(or longer if required by applicable law) (such period referred to herein as
the “Exchange Period”);

 

(c)                                  utilize the
services of the Depositary for the Exchange Offer;

 

(d)                                 permit Holders
to withdraw tendered Registrable Securities at any time prior to 5:00 p.m.
(Eastern time), on the last business day of the Exchange Period, by sending to
the institution specified in the notice, a telegram, telex, facsimile
transmission or letter setting forth the name of such Holder, the principal
amount of Registrable Securities delivered for exchange, and a statement that
such Holder is withdrawing such Holder’s election to have such Securities
exchanged;

 

(e)                                  notify each
Holder that any Registrable Security not tendered will remain outstanding and
continue to accrue interest, but will not retain any rights under this
Agreement (except in the case of the Initial Purchasers and Participating
Broker-Dealers as provided herein); and

 

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(f)                                    otherwise
comply in all respects with all applicable laws relating to the Exchange Offer.

 

A Holder that wishes to exchange Registrable
Securities in the Exchange Offer shall be required (a) to represent that (i) all
Exchange Securities to be received by it shall be acquired in the ordinary
course of its business and (ii) at the time of the consummation of the
Exchange Offer it shall have no arrangement or understanding with any person to
participate in the distribution (within the meaning of the Securities Act) of
the Exchange Securities and (b) make such other representations as may be
reasonably necessary under applicable SEC rules, regulations or interpretations.

 

If such Holder is a broker-dealer that will receive
Exchange Securities for its own account in exchange for Registrable Securities
that were acquired as a result of market-making or other trading activities,
such broker-dealer will be required to acknowledge that it will deliver a
Prospectus in connection with any resale of the Exchange Securities (and the
Issuer hereby agrees and undertake to provide any such broker-dealer with such
number of Prospectuses as such broker-dealer may reasonably request for such
purpose).

 

If, prior to consummation of the Exchange Offer, the
Initial Purchasers hold any Securities acquired by them and having the status
of an unsold allotment in the initial distribution, the Issuer upon the request
of any Initial Purchaser shall, simultaneously with the delivery of the
Exchange Securities in the Exchange Offer, issue and deliver to such Initial Purchaser
in exchange (the “Private Exchange”) for the Securities held by such
Initial Purchaser, a like principal amount of debt securities of the Issuer on
a senior basis, that are identical to the Exchange Securities, except that such
securities shall bear appropriate transfer restrictions (the “Private
Exchange Securities”).

 

The Exchange Securities and the Private Exchange
Securities shall be issued under (i) the Indenture or (ii) an
indenture identical in all material respects to the Indenture and which, in
either case, has been qualified under the Trust Indenture Act of 1939, as
amended (the “TIA”), or is exempt from such qualification and shall
provide that the Exchange Securities shall not be subject to the transfer
restrictions or “Additional Interest” provisions set forth in the Indenture but
that the Private Exchange Securities shall be subject to such transfer
restrictions.  The Indenture or such
indenture shall provide that the Exchange Securities, the Private Exchange
Securities and the Securities shall vote and consent together on all matters as
one class and that none of the Exchange Securities, the Private Exchange
Securities or the Securities will have the right to vote or consent as a
separate class on any matter.  The
Private Exchange Securities shall be of the same series as and the Issuer shall
use all commercially reasonable efforts to have the Private Exchange Securities
bear the same CUSIP number as the Exchange Securities.  The Issuer shall not have any liability under
this Agreement solely as a result of such Private Exchange Securities not
bearing the same CUSIP number as the Exchange Securities.

 

As soon as reasonably practicable after the close of
the Exchange Offer and/or the Private Exchange, as the case may be, the Issuer
shall:

 

6

 

(i)                   accept for
exchange all Registrable Securities duly tendered and not validly withdrawn
pursuant to the Exchange Offer in accordance with the terms of the Exchange
Offer Registration Statement and the letter of transmittal which shall be an
exhibit thereto;

 

(ii)                accept for
exchange all Securities properly tendered pursuant to the Private Exchange;

 

(iii)             deliver, or
cause to be delivered, to the Trustee for cancellation all Registrable
Securities so accepted for exchange; and

 

(iv)            cause the
Trustee promptly to authenticate and deliver Exchange Securities or Private
Exchange Securities, as the case may be, to each Holder of Registrable
Securities so accepted for exchange in a principal amount equal to the
principal amount of the Registrable Securities of such Holder so accepted for
exchange.

 

Interest on each Exchange
Security and Private Exchange Security will accrue from the last date on which
interest was paid on the Registrable Securities surrendered in exchange
therefor or, if no interest has been paid on the Registrable Securities, from
the date of original issuance.  The
Exchange Offer and the Private Exchange shall not be subject to any conditions,
other than (i) that the Exchange Offer or the Private Exchange, or the
making of any exchange by a Holder, does not violate applicable law or any
applicable interpretation of the staff of the SEC, (ii) the due tendering
of Registrable Securities in accordance with the Exchange Offer and the Private
Exchange, (iii) that each Holder of Registrable Securities exchanged in
the Exchange Offer shall have represented that all Exchange Securities to be
received by it shall be acquired in the ordinary course of its business and
that at the time of the consummation of the Exchange Offer it shall have no
arrangement or understanding with any person to participate in the distribution
(within the meaning of the 1933 Act) of the Exchange Securities and shall have
made such other representations as may be reasonably necessary under applicable
SEC rules, regulations or interpretations to render the use of Form S-4 or
other appropriate form under the 1933 Act available and (iv) that no
action or proceeding shall have been instituted or threatened in any court or
by or before any governmental agency with respect to the Exchange Offer or the
Private Exchange which, in the Issuer’s judgment, would reasonably be expected
to impair the ability of the Issuer to proceed with the Exchange Offer or the
Private Exchange and may also include other conditions customarily included in
exchange offers of this type.

