Document:

Exhibit 4(b)

 

FORM OF 7% CONVERTIBLE SENIOR SUBORDINATED NOTE DUE
2025

 

 

QUIXOTE CORPORATION

 

 

[FORM OF FACE OF NOTE]

 

 

[THE
FOLLOWING PARAGRAPH SHALL APPEAR ON THE FACE OF EACH RESTRICTED NOTE.]

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES
LAWS.  THIS SECURITY MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OR
APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION THEREFROM.  THIS SECURITY MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY THIS SECURITY.

 

[THE
COMPANY MAY, BUT IS NOT OBLIGATED TO, INSTRUCT THE TRUSTEE TO PLACE THE
FOLLOWING PARAGRAPH ON THE FACE OF EACH NOTE HELD BY OR TRANSFERRED TO AN “AFFILIATE”
(AS DEFINED IN RULE 501(B) OF REGULATION D UNDER THE SECURITIES ACT) OF THE
COMPANY:]

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE HELD BY A PERSON WHO MAY BE
DEEMED TO BE AN AFFILIATE OF THE ISSUER FOR PURPOSES OF RULE 144 PROMULGATED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY BE
SOLD ONLY IN COMPLIANCE WITH RULE 144, PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A VALID EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT. 
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN SECURED BY THE SECURITIES.

 

 

[THE
FOLLOWING PARAGRAPH SHALL APPEAR ON THE FACE OF EACH GLOBAL NOTE.]

 

THIS
GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT
TO SECTION 2.6 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.5(b) OF THE INDENTURE, (III)
THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.8
OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

THIS
CONVERTIBLE SENIOR SUBORDINATED NOTE DUE 2025 (THE “NOTE”) AND ANY AND ALL
PAYMENTS HEREUNDER ARE SUBORDINATED PURSUANT TO THE TERMS OF ARTICLE IV OF
THAT INDENTURE, DATED AS OF FEBRUARY 9, 2005, BETWEEN THE COMPANY, AS
ISSUER, AND LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE (THE “INDENTURE”).  ALL PAYMENTS OF INDEBTEDNESS EVIDENCED BY
THIS NOTE, INCLUDING, WITHOUT LIMITATION, PAYMENTS OF THE PRINCIPAL, INTEREST,
THE CONVERSION PRICE, THE COMPANY CONVERSION PROVISIONAL PAYMENT, ANY
REDEMPTION PRICE, THE REPURCHASE PRICE, LIQUIDATED DAMAGES, FEES, EXPENSES AND
ALL OTHER AMOUNTS DUE THEREUNDER ARE SUBORDINATED TO PAYMENT OF THE SENIOR
INDEBTEDNESS AS DEFINED IN SECTION 4.1 OF THE INDENTURE, INCLUDING,
WITHOUT LIMITATION, ALL SENIOR FACILITY INDEBTEDNESS NOW OR HEREAFTER OWING BY
THE COMPANY TO THE NORTHERN TRUST COMPANY, AS ADMINISTRATIVE AGENT, FOR THE
BENEFIT OF LENDERS (THE “AGENT”), AND THE LENDERS AS PARTIES TO THAT CERTAIN
CREDIT AGREEMENT, DATED AS OF MAY 16, 2003, AS AMENDED, AMONG THE COMPANY, THE
AGENT AND SUCH LENDERS.

 

	
  No.

  	
   

  	
   

  	
  $

  

 

QUIXOTE CORPORATION

 

7% Convertible Senior Subordinated Note due 2025

 

CUSIP No. [                      ]

 

Quixote Corporation, a
corporation duly organized and validly existing under the laws of the State of
Delaware (herein called the “Company”, which term includes any successor
corporation under the Indenture referred to on the reverse hereof), for value
received hereby

 

 

promises
to pay to
               ,
or registered assigns, the principal sum of
           United States
Dollars on February 15, 2025 and to pay interest on said principal sum
semi-annually on February 15 and August 15 of each year (each, an “Interest
Payment Date”), commencing August 15, 2005, at the rate per annum
specified in the title of this Note, accrued from February 9, 2005.  The interest so payable on any February 15
or August 15 will be paid to the person in whose name this Note, or
portion thereof (or one or more Predecessor Notes) is registered at the close
of business on the record date, which shall be the 4th day of the month in
which the Interest Payment Date shall occur, whether or not such date is a
Business Day; provided that any such interest not punctually paid or duly
provided for shall be payable as provided in the Indenture.  Payment of the principal of and interest
accrued on this Note (including Liquidated Damages, if any) shall be made at
the office or agency of the Company maintained for that purpose, which shall be
the Corporate Trust Office of the Trustee, or at any other office or agency permitted
by the Indenture, in such lawful money of the United States of America as at
the time of payment shall be legal tender for the payment of public and private
debts; provided further, however, that, with respect to any holder of Notes
with an aggregate principal amount equal to or in excess of Five Hundred
Thousand United States Dollars ($500,000), interest on such holder’s Notes
shall be paid by wire transfer in immediately available funds in accordance
with the written wire transfer instruction supplied by such holder from time to
time to the Trustee and paying agent (if different from the Trustee) at least
five (5) Business Days prior to the applicable record date.

 

Reference is made to the
further provisions of this Note set forth on the reverse hereof, including,
without limitation, provisions giving a holder of this Note the right to
convert this Note into Common Stock of the Company on the terms and subject to
the limitations referred to on the reverse hereof and as more fully specified
in the Indenture.  Such further
provisions shall for all purposes have the same effect as though fully set
forth at this place.

 

This Note shall be deemed
to be a contract made under the laws of the State of New York, and for all
purposes shall be construed in accordance with and governed by the laws of said
State.

 

This Note shall not be
valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been manually signed by the Trustee or a duly
authorized authenticating agent under the Indenture.

 

 

IN WITNESS WHEREOF, the
Company has caused this Note to be duly executed.

 

 

	
   

  	
  QUIXOTE
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  [Name,
  Title]

  
	
   

  
	
   

  
	
  Attest:

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [Name,
  Title]

  
	
   

  
	
   

  
	
  TRUSTEE’S
  CERTIFICATE OF AUTHENTICATION

  
	
   

  
	
  LASALLE
  BANK NATIONAL ASSOCIATION,

  
	
   

  
	
  as
  Trustee, certifies that this is one of the Notes described

  in the within-named Indenture.

  
	
   

  
	
   

  
	
  Dated:

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
					

 

 

[FORM OF REVERSE OF NOTE]

 

 

QUIXOTE CORPORATION

 

7% Convertible Senior Subordinated Note due 2025

 

This Note is one of a
duly authorized issue of Notes of the Company, designated as its 7% Convertible
Senior Subordinated Notes due 2025 (herein called the “Notes”), initially
limited to the aggregate principal amount of Forty Million United States
Dollars ($40,000,000), all issued or to be issued under and pursuant to an
Indenture dated as of February 9, 2005 (herein called the “Indenture”),
between the Company and LaSalle Bank National Association (herein called the “Trustee”),
to which the Indenture and all indentures supplemental thereto reference is
hereby made for a description of the rights, limitations of rights,
obligations, duties and immunities thereunder of the Trustee, the Company and
the holders of the Notes.  Additional
Notes may be issued in an unlimited aggregate principal amount, subject to
certain conditions specified in the Indenture. All capitalized terms used
herein without definition shall have the meaning set forth in the Indenture.

 

In case an Event of
Default, as defined in the Indenture, shall have occurred and be continuing,
the principal of, premium, if any, and accrued interest on all Notes may be
declared, and upon said declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions provided in the
Indenture.  Liquidated damages paid
pursuant to Section 15.2 of the Indenture, if any, shall be paid within
ten (10) Business Days of the date from which such liquidated damages accrued
pursuant to Section 15.2. 
Liquidated Damages on the Notes paid pursuant to Section 2(f) of
the Registration Rights Agreement, if any, shall be paid at the times and in
the manner provided therein.

 

The Indenture contains
provisions permitting the Company and the Trustee in certain limited
circumstances, without the consent of the holders of the Notes, and in other
circumstances, with the consent of the holders of not less than a majority in
aggregate principal amount of the Notes at the time outstanding, evidenced as
in the Indenture provided, to execute amendments to the Indenture or
supplemental indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental
indenture or modifying in any manner the rights of the holders of the Notes;
provided, however, that no such amendment or supplemental indenture shall
(i) extend the fixed maturity of any Note, or reduce the rate or extend
the time of payment of interest thereon, or reduce the principal amount thereof
or premium, if any, thereon, or reduce any amount payable on redemption or
repurchase thereof, impair, or change in any respect adverse to the holder of
Notes, the obligation of the Company to repurchase any Note at the option of
the holder in accordance with Article XVI of the Indenture, or impair or
adversely affect the right of any Noteholder to institute suit for the payment
thereof, or change the currency in which the Notes are payable, or impair or
change in any respect adverse to the Noteholders the right to convert the Notes
into Common Stock subject to the terms set forth herein, including Section 15.7,
without the consent of the holder of each Note so affected, or (ii) reduce
the aforesaid percentage of Notes, the holders of

 

 

which
are required to consent to any such supplemental indenture, without the consent
of the holders of all Notes then outstanding.

