Document:

exv4w9

 

Exhibit 4.9

EXECUTION COPY

REGISTRATION RIGHTS AGREEMENT

by and among

Quebecor Media Inc.

and

Citigroup Global Markets Inc.

Banc of America Securities LLC

Credit Suisse First Boston LLC

Harris Nesbitt Corp.

Scotia Capital (USA) Inc.

TD Securities (USA) LLC

RBC Capital Markets Corporation

HSBC Securities (USA) Inc.

NBF Securities (USA) Corp.

Dated as of January 17, 2006

 

 

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is made and entered into as of January
17, 2006, by and among Quebecor Media Inc., a company incorporated under the laws of the Province
of Quebec (the “Company”), and Citigroup Global Markets Inc., Banc of America Securities LLC,
Credit Suisse First Boston LLC, Harris Nesbitt Corp., Scotia Capital (USA) Inc., TD Securities
(USA) LLC, RBC Capital Markets Corporation, HSBC Securities (USA) Inc. and NBF Securities (USA)
Corp. (each an “Initial Purchaser” and, collectively, the “Initial Purchasers”). Each of the
Initial Purchasers has agreed to purchase the Company’s Initial Notes (as defined below) pursuant
to the Purchase Agreement (as defined below).

     This Agreement is made pursuant to the Purchase Agreement. In order to induce the Initial
Purchasers to purchase the Initial Notes, the Company has agreed, for the benefit of each Initial
Purchaser and for the benefit of the holders from time to time of the Notes (including each Initial
Purchaser) to provide the registration rights set forth in this Agreement. The execution and
delivery of this Agreement is a condition to the obligations of the Initial Purchasers set forth in
Section 5(h) of the Purchase Agreement, and capitalized terms not defined herein are used as
defined in the Purchase Agreement.

     The parties hereby agree as follows:

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

     Advice: As defined in Section 6(c) hereof.

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

     Business Day: Any day other than a Saturday, a Sunday or a legal holiday or a day on which
banking institutions or trust companies are authorized or obligated by law to close in New York
City.

     Closing Date: The date of this Agreement.

     Commission: The United States Securities and Exchange Commission.

     Consummate: A registered Exchange Offer shall be deemed “Consummated” for purposes of this
Agreement when (i) the Exchange Offer Registration Statement has been filed and declared effective
by the Commission, (ii) such Registration Statement was kept continuously effective and the
Exchange Offer was kept open for a period not less than the minimum period required pursuant to
Section 3(b) hereof and (iii) the Company has delivered to the Registrar under the Indenture
Exchange Notes in the same aggregate principal amount as the aggregate principal amount of Initial
Notes that were tendered by Holders thereof pursuant to the Exchange Offer.

     Controlling person: As defined in Section 8(a) hereof.

     Effectiveness Target Date: As defined in Section 5 hereof.

 

 

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

     Exchange Notes: The 73/4% Senior Notes due March 15, 2016, of the same series under the
Indenture as the Initial Notes, to be issued to Holders in exchange for Transfer Restricted
Securities pursuant to this Agreement.

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

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

     Form 20-F: Form 20-F under the Exchange Act.

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

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

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

     Initial Notes: The 73/4% Senior Notes due March 15, 2016, of the same series under the
Indenture as the Exchange Notes, for so long as such securities constitute Transfer Restricted
Securities.

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

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

     NASD: National Association of Securities Dealers, Inc.

     Notes: The Initial Notes and the Exchange Notes.

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

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

2

 

     Purchase Agreement: The Purchase Agreement, dated as of January 11, 2006, among the Company
and the Initial Purchasers.

     Registration Default: As defined in Section 5 hereof.

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

     Regulation S-K: Regulation S-K under the Securities Act.

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

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

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

     Special Interest: As defined in Section 5 hereof.

     Transfer Restricted Securities: Each Initial Note, until the earliest to occur of (a) the
date on which such Initial Note is exchanged in the Exchange Offer and entitled to be resold to the
public by the Holder thereof without complying with the prospectus delivery requirements of the
Securities Act, (b) the date on which such Initial Note has been effectively registered under the
Securities Act and disposed of in accordance with a Shelf Registration Statement and (c) the date
on which such Initial Note is distributed to the public pursuant to Rule 144 under the Securities
Act or by a Broker-Dealer pursuant to the “Plan of Distribution” contemplated by the Exchange Offer
Registration Statement (including delivery of the Prospectus contained therein).

     Trust Indenture Act: The United States Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa,
et seq.) as in effect on the date of the Indenture.

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

     SECTION 2. Securities Subject to this Agreement.

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

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

3

 

     SECTION 3. Registered Exchange Offer.

     (a)     Unless the Exchange Offer shall not be permissible under applicable law or Commission
policy (after the procedures set forth in Section 6(a) below have been complied with), the Company
shall (i) cause to be filed with the Commission as soon as practicable after the Closing Date, but
in no event later than 120 days after the Closing Date (or if such 120th day is not a
Business Day, the next succeeding Business Day), a Registration Statement under the Securities Act
relating to the Exchange Notes and the Exchange Offer, (ii) use its best efforts to cause such
Registration Statement to become effective at the earliest possible time, but in no event later
than 210 days after the Closing Date (or if such 210th day is not a Business Day, the
next succeeding Business Day), (iii) in connection with the foregoing, (A) file all pre-effective
amendments to such Registration Statement as may be necessary in order to cause such Registration
Statement to become effective, (B) file, if applicable, a post-effective amendment to such
Registration Statement pursuant to Rule 430A under the Securities Act and (C) cause all necessary
filings in connection with the registration and qualification of the Exchange Notes to be made
under the Blue Sky laws of such jurisdictions as are necessary to permit Consummation of the
Exchange Offer and (iv) upon the effectiveness of such Registration Statement, commence the
Exchange Offer. The Exchange Offer Registration Statement shall be on the appropriate form
permitting registration of (i) the offers of the Exchange Notes in exchange for the Transfer
Restricted Securities and (ii) the resales of Exchange Notes held by Broker-Dealers as contemplated
by Section 3(c) below.