 

2.2.  Shelf Registration.  (i) If, because of any changes in law,
SEC rules or regulations or applicable interpretations thereof by the
staff of the SEC, the Issuer is not permitted to effect the Exchange Offer as
contemplated by Section 2.1 hereof, (ii) if for any other reason the
Exchange Offer Registration Statement is not consummated on or prior to 300
days after the date hereof, (iii) upon the request of any of the Initial
Purchasers that hold Securities or (iv) if a Holder is not permitted to
participate in the Exchange Offer or does not receive fully tradable Exchange
Securities pursuant to the Exchange Offer, then in case of each of clauses (i) through
(iv) the Issuer shall, at its cost:

 

7

 

(a)                                  (i) As
promptly as practicable, file with the SEC a Shelf Registration Statement
relating to the offer and sale of the Registrable Securities by the Holders
from time to time and (ii) thereafter shall use its commercially
reasonable efforts to cause such Shelf Registration Statement to be declared
effective not later than the later of (x) 180 days after being
required or requested to file such a Shelf Registration Statement and (ii) 300
days after the date hereof.

 

(b)                                 Use its
commercially reasonable efforts to keep the Shelf Registration Statement
continuously effective in order to permit the Prospectus forming part thereof
to be usable by Holders for a period of one year from the date the Shelf
Registration Statement is declared effective by the SEC, or for such shorter
period that will terminate when all Registrable Securities covered by the Shelf
Registration Statement have been sold pursuant to the Shelf Registration
Statement or cease to be outstanding or otherwise to be Registrable Securities
(the “Effectiveness Period”).

 

(c)                                  Notwithstanding
any other provisions hereof, use its commercially reasonable efforts to ensure
that (i) any Shelf Registration Statement and any amendment thereto and
any Prospectus forming part thereof and any supplement thereto complies in all
material respects with the 1933 Act and the rules and regulations
thereunder, (ii) any Shelf Registration Statement and any amendment
thereto does not, when it becomes effective, 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 and (iii) any
Prospectus forming part of any Shelf Registration Statement, and any supplement
to such Prospectus (as amended or supplemented from time to time), does not
include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements, in light of the circumstances under
which they were made, not misleading.

 

The Issuer agrees, if necessary, to supplement or
amend the Shelf Registration Statement, as required by Section 3(b) below,
and 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.

 

2.3.  Expenses.  The Issuer shall pay all Registration
Expenses in connection with the registration pursuant to Section 2.1 or
2.2.  Each Holder shall pay all
underwriting 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.

 

2.4.  Effectiveness.  An Exchange Offer Registration Statement
pursuant to Section 2.1 hereof or a Shelf Registration Statement pursuant
to Section 2.2 hereof will not be deemed to have become effective unless
it has been declared effective by the SEC; provided, however,
that if, after it has been declared effective, the offering of Registrable
Securities pursuant to an Exchange Offer Registration Statement or a Shelf
Registration Statement is interfered with by any stop order, injunction or
other order or requirement of the SEC or any other governmental agency or
court, such Registration Statement will be deemed not to have become effective
during the period of such interference, until the offering of Registrable
Securities pursuant to such Registration Statement may legally resume.

 

8

 

2.5.  Additional Interest.  The Indenture executed in connection with the
Securities will provide that in the event that either (a) the Exchange
Offer Registration Statement is not filed with the SEC on or prior to 180 days
after the date hereof, (b) the Exchange Offer Registration Statement has
not been declared effective on or prior to 270 days after the date hereof or (c) the
Exchange Offer is not consummated and a Shelf Registration Statement is not
declared effective, in both cases, on or prior to 300 days after the date
hereof (each such event referred to in clauses (a) through (c) above,
a “Registration Default”), the interest rate borne by the Securities
shall be increased (“Additional Interest”) by 0.25% per annum upon the
occurrence of each Registration Default, which rate will increase by 25 basis
points per annum each three month period that such Additional Interest
continues to accrue under any such circumstance, provided that the maximum
aggregate increase in the interest rate will in no event exceed 50 basis points
per annum.  Following the cure of all
Registration Defaults the accrual of Additional Interest will cease and the
interest rate will revert to the original rate. 
The Company will not be obligated to pay Additional Interest in respect
of more than one default at a time.

 

If the Shelf Registration
Statement is unusable by the Holders for any reason, and the aggregate number
of days in any consecutive twelve-month period for which the Shelf Registration
Statement shall not be usable exceeds 90 days in the aggregate, then the
interest rate borne by the Securities will be increased by 25 basis points per
annum of the principal amount of the Securities for the first three month
period (or portion thereof) beginning on the 90th such date that such Shelf
Registration Statement ceases to be usable in such twelve-month period, which
rate shall be increased by an additional 25 basis points per annum of the
principal amount of the Securities at the beginning of each subsequent three
month period, provided that the maximum aggregate increase in the interest rate
will in no event exceed 50 basis points per annum.  Any amounts payable under this paragraph
shall also be deemed “Additional Interest” for purposes of this Agreement.  Upon the Shelf Registration Statement once
again becoming usable, the interest rate borne by the Securities will be
reduced to the original interest rate if the Issuer is otherwise in compliance
with this Agreement at such time. 
Additional Interest shall be computed based on the actual number of days
elapsed in each three month period in which the Shelf Registration Statement is
unusable.

 

The Issuer shall notify the Trustee within three
business days after each and every date on which an event occurs in respect of
which Additional Interest is required to be paid (an “Event Date”).  Additional Interest will be payable in cash
or in the form of PIK interest in the same proportion the Issuer has elected to
pay PIK interest with respect to the applicable interest period.  The Additional Interest due shall be payable
on each interest payment date to the record Holder of Registrable Securities
entitled to receive the interest payment to be paid on such date as set forth
in the Indenture.  Each obligation to pay
Additional Interest shall be deemed to accrue from and including the day
following the applicable Event Date.