 

It is also provided in
the Indenture that the holders of not less than a majority in aggregate
principal amount of the Notes at the time outstanding may on behalf of the holders
of all of the Notes waive any past default or Event of Default under the
Indenture and its consequences except (i) a default in the payment of interest
or premium, if any, on, or the principal of, the Notes when due, (ii) a failure
by the Company to convert any Notes into Common Stock or (iii) a default in
respect of a covenant or provisions of the Indenture which under Article XI
thereof cannot be modified or amended without the consent of the holders of all
Notes then outstanding.  Any such consent
or waiver by a holder of this Note (unless revoked as provided in the
Indenture) shall be conclusive and binding upon such holder and upon all future
holders and owners of this Note and any Notes which may be issued in exchange
or substitution hereof, irrespective of whether any notation thereof is made
upon this Note or such other Notes.

 

The payment of principal
of, premium, if any, and interest on the Notes will be subordinated in right of
payment to the prior payment in full of Senior Indebtedness as set forth in Article IV
of the Indenture.

 

Interest on the Notes
shall be computed on the basis of a 360-day year comprised of twelve 30-day
months.

 

The Notes are issuable in
registered form without coupons in denominations of One Thousand United States
Dollars ($1,000) principal amount and integral multiples thereof.  At the office of Trustee or the Company
referred to on the face hereof, and in the manner and subject to the
limitations provided in the Indenture, without payment of any service charge
but with payment of a sum sufficient to cover any tax, assessments or other
governmental charges that may be imposed in connection with any registration or
exchange of Notes, Notes may be exchanged for a like aggregate principal amount
of Notes of other authorized denominations.

 

From and after February 20,
2008, except as provided in Section 3.1 of the Indenture, the Company may,
at its option, redeem all or any part of the Notes, upon notice as set forth in
the Indenture, and the Company shall pay each holder of Notes redeemed a
redemption price equal to the principal amount of such Notes, plus accrued and
unpaid interest thereon, if any, to, but excluding, the date of redemption.

 

If such notice of
redemption has been given as provided in the Indenture, the Notes or portion of
Notes called for redemption shall, unless converted into Common Stock pursuant
to the terms of the Indenture, become due and payable on the date and at the
place or places stated in such notice at the applicable redemption price and interest
accrued to, but excluding, the date fixed for redemption, and on and after such
date (unless the Company shall default in the payment of such Notes at the
redemption price and interest accrued to, but excluding, said date) interest on
the Notes or portion of Notes so called for redemption shall cease to accrue
and such Notes shall cease after the close of business on the Business Day next
preceding the date fixed for redemption to be convertible into Common Stock
and, except as provided in Sections 8.5 and 13.4 of the Indenture, to be
entitled to any benefit or security under the Indenture, and the holders of
such Notes shall have no right in respect of such Notes except the right to
receive the

 

 

redemption
price and unpaid interest to, but excluding, the date fixed for
redemption.  On presentation and
surrender of such Notes at a place of payment specified in such notice, such
Notes or the specified portions thereof to be redeemed shall be paid and
redeemed by the Company at the applicable redemption price and interest accrued
thereon to, but excluding, the date fixed for redemption; provided that, if the
applicable redemption date is an Interest Payment Date, then the semi-annual
payment of interest becoming due on such date shall be payable to the holders
of such Notes registered as such on the relevant record date subject to the
terms and provisions of Section 2.3 of the Indenture.

 

The Notes are not subject
to redemption through the operation of any sinking fund.

 

Upon the occurrence of a “Repurchase
Event,” the Noteholder has the right, at such holder’s option, to require the
Company to repurchase all or any portion of such holder’s Notes or any portion
thereof (in the principal amounts of One Thousand United States Dollars
($1,000) or integral multiples thereof) on the 40th calendar day (or, if such
40th day is not a Business Day, the next succeeding Business Day) after notice
of such Repurchase Event at a price equal to 100% of the principal amount of
the Notes such holder elects to require the Company plus accrued interest to
the date fixed for repurchase (the ‘Repurchase Price”); provided that if such
Repurchase Date is an Interest Payment Date, then the semi-annual payment of
interest becoming due on such date shall be payable to the holders of such
Notes registered as such on the relevant record date subject to the terms and
provisions of Section 2.3 of the Indenture.  Notes shall be purchased by the Company at
the option of the holder on February 15, 2010, February 15, 2015 and February 15,
2020 (each, also a “Repurchase Date”), at the Repurchase Price. If a redemption
date pursuant to Article III of the Indenture shall occur prior to any
Repurchase Date established pursuant to a Company Notice under Section 16.2
of the Indenture, provided that the Company shall have deposited or set aside
an amount of money sufficient to redeem such Notes as set forth in Section 3.2
of the Indenture on or before such Repurchase Date, all such Notes shall be
redeemed pursuant to Article III of the Indenture and the repurchase
rights under Article XVI of the Indenture shall have no effect.

 

Subject to the provisions
of the Indenture, the holder hereof has the right, at its option, at any time
following the date of original issuance of the Notes and prior to the close of
business on February 15, 2025 (except that, with respect to any Note or
portion of a Note that shall be called for redemption, such right shall
terminate, except as otherwise provided in the Indenture, at the close of
business on the Business Day next preceding the date fixed for redemption
unless the Company shall default in payment due upon redemption), to convert
the principal hereof or any portion of such principal which is One Thousand
United States Dollars ($1,000) or an integral multiple thereof, into that
number of fully paid and non-assessable shares of the Company’s Common Stock,
as said shares shall be constituted at the date of conversion, obtained by
dividing the principal amount of this Note or portion thereof to be converted
by the conversion price of $25.90 or such conversion price as adjusted from
time to time as provided in the Indenture, upon surrender of this Note,
together with a conversion notice as provided in the Indenture and this Note,
to the Company at the office or agency of the Company maintained for that
purpose, which shall be the Corporate Trust Office of the Trustee, or at any
other office or agency permitted by the Indenture, and, unless the shares
issuable on conversion are to be issued in the same name as this Note, duly
endorsed by, or accompanied by instruments of transfer in form satisfactory to
the Company duly executed by, the holder or by his duly authorized

 

 

attorney.  The Company shall pay in cash, on this Note
or portion thereof surrendered for conversion during the period from the close
of business on any Interest Payment Date to which interest has been fully paid
through the close of business on the Business Day preceding the record date for
the next such Interest Payment Date, accrued and unpaid interest, if any, to,
but excluding, the date of conversion. 
Any such payment of interest shall be made with ten (10) Business Days
after the Conversion Date. 
Notwithstanding the foregoing, if this Note shall be surrendered for
conversion during the period from the close of business on any record date for
any Interest Payment Date through the close of business on the Business Day
next preceding such Interest Payment Date, the holder (unless the Note or the
portion thereof being converted shall have been called for redemption pursuant
to a redemption notice sent to the Noteholders in accordance with Section 3.2
of the Indenture or shall have become due prior to such Interest Payment Date
as a result of exercise of the repurchase right set forth in Article XVI
of the Indenture) must, at the time of conversion of the Note, pay by wire
transfer of immediately available funds or other funds acceptable to the
Company, an amount equal to the interest otherwise payable on such Interest
Payment Date on the principal amount being converted; provided, however, that
no such payment need be made if there shall exist at the time of conversion a
default in the payment of interest on the Notes.  No fractional shares of Common Stock will be
issued upon any conversion, but an adjustment in cash will be paid to the
holder, as provided in the Indenture, in respect of any fraction of a share
which would otherwise be issuable upon the surrender of any Note or Notes for
conversion.

 

The Company may, at its
option, subject to satisfaction of certain conditions set forth in Section 15.3
of the Indenture, automatically convert all or a portion of the Notes (an “Automatic
Conversion”) at any time prior to February 15, 2025
if the Closing Price (as defined in the Indenture) per share of the Common
Stock has exceeded one hundred and fifty percent (150%) of the Conversion Price
then in effect for at least twenty (20) Trading Days within a period of thirty
(30) consecutive Trading Days ending within the thirty (30) Trading Days prior
to the date the Company gives to all holders of Notes a notice specifying the
date on which an Automatic Conversion will become effective.  If the effective date of an Automatic
Conversion is prior to February 15, 2008, the Company shall make
an additional payment in cash or, under certain circumstances, in shares of
Common Stock, to each holder of Notes with respect to the Notes converted, in
an amount equal to $210 per each One Thousand United States
Dollars ($1,000) principal amount of the Note (the “Company Conversion Provisional
Payment”), less the amount of any interest actually paid on the portion of the
principal amount of the Note to be converted prior to the effective date of the
Automatic Conversion (and, if the Note is converted between a record date and
the next Interest Payment Date, less interest payable on each One Thousand
United States Dollars ($1,000) principal amount of the Note on such next
Interest Payment Date). Common Stock used to pay any Company Conversion
Provisional Payment shall be valued at ninety-five percent (95%) of the average
Closing Price of the Common Stock for each of the five Trading Days immediately
preceding the second Trading Day prior to the Conversion Date.

 

Unless the Company shall
have theretofore called for redemption all of the Notes then outstanding, if
the Company elects to convert all or a portion of the Notes pursuant to its
Automatic Conversion right, the Company, or at its request (which must be
received by the Trustee at least five (5) Business Days prior to the date the Trustee
is requested to give notice as described below unless a shorter period is
agreed to by the Trustee), the Trustee in the name of

 

 

and at
the expense of the Company, shall send or cause to be sent a notice of the
Automatic Conversion not more than thirty (30) days but not less than five (5)
days before the date of effectiveness of the Automatic Conversion as set forth
in the Indenture.  In case the Notes are
to be converted in part only, the notice shall state the portion of the
principal amount thereof to be converted and shall state that on and after the
effective date of the Automatic Conversion, upon surrender of such Note, a new
Note or Notes in principal amount equal to the unconverted portion thereof will
be issued.