     (b)     The Company shall cause the Exchange Offer Registration Statement to be effective
continuously and shall keep the Exchange Offer open for a period of not less than the minimum
period required under applicable federal and state securities laws to Consummate the Exchange
Offer; provided, however, that in no event shall such period be less than 30 days after the date
notice of the Exchange Offer is mailed to the Holders. The Company shall cause the Exchange Offer
to comply with all applicable federal and state securities laws. No securities other than the
Exchange Notes shall be included in the Exchange Offer Registration Statement. The Company shall
use its best efforts to cause the Exchange Offer to be Consummated on the earliest practicable date
after the Exchange Offer Registration Statement has become effective, but in no event later than
255 days after the Closing Date (or if such 255th day is not a Business Day, the next
succeeding Business Day).

     (c)     The Company shall indicate in a “Plan of Distribution” section contained in the Prospectus
forming a part of the Exchange Offer Registration Statement that any Broker-Dealer who holds
Initial Notes that are Transfer Restricted Securities and that were acquired for its own account as
a result of market-making activities or other trading activities (other than Transfer Restricted
Securities acquired directly from the Company), may exchange such Initial Notes pursuant to the
Exchange Offer; however, such Broker-Dealer may be deemed to be an “underwriter” within the meaning
of the Securities Act and must, therefore, deliver a prospectus meeting the requirements of the
Securities Act in connection with any resales of the Exchange Notes received by such Broker-Dealer
in the Exchange Offer, which prospectus delivery requirement may be satisfied by the delivery by
such Broker-Dealer of the Prospectus contained in the Exchange Offer Registration Statement. Such
“Plan of Distribution” section shall also contain all other information with respect to such
resales by Broker-Dealers that the Commission may require in order to permit such resales pursuant
thereto, but such “Plan of Distribution” shall

4

 

not name any such Broker-Dealer or disclose the amount of Notes held by any such Broker-Dealer
except to the extent required by the Commission as a result of a change in policy after the date of
this Agreement.

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

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

     SECTION 4. Shelf Registration

     (a)     Shelf Registration. If (i) the Company is not required to file an Exchange Offer
Registration Statement or to consummate the Exchange Offer because the Exchange Offer is not
permitted by applicable law or Commission policy (after the procedures set forth in Section 6(a)
below have been complied with), (ii) for any reason the Exchange Offer is not Consummated within
255 days after the Closing Date (or if such 255th day is not a Business Day, the next
succeeding Business Day), or (iii) with respect to any Holder of Transfer Restricted Securities,
such Holder notifies the Company prior to 20th day following the Consummation of the
Exchange Offer that (A) such Holder is prohibited by applicable law or Commission policy from
participating in the Exchange Offer, or (B) such Holder may not resell the Exchange Notes acquired
by it in the Exchange Offer to the public without delivering a prospectus and that the Prospectus
contained in the Exchange Offer Registration Statement is not appropriate or available for such
resales by such Holder, or (C) such Holder is a Broker-Dealer and holds Initial Notes acquired
directly from the Company or one of its affiliates, then, upon such Holder’s request, the Company
shall:

     (x)     cause to be filed a shelf registration statement pursuant to Rule 415 under the
Securities Act, which may be an amendment to the Exchange Offer Registration Statement (in
either event, the “Shelf Registration Statement”) as soon as practicable but in any event on
or prior to 120 days after the date on which the filing obligation arises (or if such
120th day is not a Business Day, the next succeeding Business Day) (such date
being the “Shelf Filing Deadline”), which Shelf Registration Statement shall provide for
resales of all Transfer Restricted Securities the Holders of which shall have provided the
information required pursuant to Section 4(b) hereof; and

     (y)     use its best efforts to cause such Shelf Registration Statement to be declared
effective by the Commission on or before the 210th day after date on which the
filing

5

 

obligation arises (or if such 210th day is not a Business Day, the next
succeeding Business Day).

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

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

     SECTION 5. Special Interest. If (i) any of the Registration Statements required by this
Agreement is not filed with the Commission on or prior to the date specified for such filing in
this Agreement, (ii) any of such Registration Statements has not been declared effective by the
Commission on or prior to the date specified for such effectiveness in this Agreement (the
“Effectiveness Target Date”), (iii) the Exchange Offer has not been Consummated within 45 days
after the Effectiveness Target Date with respect to the Exchange Offer Registration Statement or
(iv) any Registration Statement required by this Agreement is filed and declared effective but
shall thereafter cease to be effective or fail to be usable for its intended purpose without being
succeeded immediately by a post-effective amendment to such Registration Statement that cures such
failure and that is itself immediately declared effective, unless a Shelf Registration Statement or
its related Prospectus ceases to be effective or usable solely as a result of the occurrence of a
material event with respect to the Company that would be required by law to be described in such
Shelf Registration Statement or the related Prospectus, provided that the Company is proceeding
promptly and in good faith to amend or supplement such Shelf Registration Statement or the related
Prospectus to describe such event, (each such event referred to in clauses (i) through (iv), a
“Registration Default”), the Company hereby agrees that the interest rate borne by the Transfer
Restricted Securities shall be increased by 0.25% per annum during the 90-day period immediately
following the occurrence of any Registration Default and shall increase by an additional 0.25% per
annum at the end of each subsequent 90-day period, but in no event shall such increase exceed 1.00%
per annum. Such additional interest to be paid pursuant to a Registration Default is referred to herein
as “Special Interest.” Following the cure of all
Registration Defaults relating to any particular Transfer Restricted Securities, the interest rate
borne by the relevant Transfer Restricted Securities will be reduced to the original interest

6

 

rate
borne by such Transfer Restricted Securities; provided, however, that, if after any such reduction
in interest rate, a different Registration Default occurs, the interest rate borne by the relevant
Transfer Restricted Securities shall again be increased pursuant to the foregoing provisions.

     All Special Interest accrued pursuant to this Section 5 shall be paid to the Holders entitled
thereto, in the manner provided for the payment of interest in the Indenture, on each Interest
Payment Date, as more fully set forth in the Indenture and the Notes.

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

     SECTION 6. Registration Procedures

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

     (i)     If in the reasonable opinion of counsel to the Company there is a question as to
whether the Exchange Offer is permitted by applicable law, the Company hereby agrees to
diligently pursue a favorable decision from the Commission allowing the Company to
Consummate an Exchange Offer for such Initial Notes.