 

3.         Registration Procedures.

 

In connection with the obligations of the Issuer
with respect to Registration Statements pursuant to Sections 2.1 and 2.2
hereof, the Issuer shall:

 

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(a)                                  prepare and
file with the SEC a Registration Statement, within the relevant time period
specified in Section 2, on the appropriate form under the 1933 Act, which
form (i) shall be selected by the Issuer, (ii) shall, in the case of
a Shelf Registration, be available for the sale of the Registrable Securities
by the selling Holders thereof, (iii) shall comply as to form in all
material respects with the requirements of the applicable form and include or
incorporate by reference all financial statements required by the SEC to be
filed therewith or incorporated by reference therein, and (iv) shall
comply in all respects with the requirements of Regulation S-T under the 1933
Act, and use its commercially reasonable efforts to cause such Registration
Statement to become effective and remain effective in accordance with Section 2
hereof;

 

(b)                                 prepare and
file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary under applicable law 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 (or
any similar provision then in force) under the 1933 Act and comply with the
provisions of the 1933 Act, the 1934 Act and the rules and regulations
thereunder applicable to them with respect to the disposition of all securities
covered by each Registration Statement during the applicable period;

 

(c)                                  in the case of
a Shelf Registration, (i) notify each Holder of Registrable Securities for
which the Issuer has information, at least five business days prior to filing,
that a Shelf Registration Statement with respect to the Registrable Securities
is being filed and advising such Holders that the distribution of Registrable
Securities will be made; (ii) furnish to each Holder of Registrable
Securities 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
and such other documents as such Holder or underwriter may reasonably request,
including financial statements and schedules and, if the Holder so requests,
all exhibits in order to facilitate the public sale or other disposition of the
Registrable Securities (for the avoidance of doubt, any such supplement or
amendment electronically filed with the SEC on the EDGAR system shall be deemed
furnished to the Holders of Registrable Securities); and (iii) hereby
consent to the use of the Prospectus or any amendment or supplement thereto by
each of the selling Holders of Registrable Securities in accordance with
applicable law in connection with the offering and sale of the Registrable
Securities covered by the Prospectus or any amendment or supplement thereto;

 

(d)                                 use their
commercially reasonable 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 by the time the applicable Registration
Statement is declared effective by the SEC, and do any and all other acts and
things which may be reasonably necessary or advisable to enable each such
Holder and underwriter to consummate the disposition in each such jurisdiction
of such Registrable Securities owned by such Holder; provided,
however, that the Issuer shall not be required to (i) qualify
as a foreign corporation or as a dealer in 

 

10

 

securities
in any jurisdiction where it is not then so qualified or would not otherwise be
required to qualify but for this Section 3(d), or (ii) take any
action which would subject it to general service of process or taxation in any
such jurisdiction where it is not then so subject;

 

(e)                                  notify promptly
each Holder of Registrable Securities under a Shelf Registration for which the
Issuer has information, or any Participating Broker-Dealer who has notified the
Issuer that it is utilizing the Exchange Offer Registration Statement as
provided in paragraph (f) below, and, if requested by such Holder or Participating
Broker-Dealer, confirm such advice in writing promptly (i) when a
Registration Statement has become effective and when any post-effective
amendments and supplements thereto become effective, (ii) of any request
by the SEC or any state securities authority for post-effective amendments and
supplements to a Registration Statement and Prospectus or for additional
information after the Registration Statement has become effective, (iii) 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, (iv) in the case of a Shelf
Registration, 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 Issuer contained in any underwriting
agreement, securities sales agreement or other similar agreement, if any,
relating to the offering cease to be true and correct in all material respects
(or, in the case of any representation or warranty that by its terms is
qualified by reference to materiality, a material adverse effect or any term or
concept of similar import, such representation or warranty ceases to be true in
all respects), (v) of the happening of any event or the discovery of any
facts during the period a Shelf Registration Statement is effective which makes
any statement made in such Registration Statement or the related Prospectus
untrue in any material respect or which requires the making of any changes in
such Registration Statement or Prospectus in order to make the statements
therein not misleading, (vi) of the receipt by the Issuer of any
notification with respect to the suspension of the qualification of the
Registrable Securities or the Exchange Securities, as the case may be, for sale
in any jurisdiction or the initiation or threatening of any proceeding for such
purpose and (vii) of any determination by the Issuer that a post-effective
amendment to such Registration Statement would be appropriate;

 

(f)                                    (A)  in
the case of the Exchange Offer Registration Statement (i) include in the
Exchange Offer Registration Statement a section entitled “Plan of Distribution”
which section shall contain a summary statement of the positions taken or
policies made by the staff of the SEC with respect to the potential “underwriter”
status of any broker-dealer that holds Registrable Securities acquired for its
own account as a result of market-making activities or other trading activities
and that will be the beneficial owner (as defined in Rule 13d-3 under the
1934 Act) of Exchange Securities to be received by such broker-dealer in the
Exchange Offer, whether such positions or policies have been publicly
disseminated by the staff of the SEC or such positions or policies represent
the prevailing views of the staff of the SEC, including a statement that any
such broker-dealer who receives Exchange Securities for Registrable Securities
pursuant to the Exchange Offer may be deemed a statutory underwriter and must
deliver a prospectus meeting the requirements of the 1933 Act in connection
with any resale of such Exchange Securities, (ii) furnish to each
Participating Broker-Dealer who has delivered to the Issuer the notice referred
to in Section 

 

11

 

3(e),
without charge, as many copies of each Prospectus included in the Exchange
Offer Registration Statement, including any preliminary prospectus, and any
amendment or supplement thereto, as such Participating Broker-Dealer may
reasonably request, (iii) hereby consent to the use of the Prospectus
forming part of the Exchange Offer Registration Statement or any amendment or
supplement thereto, by any Person subject to the prospectus delivery
requirements of the SEC, including all Participating Broker-Dealers, in
connection with the sale or transfer of the Exchange Securities covered by the
Prospectus or any amendment or supplement thereto, and (iv) include in the
Prospectus forming part of the Exchange Offer Registration Statement (and in
any transmittal letter or similar document to be executed by an exchange
offerree in order to participate in the Exchange Offer):  (x) the following provision:

 

“If the exchange offeree is a broker-dealer holding Registrable
Securities acquired for its own account as a result of market-making activities
or other trading activities, it will deliver a prospectus meeting the
requirements of the 1933 Act in connection with any resale of Exchange
Securities received in respect of such Registrable Securities pursuant to the
Exchange Offer”; and

 