 

In connection with any
redemption of Notes, the Company may arrange for the purchase and conversion of
any Notes not converted prior to the expiration of such conversion right by an
agreement with one or more investment bankers or other purchasers to purchase
such Notes by paying to the Trustee in trust for the Noteholders, on or before
the date fixed for redemption, an amount not less than the applicable
redemption price and interest accrued to the date fixed for redemption, of such
Notes.

 

[INCLUDE
EITHER OF THE FOLLOWING PARAGRAPHS ONLY BASED UPON HOLDER’S ELECTION UNDER
SECTION 2(k) OF THE SECURITIES PURCHASE AGREEMENT]
[Conversion Limitation.   The holder hereby agrees that in no
event will it convert, and the Company will not honor any conversion request
presented to it that requests the conversion of, any of the Notes in excess of
the number of such Notes upon the conversion of which (x) the number of shares
of Common Stock beneficially owned by such holder (other than the shares which
would otherwise be deemed beneficially owned except for being subject to a
limitation on conversion analogous to the limitation contained in this
paragraph) plus (y) the number of shares of Common Stock issuable upon the
conversion of such Notes would be equal to or exceed 9.99% of the number of shares
of Common Stock then issued and outstanding (after giving effect to such
conversion), it being the intent of the Company and the holder that the holder
not be deemed at any time to have the power to vote or dispose of greater than
9.99% of the number of shares of Common Stock issued and outstanding.  As used herein, beneficial ownership shall be
determined in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). 
To the extent that the limitation contained in this paragraph applies
(and without limiting any rights the Company may otherwise have), the Company
may rely on the holder’s determination of whether the Notes are convertible
pursuant to the terms hereof, the Company having no obligation whatsoever to
verify or confirm the accuracy of such determination, and the submission of the
Conversion Notice by the holder shall be deemed to be the holder’s
representation that the Notes specified therein are convertible pursuant to the
terms hereof.  Nothing contained herein
shall be deemed to restrict the right of a holder to convert the Notes at such
time as the conversion thereof will not violate the provisions of this
paragraph.]

 

[Each holder hereby agrees that in no event will it
convert, and the Company will not honor any conversion request presented to it
that requests the conversion of, any of the Notes in excess of the number of
such Notes upon the conversion of which (x) the number of shares of Common
Stock beneficially owned by such holder (other than the shares which would
otherwise be deemed beneficially owned except for being subject to a limitation
on conversion analogous to the limitation contained in this paragraph) plus (y)
the number of shares of Common Stock issuable upon the conversion of such
Notes, would be equal to or exceed 4.99% of the number of shares of Common
Stock then issued and outstanding (after giving effect to such conversion), it

 

 

being the intent of the Company and the holder that
the holder not be deemed at any time to have the power to vote or dispose of
greater than 4.99% of the number of shares of Common Stock issued and
outstanding.  As used herein, beneficial
ownership shall be determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”).  To the extent that the limitation contained
in this paragraph applies (and without limiting any rights the Company may
otherwise have), the Company may rely on the holder’s determination of whether
the Notes are convertible pursuant to the terms hereof, the Company having no
obligation whatsoever to verify or confirm the accuracy of such determination,
and the submission of the Conversion Notice by the holder shall be deemed to be
the holder’s representation that the Notes specified therein are convertible
pursuant to the terms hereof.  Nothing
contained herein shall be deemed to restrict the right of a holder to convert
the Notes at such time as the conversion thereof will not violate the provisions
of this paragraph. ]

 

Upon due presentment for
registration of transfer of this Note and any other documents as may be
required to be delivered by the Indenture at the office or agency of the
Company which shall be the Corporate Trust Office of the Trustee, or at any
other office or agency permitted by the Indenture, a new Note or Notes of
authorized denominations for an equal aggregate principal amount will be issued
to the transferee in exchange thereof, subject to the requirements and
limitations provided in the Indenture, without charge except for any tax or
other governmental charge imposed in connection therewith.

 

The Company, the Trustee,
any authenticating agent, any paying agent, any conversion agent and any Note
Registrar may deem and treat a registered holder hereof as the absolute owner
of this Note (whether or not this Note shall be overdue and notwithstanding any
notation of ownership or other writing hereon), for the purpose of receiving
payment hereof (including Liquidated Damages to the extent accrued but unpaid),
or on account hereof, for the conversion hereof and for all other purposes; and
neither the Company nor the Trustee nor any other authenticating agent nor any
paying agent nor any other conversion agent nor any Note Registrar shall be
affected by any notice to the contrary. 
All such payments so made to, or upon the order of, such registered
holder for the time being shall be valid, and, to the extent of the sum or sums
so paid, effectual to satisfy and discharge the liability for monies payable on
this Note.

 

No direct or indirect
partner, employee, incorporator, stockholder, director or officer, as such,
past, present or future of the Company or any successor corporation or any
Subsidiary or any of the Company’s Affiliates, shall have any personal
liability in respect of the obligations of the Company under this Note by
reason of his, her or its status as such partner, employee, incorporator,
stockholder, director or officer.  The
holder hereof by accepting this Note waives and releases all such
liability.  Such waiver and release are
part of the consideration for the issuance of this Note.

 

 

ABBREVIATIONS

 

The following
abbreviations, when used in the inscription of the face of this Note, shall be
construed as though they were written out in full according to applicable laws
or regulations:

 

	
  TEN COM - as tenants in common

  	
  UNIF
  GIFT MIN ACT -

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Custodian

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Cust)

  	
   

  
	
   

  	
   

  
	
  TEN ENT - as tenants by the entireties

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Minor)

  	
   

  
	
   

  	
   

  	
   

  
	
  JT TEN - as joint tenants with right

  	
   

  
	
  of survivorship and not as tenants

  	
  Uniform
  Gifts to Minors Act

  	
   

  	
   

  
	
  in common

  	
   

  	
  (State)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Additional abbreviations may also be used though not
  in the above list.

  
						

 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The following exchanges of a part of this Global Note
for an interest in another Global Note or for a Definitive Note, or exchanges
of a part of another Global Note or Definitive Note for an interest in this
Global Note, have been made:

 

	
  Date
  of Exchange

  	
   

  	
  Amount of decrease in

  Principal Amount of

  this Global Note

  	
   

  	
  Amount of increase in

  Principal Amount of

  this Global Note

  	
   

  	
  Principal Amount

  of this Global Note

  following such

  decrease (or increase)

  	
   

  	
  Signature of authorized

  officer of Trustee or

  Note CustodianExhibit 4(c)

 

 

 

QUIXOTE CORPORATION

 

as the Company

 

 

and

 

 

BUYERS,

 

as defined herein

 

 

REGISTRATION RIGHTS AGREEMENT

 

 

Dated as of February 9, 2005

 

 

 

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT
(this “Agreement”), is entered into as of February 9, 2005, by and among
Quixote Corporation, a Delaware 
corporation (the “Company”), and the buyers listed on the Schedule of
Buyers attached hereto as Exhibit A (each, a “Buyer” and, collectively,
the “Buyers”).

 

THE PARTIES TO THIS AGREEMENT
enter into this agreement on the basis of the following facts, intentions and
understanding:

 

A.                                    The
Company and the Buyers entered into that certain Securities Purchase Agreement
of even date herewith (the “Securities Purchase Agreement”), and, upon the
terms and subject to the conditions of the Securities Purchase Agreement, the
Company has agreed (i) to issue and sell to the Buyers an aggregate of up
to Forty Million United States Dollars ($40,000,000) of the Company’s 7%
Convertible Senior Subordinated Notes due 2025 (such Convertible Senior
Subordinated Notes, as the same may be amended, modified or supplemented from
time to time in accordance with the terms thereof, the “Notes”), which shall be
convertible into shares of common stock, $0.012/3 par value
per share (the “Common Stock”) of the Company (as converted, the “Conversion
Shares”).

 

B.                                    To
induce the Buyers to execute and deliver the Securities Purchase Agreement, the
Company has agreed to provide certain registration rights to the Buyers under
the Securities Act of 1933, as amended, and the rules and regulations
thereunder, or any similar successor statute (collectively, the “Securities Act”),
and applicable state securities laws.

 

NOW, THEREFORE, in consideration
of the promises and the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and each of the Buyers hereby agree as follows:

 

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

 

(a)                 “Business
Day” means any day other than Saturday, Sunday or any other day on which
commercial banks in The City of New York are required by law or executive order
to remain closed.

 

(b)                “Commission”
means the Securities and Exchange Commission.

 

(c)                 “Investor”
means each Buyer and any transferee or assignee thereof to whom a Buyer assigns
its rights under this Agreement and who agrees to become bound by the
provisions of this Agreement in accordance with Section 9 of this Agreement, and
any subsequent transferee or assignee thereof to whom a transferee or assignee
assigns its rights under this Agreement and who agrees to become bound by the
provisions of this Agreement in accordance with Section 9 of this Agreement.

 

 

(d)                “Person”
means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization or association
and governmental or any department or agency thereof.

 

(e)                 “register,”
“registered,” and “registration” means a registration effected by preparing and
filing one or more Registration Statements (as defined below) in compliance
with the Securities Act and pursuant to Rule 415 under the Securities Act or
any successor rule providing for offering securities on a continuous or delayed
basis (“Rule 415”), and the declaration or ordering of effectiveness of such
Registration Statements by the Commission.

