Document:

Exhibit 4.2

 

EXECUTION COPY

 

Sanmina-SCI Corporation

63⁄4% Senior Subordinated Notes due 2013

Exchange and Registration Rights Agreement

 

February 24, 2005

 

Citigroup
Global Markets Inc.

Banc of America Securities LLC

Merrill Lynch, Pierce, Fenner & Smith
                                                Incorporated

Deutsche Bank Securities Inc.

Scotia Capital
Inc.

ABN AMRO
Incorporated

KeyBanc
Capital Markets,

a division of
McDonald Investments Inc.

Wells Fargo
Securities, LLC

Piper Jaffray
& Co.

As
Representatives of the Initial Purchasers

c/o Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

 

Ladies and
Gentlemen:

 

Sanmina-SCI Corporation, a Delaware corporation (the “Company”), and
the Guarantors (as defined herein) propose to issue and sell to the Purchasers
(as defined herein) upon the terms set forth in the Purchase Agreement (as
defined herein) the Company’s 63⁄4% Senior Subordinated Notes due 2013, fully and
unconditionally guaranteed by each of the Guarantors.  As an inducement to the Purchasers to enter
into the Purchase Agreement and in satisfaction of a condition to the
obligations of the Purchasers thereunder, the Company and the Guarantors agree
with the Purchasers for the benefit of holders (as defined herein) from time to
time of the Transfer Restricted Securities (as defined herein) as follows:

 

1.                                       Certain Definitions.  For purposes of this Exchange and
Registration Rights Agreement, the following terms shall have the following
respective meanings:

 

“Base Interest”
shall mean the interest that would otherwise accrue on the Securities under the
terms thereof and the Indenture, without giving effect to the provisions of
this Agreement.

 

The term “broker-dealer”
shall mean any broker or dealer registered with the Commission under the
Exchange Act.

 

“Closing Date” shall
mean the date on which the Securities are initially issued.

 

 

“Commission” shall
mean the United States Securities and Exchange Commission, or any other federal
agency at the time administering the Exchange Act or the Securities Act,
whichever is the relevant statute for the particular purpose.

 

“Effective Time,” in
the case of (i) an Exchange Registration, shall mean the time and date as
of which the Commission declares the Exchange Registration Statement effective
or as of which the Exchange Registration Statement otherwise becomes effective
and (ii) a Shelf Registration, shall mean the time and date as of which
the Commission declares the Shelf Registration Statement effective or as of
which the Shelf Registration Statement otherwise becomes effective.

 

“Electing Holder” shall
mean any holder of Transfer Restricted Securities that has returned a completed
and signed Notice and Questionnaire to the Company in accordance with Section 3(d)(ii)
or 3(d)(iii) hereof.

 

“Exchange Act” shall
mean the Securities Exchange Act of 1934, or any successor thereto, and the
rules and regulations promulgated thereunder, as the same shall be amended from
time to time.

 

“Exchange Offer”
shall have the meaning assigned thereto in Section 2(a) hereof.

 

“Exchange Registration”
shall have the meaning assigned thereto in Section 3(c) hereof.

 

“Exchange Registration Statement”
shall have the meaning assigned thereto in Section 2(a) hereof.

 

“Exchange Securities”
shall have the meaning assigned thereto in Section 2(a) hereof.

 

“Exchange Suspension Period”
shall have the meaning assigned thereto in Section 3(c)(ii)
hereof.

 

“Guarantors” shall
mean the entities listed on Schedule II to the Purchase Agreement.

 

The term “holder” shall
mean with respect to the Transfer Restricted Securities, each of the Purchasers
and other persons who acquire Transfer Restricted Securities from time to time
(including any successors or assigns), in each case for so long as such person
owns any Transfer Restricted Securities.

 

“Indenture” shall mean the Indenture, dated as of February 24, 2005,
between the Company, the Guarantors and U.S. Bank National Association, as
Trustee, as the same shall be amended from time to time in accordance with the
terms thereof.

 

“Material Adverse Effect”
shall mean any change in the capital stock or long-term debt of the Company or
any of its subsidiaries or any material adverse change, or any development that
is reasonably likely to result in a material adverse change, in or affecting
the business,

 

2

 

business
prospects, management, financial position, stockholders’ equity or results of
operations of the Company and its subsidiaries taken as a whole.

 

“NASD” shall mean the
National Association of Securities Dealers, Inc., or any successor thereto.

 

“Notice and Questionnaire”
shall mean a Notice of Registration Statement and Selling Securityholder
Questionnaire substantially in the form of Exhibit A hereto and as the same
shall be supplemented in any manner advisable to meet the requirements of the
Securities Act, including items 507 and 508 of Regulation S-K.

 

The term “person” shall
mean a corporation, association, partnership, organization, business,
individual, government or political subdivision thereof or governmental agency.

 

“Purchase Agreement”
shall mean the Purchase Agreement, dated as of February 16, 2005, between
the Purchasers, the Company and the Guarantors relating to the Securities.

 

“Purchasers” shall
mean Citigroup Global Markets Inc., Banc of America Securities LLC, Merrill
Lynch, Pierce, Fenner & Smith Incorporated, Deutsche Bank Securities Inc.,
Scotia Capital Inc., ABN AMRO Incorporated, KeyBanc
Capital Markets, a division of McDonald Investments Inc., Wells Fargo
Securities, LLC and Piper Jaffray & Co.

 

“Registration Default”
shall have the meaning assigned thereto in Section 2(c) hereof.

 

“Registration Default Period”
shall have the meaning assigned thereto in Section 2(c) hereof.

 

“Registration Expenses”
shall have the meaning assigned thereto in Section 4 hereof.

 

“Resale Period”
shall have the meaning assigned thereto in Section 2(a) hereof.

 

“Restricted Holder”
shall mean (i) a holder that is an affiliate of the Company within the
meaning of Rule 405, (ii) a holder who acquires Exchange Securities
outside the ordinary course of such holder’s business, (iii) a holder who
has arrangements or understandings with any person to participate in the
Exchange Offer for the purpose of distributing Exchange Securities and (iv) a
holder that is a broker-dealer, but only with respect to Exchange Securities
received by such broker-dealer pursuant to the Exchange Offer in exchange for
Transfer Restricted Securities acquired by the broker-dealer directly from the
Company.

 

“Rule 144,” “Rule 405” and “Rule 415”
shall mean, in each case, such rule promulgated under the Securities Act (or
any successor provision), as the same shall be amended from time to time.

 

“Securities” shall
mean, collectively, the 63⁄4% Senior Subordinated Notes due 2013 of the Company
and fully and unconditionally guaranteed by the Guarantors to be issued and
sold

 

3

 

to the Purchasers
pursuant to the Purchase Agreement, and securities issued in exchange therefor
or in lieu thereof pursuant to the Indenture.

 

“Securities Act”
shall mean the Securities Act of 1933, or any successor thereto, and the rules
and regulations promulgated thereunder, as the same shall be amended from time
to time.

 

“Shelf Registration”
shall have the meaning assigned thereto in Section 2(b) hereof.

 

“Shelf Registration Statement”
shall have the meaning assigned thereto in Section 2(b) hereof.

 

“Special Interest”
shall have the meaning assigned thereto in Section 2(c) hereof.

 

“Transfer Restricted Security”
means each of the Securities and each of the Exchange Securities described in Section 2(b)(iv)(b),
in each case upon the original issuance thereof and at all times subsequent
thereto until the earliest to occur of (A) the date on which any such Security
has been exchanged by a person other than a broker-dealer for an Exchange
Security (other than with respect to an Exchange Security as to which Section 2(b)(iv)
applies) pursuant to the Exchange Offer, (B) with respect to Exchange
Securities received by broker-dealers in the Exchange Offer (other than with
respect to an Exchange Security as to which Section 2(b)(iv)(b) applies),
the earlier of (x) the date on which such Exchange Security has been sold by
such broker-dealer by means of the prospectus contained in the Exchange
Registration Statement and (y) the latest date by which the Company and the
Guarantors are required to keep the Exchange Offer Registration Statement
effective pursuant to Section 2(a) below, (C) with respect to a Security
or Exchange Security covered by an effective Shelf Registration Statement, the
earlier of (x) the date on which such Security or Exchange Security, as the
case may be, has been disposed of in accordance with such effective Shelf
Registration Statement and (y) the latest date by which the Company and the
Guarantors are required to keep the Shelf Registration Statement effective
pursuant to Section 2(b) below, (D) such Security or Exchange Security, as
the case may be, is sold pursuant to Rule 144 under circumstances in which the
legend borne by such Security or Exchange Security relating to restrictions on
transferability thereof, under the Securities Act or otherwise, is removed by
the Company or pursuant to the Indenture, (E) the date on which such Security
or Exchange Security, as the case may be, is eligible for distribution to the
public without volume or manner of sale restrictions pursuant to Rule 144(k) or
(F) the date on which such Security or Exchange Security, as the case may be,
ceases to be outstanding for the purposes of the Indenture or any other
indenture under which such Security or Exchange Security was issued.

 

“Trustee” shall mean
U.S. Bank National Association.

 

“Trust Indenture Act”
shall mean the Trust Indenture Act of 1939, or any successor thereto, and the
rules, regulations and forms promulgated thereunder, all as the same shall be
amended from time to time.

 

4

 

Unless the context otherwise requires, any reference herein to a “Section”
or “clause” refers to a Section or clause, as the case may be, of this
Exchange and Registration Rights Agreement, and the words “herein,” “hereof”
and “hereunder” and other words of similar import refer to this Exchange and
Registration Rights Agreement as a whole and not to any particular Section or
other subdivision.

 

2.                                       Registration Under the
Securities Act.

 

(a)                                  Except as set forth
in Section 2(b) below, the Company and the Guarantors agree that they
shall use their reasonable efforts to file under the Securities Act, as soon as
practicable, but no later than ninety (90) days after the Closing Date, a
registration statement relating to an offer to exchange (such registration
statement, the “Exchange Registration Statement,” and such offer, the “Exchange
Offer”) any and all of the Transfer Restricted Securities for a like aggregate
principal amount of debt securities issued by the Company and fully and
unconditionally guaranteed by each of the Guarantors, which debt securities are
substantially identical to the Securities (and are entitled to the benefits of
a trust indenture which is substantially identical to the Indenture or is the
Indenture and which has been qualified under the Trust Indenture Act), except
that they have been registered pursuant to an effective registration statement
under the Securities Act and do not contain provisions for the additional
interest contemplated in Section 2(c) below (such new debt securities
hereinafter called “Exchange Securities”). 
The Company and the Guarantors agree that they shall use their
reasonable efforts to cause the Exchange Registration Statement to become
effective under the Securities Act as soon as practicable, but no later than
180 days after the Closing Date.  The
Exchange Offer will be registered under the Securities Act on the appropriate
form and will comply with all applicable tender offer rules and regulations
under the Exchange Act. The Company and the Guarantors further agree that the
Company shall use its reasonable efforts to commence and consummate the
Exchange Offer promptly, but no later than two hundred and fifteen (215) days
after the Closing Date, hold the Exchange Offer open for at least thirty (30)
days (or longer if required by applicable law) and exchange Exchange Securities for all Transfer Restricted
Securities that have been properly tendered and not withdrawn on or prior to
the expiration of the Exchange Offer. 
The Exchange Offer will be deemed to have been “consummated” only if the
debt securities received by holders other than Restricted Holders in the
Exchange Offer for Registrable Securities are, upon receipt, transferable by
each such holder without the need for further compliance with Section 5 of
the Securities Act and the Exchange Act (except for the requirement to deliver
a prospectus included in the Exchange Offer Registration Statement applicable
to resales by broker-dealers of Exchange Securities received by such
broker-dealer pursuant to the Exchange Offer in exchange for Transfer
Restricted Securities other than those acquired by the broker-dealer directly
from the Company) and without material restrictions under the blue sky or
securities laws of a substantial majority of the States of the United States of
America.  The Exchange Offer shall be
deemed to have been consummated upon the earlier to occur of (i) the Company
and the Guarantors having