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

7

 

covered by an effective registration statement containing the selling security holder
information required by Item 9.B or 9.D, as applicable, of Form 20-F or by Item 507 or 508,
as applicable, of Regulation S-K if the resales are of Exchange Notes obtained by such
Holder in exchange for Initial Notes acquired by such Holder directly from the Company.

     (b)     Shelf Registration Statement. In connection with the Shelf Registration Statement, the
Company shall comply with all the provisions of Section 6(c) below and shall use its best efforts
to effect such registration to permit the sale of the Transfer Restricted Securities being sold in
accordance with the intended method or methods of distribution thereof, and pursuant thereto the
Company will, in accordance with the time limitations set forth in Section 4 of this Agreement,
prepare and file with the Commission a Registration Statement relating to the registration on any
appropriate form under the Securities Act, which form shall be available for the sale of the
Transfer Restricted Securities in accordance with the intended method or methods of distribution
thereof.

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

     (i)     use its best efforts to keep such Registration Statement continuously effective and
provide all requisite financial statements for the period specified in Section 3 or 4 of
this Agreement, as applicable; upon the occurrence of any event that would cause (A) any
such Registration Statement to contain an untrue statement of material fact or omit to state
a material fact required to be stated therein or necessary to make the statements therein
not misleading, (B) the Prospectus contained in the Registration Statement to contain an
untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, or (C) any such Registration Statement or the
Prospectus contained therein not to be effective or usable for resale of Transfer Restricted
Securities during the period required by this Agreement, the Company shall file promptly an
appropriate amendment to such Registration Statement, in the case of clause (A), correcting
any such misstatement or omission, and, in the case of either clause (A), (B) or (C), use
its best efforts to cause such amendment to be declared effective and such Registration
Statement and the related Prospectus to become usable for their intended purpose(s) as soon
as practicable thereafter;

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

8

 

securities covered by such Registration Statement during the applicable period in
accordance with the intended method or methods of distribution by the sellers thereof set
forth in such Registration Statement or supplement to the Prospectus;

     (iii)     advise the underwriter(s), if any, and selling Holders promptly and, if requested
by such Persons, to confirm such advice in writing, (A) when the Prospectus or any
Prospectus supplement or post-effective amendment has been filed, and, with respect to any
Registration Statement or any post-effective amendment thereto, when the same has become
effective, (B) of any request by the Commission for amendments to the Registration Statement
or amendments or supplements to the Prospectus or for additional information relating
thereto, (C) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement under the Securities Act or of the suspension by
any state securities commission of the qualification of the Transfer Restricted Securities
for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the
preceding purposes, (D) of the existence of any fact or the happening of any event that
makes any statement of a material fact made in the Registration Statement, the Prospectus,
any amendment or supplement thereto, or any document incorporated by reference therein
untrue, or that requires the making of any additions to or changes in (1) the Registration
Statement in order to correct an omission of a material fact necessary to make the
statements therein not misleading, or (2) the Prospectus in order to correct an omission of
a material fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading. If at any time the Commission shall issue any
stop order suspending the effectiveness of the Registration Statement, or any state
securities commission or other regulatory authority shall issue an order suspending the
qualification or exemption from qualification of the Transfer Restricted Securities under
state securities or Blue Sky laws, the Company shall use its reasonable best efforts to
obtain the withdrawal or lifting of such order at the earliest possible time;

     (iv)     furnish without charge to each of the Initial Purchasers, each selling Holder
named in any Registration Statement, and each of the underwriter(s), if any, before filing
with the Commission, copies of any Registration Statement or any Prospectus included therein
or any amendments or supplements to any such Registration Statement or Prospectus (including
all documents incorporated by reference after the initial filing of such Registration
Statement), which documents will be subject to the review of such Holders and underwriter(s)
in connection with such sale, if any, for a period of at least five business days, and the
Company will not file any such Registration Statement or Prospectus or any amendment or
supplement to any such Registration Statement or Prospectus (including all such documents
incorporated by reference) to which an Initial Purchaser of Transfer Restricted Securities
covered by such Registration Statement or the underwriter(s), if any, shall reasonably
object in writing within five business days after the receipt thereof (such objection to be
deemed timely made upon confirmation of telecopy transmission within such period).

     (v)     promptly prior to the filing of any document that is to be incorporated by
reference into a Registration Statement or Prospectus, provide copies of such document to
the Initial Purchasers, each selling Holder named in any Registration Statement, and to

9

 

the underwriter(s), if any, make the representatives of the Company available for discussion of
such document and other customary due diligence matters, and include such information in
such document prior to the filing thereof as such selling Holders or underwriter(s), if any,
reasonably may request;

     (vi)     make available at reasonable times for inspection by the Initial Purchasers, any
managing underwriter participating in any disposition pursuant to such Registration
Statement and any attorney or accountant retained by such Initial Purchasers or any of the
underwriter(s), all financial and other records, pertinent corporate documents and
properties of the Company as is customary for similar due diligence examinations and cause
the Company’s officers, directors and employees to supply all information reasonably
requested by any such Holder, underwriter, attorney or accountant in connection with such
Registration Statement subsequent to the filing thereof and prior to its effectiveness;
provided that all information and documents supplied by the Company shall be kept
confidential by the receiving parties unless disclosure is required by law or regulation, or
by any regulatory authority, stock exchange, court or administrative order;

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

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

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

     (x)     deliver to each selling Holder and each of the underwriter(s), if any, without
charge, as many copies of the Prospectus (including each preliminary prospectus) and any
amendment or supplement thereto as such Persons reasonably may request; the Company hereby
consents, subject to the provisions of this Agreement, to the use of the
Prospectus and any amendment or supplement thereto by each of the selling Holders and
each of the underwriter(s), if any, in connection with the offering and the sale of the

10

 

Transfer Restricted Securities covered by the Prospectus or any amendment or supplement
thereto;

     (xi)     enter into such agreements (including an underwriting agreement) and make such
representations and warranties in form, substance and scope as are customarily made by
issuers to underwriters, and take all such other actions in connection therewith in order to
expedite or facilitate the disposition of the Transfer Restricted Securities pursuant to any
Registration Statement contemplated by this Agreement, all to such extent as may be
reasonably requested by any Initial Purchaser or by any Holder of Transfer Restricted
Securities or underwriter in connection with any sale or resale pursuant to any Registration
Statement contemplated by this Agreement; and whether or not an underwriting agreement is
entered into and whether or not the registration is an Underwritten Registration, the
Company shall, with respect to any Shelf Registration Statement:

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

     (1)     a certificate, dated the date of Consummation of the Exchange
Offer or the date of effectiveness of the Shelf Registration Statement,
as the case may be, signed by (y) the President or any Vice President
and (z) a principal financial or accounting officer of the Company,
confirming, as of the date thereof, the matters set forth in paragraphs
(i), (ii) and (iii) of Section 5 (e) of the Purchase Agreement and such
other matters as such parties may reasonably request;

     (2)     an opinion, dated the date of Consummation of the Exchange
Offer or the date of effectiveness of the Shelf Registration Statement,
as the case may be, of counsel for the Company, covering the matters set
forth in paragraph (c) of Section 5 of the Purchase Agreement and such
other matters as such parties may reasonably request, and in any event
including a statement to the effect that such counsel has participated
in conferences with officers and other representatives of the Company,
representatives of the independent public accountants for the Company,
the Initial Purchasers’ representatives and the Initial Purchasers’
counsel in connection with the preparation of such Registration
Statement and the related Prospectus and have considered the matters
required to be stated therein and the statements contained therein,
although such counsel has not independently verified the accuracy,
completeness or fairness of such statements; and that such counsel
advises that, on the basis of the foregoing (relying as to materiality
to a large extent upon facts provided to such counsel by officers and
other representatives of the
Company and without independent check or verification), no facts
came to such counsel’s attention that caused such counsel to believe

11

 

that the applicable Registration Statement, at the time such
Registration Statement or any post-effective amendment thereto became
effective, and, in the case of the Exchange Offer Registration
Statement, as of the date of Consummation, contained an untrue statement
of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein not
misleading, or that the Prospectus contained in such Registration
Statement as of its date and, in the case of the opinion dated the date
of Consummation of the Exchange Offer, as of the date of Consummation,
contained an untrue statement of a material fact or omitted to state a
material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading.
Without limiting the foregoing, such counsel may state further that such
counsel assumes no responsibility for, and has not independently
verified, the accuracy, completeness or fairness of the financial
statements, notes and schedules and other financial data included in any
Registration Statement contemplated by this Agreement or the related
Prospectus; and

     (3)     a customary comfort letter, dated as of the date of
Consummation of the Exchange Offer or the date of effectiveness of the
Shelf Registration Statement, as the case may be, from the Company’s
independent accountants, in the customary form and covering matters of
the type customarily covered in comfort letters to underwriters in
connection with primary underwritten offerings, and affirming the
matters set forth in the comfort letters delivered pursuant to Section
5(a) of the Purchase Agreement, without exception;

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

     (C)     deliver such other documents and certificates as may be reasonably
requested by such parties to evidence compliance with clause (A) above and with any
customary conditions contained in the underwriting agreement or other agreement
entered into by the Company pursuant to this clause (xi), if any.

     If at any time the representations and warranties of the Company contemplated in clause
(A)(1) above cease to be true and correct, the Company shall so advise the Initial
Purchasers and the underwriter(s), if any, and each selling Holder promptly and, if
requested by such Persons, shall confirm such advice in writing;

     (xii)     prior to any public offering of Transfer Restricted Securities, cooperate with
the selling Holders, the underwriter(s), if any, and their respective counsel in connection
with the registration and qualification of the Transfer Restricted Securities
under the securities or Blue Sky laws of such jurisdictions in the United States as the
selling Holders or underwriter(s) may request and do any and all other acts or things

12

 

necessary or advisable to enable the disposition in such jurisdictions of the Transfer
Restricted Securities covered by the Registration Statement; provided, however, that the
Company shall not be required to register or qualify as a foreign corporation where it is
not then so qualified or to take any action that would subject it to the service of process
in suits or to taxation, other than as to matters and transactions relating to the
Registration Statement, in any jurisdiction where it is not then so subject;

     (xiii)     shall issue, upon the request of any Holder of Initial Notes covered by the
Shelf Registration Statement, or if the Exchange Offer is to be consummated, Exchange Notes,
having an aggregate principal amount equal to the aggregate principal amount of Initial
Notes surrendered to the Company by such Holder in exchange therefor or being sold by such
Holder; such Exchange Notes to be registered in the name of such Holder or in the name of
the purchaser(s) of such Notes, as the case may be; in return, the Initial Notes held by
such Holder shall be surrendered to the Company for cancellation;

     (xiv)     cooperate with the selling Holders and the underwriter(s), if any, to facilitate
the timely preparation and delivery of certificates representing Transfer Restricted
Securities to be sold and not bearing any restrictive legends; and enable such Transfer
Restricted Securities to be in such denominations and registered in such names as the
Holders or the underwriter(s), if any, may request at least two business days prior to any
sale of Transfer Restricted Securities made by such underwriter(s);

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

     (xvi)     provide a CUSIP number for all Transfer Restricted Securities not later than the
effective date of the Registration Statement and provide the Trustee under the Indenture
with printed certificates for the Transfer Restricted Securities which are in a form
eligible for deposit with the Depository Trust Company;

     (xvii)     cooperate and assist in any filings required to be made with the NASD and in the
performance of any due diligence investigation by any underwriter (including any “qualified
independent underwriter”) that is required to be retained in accordance with the rules and
regulations of the NASD, and use its reasonable best efforts to cause such Registration
Statement to be approved by such governmental agencies or authorities as may be necessary to
enable the Holders selling Transfer Restricted Securities to consummate the disposition of
such Transfer Restricted Securities;

     (xviii)     otherwise use its best efforts to comply with all applicable rules and
regulations of the Commission, and make generally available to its security holders a
consolidated earnings statement of the Company meeting the requirements of Rule 158
(which need not be audited) for the twelve-month period, no later than 45 days, or 90

13

 

days in the case that such period is a fiscal year, (A) commencing at the end of any fiscal
quarter in which Transfer Restricted Securities are sold to underwriters in a firm or best
efforts Underwritten Offering or (B) if not sold to underwriters in such an offering,
beginning with the first month of the Company’s first fiscal quarter commencing after the
effective date of the Registration Statement;

     (xix)     cause all Transfer Restricted Securities covered by the Registration Statement to
be listed on each securities exchange on which similar securities issued by the Company are
then listed if requested by the Holders of a majority in aggregate principal amount of
Initial Notes or the managing underwriter(s), if any; and

     (xx)     provide promptly to each Holder upon request each document filed with the
Commission pursuant to the requirements of Section 13 and Section 15 of the Exchange Act.