 

(f)                   “Registrable
Securities” means (i) the Notes, (ii) the Conversion Shares issued or issuable
upon conversion of the Notes and (iii) any shares of capital stock issued or
issuable with respect to the Conversion Shares as a result of any stock split,
stock dividend, recapitalization, exchange or similar event or otherwise,
without regard to any limitations on conversions of the Notes, and (vi) any
shares of capital stock of any entity issued in respect of the securities
referenced in the immediately preceding clauses (i), (ii), (iii), (iv) and (v)
as a result of a merger, consolidation, sale of assets, sale or exchange of
capital stock or other similar transaction; provided, that any Registrable
Securities that have been sold pursuant to a Registration Statement or Rule 144
promulgated under the Securities Act shall no longer be Registrable Securities.

 

(g)                “Registration
Statement” means a registration statement or registration statements of the
Company filed under the Securities Act and, subject to Section 4(b),
covering all of the Registrable Securities.

 

(h)                Capitalized
terms used herein and not otherwise defined herein shall have the respective
meanings set forth in the Securities Purchase Agreement.

 

SECTION 2.                Registration.

 

(a)                 Mandatory
Registration.  The Company shall use
its best efforts to prepare and, as soon as practicable but in no event later
than 30 calendar days after the Closing Date (as that term is defined in the
Securities Purchase Agreement) (the “Filing Deadline”), file with the
Commission a Registration Statement on Form S-3 covering the resale of all of
the Registrable Securities.  In the event
that Form S-3 is unavailable for such a registration, the Company shall use
such other form as is available for such a registration, subject to the
provisions of Section 2(d) of this Agreement.  The Registration Statement prepared pursuant
hereto shall register the Registrable Securities for resale, including at least
105% of the number of shares of Common
Stock issuable upon conversion of the Notes by the Investors from time to time
in accordance with the methods of distribution elected by such Investors or
such other amount as required by Section 4(e) of the Securities Purchase
Agreement.  The Company shall use its
reasonable best efforts to have the Registration Statement declared effective
by the Commission as soon as practicable, but not later than 90 calendar days
after the Closing Date (the “Effectiveness Deadline”); provided, however, that
if the Commission reviews the Registration Statement and requires the Company
to make modifications thereto, then the Effectiveness Deadline shall be
extended to 120 calendar days after the Closing Date.  In the event that, after the Closing Date and
before the Registration Statement is declared effective, the offices of the
Commission are

 

2

 

closed due to acts of God, war or
terror, the Effectiveness Deadline will be extended by a number of days equal
to the days of any such closure.

 

(b)                Allocation
of Registrable Securities. The initial number of Conversion Shares included
in any Registration Statement and each increase in the number of Conversion
Shares included therein shall be allocated pro rata among the Investors based
on the number of Conversion Shares (determined as if all of the Notes held by
Investors then outstanding have been converted into Conversion Shares without
regard to any limitations on conversion of the Notes) held by each Investor at
the time the Registration Statement covering such initial number of Conversion
Shares or increase thereof is declared effective by the Commission.  In the event that an Investor sells or
otherwise transfers any of such Investor’s Registrable Securities, each
transferee shall be allocated the portion of the then remaining number of
Registrable Securities included in such Registration Statement allocable to the
transferor.  In no event shall the
Company include any securities other than Registrable Securities on any
Registration Statement without the prior written consent of the Investors
holding at least a majority of the Conversion Shares, determined as if all of
the Notes held by Investors then outstanding have been converted into
Conversion Shares without regard to any limitations on conversion of the Notes.

 

(c)                 Legal
Counsel.  Subject to Section 5
of this Agreement, the Investors holding at least a majority of the Conversion
Shares, determined as if all of the Notes held by Investors then outstanding
have been converted into Conversion Shares without regard to any limitations on
conversion of the Notes, shall have the right to select one legal counsel to
review and comment upon any registration pursuant to this Agreement (the “Legal
Counsel”), which the Investors agree shall be Schulte Roth & Zabel LLP or
such other counsel as is thereafter designated in writing by the holders of at
least a majority of the Conversion Shares, determined as set forth above.  Schulte Roth & Zabel LLP, or any other
counsel designated in writing by the holders of at least a majority of the
Conversion Shares, shall not represent any Investor that sends such counsel
written notice that such Investor does not wish such counsel to represent it in
connection with the matters discussed in this Section 2(c).  The Investors, other than any Investor that
delivers the notice discussed in the preceding sentence, hereby waive any
conflict of interest or potential conflict of interest that may arise as a
result of the representation of such Investors by Schulte Roth & Zabel LLP in
connection with the subject matter of this Agreement.  The provision will not prohibit any other counsel
to an Investor from reviewing and commenting on any registration filed pursuant
to this Agreement at no cost to the Company.

 

(d)                Ineligibility
for Form S-3.  If Form S-3 is not
available for the registration of the resale of the Registrable Securities
hereunder or the Company is not permitted by the Securities Act or the
Commission to use Form S-3, then the Company shall (i) register the resale
of the Registrable Securities on another appropriate form reasonably acceptable
to the holders of at least a majority of the Conversion Shares, determined as
if all of the Notes held by Investors then outstanding have been converted into
Conversion Shares without regard to any limitations on conversion of the Notes
and (ii) undertake to register the Registrable Securities on Form S-3 as soon
as such form is available; provided, however, that the Company shall maintain
the effectiveness of the Registration Statement then in effect until such time
as a Registration Statement on Form S-3 covering all of the Registrable
Securities has been declared effective by the Commission or, if earlier, until
the end of the Registration Period (as defined in Section 3(a)).

 

3

 

(e)                 Sufficient
Number of Shares Registered.  In the
event the number of Conversion Shares registered under a Registration Statement
filed pursuant to Section 2(a) of this Agreement is insufficient to cover
all of the Conversion Shares or all of an Investor’s allocated portion of the
Conversion Shares pursuant to Section 2(b) of this Agreement, the Company shall amend the
Registration Statement, or file a new Registration Statement (on the short form
available therefor, if applicable), or both, so as to cover at least one
hundred five percent (105%) of the
number of such Conversion Shares as of the trading day immediately preceding
the date of the filing of such amendment and/or new Registration Statement, in
each case, as soon as practicable, but in no event later than fifteen (15) days
after the necessity therefor arises.  The Company shall use its
reasonable best efforts to cause such amendment and/or new Registration
Statement to become effective as soon as practicable following the filing
thereof.  The calculation of the number
of shares sufficient to cover all of the Conversion Shares shall be made
without regard to any limitations on the conversion of the Notes, and such
calculation shall assume that all of the Notes are then convertible into shares
of Common Stock at the then prevailing Conversion Price (as defined in the
Notes).  Notwithstanding anything herein to the contrary, if the amendment to the
Registration Statement or new Registration Statement required by this Section 2(e)
relates to a number of Conversion Shares equal to or greater than ten percent
(10%) of the number of Conversion Shares as of the trading
day immediately preceding the date of the filing of such amendment and/or new
Registration Statement, such amendment or new Registration Statement shall be
declared effective by the Commission not later than 90 calendar days after the
filing date thereof; provided, however, that if the Commission reviews such
amendment or new Registration Statement and requires the Company to make
modifications thereto, then this deadline shall be extended to 120 calendar
days after the filing date.  In the event
that, after the Closing Date and before the Registration Statement is declared
effective, the offices of the Commission are closed due to acts of God, war or
terror, this deadline will be extended by a number of days equal to the days of
any such closure.

 

(f)                   Effect
of Failure to File and Obtain and Maintain Effectiveness of Registration
Statement.  Subject to any elections
made pursuant to Section 4(b), if (i) a Registration Statement covering
all the Registrable Securities is not filed with the Commission on or before
the Filing Deadline or is not declared effective by the Commission on or before
the Effectiveness Deadline, (ii) a Registration Statement covering all of the
Registrable Securities required to be covered thereby, as described in Section 2(e)
of this Agreement, is not filed with the Commission on or before the deadline
described in Section 2(e) of this Agreement or is not declared effective
by the Commission on or before the deadline described in Section 2(e) of
this Agreement, (iii) on any day after such Registration Statement has been
declared effective by the Commission, sales of all of the Registrable
Securities required to be included on such Registration Statement cannot be
made as a matter of law (other than during an Allowable Grace Period (as
defined in Section 3(o) of this
Agreement)) pursuant to such Registration Statement
(including, without limitation, because of a failure to keep such Registration
Statement effective, to disclose such information as is necessary for sales to
be made pursuant to such Registration Statement or to register a sufficient
number of shares of Common Stock), or (iv) a Grace Period (as defined in Section 3(o)
of this Agreement) exceeds the length of an Allowable Grace Period (each of the
items described in clauses (i), (ii), (iii) and (iv) above shall be referred to
as a “Registration Delay”), then the Company shall pay to each holder of the
Notes or Conversion Shares an amount in cash equal to the product of (i) the
initial principal amount paid for the Note

 

4

 

held
by such holder or the related Conversion Shares multiplied by (ii) the product
of (I) the percentage determined by dividing (A) the Applicable Percentage by
(B) 360, multiplied by (II) the sum of (x) the number of days (including any
partial days) after the Filing Deadline or the deadline described in Section 2(e)
of this Agreement, as applicable, that the Registration Statement is not filed
with the Commission, plus (y) the number of days (including any partial days)
after the Effectiveness Deadline or the deadline described in Section 2(e)
of this Agreement that the Registration Statement is not declared effective by
the Commission, plus (z) after the Registration Statement has been declared
effective by the Commission, the number of days (including any partial days)
that such Registration Statement is not available (other than during an
Allowable Grace Period) for the sale of all the Registrable Securities.  The “Applicable Percentage” shall mean (A)
for periods that only include days on or before the day that is 60 days after
the commencement of a Registration Delay, eight-tenths percent (0.8%), (B) for
periods that only include days after the date that is 60 days after the
commencement of a Registration Delay, one and two-tenths percent (1.2%) and (C)
for periods that include days both before and after the date that is 60 days
after the commencement of a Registration Delay, a percentage equal to a fraction,
the numerator of which shall be the sum of (i) the number of days in such
period that are on or before the date that is 60 days after the commencement of
such Registration Delay multiplied by eight-tenths percent (0.8%) and (ii) the
number of days in such period that are after the date that is 60 days after the
commencement of such Registration Delay multiplied by one and two-tenths
percent (1.2%) and the denominator of which shall be the total number of days
comprising such period.  The payments to
which a holder shall be entitled pursuant to this Section 2(f) are
referred to herein as “Registration Delay Payments.”  The Registration Delay Payments shall be paid
in cash on the earlier of (A) the last day of the calendar month during which
such Registration Delay Payments are incurred and (B) the third Business Day
after the event or failure giving rise to the Registration Delay Payments is
cured.  In the event the Company fails to
make Registration Delay Payments in a timely manner, such Registration Delay
Payments shall bear interest at the rate of one and six-tenths percent (1.6%)
per month (prorated for partial months)
until paid in full.