 

5

 

exchanged the Exchange Securities for all outstanding Transfer
Restricted Securities pursuant to the Exchange Offer and (ii) the Company
and the Guarantors having exchanged, pursuant to the Exchange Offer, Exchange
Securities for all Transfer Restricted Securities that have been properly
tendered and not withdrawn before the expiration of the Exchange Offer, which
shall be on a date that is at least thirty (30) days following the commencement
of the Exchange Offer.  If the Company is
notified prior to the completion of the Exchange Offer by a broker-dealer that
is a holder of Transfer Restricted Securities (other than Transfer Restricted Securities
received by the broker-dealer directly from the Company), the Company and the
Guarantors agree (x) to include in the Exchange Registration Statement a
prospectus for use in connection with any resales of Exchange Securities by any
holder thereof that is a broker-dealer, other than resales of Exchange
Securities received by a broker-dealer pursuant to the Exchange Offer in
exchange for Transfer Restricted Securities acquired by the broker-dealer
directly from the Company, and (y) to keep such Exchange Registration
Statement effective for a period (the “Resale Period”) beginning when Exchange
Securities are first issued in the Exchange Offer and ending upon the earlier
of (1) the expiration of the 180th day after the Exchange Offer has been
consummated (if the Exchange Offer Registration Statement shall be suspended
from use during such 180-day period, such date shall be extended by the number
of days in the period from and including the date of the giving of notice of
such suspension to and including the date when the Company and the Guarantors
shall have made available to participating broker-dealers copies of the
supplemented or amended prospectus necessary to resume dispositions by such
participating broker-dealers) and (2) such time as such broker-dealers no
longer own any Transfer Restricted Securities. 
With respect to such Exchange Registration Statement, each broker-dealer
that holds Exchange Securities received in the Exchange Offer in exchange for
Transfer Restricted Securities not acquired by it directly from the Company
shall have the benefit of the rights of indemnification and contribution set
forth in Sections 6(a), (c), (d) and (e) hereof.

 

(b)                                 If (i) on or prior to
the time the Exchange Offer is consummated, existing interpretations of the
staff of the Commission are changed such that the debt securities received by
holders other than Restricted Holders in the Exchange Offer for Transfer
Restricted Securities are not or would not be, upon receipt, transferable by
each such holder without restriction under the Securities Act, (ii) the
Exchange Registration Statement is not declared effective within 180 days after
the Closing Date or the Exchange Offer has not been consummated within two
hundred and fifteen (215) days after the Closing Date, (iii) the Purchasers so
request with respect to Securities held by them that are not eligible to be
exchanged for Exchange Securities in the Exchange Offer; or (iv) any holder of
Securities (other than a Purchaser) notifies the Company in writing that (a) it
is not eligible to participate in the Exchange Offer or (b) it may not resell
the Exchange Securities to be acquired by it in the Exchange Offer to the
public without delivering a prospectus and the prospectus contained in the
Exchange Offer Registration Statement is not appropriate for such resales by
such holder, the Company shall, in lieu of

 

6

 

(or, in the case of clauses (iii) and (iv), in addition to) conducting
the Exchange Offer contemplated by Section 2(a), use its reasonable
efforts to file under the Securities Act as promptly as practicable and, in any
event, no later than forty-five (45) days after the Company becomes aware that
such obligation to file arises, a “shelf” registration statement providing for
the registration of, and the sale on a continuous or delayed basis by the
holders of, (A) in the case of (i) and (ii) above, all of the Transfer
Restricted Securities, (B), in the case of (iii) above, those Securities held
by the Purchasers that are not eligible to be exchanged in the Exchange Offer,
and (C) in the case of (iv) above, those Securities for which the Company
receives notice pursuant to clause (iv) above, pursuant to Rule 415 or any
similar rule that may be adopted by the Commission (such filing, the “Shelf
Registration” and such registration statement, the “Shelf Registration
Statement”).  The Company and the
Guarantors agree that they shall use their reasonable efforts to cause the
Shelf Registration Statement to become or be declared effective by the
Commission no later than ninety (90) days after such Shelf Registration
Statement is filed and to keep such Shelf Registration Statement continuously
effective for a period ending on the earlier of two (2) years (or such shorter
period as may be established by any amendment to the two-year period set forth
in Rule 144(k) under the Securities Act) following the Closing Date or the date
immediately following the date that all Transfer Restricted Securities covered
by the Shelf Registration Statement have been sold pursuant thereto or
otherwise cease to be Transfer Restricted Securities, provided, however,
that no holder shall be entitled to be named as a selling securityholder in the
Shelf Registration Statement or to use the prospectus forming a part thereof
for resales of Transfer Restricted Securities unless such holder is an Electing
Holder.  Holders of Transfer Restricted
Securities that do not complete a Notice and Questionnaire and deliver it to
the Company and the Guarantors at least two (2) calendar days prior to the Effective
Time of the Shelf Registration Statement shall not be named as selling
securityholders in the prospectus included in the Shelf Registration Statement
and, therefore, shall not be permitted to sell any Transfer Restricted
Securities pursuant to the Shelf Registration Statement.  Notwithstanding the foregoing, upon request
from a holder of Transfer Restricted Securities that did not return a Notice
and Questionnaire on a timely basis because it was a subsequent transferee of
Transfer Restricted Securities after the Company distributed the Notice and
Questionnaire pursuant to Section 3(d)(ii), (1) the Company shall
distribute a Notice and Questionnaire to such holder at the address set forth
in the request and (2) upon receipt of a properly completed Notice and
Questionnaire from such holder, the Company shall use its reasonable efforts to
name such holder as a selling securityholder by means of a pre-effective
amendment or, if permitted by the Commission, by means of a prospectus
supplement to the Shelf Registration Statement; provided, however,
that the Company and the Guarantors shall have no obligation to pay Special
Interest to such holder for its failure to name such holder as a selling
securityholder by means of a pre-effective amendment or prospectus
supplement.  No holder of Transfer
Restricted Securities shall be entitled to Special Interest pursuant to Section 2(c)
accrued after the date that is two (2) calendar days prior to the Effective
Time unless and until such holder shall have returned a completed and

 

7

 

signed Notice and
Questionnaire to the Company and the Guarantors in accordance with the
requirements of this Exchange and Registration Rights Agreement.  The Company and the Guarantors further agree
that they shall supplement or make amendments to the Shelf Registration
Statement, as and when required by the rules, regulations or instructions
applicable to the registration form used by the Company for such Shelf
Registration Statement or by the Securities Act for shelf registration, and the
Company and the Guarantors agree that they shall furnish to each Electing
Holder copies of any such supplement or amendment prior to its being used or
promptly following its filing with the Commission.

 

(c)                                  In the event that
with respect to Transfer Restricted Securities (i) the Company has not filed
the Exchange Registration Statement or Shelf Registration Statement on or
before the date on which such registration statement is required to be filed
pursuant to Section 2(a) or 2(b), respectively, or (ii) such Exchange
Registration Statement or Shelf Registration Statement has not become effective
or been declared effective by the Commission on or before the date on which
such registration statement is required to become or be declared effective
pursuant to Section 2(a) or 2(b), respectively, or (iii) on or prior to
the 215th day after the Closing Date, neither the Exchange Offer has
been consummated (if the Exchange Offer is then required to be made) nor the
Shelf Registration Statement (if filed) has been declared effective, or
(iv) any Exchange Registration Statement or Shelf Registration Statement
required by Section 2(a) or 2(b) hereof is filed and declared effective
but shall thereafter during the period such registration statement is required
herein to remain effective either be withdrawn by the Company or shall become
subject to an effective stop order issued pursuant to Section 8(d) of the
Securities Act suspending the effectiveness of such registration statement
(except as specifically permitted herein, including pursuant to
Sections 3(c)(ii) and 3(d)(iv)) without being succeeded immediately by an
additional registration statement filed and declared effective (each such event
referred to in clauses (i) through (iv), a “Registration Default” and each
period during which a Registration Default has occurred and is continuing, a “Registration
Default Period”), then the Company shall pay to each holder of Transfer
Restricted Securities affected thereby as liquidated damages for such
Registration Default, in addition to the remedies provided by Section 9(b),
special interest (“Special Interest”), in addition to the Base Interest, which
Special Interest shall accrue at a per annum rate of 0.25% for the first ninety
(90) days of the Registration Default Period and at a per annum rate of 0.50%
for the second ninety (90) days of the Registration Default Period and at a per
annum rate of 0.75% for the third ninety (90) days of the Registration Default
Period and at a per annum rate of 1.0% thereafter for the remaining portion of
the Registration Default Period; provided,
however, that, with respect to
any Transfer Restricted Security, the Company will not pay Special Interest
with respect to more than one Registration Default at a time; provided, further,
that the Company shall have no obligation to pay Special Interest accrued after
the date that is two (2) calendar days prior to the Effective Time to a holder
of a Transfer Restricted Security as a result of a Registration Default arising
in connection with the 

 

8

 

Shelf Registration Statement unless such
holder shall have previously returned a completed and signed Notice and
Questionnaire to the Company and the Guarantors in accordance with the
requirements of this Exchange and Registration Rights Agreement.  All accrued Special Interest will be paid by
the Company on each Interest Payment Date (as defined in the Indenture).  Upon the cure of all Registration Defaults, Special
Interest shall no longer accrue, provided,
however, that if, after any such
cure, a different Registration Default occurs, then the Special Interest shall
again accrue in accordance with this Section 2(c).

 

(d)                                 Any reference herein
to a registration statement as of any time shall be deemed to include any
document incorporated, or deemed to be incorporated, therein by reference as of
such time and any reference herein to any post-effective amendment to a
registration statement as of any time shall be deemed to include any document
incorporated, or deemed to be incorporated, therein by reference as of such
time.

 

3.                                       Registration Procedures.  If the Company and the Guarantors file a
registration statement pursuant to Section 2(a) or Section 2(b), the
following provisions shall apply:

 

(a)                                  At or before the
Effective Time of the Exchange Registration or the Shelf Registration, as the
case may be, the Company and the Guarantors shall qualify the Indenture under
the Trust Indenture Act.

 

(b)                                 In the event that such
qualification would require the appointment of a new trustee under the
Indenture, the Company and the Guarantors shall appoint a new trustee
thereunder pursuant to the applicable provisions of the Indenture.