(y) a statement to the
effect that by a broker-dealer making the acknowledgment described in clause (x) and
by delivering a Prospectus in connection with the exchange of Registrable
Securities, the broker-dealer will not be deemed to admit that it is an
underwriter within the meaning of the 1933 Act;

 

                                                (B)                                to
the extent any Participating Broker-Dealer participates in the Exchange Offer,
the Issuer (to the extent customary for such a transaction) shall use its
reasonable best efforts to cause to be delivered at the request of an entity
representing the Participating Broker-Dealers (which entity shall be one of the
Initial Purchasers, unless it elects not to act as such representative) only
one, if any, “cold comfort” letter with respect to the Prospectus in the form
existing on the last date for which exchanges are accepted pursuant to the
Exchange Offer and with respect to each subsequent amendment or supplement, if
any, effected during the period specified in clause (C) below; and

 

                                                (C)                                to
the extent any Participating Broker-Dealer participates in the Exchange Offer,
the Issuer shall use their best efforts to maintain the effectiveness of the
Exchange Offer Registration Statement for a period of 180 days following the
closing of the Exchange Offer;

 

(g)                                 in the case of
a Shelf Registration, furnish counsel for the Holders of Registrable Securities
copies of any comment letters received from the SEC or any other request by the
SEC or any state securities authority for amendments or supplements to a
Registration Statement and Prospectus or for additional information;

 

(h)                                 make
commercially reasonable efforts to obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement at the earliest
possible moment;

 

12

 

(i)                                     in the case of
a Shelf Registration, furnish to each Holder of Registrable Securities, and
each underwriter, if any, without charge, at least one conformed copy (or one
electronically reproducible conformed copy) of each Registration Statement and
any post-effective amendment thereto, including financial statements and
schedules (without documents incorporated therein by reference and all exhibits
thereto, unless requested);

 

(j)                                     in the case of
a Shelf Registration, cooperate with the selling Holders of Registrable
Securities 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 in such denominations
(consistent with the provisions of the Indenture) and registered in such names
as the selling Holders or the underwriters, if any, may reasonably request at least
three business days prior to the closing of any sale of Registrable Securities;

 

(k)                                  in the case of
a Shelf Registration, upon the occurrence of any event or the discovery of any
facts, each as contemplated by Sections 3(e)(v) and 3(e)(vi) hereof,
as promptly as practicable after the occurrence of such an event, use their
commercially reasonable efforts to prepare a supplement or post-effective
amendment to the 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 the purchasers of the Registrable
Securities or Participating Broker-Dealers, such Prospectus will not contain at
the time of such delivery any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading or will remain so
qualified.  At such time as such public
disclosure is otherwise made or the Issuer determines that such disclosure is
not necessary, in each case to correct any misstatement of a material fact or
to include any omitted material fact, the Issuer agrees as promptly as
practicable to notify each Holder of such determination and to furnish each Holder
such number of copies of the Prospectus as amended or supplemented, as such
Holder may reasonably request;

 

(l)                                     in the case of
a Shelf Registration, 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 any document which 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 on behalf of such Holders; and make representatives of the
Issuer, as shall be reasonably requested by the Holders of Registrable
Securities, or the Initial Purchasers on behalf of such Holders, available for
discussion of such document;

 

(m)                               obtain a CUSIP
number for all Exchange Securities, Private Exchange Securities or Registrable
Securities, as the case may be, not later than the effective date of a
Registration Statement, and provide the Trustee with printed certificates for
the Exchange Securities, Private Exchange Securities or the Registrable
Securities, as the case may be, in a form eligible for deposit with the
Depositary;

 

13

 

(n)                                 (i)  cause
the Indenture to be qualified under the TIA in connection with the registration
of the Exchange Securities or Registrable Securities, as the case may be, (ii) 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 TIA and (iii) execute, and use their commercially reasonable
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;

 

(o)                                 in the case of
a Shelf Registration, enter into underwriting agreements and take all other
customary and appropriate actions in order to expedite or facilitate the
disposition of such Registrable Securities and in such connection therewith:

 

(i)                   to the extent
practicable, make such representations and warranties to the Holders of such
Registrable Securities and the underwriters, if any, in form, substance and
scope as are customarily made by issuers and guarantors to Holders or
underwriters, as the case may be, in similar underwritten offerings as may be
reasonably requested by them;

 

(ii)                if requested by
any Holder or Holders of Securities being sold, obtain opinions of counsel to
the Issuer and updates thereof (which counsel and opinions (in form, scope and
substance) shall be reasonably satisfactory to the managing underwriters, if
any, and the holders of a majority in principal amount of the Registrable
Securities being sold) addressed to each selling Holder (to the extent
customary) and the underwriters, if any, covering the matters customarily
covered in opinions requested in sales of securities or underwritten offerings
and such other matters as may be reasonably requested by such Holders and
underwriters;

 

(iii)             in the case of
an underwritten offering, obtain “cold comfort” letters and updates thereof
from the Issuer’s independent certified public accountants (and, if necessary,
any other independent certified public accountants of any subsidiary of the
Issuer or of any business acquired by the Issuer for which financial statements
are, or are required to be, included in the Registration Statement) addressed
to the underwriters, if any, and use reasonable efforts to have such letter
addressed to the selling Holders of Registrable Securities (to the extent
consistent with Statement on Auditing Standards No. 72 of the American
Institute of Certified Public Accountants), such letters to be in customary
form and covering matters of the type customarily covered in “cold comfort”
letters to underwriters in connection with similar underwritten offerings;

 

(iv)            enter into a
securities sales agreement with the Holders and an agent of the Holders
providing for, among other things, the appointment of such agent for the
selling Holders for the purpose of soliciting purchases of Registrable
Securities, which agreement shall be in form, substance and scope customary for
similar offerings;

 

14

 

(v)     if an underwriting agreement
is entered into, cause the same to set forth indemnification provisions and
procedures substantially equivalent to the indemnification provisions and
procedures set forth in Section 4 hereof with respect to the underwriters
and all other parties to be indemnified pursuant to said Section or, at
the request of any underwriters, in the form customarily provided to such
underwriters in similar types of transactions; and

 

(vi)    deliver such documents and
certificates as may be reasonably requested and as are customarily delivered in
similar offerings to the Holders of a majority in principal amount of the
Registrable Securities being sold and the managing underwriters, if any.