 

SECTION 3.                Related Obligations.  At such time as the Company is obligated to
file a Registration Statement with the Commission pursuant to Section 2(a),
2(d) or 2(e) of this Agreement, the Company will use reasonable best efforts to
effect the registration of all of the Registrable Securities in accordance with
the intended method of disposition thereof and, in connection with its
obligations with respect to the Registration Statement, the Company shall have
the following obligations:

 

(a)                 The
Company shall promptly prepare and file with the Commission a Registration
Statement with respect to all of the Registrable Securities (but in no event
later than the applicable Filing Deadline) and use reasonable best efforts to
cause such Registration Statement relating to all of the Registrable Securities
required to be covered thereby to become effective as soon as practicable after
such filing (but in no event later than the applicable Effectiveness
Deadline).  The Company shall, subject to
the terms of this Agreement, keep each Registration Statement effective
pursuant to Rule 415 at all times during the period from the date it is
initially declared effective until the earliest of (i) the second anniversary
of the date such Registration Statement is filed, (ii) the date as of which all
of the Investors (other than any Investors who are “affiliates” of the Company
as such term is used in Rule 144(k) promulgated under the Securities Act) may
sell all of the Registrable Securities without restriction pursuant to

 

5

 

Rule
144(k) (or the successor rule thereto) promulgated under the Securities Act,
(iii) the date on which all Registrable Securities have been transferred under
Rule 144 under circumstances in which any legend borne by such Registrable
Securities  relating to restrictions on
transferability thereof, under the Securities Act or otherwise, is removed or
(iv) the date on which all of the Investors shall have sold all of the
Registrable Securities (the “Registration Period”) pursuant to a Registration
Statement, which Registration Statement, as of its filing and effective dates
and each day thereafter (including all amendments or supplements thereto, as of
their respective filing and effective dates and each day thereafter), shall not
contain any 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 the prospectus contained in such Registration
Statement, as of its filing date and each day thereafter (including all
amendments and supplements thereto, as of their respective filing dates and
each day thereafter), shall not contain any 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 in which they were
made, not misleading.

 

(b)                Subject
to Section 3(o) of this Agreement, the Company shall prepare and file with
the Commission such amendments (including post-effective amendments) and
supplements to the Registration Statement and the prospectus used in connection
with such Registration Statement, which prospectus is to be filed pursuant to
Rule 424 (or any successor rule thereto) promulgated under the Securities Act,
as may be necessary to keep such Registration Statement effective at all times
during the Registration Period, and, during such period, comply with the
provisions of the Securities Act.  In the
case of amendments and supplements to a Registration Statement and the
prospectus used in connection with such Registration Statement which are required
to be filed pursuant to this Agreement (including pursuant to this Section 3(b))
by reason of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K or
any analogous report under the Securities Exchange Act of 1934, as amended, and
the rules and regulations thereunder, or any similar successor statute (the “Exchange
Act”), the Company shall have incorporated such report by reference into such
Registration Statement, if applicable, or shall file such amendments or
supplements with the Commission on the same day on which the Exchange Act
report is filed which created the requirement for the Company to amend or
supplement such Registration Statement and prospectus.

 

(c)                 The
Company shall permit Legal Counsel, or if no Legal Counsel shall have been
chosen by the Investors, the Investors and their respective legal counsel, to
review and provide written comment upon each Registration Statement, prospectus
and all amendments and supplements thereto at least five (5) Business Days
prior to their filing with the Commission. 
The Company shall furnish to the Investors and Legal Counsel, without
charge, (i) promptly after receipt of such correspondence, copies of all
correspondence from the Commission or the staff of the Commission to the
Company or its representatives relating to each Registration Statement,
prospectus and all amendments and supplements thereto, (ii) promptly after the
same is prepared and filed with the Commission, one (1) copy of each
Registration Statement, prospectus and all amendments and supplements thereto,
including all exhibits and financial statements related thereto, and (iii)
promptly upon the effectiveness of each Registration Statement and each
amendment and supplement thereto, one (1) copy of the prospectus included in
each such Registration Statement and all amendments and supplements
thereto.  The Company agrees that it
will, and it will cause its counsel to, consider in good faith any comments or
objections from

 

6

 

Legal
Counsel, or if no Legal Counsel shall have been selected, the Investors and
their respective legal counsel, as to the form or content of each Registration
Statement, prospectus and all amendments or supplements thereto or any written
communications with the Commission or the staff of the Commission concerning a
Registration Statement, prospectus or any amendment or supplement thereto
including, without limitation, a request for acceleration of the effectiveness
of each Registration Statement, prospectus and all amendments or supplements
thereto. The Company shall submit to the Commission, within two (2) Business
Days after the Company learns that no review of a particular Registration
Statement will be made by the staff of the SEC or that the staff has no further
comments on a particular Registration Statement, as the case may be, a request
for acceleration of effectiveness of such Registration Statement to a time and
date not later than 48 hours after the submission of such request; provided
however, the Company may delay the submission of the request for acceleration
(or delay the effectiveness of such Registration Statement) for up to thirty
(30) days if the Company has material non-public information concerning the
Company if the disclosure of such information at the time is not, in the good
faith judgment of the Board of Directors of the Company relying upon the
opinion of counsel, in the best interests of the Company; provided, further however,
that the Company shall promptly notify the Investors in writing of the
existence of material non-public information giving rise to a delay in
effectiveness (provided that the Company shall not disclose the content of such
material non-public information to the Investors); and provided further that
any delay by the Company in accordance with this sentence shall not affect the
entitlement of a holder to any 
Registration Delay Payment determined in accordance with Section 2(f).

 

(d)                The
Company shall furnish to each Investor whose Registrable Securities are
included in any Registration Statement, without charge to such Investor,
(i) promptly after the same is prepared and filed with the Commission, at
least one copy of such Registration Statement and all amendments and
supplements thereto, including all exhibits and financial statements and each
preliminary prospectus, (ii) upon the effectiveness of each Registration
Statement, such number of copies of the prospectus included in such
Registration Statement and all amendments and supplements thereto as such
Investor may reasonably request, and (iii) such other documents, including
copies of any preliminary or final prospectus, as such Investor may reasonably
request from time to time in order to facilitate the disposition of the
Registrable Securities.

 

(e)                 Subject
to Section 3(o) of this Agreement, and excluding any Registrable
Securities held by Investors electing to exclude their Registrable Securities
from the Registration Statement under Section 4(b), the Company shall use
reasonable best efforts to (i) promptly register and qualify, unless an
exemption from registration and qualification applies, the resale of the
Registrable Securities under such other securities or “blue sky” laws of all
applicable jurisdictions in the United States as any holder of Registrable
Securities reasonably requests in writing, (ii) promptly prepare and file in
those jurisdictions, such amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to
maintain the effectiveness thereof during the Registration Period, (iii)
promptly take such other actions as may be reasonably necessary to maintain
such registrations and qualifications in effect at all times during the
Registration Period, (iv) promptly cause the Registrable Securities covered by
the applicable Registration Statement to be registered with or approved by such
other federal, state and local governmental agencies or authorities, and
self-regulatory organizations in the United States as may be necessary to
enable the Investors to

 

7

 

consummate
the disposition of such Registrable Securities as contemplated by the
Registration Statement; without limitation to the foregoing, the Company shall,
if applicable, provide all such information as may be required by the NASD in
connection with the offering under the Registration Statement of the
Registrable Securities (including, without limitation, such as may be required
by NASD Rule 2710 or 2720), and shall cooperate with each Investor in
connection with any filings required to be made with the NASD by such Investor
in that regard and (v) promptly take all other actions reasonably necessary or
advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in connection
therewith or as a condition thereto to file a general consent to service of
process in any such jurisdiction, except in such jurisdictions where the
Company is subject to service of process. 
The Company shall promptly notify each Investor who holds Registrable
Securities and Legal Counsel of the receipt by the Company of any notification
with respect to the suspension of the registration or qualification of any of
the Registrable Securities for sale under the securities or “blue sky” laws of
any jurisdiction in the United States or its receipt of notice of the
initiation or threatening of any proceeding for such purpose.