 

(c)                                  In connection with
the Company’s and the Guarantors’ obligations with respect to the registration
of Exchange Securities as contemplated by Section 2(a) (the “Exchange
Registration”), if applicable, the Company and the Guarantors shall, as soon as
practicable (or as otherwise specified):

 

(i)                                     prepare and file
with the Commission, as soon as practicable but not later than ninety (90) days
after the Closing Date, an Exchange Registration Statement on any form which
may be utilized by the Company and which shall permit the Exchange Offer and
resales of Exchange Securities by broker-dealers during the Resale Period to be
effected as contemplated by Section 2(a), and use its reasonable efforts
to cause such Exchange Registration Statement to become effective as soon as
practicable thereafter, but no later than 180 days after the Closing Date;

 

(ii)                                  as soon as
practicable prepare and file with the Commission such amendments and
supplements to such Exchange Registration Statement and the prospectus included
therein as may be necessary to effect and maintain the effectiveness of such
Exchange Registration Statement for the periods and

 

9

 

purposes contemplated in Section 2(a) hereof and as may be
required by the applicable rules and regulations of the Commission and the
instructions applicable to the form of such Exchange Registration Statement,
and promptly provide each broker-dealer holding Exchange Securities with such
number of copies of the prospectus included therein (as then amended or
supplemented), in conformity in all material respects with the requirements of
the Securities Act and the Trust Indenture Act, as such broker-dealer
reasonably may request prior to the expiration of the Resale Period, for use in
connection with resales of Exchange Securities, provided that upon the occurrence of any event that would
cause any such Exchange Registration Statement or prospectus contained therein
(A) to contain a material misstatement or omission or (B) not to be effective
and usable for resale of Transfer Restricted Securities, either of which occurs
during the period that the Company is required to maintain an effective and
usable Exchange Registration Statement and prospectus pursuant to this Exchange
and Registration Rights Agreement, the Company shall use it reasonable efforts
to file promptly an appropriate amendment or supplement to such Exchange
Registration Statement or prospectus, (1) in the case of clause (A), correcting
any such misstatement or omission, and (2) in the case of clauses (A) and (B) use
its reasonable efforts to cause any amendment to be declared effective and such
Exchange Registration Statement and the prospectus to become usable for their
intended purpose(s) as soon as practicable thereafter; provided, further
notwithstanding anything to the contrary set forth in this Exchange and
Registration Rights Agreement, during the 180-day period following consummation
of the Exchange Offer, the Company’s obligation to use its reasonable efforts
to keep the Exchange Registration Statement continuously effective,
supplemented and amended shall be suspended in the event continued
effectiveness of the Exchange Registration Statement would, with the advice of
counsel to the Company, make it advisable for the Company to disclose a
material financing, acquisition or other corporate transaction, and the Board
of Directors shall have determined in good faith that such disclosure is not in
the best interests of the Company, but in no event will any such suspension,
individually or in the aggregate, exceed forty-five (45) days (such suspensions
being referred to herein as an “Exchange Suspension Period”);

 

(iii)                               promptly notify each
broker-dealer that has requested or received from the Company copies of the
prospectus included in such registration statement, and confirm such advice in
writing, (A) when such Exchange Registration Statement or the prospectus
included therein or any prospectus amendment or supplement or post-effective
amendment has been filed, and, with respect to such Exchange Registration Statement
or any post-effective amendment, when the same has become effective, (B) of the
receipt of any comments by the Commission or any request by the Commission for
amendments or supplements to such Exchange Registration Statement or prospectus
or for additional information, (C) of the issuance by the Commission of any
stop order

 

10

 

suspending the effectiveness of such Exchange Registration Statement or
the initiation or threatening of any proceedings for that purpose, (D) if at
any time the representations and warranties of the Company or the Guarantors
contemplated by Section 5 cease to be true and correct in all material
respects, (E) of the receipt by the Company or any Guarantor of any
notification with respect to the suspension of the qualification of the
Exchange Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, or (F)(I) at any time during
the Resale Period when a prospectus is required to be delivered under the
Securities Act, that such Exchange Registration Statement, prospectus,
prospectus amendment or supplement or post-effective amendment does not conform
in all material respects to the applicable requirements of the Securities Act
and the Trust Indenture Act or contains an untrue statement of a material fact
or omits to state any material fact required to be stated therein or necessary
to make the statements therein not misleading in light of the circumstances
then existing or (II) of the occurrence of an Exchange Suspension Period. Each
holder of Transfer Restricted Securities agrees that upon receipt of any notice
from the Company pursuant to this Section 3(c)(iii)(F), such holder shall
forthwith discontinue the disposition of Transfer Restricted Securities
pursuant to the Exchange Registration Statement applicable to such Transfer
Restricted Securities until such holder shall have received copies of such
amended or supplemented prospectus, and if so directed by the Company, such
holder shall 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 at the time of receipt
of such notice;

 

(iv)                              in the event that the
Company would be required, pursuant to Section 3(c)(iii)(F) above, to
notify any broker-dealers holding Exchange Securities, promptly, subject to Section 3(c)(ii)
above, prepare and furnish to each such holder a reasonable number of copies of
a prospectus supplemented or amended so that, as thereafter delivered to
purchasers of such Exchange Securities during the Resale Period, such
prospectus shall conform in all material respects to the applicable
requirements of the Securities Act and the Trust Indenture Act and shall not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing;

 

(v)                                 subject
to the provisions in Section 3(c)(ii) above, use their reasonable efforts
to obtain the withdrawal of any order suspending the effectiveness of such
Exchange Registration Statement or any post-effective amendment thereto at the
earliest practicable date;

 

(vi)                              use
their reasonable efforts to (A) register or qualify the Exchange Securities
under the securities laws or blue sky laws of such jurisdictions as are
contemplated by Section 2(a) no later than the commencement of the
Exchange

 

11

 

Offer, (B) if applicable, keep such registrations or qualifications in
effect and comply with such laws so as to permit the continuance of offers,
sales and dealings therein in such jurisdictions until the expiration of the
Resale Period and (C) take any and all other actions as may be reasonably
necessary or advisable to enable each broker-dealer holding Exchange Securities
to consummate the disposition thereof in such jurisdictions; provided, however,
that the Company or any Guarantor shall not be required for any such purpose to
(1) qualify as a foreign corporation in any jurisdiction wherein it would not
otherwise be required to qualify but for the requirements of this Section 3(c)(vi),
(2) consent to general service of process in any such jurisdiction or (3) make
any changes to its certificate of incorporation or by-laws or any agreement
between it and its stockholders;

 

(vii)                           provide
a CUSIP number for all Exchange Securities, not later than the applicable
Effective Time; and

 

(viii)                        comply with all applicable
rules and regulations of the Commission, and make generally available to the
Company’s securityholders as soon as practicable but no later than eighteen
(18) months after the effective date of such Exchange Registration Statement,
an earning statement of the Company and its subsidiaries complying with Section 11(a)
of the Securities Act (including, at the option of the Company, Rule 158
thereunder).

 

(d)                                 In connection with the
Company’s and the Guarantors’ obligations with respect to the registration of
those Transfer Restricted Securities to be covered by the Shelf Registration
Statement as contemplated by Section 2(b), if applicable,  the
Company and the Guarantors shall, as soon as practicable (or as otherwise
specified):

 

(i)                                     prepare and file
with the Commission, as soon as practicable but in any case within the time
periods specified in Section 2(b), a Shelf Registration Statement on any
form which may be utilized by the Company and which shall register all of the
Transfer Restricted Securities for resale by the holders thereof in accordance
with such method or methods of disposition as may be specified by such of the
holders as, from time to time, may be Electing Holders and use their best
efforts to cause such Shelf Registration Statement to become effective as soon
as practicable but in any case within the time periods specified in Section 2(b);

 

(ii)                                  not less than thirty
(30) calendar days prior to the Effective Time of the Shelf Registration
Statement, mail the Notice and Questionnaire to the holders of Transfer
Restricted Securities; no holder shall be entitled to be named as a selling
securityholder in the Shelf Registration Statement as of the Effective Time,
and no holder shall be entitled to use the prospectus forming a part thereof
for resales of Transfer Restricted Securities at any time, unless such holder
has

 

12

 

returned a completed and signed Notice and Questionnaire to the Company
by the deadline for response set forth therein; provided, however,
that holders of Transfer Restricted Securities shall have at least twenty-eight
(28) calendar days from the date on which the Notice and Questionnaire is first
mailed to such holders to return a completed and signed Notice and
Questionnaire to the Company;

 

(iii)                               after the Effective Time
of the Shelf Registration Statement, upon the request of any holder who is a
subsequent transferee after such Effective Time of Securities that are then
registered for resale pursuant to the Shelf Registration Statement, promptly
send a Notice and Questionnaire to such holder; provided that the Company and the Guarantors shall not be
required to take any action to name such holder as a selling securityholder in
the Shelf Registration Statement or to enable such holder to use the prospectus
forming a part thereof for resales of Transfer Restricted Securities until such
holder has returned a completed and signed Notice and Questionnaire to the
Company;

 

(iv)                              as soon as practicable
prepare and file with the Commission such amendments and supplements to such
Shelf Registration Statement and the prospectus included therein as may be
necessary to effect and maintain the effectiveness of such Shelf Registration
Statement for the period specified in Section 2(b) hereof and as may be
required by the applicable rules and regulations of the Commission and the
instructions applicable to the form of such Shelf Registration Statement, and
furnish to the Electing Holders copies of any such supplement or amendment
simultaneously with or prior to its being used or filed with the Commission, provided that upon the occurrence of any
event that would cause any such Shelf Registration Statement or the prospectus
contained therein (A) to contain a material misstatement or omission or (B) not
to be effective and usable for resale of Transfer Restricted Securities, either
of which occurs during the period that the Company is required to maintain an
effective and usable Shelf Registration Statement and prospectus pursuant to
this Exchange and Registration Rights Agreement, the Company shall use its
reasonable efforts to file promptly an appropriate amendment or supplement to
such Registration Statement or prospectus, (1) in the case of clause (A),
correcting any such misstatement or omission, and (2) in the case of clauses
(A) and (B) use its reasonable efforts to cause any amendment to be declared
effective and such Shelf Registration Statement and the related prospectus to
become usable for their intended purpose(s) as soon as practicable thereafter;
provided further notwithstanding anything to the contrary set forth in this
Exchange and Registration Rights Agreement, the Company’s obligations to use
its reasonable efforts to keep the Shelf Registration Statement continuously
effective, supplemented and amended shall be suspended in the event continued
effectiveness of the Shelf Registration Statement would, with the advice of
counsel to the Company, make it advisable

 

13

 

for the Company to disclose a material financing, acquisition or other
corporate transaction, and the Board of Directors shall have determined in good
faith that such disclosure is not in the best interests of the Company, but in
any 365-day period, no suspension shall be for a period of more than forty-five
(45) consecutive days, all suspensions shall not exceed an aggregate of sixty
(60) days (such suspensions being referred to herein as a “Shelf Suspension
Period”);

 

(v)                                 comply
with the provisions of the Securities Act with respect to the disposition of
all of the Transfer Restricted Securities covered by such Shelf Registration
Statement in accordance with the intended methods of disposition by the
Electing Holders provided for in such Shelf Registration Statement;

 

(vi)                              provide (A) the
Electing Holders, (B) the underwriters (which term, for purposes of this
Exchange and Registration Rights Agreement, shall include a person deemed to be
an underwriter within the meaning of Section 2(a)(11) of the Securities
Act), if any, thereof, (C) any sales or placement agent therefor, (D)
counsel for any such underwriter or agent and (E) not more than one counsel for
all the Electing Holders the opportunity to review and comment on such Shelf
Registration Statement, each prospectus included therein or filed with the
Commission and each amendment or supplement thereto; provided that the Company shall not be required to take any
actions under this Section 3(d)(vi) that are not, in the reasonable
opinion of counsel for the Company, in compliance with applicable law;

 

(vii)                           for a reasonable period
prior to the filing of such Shelf Registration Statement, and throughout the
period specified in Section 2(b), make available at reasonable times at
the Company’s principal place of business or such other reasonable place for
inspection by the persons referred to in Section 3(d)(vi) who shall
certify to the Company that they have a current intention to sell the Transfer
Restricted Securities pursuant to the Shelf Registration such financial and
other information and books and records of the Company and the Guarantors, and
cause the officers, employees, counsel and independent certified public
accountants of the Company or the Guarantors, as the case may be, to respond to
such inquiries, as shall be reasonably necessary, in the judgment of the
respective counsel referred to in such Section, to conduct a reasonable
investigation within the meaning of Section 11 of the Securities Act; provided, however,
that each such party shall be required to maintain in confidence and not to
disclose to any other person any information or records reasonably designated
by the Company or the Guarantors as being confidential, until such time as (A)
such information becomes a matter of public record (whether by virtue of its
inclusion in such registration statement or otherwise), or (B) such person
shall be required so to disclose such information pursuant to a subpoena or
order of any court or other governmental agency or body having jurisdiction over
the matter (subject to the requirements of such order, and only after such
person shall have given the Company prompt prior

 

14

 

written notice of such requirement), or (C) after the Effective Time
and after having requested, in writing, that the Company include such
information in such Shelf Registration Statement or an amendment or supplement
thereto, and neither such request has been accepted by the Company within 14
calendar days of such request nor a Shelf Suspension Period is in effect, such
information, in the reasonable judgment of such party pursuant to advice of
counsel, is required to be set forth in such Shelf Registration Statement or
the prospectus included therein or in an amendment to such Shelf Registration
Statement or an amendment or supplement to such prospectus in order that such
Shelf Registration Statement, prospectus, amendment or supplement, as the case
may be, complies with applicable requirements of the federal securities laws
and the rules and regulations of the Commission and does not contain an untrue
statement of a material fact or omit to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing;