 

The above shall be done at (i) the
effectiveness of such Shelf Registration Statement (and each post-effective
amendment thereto) and (ii) each closing under any underwriting agreement
as and to the extent required thereunder;

 

(p)           in the case of
a Shelf Registration or if a Prospectus is required to be delivered by any
Participating Broker-Dealer in the case of an Exchange Offer, make available
for inspection by representatives of the Holders of the Registrable Securities,
any lead managing underwriters participating in any disposition pursuant to a
Shelf Registration Statement, any Participating Broker-Dealer and any counsel
or accountant retained by any of the foregoing, at reasonable times and in a
reasonable manner, all financial and other records, pertinent corporate
documents and properties of the Issuer and the Guarantors reasonably requested
by any such persons, and cause the respective officers, directors, employees,
and any other agents of the Issuer to supply all information reasonably
requested by any such representative, underwriter, special counsel or
accountant in connection with a Registration Statement, and make such
representatives of the Issuer available for discussion of such documents as
shall be reasonably requested by the Initial Purchasers (subject to customary
confidentiality agreements);

 

(q)           in the case of
a Shelf Registration, a reasonable time prior to filing any Shelf Registration
Statement, any Prospectus forming a part thereof, any amendment to such Shelf
Registration Statement or amendment or supplement to such Prospectus, provide
copies of such document to the Holders of Registrable Securities, to the
Initial Purchasers, to counsel for the Holders and to the underwriter or
underwriters of an underwritten offering of Registrable Securities, if any,
make such changes in any such document prior to the filing thereof as the
Initial Purchasers, the counsel to the Holders or the underwriter or
underwriters reasonably request and, except as otherwise required by applicable
law, not file any such document in a form to which the Majority Holders, the
Initial Purchasers on behalf of the Holders of Registrable Securities, counsel
for the Holders of Registrable Securities or any underwriter shall not have
previously been advised and furnished a copy of or to which the Majority
Holders, the Initial Purchasers on behalf of the Holders of Registrable
Securities, counsel to the Holders of Registrable Securities or any underwriter
shall reasonably object, and make the representatives of the Issuer available
for discussion of such document as shall be reasonably requested by the Holders
of Registrable Securities, the 

 

15

 

Initial
Purchasers on behalf of such Holders, counsel for the Holders of Registrable
Securities or any underwriter.

 

(r)            in the case of
a Shelf Registration, use its commercially reasonable efforts to cause all
Registrable Securities to be listed on any securities exchange on which similar
debt securities issued by the Issuer are then listed if requested by the
Majority Holders, or if requested by the underwriter or underwriters of an
underwritten offering of Registrable Securities, if any;

 

(s)           in the case of
a Shelf Registration, use their commercially reasonable efforts to cause the
Registrable Securities to be rated by the appropriate rating agencies, if so
requested by the Majority Holders, or if requested by the underwriter or
underwriters of an underwritten offering of Registrable Securities, if any;

 

(t)            otherwise
comply with all applicable rules and regulations of the SEC and make
available to its security holders, as soon as reasonably practicable, an
earnings statement covering at least 12 months which shall satisfy the
provisions of Section 11(a) of the 1933 Act and Rule 158
thereunder;

 

(u)           reasonably
cooperate and assist in any filings required to be made with FINRA; and

 

(v)           upon
consummation of an Exchange Offer or a Private Exchange, obtain a customary
opinion of counsel to the Issuer addressed to the Trustee as so may be required
under the Indenture.

 

In the case of a Shelf Registration Statement, the
Issuer may (as a condition to such Holder’s participation in the Shelf
Registration) require each Holder of Registrable Securities to furnish to the
Issuer such information regarding the Holder (including, without limitation, a
customary selling holder questionnaire) and the proposed distribution by such
Holder of such Registrable Securities as the Issuer may from time to time
reasonably request in writing.

 

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

 

In the event that the Issuer fails to effect the
Exchange Offer or file any Shelf Registration Statement and maintain the
effectiveness of any Shelf Registration Statement as provided herein, the
Issuer shall not file any Registration Statement with respect to any securities

 

16

 

(within the meaning of Section 2(1) of
the 1933 Act) of the Issuer, other than Registrable Securities.

 

If any of the Registrable Securities covered by any
Shelf Registration Statement are to be sold in an underwritten offering, the
underwriter or underwriters and manager or managers that will manage such
offering will be selected by the Majority Holders of such Registrable
Securities included in such offering and shall be acceptable to the
Issuer.  No Holder of Registrable
Securities may participate in any underwritten registration hereunder unless
such Holder (a) agrees to sell such Holder’s Registrable Securities on the
basis provided in any underwriting arrangements approved by the persons
entitled hereunder to approve such arrangements and (b) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting
arrangements.  No more than one
underwritten offering may be done hereunder.

 

4.   Indemnification; Contribution.

 

(a)           The Issuer and
the Guarantors agree jointly and severally to indemnify and hold harmless the
Initial Purchasers, each Holder, each Participating Broker-Dealer, officers,
directors, partners, employees, representatives and agents of each
Participating Broker Dealer and each Person, if any, who controls any Holder
within the meaning of Section 15 of the 1933 Act or Section 20 of the
1934 Act as follows:

 

(i)            against any and
all loss, liability, claim, damage and expense whatsoever, as incurred, arising
out of any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement (or any amendment or supplement
thereto) pursuant to which Exchange Securities or Registrable Securities were
registered under the 1933 Act, including all documents incorporated therein by
reference, or the omission or alleged omission therefrom of a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or arising out of any untrue statement or alleged untrue statement
of a material fact contained in any Prospectus (or any amendment or supplement
thereto) or any Free Writing Prospectus or the omission or alleged omission
therefrom of a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading;

 

(ii)           against any and
all loss, liability, claim, damage and expense whatsoever, as incurred, to the
extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or of any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any
such settlement is effected with the written consent of the Issuer; and

 

(iii)          against any and
all expense whatsoever, as incurred (including the reasonable fees and
disbursements of counsel chosen by any indemnified party), reasonably incurred
in investigating, preparing or defending against any litigation, or 

 

17

 

any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission, to the extent that
any such expense is not paid under subparagraph (i) or (ii) above;

 

provided, however, that this
indemnity agreement shall not apply to any loss, liability, claim, damage or
expense to the extent arising out of any untrue statement or omission or
alleged untrue statement or omission made in reliance upon and in conformity
with written information furnished to the Issuer by the Holder expressly for
use in a Registration Statement (or any amendment thereto) or any Prospectus
(or any amendment or supplement thereto).