 

(f)                   Notwithstanding
anything to the contrary set forth herein, as promptly as practicable after
becoming aware of such event, the Company shall notify each Investor and Legal
Counsel in writing of the happening of any event as a result of which (i) the
Registration Statement or any amendment or supplement thereto, as then in
effect, includes an untrue statement of a material fact or omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading or (ii) the prospectus related to such Registration
Statement or any amendment or supplement thereto includes an untrue statement
of a material fact or omission 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, and, subject to Section 3(o)
of this Agreement, promptly prepare a supplement or amendment to such
Registration Statement and prospectus to correct such untrue statement or
omission, and deliver such number of copies of such supplement or amendment to
each Investor and Legal Counsel as such Investor or Legal Counsel may
reasonably request.  The Company shall
also promptly notify each Investor and Legal Counsel in writing (i) when a
prospectus and each prospectus supplement or amendment thereto has been filed, and
when a Registration Statement and each amendment (including post-effective
amendments) and supplement thereto has been declared effective by the
Commission (notification of such effectiveness shall be delivered to each
Investor and Legal Counsel by facsimile on the same day of such effectiveness
and by overnight mail),
(ii) of any request by the Commission for amendments or supplements to a
Registration Statement or related prospectus or related information, and (iii)
of the Company’s reasonable determination that an amendment (including any
post-effective amendment) or supplement to a Registration Statement or
prospectus would be appropriate (subject to Section 3(o) hereof).

 

(g)                Subject
to Section 3(o) of this Agreement, the Company shall use reasonable best
efforts to (i) prevent the issuance of any stop order or other suspension of
effectiveness of a Registration Statement, or the suspension of the
qualification of any of the Registrable Securities for sale in any
jurisdiction, and (ii) if such an order or suspension is issued, obtain the
withdrawal of such order or suspension at the earliest practicable moment and
notify each holder of Registrable Securities and Legal Counsel of the issuance
of such order and the resolution thereof or its receipt of notice of the
initiation or threat of any proceeding for such purpose.

 

8

 

(h)                The
Company shall hold in confidence and not make any disclosure of information
concerning an Investor provided to the Company unless (i) disclosure of such
information is necessary to comply with United States federal or state
securities laws, (ii) the disclosure of such information is necessary to avoid
or correct a misstatement or omission in any Registration Statement, prospectus
or any amendment or supplement thereto, (iii) the release of such information
is ordered pursuant to a subpoena or other final, non-appealable order from a
court or governmental body of competent jurisdiction, or (iv) such information
has been made generally available to the public other than by disclosure in
violation of this Agreement or any other agreement.  The Company agrees that it shall, upon
learning that disclosure of such information concerning an Investor is sought
in or by a court or governmental body of competent jurisdiction or through
other means, unless ordered or requested by the Commission or other
governmental authority not to do so, give prompt written notice to such
Investor and allow such Investor, at the Investor’s expense, to undertake
appropriate action to prevent disclosure of, or to obtain a protective order
for, such information.

 

(i)                    The
Company shall use reasonable best efforts to cause all the Conversion Shares to
be listed on each securities exchange on which securities of the same class or
series issued by the Company are then listed, if any, if the listing of such
Conversion Shares is then permitted under the rules of such exchange.  The Company shall pay all fees and expenses
in connection with satisfying its obligation under this Section 3(i).

 

(j)                    The
Company shall cause the Indenture to be qualified under the Trust Indenture Act
of 1939, as amended (the “TIA”), in connection with the registration of the
Registrable Securities, 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 execute, and use their
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;

 

(k)                 In
connection with any sale or transfer of Registrable Securities pursuant to a
Registration Statement, the Company shall cooperate with the Investors who hold
Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any
restrictive legend) representing the Registrable Securities to be offered
pursuant to a Registration Statement and enable such certificates to be in such
denominations or amounts, as the case may be, as the Investors may reasonably
request and, registered in such names as the Investors may request.

 

(l)                    If
requested by an Investor, the Company shall (i) as soon as practicable,
incorporate in each prospectus supplement or post-effective amendment to the
Registration Statement such information as an Investor provides in writing and
reasonably requests to be included therein relating to the sale and
distribution of the Registrable Securities, and (ii) as soon as practicable,
make all required filings of such prospectus supplement or post-effective
amendment after being notified of the matters to be incorporated in such prospectus
supplement or post-effective amendment.

 

(m)              The
Company shall comply with all applicable rules and regulations of the
Commission in connection with any registration hereunder.

 

9

 

(n)                Within
two (2) Business Days after a Registration Statement is ordered effective by
the Commission, the Company will so notify the transfer agent for the
Registrable Securities and the Investors whose
Registrable Securities are included in the Registration Statement.

 

(o)                Notwithstanding
anything to the contrary herein, at any time after a Registration Statement has
been declared effective by the Commission, the Company may delay the disclosure
of material non-public information concerning the Company if the disclosure of
such information at the time is not, in the good faith judgment of the Board of
Directors of the Company relying upon the opinion of counsel, in the best
interests of the Company (a “Grace Period”); provided, however, that the
Company shall promptly (i) notify the Investors in writing of the existence of
material non-public information giving rise to a Grace Period (provided that
the Company shall not disclose the content of such material non-public
information to the Investors) and the date on which the Grace Period will
begin, and (ii) notify the Investors in writing of the date on which the
Grace Period ends; provided further, that no single Grace Period shall exceed
thirty (30) consecutive days, and during any three hundred sixty-five (365) day
period, the aggregate of all of the Grace Periods shall not exceed an aggregate
of sixty (60) days and the first day of any Grace Period must be at least ten
(10) trading days after the last day of any prior Grace Period (each Grace
Period complying with this provision being an “Allowable Grace Period”).  For purposes of determining the length of a
Grace Period, the Grace Period shall be deemed to begin on and include the date
the Investors receive the notice referred to in clause (i) above and shall end
on and include the later of the date the Investors receive the notice referred
to in clause (ii) above and the date referred to in such notice; provided,
however, that no Grace Period shall be longer than an Allowable Grace
Period.  The provisions of Section 3(g) of this Agreement
shall not be applicable during the period of any Allowable Grace Period.  Upon expiration of the Grace Period, the
Company shall again be bound by the first sentence of Section 3(f) of this
Agreement.

 

(p)                The
Company shall provide, prior to the effective date of any Registration
Statement hereunder, a CUSIP number for the Registrable Securities registered
under such Registration Statement.

 

SECTION 4.                Obligations
Of The Investors.

 

(a)                 At
least five (5) Business Days prior to the first anticipated filing date of a
Registration Statement, the Company shall notify each Investor in writing of
the information the Company requires from each such Investor if such Investor
elects to have any of such Investor’s Registrable Securities included in such
Registration Statement.  It shall be a
condition precedent to the obligations of the Company to complete the
registration pursuant to this Agreement with respect to the Registrable
Securities of a particular Investor that such Investor shall furnish to the
Company such information regarding itself, the Registrable Securities held by
it and the intended method of disposition of the Registrable Securities held by
it as shall be reasonably required to effect the effectiveness of the
registration of such Registrable Securities and shall execute such documents in
connection with such registration as the Company may reasonably request.  Each Investor shall promptly notify the
Company of any material change with respect to such information previously
provided to the Company by such Investor.

 

10

 

(b)                Each
Investor agrees to cooperate with the Company as reasonably requested by the
Company in connection with the preparation and filing of any Registration
Statement hereunder, unless such Investor has notified the Company in writing
of such Investor’s election to exclude all of such Investor’s Registrable
Securities from such Registration Statement, in which case, such Investor does
not need to so cooperate with the Company until it notifies the Company of its
desire to include one or more shares of the Registrable Securities in such
Registration Statement.

 

(c)                 Each
Investor agrees that, upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 3(g) or 3(o) of this
Agreement or the first sentence of Section 3(f) of this Agreement, such
Investor will immediately discontinue disposition of Registrable Securities
pursuant to any Registration Statements covering such Registrable Securities
until such Investor’s receipt of the copies of the amended or supplemented
prospectus contemplated by Section 3(g) of this Agreement or the first
sentence of Section 3(f) of this Agreement or receipt of notice that no
amendment or supplement is required and, if so directed by the Company, such
Investor shall deliver to the Company (at the expense of the Company) or
destroy (and deliver to the Company a certificate of destruction) all copies of
the prospectus covering such Registrable Securities current at the time of
receipt of such notice (other than a single file copy, which such Investor may
keep) in such Investor’s possession.

 

SECTION 5.                Expenses
Of Registration. 
All expenses, other than underwriting discounts and commissions,
incurred in connection with registrations, filings or qualifications pursuant
to Sections 2 and 3 of this Agreement, including, without limitation, all
registration, listing and qualifications fees, printers and accounting fees,
transfer agent fees and fees and disbursements of counsel for the Company,
shall be paid by the Company.  The
Company shall pay all fees and disbursements relating to the qualification of
the Indenture under the TIA.  The Company
shall also reimburse the Investors for the fees and disbursements of Legal
Counsel in connection with registration, filing or qualification pursuant to
Sections 2 and 3 of this Agreement which amount shall be limited to Ten
Thousand United States Dollars ($10,000) for each Registration Statement.  The Company shall pay all of the Investors’
reasonable costs (including fees and disbursements of Legal Counsel) incurred
in connection with the successful enforcement of the Investors’ rights under
this Agreement.