 

(viii)                        promptly notify each of the
Electing Holders, any sales or placement agent therefor and any underwriter
thereof (which notification may be made through any managing underwriter that
is a representative of such underwriter for such purpose) and confirm such
advice in writing, (A) when such Shelf Registration Statement or the prospectus
included therein or any prospectus amendment or supplement or post-effective
amendment has been filed, and, with respect to such Shelf Registration
Statement or any post-effective amendment, when the same has become effective,
(B) of the receipt of any comments by the Commission with respect thereto or
any request by the Commission for amendments or supplements to such Shelf
Registration Statement or prospectus or for additional information, (C) of the
issuance by the Commission of any stop order suspending the effectiveness of
such Shelf Registration Statement or the initiation or threatening of any
proceedings for that purpose, (D) if at any time the representations and
warranties of the Company contemplated by Section 3(d)(xvii) or Section 5
cease to be true and correct in all material respects, (E) of the receipt by
the Company of any notification with respect to the suspension of the
qualification of the Transfer Restricted Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose, or (F)(i) if at any time when a prospectus is required to be delivered
under the Securities Act, that such Shelf Registration Statement, prospectus,
prospectus amendment or supplement or post-effective amendment does not conform
in all material respects to the applicable requirements of the Securities Act
and the Trust Indenture Act or contains an untrue statement of a material fact
or omits to state any material fact required to be stated therein or necessary
to make the statements therein not misleading in light of the circumstances
then existing or (ii) the occurrence of a Shelf Suspension Period;

 

15

 

(ix)                                subject
to the provisions in Section 3(d)(iv) use their reasonable efforts to
obtain the withdrawal of any order suspending the effectiveness of such Shelf
Registration Statement or any post-effective amendment thereto at the earliest
practicable date;

 

(x)                                   if requested by any
managing underwriter or underwriters, any placement or sales agent or any
Electing Holder, promptly incorporate in a prospectus supplement or post-effective
amendment such information as is required by the applicable rules and
regulations of the Commission and as such managing underwriter or underwriters,
such agent or such Electing Holder specifies should be included therein
relating to the terms of the sale of such Transfer Restricted Securities, including
information with respect to the principal amount of Transfer Restricted
Securities being sold by such Electing Holder or agent or to any underwriters,
the name and description of such Electing Holder, agent or underwriter, the
offering price of such Transfer Restricted Securities and any discount,
commission or other compensation payable in respect thereof, the purchase price
being paid therefor by such underwriters and with respect to any other terms of
the offering of the Transfer Restricted Securities to be sold by such Electing
Holder or agent or to such underwriters; and make all required filings of such
prospectus supplement or post-effective amendment promptly after notification
of the matters to be incorporated in such prospectus supplement or post-effective
amendment;

 

(xi)                                furnish to each
Electing Holder, each placement or sales agent, if any, therefor, each
underwriter, if any, thereof and the respective counsel referred to in Section 3(d)(vi)
a conformed copy of such Shelf Registration Statement, each such amendment and
supplement thereto (in each case including all exhibits thereto (in the case of
an Electing Holder of Transfer Restricted Securities, upon request) and, to the
extent requested, documents incorporated by reference therein) and such number
of copies of such Shelf Registration Statement (excluding exhibits thereto and
documents incorporated by reference therein unless specifically so requested by
such Electing Holder, agent or underwriter, as the case may be) and of the
prospectus included in such Shelf Registration Statement (including each
preliminary prospectus and any summary prospectus), in conformity in all
material respects with the applicable requirements of the Securities Act and
the Trust Indenture Act, and such other documents, as such Electing Holder,
agent, if any, and underwriter, if any, may reasonably request in order to
facilitate the offering and disposition of the Transfer Restricted Securities
owned by such Electing Holder, offered or sold by such agent or underwritten by
such underwriter and to permit such Electing Holder, agent and underwriter to
satisfy the prospectus delivery requirements of the Securities Act; and the
Company and the Guarantors hereby consent, unless they have otherwise notified
the Electing Holder under Section 3(d)(iv) or 3(d)(viii) hereof, to the
use of such

 

16

 

prospectus (including such preliminary and summary prospectus) and any
amendment or supplement thereto by each such Electing Holder and by any such
agent and underwriter, in each case in the form most recently provided to such
person by the Company and the Guarantors, in connection with the offering and
sale of the Transfer Restricted Securities covered by the prospectus (including
such preliminary and summary prospectus) or any supplement or amendment
thereto;

 

(xii)                             use their reasonable
efforts to (A) register or qualify the Transfer Restricted Securities to be
included in such Shelf Registration Statement under such securities laws or
blue sky laws of such jurisdictions as any Electing Holder and each placement
or sales agent, if any, therefor and underwriter, if any, thereof shall
reasonably request, (B) keep such registrations or qualifications in effect and
comply with such laws so as to permit the continuance of offers, sales and
dealings therein in such jurisdictions during the period the Shelf Registration
is required to remain effective under Section 2(b) above and for so long
as may be necessary to enable any such Electing Holder, agent or underwriter to
complete its distribution of Securities pursuant to such Shelf Registration
Statement and (C) take any and all other actions as may be reasonably necessary
or advisable to enable each such Electing Holder, agent, if any, and underwriter,
if any, to consummate the disposition in such jurisdictions of such Transfer
Restricted Securities; provided, however, that the Company or any Guarantor
shall not be required for any such purpose to (1) qualify as a foreign
corporation in any jurisdiction wherein it would not otherwise be required to
qualify but for the requirements of this Section 3(d)(xii), (2) consent to
general service of process in any such jurisdiction or (3) make any changes to
its certificate of incorporation or by-laws or any agreement between it and its
stockholders;

 

(xiii)                          Unless any Transfer
Restricted Securities shall be in book-entry only form, cooperate with the
Electing Holders and the managing underwriters, if any, to facilitate the
timely preparation and delivery of certificates representing Transfer
Restricted Securities to be sold, which certificates, if so required by any
securities exchange upon which any Registrable Securities are listed, shall be
printed, lithographed or engraved, or produced by any combination of such
methods, on steel engraved borders, and which certificates shall not bear any
restrictive legends; and, in the case of an underwritten offering, enable such
Transfer Restricted Securities to be in such denominations and registered in
such names as the managing underwriters may request at least two (2) business
days prior to any sale of the Transfer Restricted Securities;

 

(xiv)                         provide
a CUSIP number for all Transfer Restricted Securities, not later than the
applicable Effective Time;

 

17

 

(xv)                            enter into one or more
underwriting agreements, engagement letters, agency agreements, “best efforts”
underwriting agreements or similar agreements, as appropriate, including
customary provisions relating to indemnification and contribution, and take
such other actions in connection therewith as any Electing Holders aggregating
at least 20% in aggregate principal amount of the Transfer Restricted
Securities at the time outstanding shall request in order to expedite or
facilitate the disposition of such Transfer Restricted Securities;

 

(xvi)                         whether or not an agreement of
the type referred to in Section 3(d)(xv) hereof is entered into and
whether or not any portion of the offering contemplated by the Shelf Registration
is an underwritten offering or is made through a placement or sales agent or
any other entity, (A) make such representations and warranties to the Electing
Holders and the placement or sales agent, if any, therefor and the
underwriters, if any, thereof in form, substance and scope as are customarily
made in connection with an offering of debt securities pursuant to any
appropriate agreement or to a registration statement filed on the form
applicable to the Shelf Registration; (B) obtain an opinion of counsel to the
Company in customary form and covering such matters, of the type customarily
covered by an opinion, as the managing underwriters, if any, or as any Electing
Holders of at least 20% in aggregate principal amount of the Transfer Restricted
Securities at the time outstanding may reasonably request, addressed to such
Electing Holder or Electing Holders and the placement or sales agent, if any,
therefor and the underwriters, if any, thereof and dated the effective date of
such Shelf Registration Statement (and if such Shelf Registration Statement
contemplates an underwritten offering of a part or all of the Transfer
Restricted Securities, dated the date of the closing under the underwriting
agreement relating thereto) (it being agreed that the matters to be covered by
such opinion shall include the due incorporation and good standing of the
Company and the Guarantors; the qualification of each of the Company and the
Guarantors to transact business as foreign corporations; the due authorization,
execution and delivery of the relevant agreement of the type referred to in Section 3(d)(xv)
hereof; the due authorization, execution, authentication and issuance, and the
validity and enforceability, of the Securities; the absence of knowledge of
such counsel of material legal or governmental proceedings involving the
Company; the absence of a breach by the Company or any of its subsidiaries of,
or a default under material agreements binding upon the Company or any
subsidiary; the absence of governmental approvals required to be obtained in
connection with the Shelf Registration, the offering and sale of the Transfer
Restricted Securities, this Exchange and Registration Rights Agreement or any
agreement of the type referred to in Section 3(d)(xv) hereof, except such
approvals as are referenced in the Shelf Registration Statement or as may be
required under state securities or blue sky laws; the material compliance as to
form of such Shelf Registration

 

18

 

Statement and any documents incorporated by reference therein and of
the Indenture with the requirements of the Securities Act and the Trust
Indenture Act, respectively; and, as of the date of the opinion and of the
Shelf Registration Statement or most recent post-effective amendment thereto,
as the case may be, a statement as to the absence of any facts having come to
such counsel’s attention that cause such counsel to believe that, as of the
date of such opinion, such Shelf Registration Statement and the prospectus
included therein, as then amended or supplemented, and the documents
incorporated by reference therein (in each case other than the financial
statements and related schedules and other financial information contained
therein) in the case of the Shelf Registration Statement, contained an untrue
statement of material fact or omitted to state a material fact necessary to
make the statements therein not misleading, and in the case of the documents
incorporated by reference and the prospectus, contained an untrue statement of
a material fact or omitted to state a material fact necessary to make the
statements therein in light of the circumstances under which they were made,
not misleading; (C) obtain a “comfort” letter or letters from the independent
certified public accountants of the Company, addressed to the selling Electing
Holders, the placement or sales agent, if any, therefor or the underwriters, if
any, thereof, dated (i) the effective date of such Shelf Registration Statement
and (ii) the effective date of any prospectus supplement to the prospectus
included in such Shelf Registration Statement or post-effective amendment to
such Shelf Registration Statement which includes unaudited or audited financial
statements as of a date or for a period subsequent to that of the latest such
statements included in such prospectus (and, if such Shelf Registration
Statement contemplates an underwritten offering pursuant to any prospectus
supplement to the prospectus included in such Shelf Registration Statement or
post-effective amendment to such Shelf Registration Statement which includes
unaudited or audited financial statements as of a date or for a period
subsequent to that of the latest such statements included in such prospectus,
dated the date of the closing under the underwriting agreement relating
thereto), such letter or letters to be in customary form and covering such
matters of the type customarily covered by letters of such type; and (D)
deliver such documents and certificates, including officers’ certificates, as
may be reasonably requested by any Electing Holders of at least 20% in
aggregate principal amount of the Transfer Restricted Securities at the time
outstanding or the placement or sales agent, if any, therefor and the managing
underwriters, if any, thereof to evidence the accuracy of the representations
and warranties made pursuant to clause (A) above or those contained in Section 5(a)
hereof and the compliance with or satisfaction of any agreements or conditions
contained in the underwriting agreement or other agreement entered into by the
Company and (E) undertake such obligations relating to expense reimbursement,
indemnification and contribution as are provided in Section 6 hereof;

 

19

 

(xvii)                      notify in writing each holder of
Transfer Restricted Securities of any proposal by the Company to amend or waive
any provision of this Exchange and Registration Rights Agreement pursuant to Section 9(h)
hereof and of any amendment or waiver effected pursuant thereto, each of which
notices shall contain the text of the amendment or waiver proposed or effected,
as the case may be;

 

(xviii)                   in the event that any broker-dealer
registered under the Exchange Act shall underwrite any Transfer Restricted
Securities or participate as a member of an underwriting syndicate or selling
group or “assist in the distribution” (within the meaning of the Conduct Rules
(the “Conduct Rules”) of the NASD as amended from time to time) thereof,
whether as a holder of such Transfer Restricted Securities or as an
underwriter, a placement or sales agent or a broker or dealer in respect
thereof, or otherwise, assist such broker-dealer in complying with the
requirements of such Conduct Rules, including by (A) if such Conduct Rules shall
so require, engaging a “qualified independent underwriter” (as defined in such
Conduct Rules) to participate in the preparation of the Shelf Registration
Statement relating to such Transfer Restricted Securities, to exercise usual
standards of due diligence in respect thereto and, if any portion of the
offering contemplated by such Shelf Registration Statement is an underwritten
offering or is made through a placement or sales agent, to recommend the yield
of such Transfer Restricted Securities, (B) indemnifying any such qualified
independent underwriter to the extent of the indemnification of underwriters
provided in Section 6 hereof (or to such other customary extent as may be
requested by such underwriter), and (C) providing such information to such broker-dealer
as may be required in order for such broker-dealer to comply with the
requirements of the Conduct Rules; and

 

(xix)                           comply with all applicable
rules and regulations of the Commission, and make generally available to its
securityholders as soon as practicable but in any event not later than eighteen
(18) months after the effective date of such Shelf Registration Statement, an
earning statement of the Company and its subsidiaries complying with Section 11(a)
of the Securities Act (including, at the option of the Company, Rule 158
thereunder).