 

(b)           Each Holder
severally, but not jointly, agrees to indemnify and hold harmless the Issuer,
the Guarantors, the Initial Purchasers and the other selling Holders, and each
of their respective directors and officers, and each Person, if any, who
controls the Issuer, a Guarantor, the Initial Purchasers or any other selling
Holder within the meaning of Section 15 of the 1933 Act or Section 20
of the 1934 Act, against any and all loss, liability, claim, damage and expense
described in the indemnity contained in Section 4(a) hereof, as
incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Shelf Registration Statement (or
any amendment thereto) or any Prospectus included therein (or any amendment or
supplement thereto) or any Free Writing Prospectus in reliance upon and in
conformity with written information with respect to such Holder furnished to
the Issuer by such Holder expressly for use in the Shelf Registration Statement
(or any amendment thereto) or such Prospectus (or any amendment or supplement
thereto) or such Free Writing Prospectus; provided, however,
that no such Holder shall be liable for any claims hereunder in excess of the
amount of net proceeds received by such Holder from the sale of Registrable
Securities pursuant to such Shelf Registration Statement.

 

(c)           Each
indemnified party shall give notice as promptly as reasonably practicable to
each indemnifying party of any action or proceeding commenced against it in
respect of which indemnity may be sought hereunder, but failure so to notify an
indemnifying party shall not relieve such indemnifying party from any liability
hereunder to the extent it is not materially prejudiced as a result thereof and
in any event shall not relieve it from any liability which it may have
otherwise than on account of this indemnity agreement.  An indemnifying party may participate at its
own expense in the defense of such action; provided, however,
that counsel to the indemnifying party shall not (except with the consent of
the indemnified party) also be counsel to the indemnified party.  In no event shall the indemnifying party or
parties be liable for the reasonable fees and expenses of more than one counsel
(in addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar
or related actions in the same jurisdiction arising out of the same general
allegations or circumstances.  No
indemnifying party shall, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with
respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever
in respect of which indemnification or contribution could be sought under this Section 4
(whether or not the indemnified parties are actual or 

 

18

 

potential
parties thereto), unless such settlement, compromise or consent (i) includes
an unconditional release of each indemnified party from all liability arising
out of such litigation, investigation, proceeding or claim and (ii) does
not include a statement as to or an admission of fault, culpability or a
failure to act by or on behalf of any indemnified party.

 

(d)           If at any time
an indemnified party shall have requested an indemnifying party to reimburse
the indemnified party for reasonable fees and expenses of counsel, such
indemnifying party agrees that it shall be liable for any settlement of the
nature contemplated by Section 4(a)(ii) effected without its written
consent if (i) such settlement is entered into more than 60 days after
receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement
at least 45 days prior to such settlement being entered into and (iii) such
indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.

 

(e)           If the
indemnification provided for in this Section 4 is for any reason unavailable
to or insufficient to hold harmless an indemnified party in respect of any
losses, liabilities, claims, damages or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount of such losses,
liabilities, claims, damages and expenses incurred by such indemnified party,
as incurred, in such proportion as is appropriate to reflect the relative fault
of the Issuer and the Guarantors on the one hand and the Holders and the
Initial Purchasers on the other hand in connection with the statements or
omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations.

 

The relative fault of the Issuer and the Guarantors
on the one hand and the Holders and the Initial Purchasers on the other hand
shall be determined by reference to, among other things, whether any such
untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact relates to information supplied by the Issuer
and/or the Guarantors, the Holders or the Initial Purchasers and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

 

The Issuer, the Guarantors, the Holders and the
Initial Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section 4 were determined by pro rata
allocation (even if the Holders and/or Initial Purchasers were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to above in this Section 4.
The aggregate amount of losses, liabilities, claims, damages and expenses
incurred by an indemnified party and referred to above in this Section 4
shall be deemed to include any legal or other expenses reasonably incurred by
such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such
untrue or alleged untrue statement or omission or alleged omission.

 

Notwithstanding the provisions of this Section 4,
no Initial Purchaser shall be required to contribute any amount in excess of
the amount by which the total discount received 

 

19

 

by it in connection with its
purchase of the Securities exceeds the amount of any damages which such Initial
Purchaser has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.

 

No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the 1933 Act) shall be
entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

 

For purposes of this Section 4, each Person, if
any, who controls an Initial Purchaser or Holder within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act shall have the same rights
to contribution as such Initial Purchaser or Holder, and each director of the
Issuer or any Guarantor, and each Person, if any, who controls the Issuer or
any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20
of the 1934 Act shall have the same rights to contribution as the Issuer or
such Guarantor, as applicable.  The
Initial Purchasers’ respective obligations to contribute pursuant to this Section 6
are several in proportion to the principal amount of Securities set forth
opposite their respective names in Schedule A to the Purchase Agreement and not
joint.

 

5.   Miscellaneous.

 

5.1.  Rule 144A.  If the Issuer ceases to be required to file
reports under the 1934 Act, the Issuer covenants that it will upon the request
of any Holder of Registrable Securities (a) deliver such information to a
prospective purchaser as is necessary to permit sales pursuant to Rule 144A
under the 1933 Act, and (b) take such further action that is reasonable in
the circumstances, in each case, to the extent required from time to time to
enable such Holder to sell its Registrable Securities without registration
under the 1933 Act within the limitation of the exemptions provided by Rule 144A
under the 1933 Act, as such Rule may be amended from time to time, or any
similar rules or regulations hereafter adopted by the SEC.  Upon the request of any Holder of Registrable
Securities, the Issuer will deliver to such Holder a written statement as to
whether it has complied with such requirements.