 

SECTION 6.                Indemnification.  In the event any Registrable Securities are
included in a Registration Statement under this Agreement:

 

(a)                 To
the fullest extent permitted by law, the Company will, and hereby does,
indemnify, hold harmless and defend each Investor, the directors, officers,
members, partners, employees, agents, representatives thereof, and each Person,
if any, who controls any Investor within the meaning of the Securities Act or
the Exchange Act (each, an “Indemnified Person”), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, reasonable
attorneys’ fees, amounts paid in settlement or expenses, joint or several,
(collectively, “Claims”) incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from
the foregoing by or before any court or governmental, administrative or other
regulatory agency, body or the Commission, whether pending or threatened,
whether or not an indemnified party is or may be a party thereto (“Indemnified
Damages”), to which any of them may become subject insofar as such Claims (or

 

11

 

actions
or proceedings, whether commenced or threatened, in respect thereof) arise out
of or are based upon (i) any untrue statement or alleged untrue statement of a
material fact in a Registration Statement or any amendment (including
post-effective amendments) or supplement thereto or in any filing made in
connection with the qualification of the offering under the securities or other
“blue sky” laws of any jurisdiction in which the Registrable Securities are
offered (“Blue Sky Filing”), or the omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, (ii) any untrue statement or alleged untrue statement
of a material fact contained in any preliminary prospectus if authorized for
use by the Company prior to the effective date of such Registration Statement,
or contained in the final prospectus (as amended or supplemented, if any) or
the omission or alleged omission to state therein any material fact necessary
to make the statements made therein, in light of the circumstances under which
the statements therein were made, not misleading, (iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any other
law, including, without limitation, any state securities law, or any rule or
regulation thereunder relating to the offer or sale of the Registrable
Securities pursuant to a Registration Statement, or (iv) any material violation of this Agreement by the
Company (the matters in the foregoing clauses (i) through (iv) being,
collectively, “Violations”).  Subject to Section 6(c) of this Agreement, the Company shall
reimburse the Indemnified Persons, promptly as such
expenses are incurred and are due and payable, for any legal fees or other
reasonable expenses incurred by them in connection with investigating or
defending any such Claim. 
Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6(a) and the agreement
with respect to contribution contained in Section 7 of this
Agreement:  (i) shall not apply to a
Claim by an Indemnified Person arising out of or based upon a Violation which
occurs in reliance upon and in conformity with information furnished in writing
to the Company by such Indemnified Person or its legal counsel expressly for
use in connection with the preparation of the Registration Statement or any
such amendment thereof or supplement thereto; (ii) shall not be available to the extent such Claim
is based on a failure of the Investor to deliver or to cause to be delivered
the prospectus made available by the Company, including a corrected prospectus,
if such prospectus or corrected prospectus was timely made available by the
Company pursuant to Section 3(d) of this Agreement; and (iii) shall not
apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent shall not be
unreasonably withheld, conditioned or delayed. 
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Indemnified Person and shall survive
the transfer of the Registrable Securities by the Investors pursuant to Section 9
of this Agreement.

 

(b)                In
connection with any Registration Statement in which an Investor is
participating, each such Investor agrees to severally and not jointly
indemnify, hold harmless and defend, to the same extent and in the same manner
as is set forth in Section 6(a) of this Agreement, the Company, each of
its directors, each of its officers who signs the Registration Statement, its
agents and each Person, if any, who controls the Company within the meaning of
the Securities Act or the Exchange Act (each, an “Indemnified Party”), against
any Claims or Indemnified Damages to which any of them may become subject,
under the Securities Act, the Exchange Act or otherwise, insofar as such Claims
or Indemnified Damages arise out of or are based upon any Violation (including
for purposes of this paragraph, a material violation of this Agreement by the
Investor), in each case to the extent, and only to the extent, that such
Violation occurs in reliance upon and in conformity with written information
furnished to the Company by

 

12

 

such
Investor or its legal counsel expressly for use in connection with such
Registration Statement and, subject to Section 6(c) of this Agreement,
such Investor will reimburse any legal or other expenses reasonably incurred by
an Indemnified Party in connection with investigating or defending any such
Claim; provided, however, that the indemnification agreement contained in this Section 6(b)
and the agreement with respect to contribution contained in Section 7 of
this Agreement shall not apply to amounts paid in settlement of any Claim if
such settlement is effected without the prior written consent of such Investor,
which consent shall not be unreasonably withheld or delayed; provided, further,
that the Investor shall be liable under this Section 6(b) for only that
amount of the Claims and Indemnified Damages as does not exceed the net
proceeds to such Investors as a result of the sale of Registrable Securities
giving rise to such liability.  Such
indemnification agreement shall remain in full force and effect regardless of
any investigation made by or on behalf of such Indemnified Party and shall
survive the transfer of the Registrable Securities by the Investors pursuant to
Section 9 of
this Agreement.  Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this Section 6(b)
shall not inure to the benefit of any Indemnified Party if the untrue statement
or omission of material fact contained in the preliminary prospectus was
corrected on a timely basis in the prospectus, as then amended or supplemented.

 

(c)                 Promptly
after an Indemnified Person or Indemnified Party under this Section 6 has
knowledge of any Claim as to which such Indemnified Person or Indemnified Party
reasonably believes indemnity may be sought or promptly after such Indemnified
Person or Indemnified Party receives notice of the commencement of any action
or proceeding (including any governmental action or proceeding) involving a
Claim, such Indemnified Person or Indemnified Party shall, if a Claim in
respect thereof is to be made against any indemnifying party under this Section 6,
deliver to the indemnifying party a written notice of such Claim, and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying party and the Indemnified Person or
the Indemnified Party, as the case may be; provided, however, that an
Indemnified Person or Indemnified Party shall have the right to retain its own
counsel if, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Indemnified Person or
Indemnified Party and the indemnifying party would be inappropriate due to
actual or potential differing interests between such Indemnified Person or
Indemnified Party and any other party represented by such counsel in such
proceeding; provided, further, that the indemnifying party shall not be
responsible for the reasonable fees and expense of more than one (1) separate
legal counsel for such Indemnified Person or Indemnified Party.  In the case of an Indemnified Person, the
legal counsel referred to in the immediately preceding sentence shall be
selected by the Investors holding at least a majority in interest of the
Registrable Securities included in the Registration Statement to which the
Claim relates.  The Indemnified Party or
Indemnified Person shall cooperate fully with the indemnifying party in
connection with any negotiation or defense of any such action or Claim by the
indemnifying party and shall furnish to the indemnifying party all information
reasonably available to the Indemnified Party or Indemnified Person which
relates to such action or Claim.  The indemnifying party shall keep the
Indemnified Party or Indemnified Person fully apprised at all times as to the
status of the defense or any settlement negotiations with respect thereto.  No indemnifying party shall be liable for any
settlement of any action, claim or proceeding effected without its prior
written consent; provided, however, that the indemnifying party shall not

 

13

 

unreasonably withhold, delay or
condition its consent.  No indemnifying
party shall, without the prior written consent of the Indemnified Party or Indemnified
Person, consent to entry of any judgment or enter into any settlement or other
compromise which does not include as an unconditional term thereof the giving
by the claimant or plaintiff to such Indemnified Party or Indemnified Person of
a full release from all liability in respect to such Claim and action and
proceeding.  After indemnification as
provided for under this Agreement, the rights of the indemnifying party shall
be subrogated to all rights of the Indemnified Party or Indemnified Person with
respect to all third parties, firms or corporations relating to the matter for
which indemnification has been made.  The
failure to deliver written notice to the indemnifying party as provided in this
Agreement shall not relieve such indemnifying party of any liability to the
Indemnified Person or Indemnified Party under this Section 6, except to the extent
that the indemnifying party is prejudiced in its ability to defend such action.

 

(d)                No
Person involved in the sale of Registrable Securities who is guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) in connection with such sale shall be entitled to indemnification from any
Person involved in such sale of Registrable Securities who is not guilty of fraudulent
misrepresentation.

 

(e)                 The
indemnification required by this Section 6 shall be made by periodic
payments of the amount thereof during the course of the investigation or
defense, as and when bills are received or Indemnified Damages are incurred.

 

(f)                   The
indemnification agreements contained herein shall be in addition to
(i) any cause of action or similar right of the Indemnified Party or
Indemnified Person against the indemnifying party or others, and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

 

SECTION 7.                Contribution.  To the extent any indemnification by an
indemnifying party is prohibited or limited by law, the indemnifying party
agrees to make the maximum contribution with respect to any amounts for which
it would otherwise be liable under Section 6 of this Agreement to the
fullest extent permitted by law; provided, however, that:  (i) no
contribution shall be made under circumstances where the maker would not have
been liable for indemnification under the fault standards set forth in Section 6 of this Agreement, (ii) no Person
involved in the sale of Registrable Securities who is guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such
sale shall be entitled to contribution from any Person involved in such sale of
Registrable Securities who is not guilty of fraudulent misrepresentation, and
(iii) contribution by any seller of Registrable Securities shall be limited in
amount to the dollar amount of the proceeds (net of all expenses paid by such
holder in connection with any claim relating to Section 6 or this Section 7
and the amount of any damages such holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission) received by it upon the sale of the Registrable Securities giving
rise to such contribution obligation. 
The provisions of this Section 7 shall remain in full force and
effect, regardless of the investigation made by or on behalf of the
beneficiaries of this Section 7 and shall survive the transfer of
Registrable Securities by the Investors pursuant to Section 9 of this
Agreement.

 

14

 

SECTION 8.                Reporting.

 

(a)                 Reports Under
The Exchange Act.  With a view to
making available to the Investors the benefits of Rule 144 promulgated under
the Securities Act or any other similar rule or regulation of the Commission
that may at any time permit the Investors to sell securities of the Company to
the public without registration (“Rule 144”), for so long as Registrable
Securities remain outstanding, the Company shall use reasonable best efforts
to:

 

(1)                                  make and keep public information available, as those terms
are understood and defined in Rule 144;

 

(2)                                  file
with the Commission in a timely manner all reports and other documents required
of the Company under the Securities Act and the Exchange Act; and

 

(3)                                  furnish
to each Investor, so long as such Investor owns Registrable Securities,
promptly upon request, (A) a written statement by the Company, if true, that it
has complied with the applicable reporting requirements of Rule 144, the
Securities Act and the Exchange Act, (B) a copy of the most recent annual or
quarterly report of the Company and copies of such other reports and documents
so filed by the Company, and (C) such other information as may be reasonably
requested to permit the Investors to sell such securities pursuant to Rule 144
without registration.