 

(e)                                  In the event that the
Company and the Guarantors would be required, pursuant to Section 3(d)(viii)(F)
above, to notify the Electing Holders, the placement or sales agent, if any,
therefor and the managing underwriters, if any, thereof, the Company and the
Guarantors shall promptly, subject to Section 3(d)(iv), prepare and
furnish to each of the Electing Holders, to each placement or sales agent, if
any, and to each such underwriter, if any, a reasonable number of copies of a
prospectus supplemented or amended so that, as thereafter delivered to
purchasers of Transfer Restricted Securities, such prospectus shall conform in
all material respects to the applicable requirements of the Securities Act and
the Trust Indenture Act and shall not contain an untrue statement

 

20

 

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 in light
of the circumstances then existing. Each Electing Holder agrees that upon
receipt of any notice from the Company pursuant to Section 3(d)(viii)(F)
hereof, such Electing Holder shall forthwith discontinue the disposition of
Transfer Restricted Securities pursuant to the Shelf Registration Statement
applicable to such Transfer Restricted Securities until such Electing Holder
shall have received copies of such amended or supplemented prospectus, and if
so directed by the Company, such Electing Holder shall deliver to the Company
(at the Company’s expense) all copies, other than permanent file copies, then
in such Electing Holder’s possession of the prospectus covering such Transfer
Restricted Securities at the time of receipt of such notice.

 

(f)                                    In the event of a
Shelf Registration, in addition to the information required to be provided by
each Electing Holder in its Notice and Questionnaire, the Company and the
Guarantors may require such Electing Holder to furnish to the Company and the
Guarantors such additional information regarding such Electing Holder and such
Electing Holder’s intended method of distribution of Transfer Restricted
Securities as may be required in order to comply with the Securities Act.  Each such Electing Holder agrees to notify
the Company as promptly as practicable of any inaccuracy or change in
information previously furnished by such Electing Holder to the Company or of
the occurrence of any event in either case as a result of which any prospectus
relating to such Shelf Registration contains or would contain an untrue
statement of a material fact regarding such Electing Holder or such Electing
Holder’s intended method of disposition of such Transfer Restricted Securities
or omits to state any material fact regarding such Electing Holder or such
Electing Holder’s intended method of disposition of such Transfer Restricted
Securities required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing, and
promptly to furnish to the Company any additional information required to
correct and update any previously furnished information or required so that
such prospectus shall not contain, with respect to such Electing Holder or the
disposition of such Transfer Restricted Securities, an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances then existing.

 

(g)                                 Until the expiration
of two (2) years after the Closing Date, the Company will not, and will not
permit any of the Guarantors and other “affiliates” (as defined in Rule 144
under the Securities Act) to resell any of the Securities that have been
reacquired by any of them except pursuant to an effective registration
statement under the Securities Act.

 

(h)                                 Upon (i) the filing of
any Exchange Registration Statement or Shelf Registration Statement and (ii)
upon the effectiveness of any Exchange Registration Statement or Shelf
Registration, announce the same, in each case, by release to Reuters Economic
Services and Bloomberg Business news.

 

21

 

 

(i)            As a condition to
its participation in the Exchange Offer pursuant to the terms of this Exchange
and Registration Rights Agreement, each holder of Transfer Restricted
Securities shall furnish, upon written request of the Company or any of the
Guarantors, prior to the completion of the Exchange Offer, 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 or any of the Guarantors,
(B) it is not engaged in, and does not intend to engage in, and has no
arrangement or understanding with any person to participate in, a distribution
of the Exchange Securities to be issued in the Exchange Offer and (C) it is
acquiring the Exchange Securities in its ordinary course of business.  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
Exchange and Registration Rights 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, 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 must be covered by an effective registration statement
containing the selling securityholder information required by Item 507 or
508, as applicable, of Regulation S-K if the resales are of Exchange Securities
obtained by such holder in exchange for securities acquired by such holder
directly from the Company or an affiliate thereof.

 

4.             Registration
Expenses.  The Company and the
Guarantors agree that the Company shall bear and pay or cause to be paid
promptly all expenses incident to the Company’s performance of or compliance
with this Exchange and Registration Rights Agreement, including (a) all
Commission and any NASD registration, filing and review fees and expenses
including fees and disbursements of counsel for the placement or sales agent or
underwriters in connection with such registration, filing and review,
(b) all fees and expenses in connection with the qualification of the
Securities for offering and sale under the State securities and blue sky laws
referred to in Section 3(d)(xii) hereof and determination of their
eligibility for investment under the laws of such jurisdictions as any managing
underwriters or the Electing Holders may designate, including any fees and
disbursements of counsel for the Electing Holders (subject to the limitations
of Clause (i) below) or underwriters in connection with such qualification
and determination, (c) all expenses relating to the preparation, printing,
production, distribution and reproduction of each registration statement
required to be filed hereunder, each prospectus included therein or prepared
for distribution pursuant hereto, each amendment or supplement to the
foregoing, the expenses of preparing the Securities for delivery and the
expenses of printing or producing any underwriting agreements, agreements among
underwriters, selling agreements and blue sky or legal investment memoranda and
all other documents in connection with the offering, sale or delivery of
Securities to be disposed of (including certificates representing the
Securities), (d) messenger, telephone and delivery expenses relating to
the offering, sale or

 

22

 

delivery of Securities and the
preparation of documents referred in clause (c) above, (e) fees and
expenses of the Trustee under the Indenture, any agent of the Trustee and any
counsel for the Trustee and of any collateral agent or custodian,
(f) internal expenses (including all salaries and expenses of the Company’s
officers and employees performing legal or accounting duties), (g) fees,
disbursements and expenses of counsel and independent certified public
accountants of the Company (including the expenses of any opinions or “cold
comfort” letters required by or incident to such performance and compliance),
(h) fees, disbursements and expenses of any “qualified independent
underwriter” engaged pursuant to Section 3(d)(xix) hereof, (i) fees,
disbursements and expenses of one counsel for the Electing Holders retained in
connection with a Shelf Registration, as selected by the Electing Holders of at
least a majority in aggregate principal amount of the Transfer Restricted
Securities held by Electing Holders (which counsel shall be reasonably
satisfactory to the Company), (j) any fees charged by securities rating
services for rating the Securities, and (k) fees, expenses and
disbursements of any other persons, including special experts, retained by the
Company in connection with such registration (collectively, the “Registration
Expenses”).  To the extent that any
Registration Expenses are incurred, assumed or paid by any holder of Transfer
Restricted Securities or any placement or sales agent therefor or underwriter
thereof, the Company shall reimburse such person for the full amount of the
Registration Expenses so incurred, assumed or paid promptly after receipt of a
request therefor.  Notwithstanding the
foregoing, the holders of the Transfer Restricted Securities being registered
shall pay all agency fees and commissions and underwriting discounts and
commissions attributable to the sale of such Transfer Restricted Securities and
the fees and disbursements of any counsel or other advisors or experts retained
by such holders (severally or jointly), other than the counsel and experts
specifically referred to above.

 

5.             Representations
and Warranties.  The Company
and the Guarantors represent and warrant to, and agree with, each Purchaser and
each of the holders from time to time of Transfer Restricted Securities that:

 

(a)           Each registration
statement covering Transfer Restricted Securities and each prospectus
(including any preliminary or summary prospectus) contained therein or
furnished pursuant to Section 3(d) or Section 3(c) hereof and any further
amendments or supplements to any such registration statement or prospectus,
when it becomes effective or is filed with the Commission, as the case may be,
and, in the case of an underwritten offering of Transfer Restricted Securities,
at the time of the closing under the underwriting agreement relating thereto,
will conform in all material respects to the applicable requirements of the
Securities Act and the Trust Indenture Act and will not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading; and
at all times subsequent to the Effective Time when a prospectus would be
required to be delivered under the Securities Act, other than from (i) such
time as a notice has been given to holders of Registrable Securities pursuant
to Section 3(d)(viii)(F) or Section 3(c)(iii)(F) hereof until (ii)
such time as the Company furnishes an amended or supplemented prospectus
pursuant to Section 3(e) or Section 3(c)(iv) hereof, each such

 

23

 

registration
statement, and each prospectus (including any summary prospectus) contained
therein or furnished pursuant to Section 3(d) or Section 3(c) hereof,
as then amended or supplemented, will conform in all material respects to the
requirements of the Securities Act and the Trust Indenture Act and will not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing; provided, however,
that this representation and warranty shall not apply to any statements or
omissions made in reliance upon and in conformity with information furnished in
writing to the Company by a holder of Transfer Restricted Securities or an
underwriter expressly for use therein.

 

(b)           Any documents
incorporated by reference in any prospectus referred to in Section 5(a) hereof,
when they become or became effective or are or were filed with the Commission,
as the case may be, will conform or conformed in all material respects to the
requirements of the Securities Act or the Exchange Act, as applicable, and none
of such documents will contain or contained an untrue statement of a material
fact or will omit or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not misleading; provided, however,
that this representation and warranty shall not apply to any statements or
omissions made in reliance upon and in conformity with information furnished in
writing to the Company by a holder of Transfer Restricted Securities or an
underwriter expressly for use therein.

 

(c)           The compliance by
the Company and the Guarantors with all of the provisions of this Exchange and
Registration Rights Agreement and the consummation of the transactions herein
contemplated will not (i) conflict with or result in a breach of any of the
terms or provisions of, or constitute a default under, any indenture, mortgage,
deed of trust, loan agreement or other agreement or instrument to which the
Company or any subsidiary of the Company is a party or by which the Company or
any subsidiary of the Company is bound or to which any of the property or
assets of the Company or any subsidiary of the Company is subject except for
such conflicts, preaches, violations or defaults that would not result in a
Material Adverse Effect, or (ii) result in any violation of (A) the provisions
of the certificate or articles of incorporation, by-laws, limited liability
company operating agreement, partnership agreement or other charter or
organizational documents, as applicable, of the Company or any Guarantor or (B)
any applicable statute or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over the Company or any
subsidiary of the Company or any of their properties, except for such
violations in (ii)(B) that would not result in a Material Adverse Effect.  No consent, approval, authorization, order,
registration or qualification of or with any such court or governmental agency
or body is required for the consummation by the Company and the Guarantors of
the transactions contemplated by this Exchange and Registration Rights
Agreement, except the registration under the Securities Act of the Securities,
qualification of the Indenture under the Trust Indenture Act and such consents,
approvals, authorizations, registrations or qualifications as may be

 

24

 

required under
State securities or blue sky laws in connection with the offering and
distribution of the Securities.