 

5.2.  No Inconsistent Agreements.  Neither the Issuer nor any Guarantor has
entered into, and neither the Issuer nor any Guarantor will after the date of
this Agreement enter into, any agreement which is inconsistent with the rights
granted to the Holders of Registrable Securities in this Agreement or otherwise
conflicts with the provisions hereof. 
The rights granted to the Holders hereunder do not and will not for the
term of this Agreement in any way conflict with the rights granted to the holders
of the Issuer’s or any Guarantor’s other issued and outstanding securities
under any such agreements.

 

5.3.  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 Issuer has obtained the written consent of Holders of at least
a majority in aggregate principal amount of the outstanding Registrable
Securities affected by such amendment, modification, supplement, waiver or
departure.

 

20

 

5.4.  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 (a) if to a Holder, at the most current address given
by such Holder to the Issuer by means of a notice given in accordance with the
provisions of this Section 5.4, which address initially is the address set
forth in the Purchase Agreement with respect to the Initial Purchasers; and (b) if
to the Issuer or any Guarantor, initially at the Issuer’s address set forth in
the Purchase Agreement, and thereafter at such other address of which notice is
given in accordance with the provisions of this Section 5.4.

 

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

 

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

 

5.5.  Successor 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 of the terms of this Agreement, and by taking and holding
such Registrable Securities such person shall be conclusively deemed to have
agreed to be bound by and to perform all of the terms and provisions of this
Agreement, including the restrictions on resale set forth in this Agreement
and, if applicable, the Purchase Agreement, and such person shall be entitled
to receive the benefits hereof.

 

5.6.  Third Party Beneficiaries.  The Initial Purchasers (even if the Initial
Purchasers are not Holders of Registrable Securities) shall be third party
beneficiaries to the agreements made hereunder between the Issuer and the
Guarantors, on the one hand, and the Holders, on the other hand, and shall have
the right to enforce such agreements directly to the extent they deem such
enforcement necessary or advisable to protect their rights or the rights of
Holders hereunder.  Each Holder of
Registrable Securities shall be a third party beneficiary to the agreements
made hereunder between the Issuer and the Guarantors, 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 hereunder.

 

5.7.  Specific
Enforcement.  Without limiting the
remedies available to the Initial Purchasers and the Holders, the Issuer
acknowledges that any failure by the Issuer to comply with its obligations
under Sections 2.1 through 2.4 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 would 

 

21

 

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 Issuer’s
obligations under Sections 2.1 through 2.4 hereof.

 

5.8.  Restriction
on Resales.  Until the expiration of
one year after the original issuance of the Securities and the Guarantees, the
Issuer and the Guarantor will not, and will cause their “affiliates” (as such
term is defined in Rule 144(a)(1) under the 1933 Act) not to, resell
any Securities that are “restricted securities” (as such term is defined under Rule 144(a)(3) under
the 1933 Act) that have been reacquired by any of them, except pursuant to a
registered offering and shall immediately upon any purchase of any such
Securities submit such Securities to the Trustee for cancellation.

 

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

 

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

 

5.11.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO
THE PRINCIPLES OF CONFLICT OF LAWS THEREOF.

 

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

 

22

 

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

 

	
   

  	
  SYMBION, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Teresa F. Sparks

  
	
   

  	
   

  	
  Name: Teresa F. Sparks

  
	
   

  	
   

  	
  Title: Senior Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE GUARANTORS SET FORTH ON

  
	
   

  	
  SCHEDULE A HERETO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Teresa F. Sparks

  
	
   

  	
   

  	
  Name: Teresa F. Sparks

  
	
   

  	
   

  	
  Title: Vice President

  
				

 

23

 

Confirmed and accepted as

  of the date first above

  written:

 

MERRILL LYNCH, PIERCE, FENNER &
SMITH

INCORPORATED

BANC OF AMERICA SECURITIES LLC

GREENWICH CAPITAL MARKETS, INC.

 

	
  BY:

  	
  MERRILL LYNCH, PIERCE, FENNER &
  SMITH

    INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Heather Lamberton

  	
   

  
	
   

  	
   

  	
  Name: Heather Lamberton

  
	
   

  	
   

  	
  Title: Vice President

  

 

24

 

Schedule A

 

GUARANTORS

 

Ambulatory
Resource Centres Investment Company, LLC

Ambulatory
Resource Centres of Florida, Inc.

Ambulatory
Resource Centres of Massachusetts, Inc.

Ambulatory
Resource Centres of Texas, Inc.

Ambulatory
Resource Centres of Washington, Inc.

Ambulatory
Resource Centres of Wilmington, Inc.

ARC
Development Corporation

ARC
Dry Creek, Inc.

ARC
Financial Services Corporation

ASC
of Hammond, Inc

ASC
of New Albany, LLC

Houston
PSC - I, Inc.

Lubbock
Surgicenter, Inc.

Medisphere
Health Partners - Oklahoma City, Inc.

Medisphere
Health Partners Management of Tennessee, Inc.

NeoSpine
Surgery of Bristol, LLC

NeoSpine
Surgery of Nashville, LLC

NeoSpine
Surgery of Puyallup, LLC

NeoSpine
Surgery, LLC

NSC
Edmond, Inc.

Physicians
Surgical Care Management, Inc.

Physicians
Surgical Care, Inc.

Premier
Ambulatory Surgery of Duncanville, Inc.

PSC
Development Company, LLC

PSC
of New York, L.L.C.

PSC
Operating Company, LLC

Quahog
Holding Company, LLC

SARC/Asheville, Inc.

SARC/Circleville, Inc.

SARC/Columbia, Inc.

SARC/Deland, Inc.

SARC/Ft.
Myers, Inc.

SARC/FW, Inc.

SARC/Georgia, Inc.

SARC/Jacksonville, Inc.

SARC/Kent,
LLC

SARC/Knoxville, Inc.