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

     SECTION 7. Registration Expenses.

     (a)     All expenses incident to the Company’s performance of or compliance with this Agreement
will be borne by the Company, regardless of whether a Registration Statement becomes effective,
including without limitation: (i) all registration and filing fees and expenses (including filings
made by any Initial Purchaser or Holder with the NASD (and, if applicable, the fees and expenses of
any “qualified independent underwriter” and its counsel that may be required by the rules and
regulations of the NASD)); (ii) all fees and expenses of compliance
with federal securities and state Blue Sky or securities laws; (iii) all expenses of printing
(including printing certificates for the Exchange Notes to be issued in the Exchange Offer and

14

 

printing of Prospectuses), messenger and delivery services and telephone; (iv) all fees and
disbursements of counsel for the Company and, subject to Section 7(b) below, the Holders of
Transfer Restricted Securities; (v) all application and filing fees in connection with listing the
Exchange Notes on a national securities exchange or automated quotation system pursuant to the
requirements thereof; and (vi) all fees and disbursements of independent certified public
accountants of the Company (including the expenses of any special audit and comfort letters
required by or incident to such performance).

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

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

     SECTION 8. Indemnification.

     (a)     The Company agrees to indemnify and hold harmless (i) each Holder and (ii) each Person, if
any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) any Holder (any of the persons referred to in this clause (ii) being hereinafter
referred to as a “controlling person”) and (iii) the respective officers, directors, partners,
employees, representatives and agents of any Holder or any controlling person (any person referred
to in clause (i), (ii) or (iii) may hereinafter be referred to as an “Indemnified Holder”), to the
fullest extent lawful, from and against any and all losses, claims, damages, liabilities,
judgments, actions and expenses (including without limitation and as incurred, reimbursement of all
reasonable costs of investigating, preparing, pursuing, settling, compromising, paying or
defending any claim or action, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, including the reasonable fees and expenses of counsel to any
Indemnified Holder), joint or several, directly or indirectly caused by, related to, based upon,
arising out of or in connection with (A) any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement (or any amendment or supplement thereto), or
any omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading or (B) any untrue statement or alleged
untrue statement of a material fact contained in any Prospectus (or any amendment or supplement
thereto), or any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, except (i) insofar as such losses,
claims, damages, liabilities or expenses are caused by an untrue statement or omission or
alleged untrue statement or omission that is made in reliance upon and in conformity with
information

15

 

relating to any of the Holders furnished in writing to the Company by any of the
Holders expressly for use therein and (ii) the Company shall not be liable in any such case to the
extent that such loss, claim, damage or liability arises out of or is based upon the use of a
Registration Statement after (x) a stop order has been issued by the Commission in respect of a
Registration Statement or any proceedings for such purposes have been initiated or (y) a
Registration Statement has been suspended, so long as in the case of (x) and (y), the Holders shall
have received prior notice of such action from the Company in accordance with this Agreement. This
indemnity agreement shall be in addition to any liability which the Company may otherwise have.

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

     (b)     Each Holder of Transfer Restricted Securities agrees, severally and not jointly, to
indemnify and hold harmless the Company and its directors, officers of the Company who sign a
Registration Statement, and any person controlling (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) the Company and the respective officers,
directors, partners, employees, representatives and agents of each such person, to the same extent
as the foregoing indemnity from the Company to each of the Indemnified Holders, but only with
respect to claims and actions based on information furnished in writing by such Holder expressly
for use in any Registration Statement. In case any action or proceeding shall be brought against
the Company or its directors or officers or any such controlling person in respect of which
indemnity may be sought against a Holder of Transfer Restricted Securities, such Holder shall

16

 

have
the rights and duties given the Company and the Company or its directors or officers or such
controlling person shall have the rights and duties given to each Holder by the preceding
paragraph.

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

     The Company and each Holder of Transfer Restricted Securities agree that it would not be just
and equitable if contribution pursuant to this Section 8(c) were determined by pro rata allocation
(even if the Holders were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to in the
immediately preceding paragraph. The amount paid or payable by an indemnified party as a result of
the losses, claims, damages, liabilities or expenses referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such action or claim. Notwithstanding the provisions of this Section 8, none of the
Holders (and its related Indemnified Holders) shall be required to contribute, in the aggregate,
any amount in excess of the amount by which the total discount received by such Holder with respect
to the Initial Notes exceeds the amount of any damages which such Holder has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations
to

17

 

contribute pursuant to this Section 8(c) are several in proportion to the respective principal
amount of Initial Notes held by each of the Holders hereunder and not joint.

     SECTION 9. Rule 144A. The Company hereby agrees with each Holder, for so long as any
Transfer Restricted Securities remain outstanding, to make available to any Holder or beneficial
owner of Transfer Restricted Securities in connection with any sale thereof and any prospective
purchaser of such Transfer Restricted Securities from such Holder or beneficial owner, the
information required by Rule 144A(d)(4) under the Securities Act in order to permit resales of such
Transfer Restricted Securities pursuant to Rule 144A.

     SECTION 10. Participation in Underwritten Registrations. No Holder may participate in any
Underwritten Registration hereunder unless such Holder (a) agrees to sell such Holder’s Transfer
Restricted Securities on the basis provided in any underwriting arrangements approved by the
Persons entitled hereunder to approve such arrangements and (b) completes and executes all
reasonable questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up
letters and other documents required under the terms of such underwriting arrangements.

     SECTION
11. Selection of Underwriters. The Holders of Transfer Restricted Securities covered
by the Shelf Registration Statement who desire to do so may sell such Transfer Restricted
Securities in an Underwritten Offering. In any such Underwritten Offering, the investment banker
or investment bankers and manager or managers that will administer the offering will be selected by
the Holders of a majority in aggregate principal amount of the Transfer Restricted Securities
included in such offering; provided, that such investment bankers and managers must be reasonably
satisfactory to the Company.