 

(d)           This Exchange and
Registration Rights Agreement has been duly authorized, executed and delivered
by the Company and the Guarantors.

 

6.             Indemnification.

 

(a)           Indemnification by the Company and the
Guarantors.  The Company and
the Guarantors will indemnify and hold harmless each of the holders of Transfer
Restricted Securities included in an Exchange Registration Statement, each of
the Electing Holders of Transfer Restricted Securities included in a Shelf
Registration Statement and each person who participates as a placement or sales
agent or as an underwriter in any offering or sale of such Transfer Restricted
Securities against any losses, claims, damages or liabilities, joint or
several, to which such holder, agent or underwriter may become subject under
the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in
any Exchange Registration Statement or Shelf Registration Statement, as the
case may be, under which such Transfer Restricted Securities were registered
under the Securities Act, or any preliminary, final or summary prospectus
contained therein or furnished by the Company or the Guarantors to any such
holder, Electing Holder, agent or underwriter, or any amendment or supplement
thereto, or arise out of or are based upon an untrue statement of material fact
or the 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, and the Company
shall, and it hereby agrees to, reimburse such holder, such Electing Holder,
such agent and such underwriter for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such action
or claim as such expenses are incurred; provided,
however, that neither the Company
nor the Guarantors shall be liable to any such person in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged
omission made in such registration statement or preliminary, final or summary
prospectus, or amendment or supplement thereto, in reliance upon and in conformity
with written information furnished to the Company or the Guarantors by such
person expressly for use therein.

 

(b)           Indemnification by the Holders and any Agents and
Underwriters.  The Company and
the Guarantors may require, as a condition to including any Transfer Restricted
Securities in any registration statement filed pursuant to Section 2(b)
hereof and to entering into any underwriting agreement with respect thereto,
that the Company and the Guarantors shall have received an undertaking reasonably
satisfactory to it from the Electing Holder of such Transfer Restricted
Securities and from each underwriter named in any such underwriting agreement,
severally and not jointly, to (i) indemnify

 

25

 

and hold harmless
the Company, the Guarantors and all other holders of Transfer Restricted
Securities, against any losses, claims, damages or liabilities to which the
Company, the Guarantors or such other holders of Transfer Restricted Securities
may become subject, under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in such registration statement, or any preliminary,
final or summary prospectus contained therein or furnished by the Company or
the Guarantors to any such Electing Holder, agent or underwriter, or any
amendment or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, in each
case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company or the
Guarantors by such Electing Holder, agent or underwriter expressly for use
therein, and (ii) reimburse the Company and the Guarantors for any legal
or other expenses reasonably incurred by the Company and the Guarantors in
connection with investigating or defending any such action or claim as such
expenses are incurred; provided, however, that no such Electing Holder
shall be required to undertake liability to any person under this Section 6(b)
for any amounts in excess of the dollar amount of the proceeds to be received
by such Electing Holder from the sale of such Electing Holder’s Registrable
Securities pursuant to such registration.

 

(c)           Notices of Claims, Etc. Promptly after
receipt by an indemnified party under subsection (a) or (b) above of written
notice of the commencement of any action, such indemnified party shall, if a
claim in respect thereof is to be made against an indemnifying party pursuant
to the indemnification provisions of or contemplated by this Section 6, notify
such indemnifying party in writing of the commencement of such action; but the
omission so to notify the indemnifying party shall not relieve the indemnifying
party from any liability which it may have to any indemnified party otherwise
than under the indemnification provisions of or contemplated by Section 6(a) or
6(b) hereof.  In case any such action
shall be brought against any indemnified party and it shall notify an
indemnifying party of the commencement thereof, such indemnifying party shall
be entitled to participate therein and, to the extent that it shall wish,
jointly with any other indemnifying party similarly notified, to assume the
defense thereof, with counsel reasonably satisfactory to such indemnified party
(who shall not, except with the consent of the indemnified party, be counsel to
the indemnifying party), and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, such
indemnifying party shall not be liable to such indemnified party for any legal
expenses of other counsel or any other expenses, in each case subsequently
incurred by such indemnified party, in connection with the defense thereof
other than reasonable costs of investigation. 
Notwithstanding the foregoing, the indemnified party shall have the
right to employ separate counsel, and the indemnifying party shall bear the reasonable
fees, costs and expenses of such separate counsel if (i) the

 

26

 

use of counsel
chosen by the indemnifying party to represent the indemnified party would
present such counsel with a conflict of interest; (ii) the actual or
potential defendants in, or targets of, any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be legal defenses available to it
and/or other indemnified parties that are different from or additional to those
available to the indemnifying party; (iii) the indemnifying party shall
not have employed counsel reasonably satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of the
institution of such action; or (iv) the indemnifying party shall authorize
the indemnified party to employ separate counsel at the expense of the
indemnifying party.  No indemnifying
party shall, without the prior written consent of the indemnified party, effect
the settlement or compromise of, or consent to the entry of any judgment with
respect to, any pending or threatened action or claim in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified party is an actual or potential party to such action or claim)
unless such settlement, compromise or judgment (i) includes an
unconditional release of the indemnified party from all liability arising out
of such action or claim and (ii) does not include a statement as to or an
admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

 

(d)           Contribution. If for any reason the
indemnification provisions contemplated by Section 6(a) or Section 6(b) are
unavailable to or insufficient to hold harmless an indemnified party in respect
of any losses, claims, damages or liabilities (or actions in respect thereof)
referred to therein, then each indemnifying party shall contribute to the
amount paid or payable by such indemnified party as a result of such losses,
claims, damages or liabilities (or actions in respect thereof) in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party and the indemnified party in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative
fault of such indemnifying party and indemnified party shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by such indemnifying party or by
such indemnified party, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The parties hereto agree that it would not be just and equitable if
contributions pursuant to this Section 6(d) were determined by pro rata allocation
(even if the holders or any agents or underwriters or all of them 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 this Section
6(d). The amount paid or payable by an indemnified party as a result of the
losses, claims, damages, or liabilities (or actions in respect thereof)
referred to above shall be deemed to include any legal or other fees or
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 6(d), no holder shall be required to

 

27

 

contribute any
amount in excess of the amount by which the dollar amount of the proceeds
received by such holder from the sale of any Transfer Restricted Securities
(after deducting any fees, discounts and commissions applicable thereto)
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, and no underwriter shall be required to contribute any amount
in excess of the amount by which the total price at which the Transfer
Restricted Securities underwritten by it and distributed to the public were
offered to the public exceeds the amount of any damages which such underwriter
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’ and any underwriters’ obligations in
this Section 6(d) to contribute shall be several in proportion to the principal
amount of Transfer Restricted Securities registered or underwritten, as the
case may be, by them and not joint.

 

(e)           The obligations of
the Company and the Guarantors under this Section 6 shall be in addition
to any liability which the Company or the Guarantors may otherwise have and
shall extend, upon the same terms and conditions, to each officer, director and
partner of each holder, agent and underwriter and each person, if any, who
controls any holder, agent or underwriter within the meaning of the Securities
Act; and the obligations of the holders and any agents or underwriters
contemplated by this Section 6 shall be in addition to any liability which
the respective holder, agent or underwriter may otherwise have and shall
extend, upon the same terms and conditions, to each officer and director of the
Company and the Guarantors (including any person who, with his consent, is
named in any registration statement as about to become a director of the
Company or the Guarantors) and to each person, if any, who controls the Company
or the Guarantors within the meaning of the Securities Act.

 

7.             Underwritten
Offerings.

 

(a)           Selection of Underwriters. If any of the
Transfer Restricted Securities covered by the Shelf Registration are to be sold
pursuant to an underwritten offering, the managing underwriter or underwriters
thereof shall be designated by Electing Holders holding at least a majority in
aggregate principal amount of the Transfer Restricted Securities to be included
in such offering, provided that such designated managing underwriter or
underwriters is or are reasonably acceptable to the Company.

 

(b)           Participation by Holders. Each holder of
Transfer Restricted Securities hereby agrees with each other such holder that
no such holder may participate in any underwritten offering hereunder unless
such holder (i) 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 (ii) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting

 

28

 

agreements and
other documents reasonably required under the terms of such underwriting
arrangements.

 

8.             Rule
144.  The Company and each
Guarantor covenant to the holders of Transfer Restricted Securities that, to
the extent they shall be required to do so under the Exchange Act, the Company
and the Guarantor shall timely file the reports required to be filed by it
under the Exchange Act or the Securities Act (including the reports under
Section 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of
Rule 144 adopted by the Commission under the Securities Act) and shall
take such further action as any holder of Transfer Restricted Securities may
reasonably request, all to the extent required from time to time to enable such
holder to sell Transfer Restricted Securities without registration under the
Securities Act within the limitations of the exemption provided by Rule 144
under the Securities Act, as such Rule may be amended from time to time, or any
similar or successor rule or regulation hereafter adopted by the Commission.
Upon the request of any holder of Transfer Restricted Securities in connection
with that holder’s sale pursuant to Rule 144, the Company and the
Guarantors shall deliver to such holder a written statement as to whether it
has complied with such requirements.

 

9.             Miscellaneous.

 

(a)           No Inconsistent Agreements.  The Company and the Guarantors represent,
warrant, covenant and agree that they have not granted, and shall not grant,
registration rights with respect to Transfer Restricted Securities or any other
securities which would be inconsistent with the terms contained in this
Exchange and Registration Rights Agreement.

 

(b)           Specific Performance.  The parties hereto acknowledge that there
would be no adequate remedy at law if the Company or any Guarantor fails to
perform any of their obligations hereunder and that the Purchasers and the
holders from time to time of the Transfer Restricted Securities may be
irreparably harmed by any such failure, and accordingly agree that the
Purchasers and such holders, in addition to any other remedy to which they may
be entitled at law or in equity, shall be entitled to compel specific
performance of the respective obligations of the Company or such Guarantor
under this Exchange and Registration Rights Agreement in accordance with the
terms and conditions of this Exchange and Registration Rights Agreement, in any
court of the United States or any State thereof having jurisdiction.

 

(c)           Notices.  All notices, requests, claims, demands,
waivers and other communications hereunder shall be in writing and shall be
deemed to have been duly given when delivered by hand, if delivered personally
or by courier, or three days after being deposited in the mail (registered or
certified mail, postage prepaid, return receipt requested) as follows: if to
the Company and the Guarantors, to the attention of the Company and the
Guarantors at 2700 North First Street, San Jose, California, 95134, attention:
Secretary, and if to a holder, to the address of such holder set forth in the security
register or other records of the Company, or to such other address as the

 

29

 

Company or any
such holder may have furnished to the other in writing in accordance herewith,
except that notices of change of address shall be effective only upon receipt.

 

(d)           Parties in Interest.  All the terms and provisions of this Exchange
and Registration Rights Agreement shall be binding upon, shall inure to the
benefit of and shall be enforceable by the parties hereto and the holders from
time to time of the Transfer Restricted Securities and the respective
successors and assigns of the parties hereto and such holders. In the event
that any transferee of any holder of Transfer Restricted Securities shall
acquire Transfer Restricted Securities, in any manner, whether by gift,
bequest, purchase, operation of law or otherwise, such transferee shall,
without any further writing or action of any kind, be deemed a beneficiary
hereof for all purposes and such Transfer Restricted Securities shall be held
subject to all of the terms of this Exchange and Registration Rights Agreement,
and by taking and holding such Transfer Restricted Securities such transferee
shall be entitled to receive the benefits of, and be conclusively deemed to
have agreed to be bound by all of the applicable terms and provisions of this
Exchange and Registration Rights Agreement. If the Company shall so request,
any such successor, assign or transferee shall agree in writing to acquire and
hold the Transfer Restricted Securities subject to all of the applicable terms
hereof.