SARC/Largo Endoscopy, Inc.

SARC/Largo, Inc.

SARC/Metairie,
Inc

SARC/Providence,
LLC

SARC/San
Antonio, LLC

SARC/Savannah, Inc.

SARC/St.
Charles, Inc.

SARC/Vincennes, Inc.

 

 

SARC/West
Houston, LLC

SARC/Worcester, Inc.

SI/Dry
Creek, Inc.

SMBI
Havertown, LLC

SMBI
Northstar, LLC

SMBI
OSE, LLC

SMBI
Portsmouth, LLC

SMBIMS
Kirkwood, LLC

SMBIMS
119, LLC

SMBIMS
Birmingham, Inc.

SMBIMS
Durango, LLC

SMBIMS
Elk River, LLC

SMBIMS
Florida I, LLC

SMBIMS
Greenville, LLC

SMBIMS
Maple Grove, LLC

SMBIMS
Novi, LLC

SMBIMS
Orange City, LLC

SMBIMS
Steubenville, Inc.

SMBIMS
Tampa, LLC

SMBIMS
Temple, LLC

SMBIMS
Tuscaloosa, Inc.

SMBIMS
Wichita, LLC

SMBISS
Arcadia, LLC

SMBISS
Beverly Hills, LLC

SMBISS
Chesterfield, LLC

SMBISS
Encino, LLC

SMBISS
Irvine, LLC

SMBISS
Roswell, LLC

SMBISS
Sandy Springs, LLC

SMBISS
Thousand Oaks, LLC

Surgicare
of Deland, Inc.

Symbion
Ambulatory Resource Centres, Inc.

Symbion
Imaging, Inc.

SymbionARC
Management Services, Inc.

SymbionARC
Support Services, LLC

Texarkana
Surgery Center GP, Inc.

UniPhy
Healthcare of Eugene/Springfield I, Inc.

UniPhy
Healthcare of Johnson City VI, LLC

UniPhy
Healthcare of Louisville, Inc.

UniPhy
Healthcare of Maine I, Inc.

UniPhy
Healthcare of Memphis I, LLC

UniPhy
Healthcare of Memphis II, Inc.

UniPhy
Healthcare of Memphis III, LLC

UniPhy
Healthcare of Memphis IV, LLC

VASC, Inc.

Village Surgicenter, Inc.EXHIBIT 4.4

 

FIRST SUPPLEMENTAL INDENTURE

 

SUPPLEMENTAL
INDENTURE (this “Supplemental Indenture”), dated as of September 18, 2008,
among Northstar Hospital, LLC (the “Guaranteeing Subsidiary”), an indirect
subsidiary of Symbion, Inc., a Delaware corporation (the “Issuer”), the
Issuer and U.S. Bank National Association, as trustee under the Indenture
referred to below (the “Trustee”).

 

WITNESSETH

 

WHEREAS,
the Issuer has heretofore executed and delivered to the Trustee an indenture
(the “Indenture”), dated as of June 3, 2008, providing for the issuance of
11.00%/11.75% Senior PIK Toggle Notes due 2015 (the “Notes”);

 

WHEREAS,
the Indenture provides that under certain circumstances the Guaranteeing
Subsidiary shall execute and deliver to the Trustee a supplemental indenture
pursuant to which the Guaranteeing Subsidiary shall irrevocably and
unconditionally guarantee all of the Issuer’s Obligations under the Notes and
the Indenture on the terms and conditions set forth herein (the “Subsidiary
Guarantee”); and

 

WHEREAS,
pursuant to Section 9.01 of the Indenture, the Trustee is authorized to
execute and deliver this Supplemental Indenture.

 

NOW
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing
Subsidiary and the Trustee mutually covenant and agree for the equal and
ratable benefit of the Holders of the Notes as follows:

 

1.                                       CAPITALIZED TERMS.  Capitalized terms used herein without
definition shall have the meanings assigned to them in the Indenture.

 

2.                                       AGREEMENT TO GUARANTEE.  The Guaranteeing Subsidiary hereby agrees to
pro-vide an unconditional Guarantee on the terms and subject to the conditions
set forth in the Subsidiary Guarantee and in this Indenture including but not
limited to Article 11 thereof.

 

3.                                       NO RECOURSE AGAINST OTHERS.  No past, present or future director, officer,
employee, incorporator, stockholder or agent of the Guaranteeing Subsidiary, as
such, shall have any liability for any obligations of the Issuer or any
Guaranteeing Subsidiary under the Notes, any Subsidiary Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation.  Each Holder of the Notes by accepting a Note
waives and releases all such liability. 
The waiver and release are part of the consideration for issuance of the
Notes.  Such waiver may not be effective
to waive liabilities under the federal securities laws and it is the view of
the SEC that such a waiver is against public policy.

 

4.                                       NEW YORK LAW TO GOVERN.  THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

5.                                       COUNTERPARTS. 
The parties may sign any number of copies of this Supplemental
In-denture.  Each signed copy shall be an
original, but all of them together represent the same agreement.

 

6.                                       EFFECT OF HEADINGS.  The Section headings herein are for
convenience only and shall not affect the construction hereof.

 

 

7.                                       THE TRUSTEE. 
The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture or for or
in respect of the recitals contained herein, all of which recitals are made
solely by the Guaranteeing Subsidiary and the Issuer.

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to
be duly executed and attested, all as of the date first above written.

 

Dated:   September 18,
2008

 

 

	
   

  	
  NORTHSTAR
  HOSPITAL, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  SMBI
  Northstar, LLC, the sole member

  
	
   

  	
   

  	
  of
  Northstar Hospital, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Teresa F. Sparks

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Teresa
  F. Sparks

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SYMBION,
  INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Teresa F. Sparks

  
	
   

  	
   

  	
  Name:

  	
  Teresa
  F. Sparks

  
	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Chief

  
	
   

  	
   

  	
   

  	
  Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION,

  
	
   

  	
    as
  Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Donna Williams

  
	
   

  	
  Name:

  	
  Donna
  Williams

  
	
   

  	
  Title:

  	
  Vice
  President

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