 

(b)                Rule
144A Information. The Company shall, for so long as Registrable Securities
remain outstanding, upon request of any Investor, for so long as such Investor
owns Registrable Securities, make available to such Investor the information
required by Rule 144A(d)(4) (or any successor rule) under the Securities Act.

 

SECTION 9.                Assignment of Registration Rights.  The rights under this Agreement shall be
automatically assignable by the Investors to any transferee of all or any
portion of such Investor’s Registrable Securities if:  (i) the Investor agrees in writing with
the transferee or assignee to assign such rights, and a copy of such agreement
is furnished to the Company within a reasonable time after such assignment;
(ii) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of (a) the name and address of such
transferee or assignee, and (b)
the securities with respect to which such rights are being transferred or
assigned; (iii) immediately following such transfer or assignment, the further
disposition of such securities by the transferee or assignee is restricted
under the Securities Act and applicable state securities laws; (iv) at or
before the time the Company receives the written notice contemplated by clause (ii) of this sentence, the
transferee or assignee agrees in writing with the Company to be bound by all of
the obligations of an Investor under this Agreement; (v) such transfer shall
have been made in accordance with the applicable requirements of the Securities
Purchase Agreement, the Indenture and the Notes; and (vi) such transfer shall
have been conducted in accordance with all applicable federal and state
securities laws.

 

15

 

SECTION 10.         Amendment of Registration Rights.  Any provision of this Agreement may be
amended and the observance of any provision of this Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and Investors who
then hold at least a majority of the Conversion Shares, determined as if all of
the Notes held by Investors then outstanding have been converted into
Conversion Shares without regard to any limitations on conversion of the Notes;
provided that for theses purposes any Securities owned directly or indirectly
by the Company or any of its affiliates shall be deemed not to be
outstanding.  Notwithstanding the
preceding sentence to the contrary no amendment or waiver of the provisions of Section 9
or this Section 10 shall be effective without the approval of all
Investors holding Conversion Shares.  Any
amendment or waiver effected in accordance with this Section 10
shall be binding upon each Investor and the Company.  No such amendment shall be effective to the
extent that it applies to less than all of the holders of the Registrable
Securities.  No consideration shall be
offered or paid to any Person to amend or consent to a waiver or modification
of any provision of any of this Agreement unless the same consideration also is
offered to all of the parties to this Agreement.

 

SECTION 11.         Miscellaneous.

 

(a)                 A
Person is deemed to be a holder of Registrable Securities whenever such Person
owns or is deemed to own of record such Registrable Securities.  If the Company receives conflicting
instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of
instructions, notice or election received from such record owner of such
Registrable Securities.

 

(b)                Any
notices, consents, waivers or other communications required or permitted to be
given under the terms of this Agreement must be in writing and will be deemed
to have been delivered:  (i) upon
receipt, when delivered personally; (ii) upon receipt, when sent by facsimile
(evidenced by mechanically or electronically generated receipt by the sender’s
facsimile machine); or (iii) one (1) Business Day after deposit with a
nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. 
The addresses and facsimile numbers for such communications shall be:

 

16

 

	
   

  	
  If to the
  Company:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Quixote
  Corporation

  	
   

  
	
   

  	
   

  	
  35 East Wacker Drive

  	
   

  
	
   

  	
   

  	
  Chicago,
  Illinois 60601

  
	
   

  	
   

  	
  Telephone:

  	
  (312) 467-6755

  
	
   

  	
   

  	
  Facsimile:

  	
  (312) 467-0197

  
	
   

  	
   

  	
  Attention:

  	
  Joan R. Riley,
  Vice President

  
	
   

  	
   

  	
   

  	
  and General
  Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Holland &
  Knight, LLP

  	
   

  
	
   

  	
   

  	
  131 South
  Dearborn

  	
   

  
	
   

  	
   

  	
  30th Floor

  	
   

  
	
   

  	
   

  	
  Chicago,
  Illinois 60565

  
	
   

  	
   

  	
  Telephone:

  	
  (312) 715-5724

  
	
   

  	
   

  	
  Facsimile:

  	
  (312) 578-6666

  
	
   

  	
   

  	
  Attention:

  	
  Anne Hamblin
  Schiave

  
	
   

  	
   

  	
   

  
	
   

  	
  If to Legal
  Counsel:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Schulte Roth
  & Zabel LLP

  	
   

  
	
   

  	
   

  	
  919 Third Avenue

  	
   

  
	
   

  	
   

  	
  New York, NY
  10022

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 756-2000

  
	
   

  	
   

  	
  Facsimile:

  	
  (212) 593-5955

  
	
   

  	
   

  	
  Attention:

  	
  Kathleen Lee,
  Esq.

  
					

 

If to a Buyer,
to its address and facsimile number set forth on the Schedule of Buyers
attached hereto as Exhibit A, with copies to such Buyer’s
representatives as set forth on the Schedule of Buyers,

 

or to such other address and/or facsimile
number and/or to the attention of such other Person as the recipient party has
specified by written notice given to each other party.  Written confirmation of receipt (A) given by
the recipient of such notice, consent, waiver or other communication, (B)
mechanically or electronically generated by the sender’s facsimile machine
containing the time, date, recipient facsimile number and an image of the first
page of such transmission or (C) provided by a nationally recognized overnight
delivery service shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from a nationally recognized overnight delivery service in
accordance with clause (i), (ii) or (iii) above, respectively.

 

17

 

(c)                 Failure
of any party to exercise any right or remedy under this Agreement or otherwise,
or delay by a party in exercising such right or remedy, shall not operate as a
waiver thereof.

 

(d)                All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of New
York, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of New York or any other jurisdictions) that
would cause the application of the laws of any jurisdictions other than the
State of New York.  Each party hereby
irrevocably submits to the non-exclusive jurisdiction of the state and federal
courts sitting the City of New York, borough of Manhattan, for the adjudication
of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is
not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of
such suit, action or proceeding is improper. 
Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it
under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to
limit in any way any right to serve process in any manner permitted by
law.  If any provision of this Agreement
shall be invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(e)                 This
Agreement, the Securities Purchase Agreement, the Indenture, the Notes and the
documents referenced herein and therein constitute the entire agreement among
the parties hereto with respect to the subject matter hereof and thereof.  There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein
and therein.  This Agreement, the
Securities Purchase Agreement, the Indenture and the Notes supersede all prior
agreements and understandings among the parties hereto with respect to the
subject matter hereof and thereof.

 

(f)                   Subject
to the requirements of Section 9 of this Agreement, this Agreement shall
inure to the benefit of and be binding upon the permitted successors and
assigns of each of the parties hereto.

 

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

 

(h)                This
Agreement may be executed in identical counterparts, each of which shall be
deemed an original but all of which shall constitute one and the same
agreement.  This Agreement, once executed
by a party, may be delivered to the other parties hereto by facsimile

 

18

 

transmission of a copy of this
Agreement bearing the signature of the party so delivering this Agreement.

 

(i)                    Each
party shall do and perform, or cause to be done and performed, all such further
acts and things, and shall execute and deliver all such other agreements,
certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated hereby.

 

(j)                    All
consents and other determinations required to be made by the Investors pursuant
to this Agreement shall be made, unless otherwise specified in this Agreement,
by Investors holding at least a majority of the Conversion Shares, determined
as if all of the Notes held by Investors then outstanding have been converted
into Conversion Shares without regard to any limitations on conversion of the
Notes.

 

(k)                 This
Agreement is intended for the benefit of the parties hereto and their
respective permitted successors and assigns, and is not for the benefit of, nor
may any provision hereof be enforced by, any other Person.

 

19

 

IN WITNESS WHEREOF, the parties
have caused this Registration Rights Agreement to be duly executed as of day
and year first above written.

 

	
   

  	
  “COMPANY”

  
	
   

  	
   

  
	
   

  	
  QUIXOTE
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel P.
  Gorey

  	
   

  
	
   

  	
   

  	
  Daniel P. Gorey,
  Vice President

  
	
   

  	
   

  	
  Chief Financial
  Officer and Treasurer

  
	
   

  	
   

  
	
  [Signatures of Buyers on Following Page]

  

 

S-1

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

	
   

  	
  “BUYER”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (print full legal name of Buyer)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (signature of authorized representative)

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
				

 

 

EXHIBIT A TO REGISTRATION RIGHTS AGREEMENT

 

SCHEDULE OF BUYERS

 

	
   

  	
   

  	
  Name
  of Buyer

  Contact Information for Buyer

  	
   

  	
  Principal
  Amount of

  Notes

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
   

  	
   

  	
   

  

 

A-1

 

	
  SECTION 1.

  	
   

  	
  Definitions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
   

  	
  Registration

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
   

  	
  Related
  Obligations

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
   

  	
  Obligations Of
  The Investors

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
   

  	
  Expenses Of
  Registration

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
   

  	
  Indemnification

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
   

  	
  Contribution

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
   

  	
  Reporting

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
   

  	
  Assignment of
  Registration Rights

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
   

  	
  Amendment
  of Registration Rights

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
   

  	
  Miscellaneous

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT
  A

  	
   

  	
  Schedule of
  Buyers

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]