 

(e)           Survival. 
The respective indemnities, agreements, representations, warranties and
each other provision set forth in this Exchange and Registration Rights
Agreement or made pursuant hereto shall remain in full force and effect
regardless of any investigation (or statement as to the results thereof) made
by or on behalf of any holder of Transfer Restricted Securities, any director,
officer or partner of such holder, any agent or underwriter or any director,
officer or partner thereof, or any controlling person of any of the foregoing,
and shall survive delivery of and payment for the Transfer Restricted
Securities pursuant to the Purchase Agreement and the transfer and registration
of Transfer Restricted Securities by such holder and the consummation of an
Exchange Offer.

 

(f)            Governing Law.   This Exchange and
Registration Rights Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be
performed in the State of New York.

 

(g)           Headings. 
The descriptive headings of the several Sections and paragraphs of this
Exchange and Registration Rights Agreement are inserted for convenience only,
do not constitute a part of this Exchange and Registration Rights Agreement and
shall not affect in any way the meaning or interpretation of this Exchange and
Registration Rights Agreement.

 

(h)           Entire Agreement; Amendments.  This Exchange and Registration Rights
Agreement and the other writings referred to herein (including the Indenture
and the form of Securities) or delivered pursuant hereto which form a part
hereof contain the entire understanding of the parties with respect to its
subject matter. This Exchange and

 

30

 

Registration
Rights Agreement supersedes all prior agreements and understandings between the
parties with respect to its subject matter. This Exchange and Registration
Rights Agreement may be amended and the observance of any term of this Exchange
and Registration Rights Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively) only by a
written instrument duly executed by the Company and the holders of at least a
majority in aggregate principal amount of the Transfer Restricted Securities at
the time outstanding. Each holder of any Transfer Restricted Securities at the
time or thereafter outstanding shall be bound by any amendment or waiver
effected pursuant to this Section 9(h), whether or not any notice, writing
or marking indicating such amendment or waiver appears on such Transfer
Restricted Securities or is delivered to such holder.

 

(i)            Inspection.  For so long as this Exchange and Registration
Rights Agreement shall be in effect, this Exchange and Registration Rights
Agreement and a complete list of the names and addresses of all the holders of
Transfer Restricted Securities shall be made available for inspection and
copying on any business day by any holder of Transfer Restricted Securities for
proper purposes only (which shall include any purpose related to the rights of
the holders of Transfer Restricted Securities under the Securities, the
Indenture and this Agreement) at the offices of the Company at the address
thereof set forth in Section 9(c) above and at the office of the Trustee under
the Indenture.

 

(j)            Counterparts.  This Exchange and Registration Rights
Agreement may be executed by the parties in one or more counterparts, each of
which shall be deemed to be an original, but all such respective counterparts
shall together constitute one and the same instrument.

 

31

 

If the
foregoing is in accordance with your understanding, please sign and return to
us five counterparts hereof, and upon the acceptance hereof by you, on behalf
of each of the Purchasers, this letter and such acceptance hereof shall
constitute a binding agreement among each of the Purchasers, the Company and
the Guarantors.  It is understood that
your acceptance of this letter on behalf of each of the Purchasers is pursuant
to the authority set forth in a form of Agreement among Purchasers, the form of
which shall be submitted to the Company for examination upon request, but
without warranty on your part as to the authority of the signers thereof.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  The Company

  
	
   

  	
   

  
	
   

  	
  SANMINA-SCI CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David White

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David White

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  Chief Financial Officer

  
					

 

32

 

	
   

  	
  Guarantors

  
	
   

  	
   

  
	
   

  	
  COMPATIBLE MEMORY, INC.

  
	
   

  	
  HADCO
  CORPORATION

  
	
   

  	
  HADCO SANTA
  CLARA, INC.

  
	
   

  	
  INTERAGENCY,
  INC.

  
	
   

  	
  NEWISYS,
  INC.

  
	
   

  	
  SANMINA-SCI
  ENCLOSURES USA INC.

  
	
   

  	
  SANMINA-SCI
  SYSTEMS (ALABAMA) INC.

  
	
   

  	
  SANMINA-SCI SYSTEMS ENCLOSURES

  
	
   

  	
  (DENTON)
  INC.

  
	
   

  	
  SANMINA-SCI SYSTEMS HOLDINGS, INC.

  
	
   

  	
  SCI SYSTEMS, INC.

  
	
   

  	
  SCI TECHNOLOGY, INC.

  
	
   

  	
  SCIMEX, INC.

  
	
   

  	
  VIKING INTERWORKS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  All by:

  	
  /s/ Walter Boileau

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Walter Boileau

  
	
   

  	
   

  	
  Title:

  	
  Treasurer

  
					

 

33

 

	
   

  	
  Guarantors

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SCI PLANT NO. 5, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  SANMINA-SCI SYSTEMS (ALABAMA) INC.,

  
	
   

  	
  its Sole Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Walter Boileau

  
	
   

  	
  Name:

  	
  Walter Boileau

  
	
   

  	
  Title:

  	
  Treasurer

  

 

34

 

	
   

  	
  Guarantors

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SCI PLANT NO. 22, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  SCI TECHNOLOGY, INC.,

  
	
   

  	
  its Sole Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter Boileau

  
	
   

  	
   

  	
  Name:

  	
  Walter Boileau

  
	
   

  	
   

  	
  Title:

  	
  Treasurer

  

 

35

 

	
   

  	
  Guarantors

  
	
   

  	
   

  
	
   

  	
  SANMINA GENERAL, L.L.C.

  
	
   

  	
  SANMINA LIMITED, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  All by:

  
	
   

  	
   

  
	
   

  	
  SANMINA-SCI CORPORATION,

  
	
   

  	
  their Sole Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter Boileau

  
	
   

  	
   

  	
  Name:

  	
  Walter Boileau

  
	
   

  	
   

  	
  Title:

  	
  Treasurer

  

 

36

 

	
   

  	
  Guarantors

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SANMINA
  TEXAS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  SANMINA GENERAL, L.L.C.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  SANMINA-SCI CORPORATION,

  
	
   

  	
   

  	
   

  	
  its Sole Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Walter Boileau

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Walter Boileau

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Treasurer

  
						

 

37

 

	
  Accepted as of the date hereof:

  	
   

  
	
   

  	
   

  
	
  Citigroup Global Markets Inc.

  	
   

  
	
  Banc of America Securities LLC

  	
   

  
	
  Merrill Lynch, Pierce, Fenner & Smith

  	
   

  
	
                  Incorporated

  	
   

  
	
  Deutsche Bank Securities Inc.

  	
   

  
	
  Scotia Capital Inc.

  	
   

  
	
  ABN AMRO Incorporated

  	
   

  
	
  KeyBanc Capital Markets,

  	
   

  
	
                  a division of McDonald
  Investments Inc.

  	
   

  
	
  Wells Fargo Securities, LLC

  	
   

  
	
  Piper Jaffray & Co.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Ivan Brockman

  	
   

  	
   

  
	
   

  	
  Citigroup Global Markets Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Michael McLaughlin

  	
   

  	
   

  
	
   

  	
  Banc of America Securities LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mark Watt

  	
   

  	
   

  
	
   

  	
  Merrill Lynch, Pierce, Fenner & Smith 

  	
   

  	
   

  
	
   

  	
  Incorporated

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  On behalf of each of the Purchasers

  	
   

  	
   

  

 

38

Exhibit A

 

SANMINA - SCI CORPORATION

 

INSTRUCTION TO DTC PARTICIPANTS

 

(Date of Mailing)

 

URGENT - IMMEDIATE ATTENTION REQUESTED

 

DEADLINE FOR
RESPONSE:  [DATE]

 

The Depository
Trust Company (“DTC”) has identified you as a DTC Participant through which
beneficial interests in the Sanmina-SCI Corporation (the “Company”) 63⁄4% Senior
Subordinated Notes due 2013 (the “Securities”) are held.

 

The Company is
in the process of registering the Securities under the Securities Act of 1933
for resale by the beneficial owners thereof. 
In order to have their Securities included in the registration
statement, beneficial owners must complete and return the enclosed Notice of
Registration Statement and Selling Securityholder Questionnaire.

 

It is
important that beneficial owners of the Securities receive a copy of the
enclosed materials as soon as possible as their rights
to have the Securities included in the registration statement depend upon their
returning the Notice and Questionnaire by [Deadline
For Response].  Please forward
a copy of the enclosed documents to each beneficial owner that holds interests
in the Securities through you.  If you
require more copies of the enclosed materials or have any questions pertaining
to this matter, please contact Sanmina-SCI Corporation, 2700 North First
Street, San Jose, California, 95134, telephone: 
(408) 965-3500.

 

A-1

 

Sanmina-SCI Corporation

 

Notice of Registration Statement

and

Selling Securityholder Questionnaire

 

[Date]

 

Reference is
hereby made to the Exchange and Registration Rights Agreement (the “Exchange
and Registration Rights Agreement”) between Sanmina-SCI Corporation (the “Company”),
the Guarantors (as defined therein) and the Purchasers named therein.  Pursuant to the Exchange and Registration
Rights Agreement, the Company has filed with the United States Securities and
Exchange Commission (the “Commission”) a registration statement on Form    (the
“Shelf Registration Statement”) for the registration and resale under
Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”),
of the Company’s 63⁄4% Senior Subordinated Notes due 2013 as fully and
unconditionally guaranteed by the Guarantors (the “Securities”).  A copy of the Exchange and Registration
Rights Agreement is attached hereto.  All
capitalized terms not otherwise defined herein shall have the meanings ascribed
thereto in the Exchange and Registration Rights Agreement.

 

Pursuant to
Section 2(b) of the Exchange and Registration Rights Agreement, certain
beneficial owners of Transfer Restricted Securities are entitled to have the
Transfer Restricted Securities beneficially owned by them included in the Shelf
Registration Statement.  In order to have
Transfer Restricted Securities included in the Shelf Registration Statement,
this Notice of Registration Statement and Selling Securityholder Questionnaire
(“Notice and Questionnaire”) must be completed, executed and delivered to the
Company’s counsel at the address set forth herein for receipt ON OR BEFORE [Deadline for Response].  Beneficial owners of Transfer Restricted
Securities who do not complete, execute and return this Notice and
Questionnaire by such date (i) will not be named as selling
securityholders in the Shelf Registration Statement and (ii) may not use
the Prospectus forming a part thereof for resales of Transfer Restricted
Securities.

 

Certain legal
consequences arise from being named as a selling securityholder in the Shelf
Registration Statement and related Prospectus. 
Accordingly, holders and beneficial owners of Registrable Securities are
advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling securityholder in the Shelf
Registration Statement and related Prospectus.

 

A-2

 

ELECTION

 

The
undersigned holder (the “Selling Securityholder”) of Transfer Restricted
Securities hereby elects to include in the Shelf Registration Statement the
Transfer Restricted Securities beneficially owned by it and listed below in
Item (3).  The undersigned, by signing
and returning this Notice and Questionnaire, agrees to be bound with respect to
such Transfer Restricted Securities by the terms and conditions of this Notice
and Questionnaire and the Exchange and Registration Rights Agreement,
including, without limitation, Section 6 of the Exchange and Registration
Rights Agreement relating to indemnification, as if the undersigned Selling
Securityholder were an original party thereto.

 

Upon any sale
of Transfer Restricted Securities pursuant to the Shelf Registration Statement,
the Selling Securityholder will be required to deliver to the Company and
Trustee the Notice of Transfer set forth in Appendix A to the Prospectus
and as Exhibit B to the Exchange and Registration Rights Agreement.