     SECTION 12. Miscellaneous.

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

     (b)     No Inconsistent Agreements. The Company will not on or after the date of this Agreement
enter into any agreement with respect to its securities that is inconsistent with the rights
granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. The
Company has not entered into any agreement granting any registration rights with respect to its
securities to any Person. The rights granted to the Holders hereunder do not in any way
conflict with and are not inconsistent with the rights granted to the holders of the Company’s
securities under any agreement in effect on the date hereof.

     (c)     Adjustments Affecting the Notes. The Company will not take any action, or permit any
change to occur, with respect to the Notes that would materially and adversely affect the ability
of the Holders to Consummate any Exchange Offer.

     (d)     Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to or departures from the provisions hereof may not be given
unless the Company has obtained the written consent of Holders of a majority of the outstanding
principal amount of Transfer Restricted Securities.

18

 

Notwithstanding the foregoing, a waiver or
consent to departure from the provisions hereof that relates exclusively to the rights of Holders
whose securities are being tendered pursuant to the Exchange Offer and that does not affect
directly or indirectly the rights of other Holders whose securities are not being tendered pursuant
to such Exchange Offer may be given by the Holders of a majority of the outstanding principal
amount of Transfer Restricted Securities being tendered or registered; provided that, with respect
to any matter that directly or indirectly adversely affects the rights of any Initial Purchaser
hereunder, the Company shall obtain the written consent of each such Initial Purchaser with respect
to which such amendment, qualification, supplement, waiver, consent or departure is to be
effective.

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

     (i)           if to a Holder, at the address set forth on the records of the Registrar under the
Indenture unless a more current address has been provided to the Company by such Holder,
with a copy to the Registrar under the Indenture;

	 	 (ii)	 	if to the Company:

Quebecor Media Inc.

612 Saint Jacques Street

Montreal, Quebec H3C 4M8

Facsimile: (514) 985-8834

Attention: Frederic Despars, Esq.

                   Executive Director, Legal Affairs
	 
	 	 	 	With a copy to:
	 
	 	 	 	Ogilvy Renault LLP

1981 McGill College Avenue, Suite 1100

Montreal, Quebec H3A 3C1

Facsimile: (514) 286-5474

Attention: Marc Lacourcière, Esq.

	 
	 	  (iii)	 	if to the Initial Purchasers:

19

 

	 	 	 	Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

Facsimile: (212) 816-7912

Attention: General Counsel

	 
	 	 	 	With a copy to:
	 
	 	 	 	Shearman & Sterling LLP

199 Bay Street, Commerce Court West

Suite 4405, P.O. Box 247

Toronto, Ontario M5L 1E8

Facsimile: (416) 360-2958

Attention: Christopher J. Cummings, Esq.

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

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

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

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

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

     (i)     Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

     (j)     Consent to Jurisdiction. The Company agrees that any legal suit, action or proceeding,
arising out of or based upon this Agreement or the transactions contemplated hereby (“Related
Proceedings”) may be instituted in the federal courts of the United States of America located in
the City and County of New York or the courts of the State of New York in each case

20

 

located in the
City and County of New York (collectively, the “Specified Courts”), and each party irrevocably
submits to the non-exclusive jurisdiction of such courts in any such suit, action or proceeding.
The Company irrevocably appoints CT Corporation System, as its agent to receive service of process
or other legal summons for the purposes of any such suit, action or proceeding that may be
instituted in any state or federal court in the City and County of New York. Service of any
process, summons, notice or document upon such agent, and written notice of said service by mail to
such party’s address set forth above shall be effective service of process for any suit, action or
other proceeding brought in any such court. The parties irrevocably and unconditionally waive, to
the fullest extent permitted by applicable law, any objection to the laying of venue of any suit,
action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and
agree, to the fullest extent permitted by applicable law, not to plead or claim in any such court
that any such suit, action or other proceeding brought in any such court has been brought in an
inconvenient forum.

     (k)     Waiver of Immunity. With respect to any Related Proceeding, each party irrevocably
waives, to the fullest extent permitted by applicable law, all immunity (whether on the basis of
sovereignty or otherwise) from jurisdiction, service of process, attachment (both before and after
judgment) and execution to which it might otherwise be entitled in the Specified Courts, and with
respect to any proceedings instituted in regard to the enforcement of a judgment of the Specified
Courts (a “Related Judgment”), each party waives any such immunity in the Specified Courts or any
other court of competent jurisdiction, and will not raise or claim or cause to be pleaded any such
immunity at or in respect of any such Related Proceeding or Related Judgment, including, without
limitation, any immunity pursuant to the United States Foreign Sovereign Immunities Act of 1976, as
amended.

     (l)     Judgment Currency. If for the purposes of obtaining judgment in any court it is necessary
to convert a sum due hereunder into any currency other than U.S. dollars, the parties hereto agree,
to the fullest extent that they may effectively do so, that the rate of exchange to be used shall
be the rate at which in accordance with normal banking procedures the indemnified party could
purchase U.S. dollars with such other currency in The City of New York on the business day
preceding that on which final judgment is given. The obligations of the Company in respect of any
sum due from it to any indemnified party shall, notwithstanding any judgment in any currency other
than U.S. dollars, not be discharged until the first business day, following receipt by such
indemnified party of any sum adjudged to be so due in such other currency, on which (and only to
the extent that) such indemnified party may in accordance with normal banking procedures purchase
U.S. dollars with such other currency; if the U.S. dollars so purchased are less than the sum
originally due to such indemnified party hereunder, the Company agrees, as a separate obligation
and notwithstanding any such judgment, to indemnify such indemnified party against such loss. If
the U.S. dollars so purchased are greater than the sum originally due to such indemnified party
hereunder, such indemnified party agrees to pay the Company an amount equal to the excess of the
dollars so purchased over the sum originally due to such indemnified party hereunder.

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

21

 

     (n)     Entire Agreement. This Agreement together with the Purchase Agreement, the Notes and the
Indenture is intended by the parties as a final expression of their agreement and intended to be a
complete and exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein with respect to the registration
rights granted by the Company with respect to the Transfer Restricted Securities. This Agreement
supersedes all prior agreements and understandings between the parties with respect to such subject
matter.

22

 

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

	 	 	 	 	 
	 	QUEBECOR MEDIA INC.

 	 
	 	By:  	(signed)	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

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

CITIGROUP GLOBAL MARKETS INC.

BANC OF AMERICA SECURITIES LLC

CREDIT SUISSE FIRST BOSTON LLC

HARRIS NESBITT CORP.

SCOTIA CAPITAL (USA) INC.

TD SECURITIES (USA) LLC

RBC CAPITAL MARKETS CORPORATION

HSBC SECURITIES (USA) INC.

NBF SECURITIES (USA) CORP.

By: CITIGROUP GLOBAL MARKETS INC.

	 	 	 	 	 
	 	 	 
	By:  	(signed) 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 	For itself and the several Initial PurchasersSUBORDINATED CONVERTIBLE PROMISSORY NOTE

                              TERMS AND CONDITIONS

     Newave,  Inc.  (the  "Company")  shall  borrow  from
                           -------
     "Lender"  $               (USD)  (the  "Promissory  Note").
                                             ----------------

LOAN  AMOUNT:     $  40,000.00  (USD)

PROMISSORY  NOTE:

INTEREST  AND  PAYMENT:     Twelve  (12)  month  term promissory note shall bear
simple  interest  at  the  rate  of  twenty  percent (20%) per annum, payable at
maturity.

AT MATURITY:

The  Lender,  at  their  sole discretion, and upon written notice to the Company
prior  to  maturity, shall have the right to receive the return of the principal
Loan  amount  plus  20%  simple  annual  interest.

OR  CONVERT  THE  LENDER'S  PRINCIPAL  INTO THE COMMON STOCK OF THE COMPANY IN A
MANNER  THAT  WOULD  REFLECT THE HIGHEST VALUE FOR CONVERSION AVAILABLE BASED ON
THE  TERMS  OF  CONVERSION IN THIS DOCUMENT ON THE DAY THAT THE NOTE MATURES. IF
THE LENDER CONVERTS AT THE END OF THE TERM, THE LENDER WILL BE ENTITLED TO FULLY
REGISTERED  SECURITIES.  IF  THE  LENDER  CONVERTS  AND IS ISSUED STOCK PRIOR TO
MATURITY,  THE  LENDER  WILL  BE  ENTITLED  TO  RESTRICTED  SECURITIES.

TERMS OF CONVERSION:

The  Lender will receive a minimum of 10,000 Shares of Newave, Inc. Common stock
for  every $1000.00 (USD) loaned to the Company or an amount of stock equal to a
thirty  percent  (30%)  discount  to the market value of the stock on the day of
conversion  whichever results in the greatest value for the lender, to be issued
within  20  days  of  maturity  of  this note along with the appropriate opinion
letter,  if  the  Lender decides to forfeit the principal & 20% Interest through
the  process  of  conversion. The Lender may convert principal and Interest into
common  shares  of Newave, Inc. or any successor company at the time of maturity
simply by notifying the company in writing anytime prior to the maturity date of
this  note.  If the company has not received notice by the maturity date of this
note,  the  authority  to  choose  between  payment of Interest and principal or
conversion  will  revert  to  the  Company.

ADDITIONAL BENEFIT:

As  an  additional  benefit,  the  lender  will also be issued by the Company, a
right,  represented  by  a  warrant.  The  warrant will be issued with the above
described common shares, to increase the Lenders holdings of Newave, Inc. common
stock by 1000 shares per $1000 loaned to borrower at a price not to exceed $0.75
and no lower than $0.50. The right to exercise the Warrant will start at the day
of conversion and last for up to one-year beyond that date.  The company may, in
its  sole discretion, offer a lower exercise price but not a price higher than $
0.75.

SUBORDINATION:

The  promissory  notes  will  be  subordinated  in payment and preference to the
Company's  existing  or  future  commercial  lenders.

If  the company has not been notified of Lenders intention by maturity date, the
option  of repayment and interest or conversion will transfer to the company and
will  follow the same terms available to the Lender prior to that maturity date.

EARLY REPAYMENT OPTION:

If  the  early  repayment  option  is taken by Lender, the Company will agree to
retire  the  debt  early at 125% of the principal loan amount. The time of early
retirement will be determined by mutual agreement of the lender and the Company.
The  early  repayment  must  be  agreed  upon and executed by both parties. Once
repayment is done under this option, all repayment obligations of this note will
be considered satisfied and all other options, rights, and warrants of this note
will  be  considered  canceled.

COVENANTS & COLLATERAL:

     The covenants contained within this note shall be, but not limited to the
following:

     1.)  The  Company  will be required to raise additional capital through the
sale  of Common Stock. The Company may be required to seek financing through the
sale  of  preferred  stock, convertible debentures or other forms of debt and/or
equity  financing.  The availability of additional financing may be dependent on
the  relative  success  and  progress  of the Company and may be offered on more
favorable  terms  than  offered  herein.

     2.)  The  Company  will  be  required  to liquidate assets available to the
company, in the case of default, to fully repay the loan, by presenting a demand
letter  for  repayment and the company will be bound to do so immediately and be
so  bound  by  any and all laws applicable as a Utah Corporation and enforceable
against  the  Company's  assets,  irrespective of the physical location of those
assets, and irrespective of the physical description of those assets, so long as
those  assets  have  a  sell  value  alone  or  combined  to  satisfy  the debt.

ADJUSTMENTS IN CONVERSION PRICE AND SHARES AND WARRANT EXERCISE PRICE AND COMMON
SHARES:

The  Conversion  Price  and  Common Shares and Warrant exercise price and common
shares  shall  be  subject  to  adjustment from time to time as provided in this
Section.  [a]  If  the  Issuer  is  recapitalized  through  the  subdivision  or
combination  of  its outstanding shares of Common Stock into a larger or smaller
number  of  shares, the number of shares of Common Stock for which this Note may
be  exercised  shall  be  increased  or  reduced, as of the record date for such
capitalization,  in  the  same  proportion  as  the  increase or decrease in the
outstanding  shares  of Common Stock, and the Conversion Price shall be adjusted
so  that  the aggregate amount payable for the purchase of all Conversion Shares
and  Warrant  Shares  which may be issued hereunder immediately after the record
date  for  such  capitalization  shall  equal  the  aggregate  amount so payable
immediately before such record date. [b] In the case of any consolidation of the
Issuer  with,  or merger of the Issuer into, any other corporation (other than a
consolidation or merger in which the Issuer is the continuing corporation and in
which  no  change occurs in its outstanding Common Stock), or in the case of any
sale  or transfer of all or substantially all of the assets of the Issuer, or in
the  case  of  any  statutory  exchange  of  securities with another corporation
(including  any  exchange  effected  in  connection  with  a  merger  of a third
corporation into the Issuer, except where the Issuer is the surviving entity and
no  change  occurs  in  its outstanding Common Stock), the corporation formed by
such  consolidation  or  the  corporation  resulting  from  such  merger  or the
corporation  which  shall have acquired such assets or securities of the Issuer,
as  the  case  may  be,  shall  execute and deliver to the Holder simultaneously
therewith  a  new  Conversion and or Warrant execution document, satisfactory in
form  and  substance  to  the  Holder, together with such other documents as the
Holder  may  reasonably  request,  entitling  the Holder thereof to receive upon
exercise of such Conversion or Warrant Exercise the kind and amount of shares of
stock  and  other  securities  and  property receivable upon such consolidation,
merger,  sale,  transfer,  by  a  Holder of the number of shares of Common Stock
purchasable  upon  exercise  of  this  Conversion  and or Warrant Exercise shall
provide  for  adjustments  which, for events subsequent to the effective date of
such  written instrument, shall be as nearly equivalent as may be practicable to
the  adjustments  provided for in this Section. The provisions of this paragraph
shall similarly apply to successive securities and property receivable upon such
consolidation,  consolidations,  merger,  exchanges,  sales  or  other transfers
covered hereby. [c] If the Issuer shall, at a time before the expiration of this
Warrant, sell all or substantially all of its assets and distribute the proceeds
thereof  to  the  Issuer's shareholders, the Holder shall, upon exercise of this
Conversion  and  Warrant  Exercise,  have  the  right to receive, in lieu of the
shares  of  Common Stock of the Issuer that the Holder otherwise would have been
entitled  to  receive,  the  same  kind  and amount of assets as would have been
issued,  distributed,  or  paid  to  the  Holder upon any such distribution with
respect  to  such  shares  of Common Stock of the Issuer has the Holder been the
holder  of  records  of  such shares of Common Stock receivable upon exercise of
this  Conversion  and  or  Warrant on the date for determining those entitled to
receive  any  such distribution[d] The term "Common Stock" shall mean the Common
Stock  of the Issuer as the same exists at the Closing Date or as such stock may
be  constituted  from time to time, except that for the purpose of this Section,
the term "Common Stock: shall include any stock of any class of the Issuer which
has  no  preference in respect of interest or of amounts payable in the event of
any  voluntary  or  involuntary  liquidation,  dissolution, or winding up of the
Issuer  and  which  is  not  subject to redemption by the Issuer. [e] The Issuer
shall  retain  a  firm  of independent public accountants of recognized standing
(who  may  be  any  such  firm  regularly  employed  by  the Issuer) to make any
computation  required  under this Section, and a certificate signed by such firm
shall  be  conclusive  evidence of the correctness of any computation made under
this  Section.  [f]  Notwithstanding  any other provision, this Warrant shall be
binding  upon  and  inure  to  the  benefit of any successors and assigns of the
Issuer.

NOTICE  OF  ADJUSTMENT:

So  long  as the Warrant shall be outstanding and the Conversion is outstanding,
[a] if the Issuer shall propose to pay any interest or make any interest or make
any  distribution  upon  the  Common  Stock,  or  [b]  if the Issuer shall offer
generally  to  the holders of Common Stock the right to subscribe to or purchase
any  shares  of  any class of Common Stock or securities convertible into Common
Stock or any other similar rights, or [c] if there shall be any proposed capital
reorganization  of  the  Issuer in which the Issuer is not the surviving entity,
recapitalization  of the capital stock of the Issuer, consolidation or merger of
the  Issuer  with or into another corporation, sale, lease, or other transfer of
all  or  substantially all of the property and assets of the Issue, or voluntary
or involuntary dissolution, liquidation or winding up of this Issuer, or [d] any
significant  or  special  action  or event, then in such event, the Issuer shall
give  to  the  Holder,  reasonable  notice  prior  to the relevant data a notice
containing a description of the proposed action or event and stating the date or
expected  date on which a record of the Issuer's stockholders is to be taken for
any  of  the foregoing purposes, and the date or expected date on which any such
dividend,  distribution,  subscription,  reclassification,  reorganization,
consolidation,  combination,  merger,  conveyance,  sale,  lease  or  transfer,
dissolution, liquidation or winding up is to take place and the date or expected
date,  if any is to be fixed, as of which the holders of Common Stock of records
shall  be  entitled  to  exchange their shares of Common Stock for securities or
other  property  deliverable  upon  such  event.

NOTICE:

Any  notice  to  be  given or to be served upon any party in connection with the
Warrant  and  or  Conversion  Note must be in writing and will be deemed to have
been given and received upon confirmed receipt, if sent by facsimile, or two (2)
days  after  it  has  been  submitted  for  delivery  by  Federal Express or any
equivalent  carrier,  charges  prepaid, and addressed to the following addresses
with  a  confirmation  of  delivery.

<PAGE>

                    NEWAVE, INC. SUBORDINATED PROMISSORY NOTE

                                   SIGNATURES

As Agreed to by:                                 As Accepted by:

Newave, Inc.                                     Mr. Ronald Feldman
                                                     --------------

/s/ Michael Hill                                     /s/Ronald Feldman
----------------                                     -----------------
Authorized Signature                                 Authorized Signature

Date: 1/9/2006                                   Date: 1/9/2006
         --------

Address:  30 S. LaPatera Lane, Ste 7          Address: 59 Rambler Road
Goleta, CA  93117                                      Carmel, NY  10512
(Santa Barbara office)

*Signatures on this page signify agreement on the terms & conditions of this
subordinated promissory note offered by Newave, Inc.

-     upon receipt of this signed document, with funds and the subsequent
acceptance there of by the company, the company will issue a confirmation of the
loan and forward that confirmation to the address listed above for the Lender.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]