 

The Selling
Securityholder hereby provides the following information to the Company and
represents and warrants that such information is accurate and complete:

 

A-3

 

QUESTIONNAIRE

 

(1)                                  (a)                                  Full
Legal Name of Selling Securityholder:

 

(b)                                 Full
Legal Name of Registered Holder (if not the same as in (a) above) of Transfer
Restricted Securities Listed in Item (3) below:

 

(c)                                  Full
Legal Name of DTC Participant (if applicable and if not the same as (b) above)
Through Which Transfer Restricted Securities Listed in Item (3) below are Held:

 

(2)                                  Address
for Notices to Selling Securityholder:

 

Telephone:

 

Fax:

 

Contact
Person:

 

(3)                                  Beneficial
Ownership of Securities:

 

Except as set forth below in this Item (3), the undersigned does
not beneficially own any Securities.

 

(a)                                  Principal
amount of Transfer Restricted Securities beneficially owned:                 CUSIP
No(s). of such Transfer Restricted Securities:                                         

 

(b)                                 Principal
amount of Securities other than Transfer Restricted Securities beneficially
owned:                                                                                                                                CUSIP
No(s). of such other Securities:                                             

 

(c)                                  Principal
amount of Transfer Restricted Securities which the undersigned wishes to be
included in the Shelf Registration Statement:                                                    CUSIP
No(s). of such Transfer Restricted Securities to be included in the Shelf
Registration Statement:                                                                                                             

 

(4)                                  Beneficial
Ownership of Other Securities of the Company:

 

Except as set forth below in this Item (4), the undersigned
Selling Securityholder is not the beneficial or registered owner of any other
securities of the Company, other than the Securities listed above in
Item (3).

 

State any
exceptions here:

 

A-4

 

(5)                                  Relationships
with the Company:

 

Except as set forth below, neither the Selling Securityholder nor any
of its affiliates, officers, directors or principal equity holders (5% or more)
has held any position or office or has had any other material relationship with
the Company (or its predecessors or affiliates) during the past three years.

 

State any
exceptions here:

 

(6)           Beneficial Ownership by Natural
Persons:

 

If the Selling
Securityholder is an entity, does any natural person have voting or investment
power over the Transfer Restricted Securities held by the Selling
Securityholder?

 

Yes [    ]                  No
[    ]

 

If so, please
state that person’s or persons’ name(s):

 

(7)           Registered Broker-Dealers:

 

(a)            Is the Selling
Security Holder:

 

(i) a broker-dealer:        Yes
[     ]     No[     ]

 

(ii) an affiliate of a broker-dealer: Yes [     ]     No[      ]

 

(b)                                If
the Selling Securityholder is an affiliate of a broker/dealer, indicate the
nature of the affiliation.

 

(c)                                 Except
as set forth below, if the undersigned is an affiliate of a broker-dealer, the
undersigned represents and warrants that it bought the Transfer Restricted
Securities in the ordinary course of business and at the time of the purchase
had no agreements or understandings, directly or indirectly, with any person to
distribute the Transfer Restricted Securities.

 

A-5

 

(d)                                If
the undersigned is a registered broker-dealer, please indicate whether the
undersigned purchased its Transfer Restricted Securities for investment or
acquired them as transaction-based compensation for investment banking or
similar services.

 

NOTE: The
Company is required to identify you as an underwriter in the Shelf Registration
Statement and related Prospectus if either:

 

(i)              the undersigned is a
registered broker-dealer and received its Transfer Restricted Securities other
than as transaction-based compensation, or

 

(ii)             the undersigned is an
affiliate of a broker-dealer who did not buy Transfer Restricted Securities in
the ordinary course of business and at the time of your purchase had an
agreement or understanding, directly or indirectly, with any person to
distribute the Transfer Restricted Securities.

 

(e)                                 Except
as set forth below, if the undersigned is a registered broker-dealer, the
undersigned does not plan to make a market in the Transfer Restricted
Securities.  If the undersigned plans to
make a market in the Transfer Restricted Securities, please indicate whether
you plan to use the Prospectus relating to the Transfer Restricted Securities
as a market-making prospectus.

 

(8)                                  Plan
of Distribution:

 

Except as set forth below, the undersigned Selling Securityholder
intends to distribute the Transfer Restricted Securities listed above in Item
(3) only as follows (if at all):  Such Transfer
Restricted Securities may be sold from time to time directly by the undersigned
Selling Securityholder or, alternatively, through underwriters, broker-dealers
or agents.  Such Transfer Restricted
Securities may be sold in one or more transactions at fixed prices, at
prevailing market prices at the time of sale, at varying prices determined at
the time of sale, or at negotiated prices. 
Such sales may be effected in transactions (which may involve crosses or
block transactions) (i) on any national securities exchange or quotation
service on which the Securities may be listed or quoted at the time of sale,
(ii) in the over-the-counter market, (iii) in transactions otherwise than on
such exchanges or services or in the over-the-counter market, or (iv) through
the writing of options.  In connection
with sales of the Transfer Restricted Securities or otherwise, the Selling
Securityholder may enter into hedging transactions with broker-dealers, which
may in turn engage in short sales of the Transfer Restricted Securities in the
course of hedging the positions they assume. 
The Selling Securityholder may also sell Transfer Restricted Securities
short and deliver Transfer Restricted Securities to close out such short positions,
or loan or pledge Registrable Securities to broker-dealers that in turn may
sell such securities.

 

State any
exceptions here:

 

A-6

 

By signing
below, the Selling Securityholder acknowledges that it understands its
obligation to comply, and agrees that it will comply, with the provisions of
the Exchange Act and the rules and regulations thereunder, particularly
Regulation M.

 

In the event
that the Selling Securityholder transfers all or any portion of the Transfer
Restricted Securities listed in Item (3) above after the date on which
such information is provided to the Company, the Selling Securityholder agrees
to notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Exchange and
Registration Rights Agreement.

 

By signing
below, the Selling Securityholder consents to the disclosure of the information
contained herein in its answers to Items (1) through (8) above and the
inclusion of such information in the Shelf Registration Statement and related
Prospectus.  The Selling Securityholder
understands that such information will be relied upon by the Company in
connection with the preparation of the Shelf Registration Statement and related
Prospectus.

 

A-7

 

In accordance
with the Selling Securityholder’s obligation under Section 3(d) and
Section 3(f) of the Exchange and Registration Rights Agreement to provide
such information as may be required by law for inclusion in the Shelf Registration
Statement, the Selling Securityholder agrees to promptly notify the Company of
any inaccuracies or changes in the information provided herein which may occur
subsequent to the date hereof at any time while the Shelf Registration
Statement remains in effect.  All notices
hereunder and pursuant to the Exchange and Registration Rights Agreement shall
be made in writing, by hand-delivery, first-class mail, or air courier
guaranteeing overnight delivery as follows:

 

	
  (i)   To
  the Company:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Sanmina-SCI Corporation

  
	
   

  	
   

  	
  2700 North First Street

  
	
   

  	
   

  	
  San Jose, California 95134

  
	
   

  	
   

  	
  Attention: Secretary

  
	
   

  	
   

  	
  Tel: (408) 965-3500

  
	
   

  	
   

  	
   

  
	
  (ii)   With
  a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wilson Sonsini Goodrich & Rosati,

  
	
   

  	
   

  	
      Professional
  Corporation

  
	
   

  	
   

  	
  650 Page Mill Road

  
	
   

  	
   

  	
  Palo Alto, California 94304-1050

  
	
   

  	
   

  	
  Attention: Christopher D. Mitchell

  
	
   

  	
   

  	
  Tel: (650) 493-9300

  

 

Once this
Notice and Questionnaire is executed by the Selling Securityholder and received
by the Company’s counsel, the terms of this Notice and Questionnaire, and the
representations and warranties contained herein, shall be binding on, shall
inure to the benefit of and shall be enforceable by the respective successors,
heirs, personal representatives, and assigns of the Company and the Selling
Securityholder (with respect to the Transfer Restricted Securities beneficially
owned by such Selling Securityholder and listed in Item (3) above.  This Agreement shall be governed in all
respects by the laws of the State of New York.

 

A-8

 

IN WITNESS
WHEREOF, the undersigned, by authority duly given, has caused this Notice and
Questionnaire to be executed and delivered either in person or by its duly
authorized agent.

 

	
  Dated:

  	
   

  	
   

  

 

	
   

  	
  Selling
  Securityholder

  
	
   

  	
  (Print/type
  full legal name of beneficial owner of Transfer Restricted Securities)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

PLEASE RETURN
THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY’S
COUNSEL AT:

 

	
   

  	
  Wilson
  Sonsini Goodrich & Rosati,

  
	
   

  	
       Professional
  Corporation

  
	
   

  	
  650 Page
  Mill Road

  
	
   

  	
  Palo Alto,
  California 94304-1050

  
	
   

  	
  Attention:
  Christopher D. Mitchell

  
	
   

  	
  Tel: (650)
  493-9300

  

 

A-9

 

Exhibit B

NOTICE OF TRANSFER PURSUANT TO REGISTRATION
STATEMENT

 

Sanmina-SCI
Corporation

c/o U.S. Bank
National Association

633 West Fifth
Street, 24th Floor

Los Angeles,
CA  90071

 

	
  Attention:

  	
   

  	
  Trust
  Officer

  
	
  Re:

  	
   

  	
  Sanmina-SCI
  Corporation (the “Company”)

  63⁄4% Senior Subordinated Notes due 2013

  

 

Dear Sirs:

 

Please be
advised that                                                    has
transferred $                                          aggregate
principal amount of the above-referenced Notes pursuant to an effective
Registration Statement on Form       (File
No. 333-         ) filed by the
Company.

 

We hereby
certify that the prospectus delivery requirements, if any, of the Securities
Act of 1933, as amended, have been satisfied and that the above-named
beneficial owner of the Notes is named as a “Selling Holder” in the Prospectus
dated            , 20    
or in supplements thereto, and that the aggregate principal amount of the Notes
transferred are the Notes listed in such Prospectus opposite such owner’s name.

 

	
  Dated:

  	
   

  	
  , 20    

  	
   

  
	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Authorized
  Signature)

  

 

B-1Exhibit
10.35

 

CORGENTECH
INC.

2003 EQUITY INCENTIVE PLAN

 

STOCK OPTION GRANT NOTICE

 

CORGENTECH INC. (the “Company”), pursuant to its 2003
Equity Incentive Plan (the “Plan”), hereby grants to Optionholder an option to
purchase the number of shares of the Company’s Common Stock set forth
below.  This option is subject to all of
the terms and conditions as set forth herein and in the Stock Option Agreement,
the Plan and the Notice of Exercise, all of which are attached hereto and
incorporated herein in their entirety.

 

	
  Optionholder:

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
  February 17,
  2005

  
	
  Vesting
  Commencement Date:

  	
   

  	
  February 17,
  2005

  
	
  Number of Shares
  Subject to Option:

  	
   

  	
   

  
	
  Exercise Price
  (Per Share):

  	
   

  	
  $6.40

  
	
  Total Exercise
  Price:

  	
   

  	
  $

  
	
  Expiration Date:

  	
   

  	
  February 16,
  2015

  

 

	
  Type of Grant:

  	
   

  	
  Nonstatutory Stock
  Option

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exercise Schedule:

  	
   

  	
  ý

  	
  Same as Vesting
  Schedule

  	
  ý

  	
  Early Exercise
  Permitted

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vesting Schedule:

  	
   

  	
  1/48th of
  the shares vest monthly over four years from the Vesting Commencement Date.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The vesting of this Option is subject to
  Optionholder’s Continuous Service (as defined in the Plan). This vesting
  schedule may be accelerated as provided in the Plan and the Stock Option
  Agreement.

  
	
   

  	
   

  	
   

  
	
  Payment:

  	
   

  	
  By one or a combination
  of the following items (described in the Stock Option Agreement):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  By cash or check

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
  Pursuant to a
  Regulation T Program if the Shares are publicly traded

  	
   

  
	
   

  	
   

  	
  ý

  	
  By delivery of
  already-owned shares if the Shares are publicly traded

  
										

 

Additional
Terms/Acknowledgements: 
The undersigned Optionholder acknowledges receipt of, and understands
and agrees to, this Stock Option Grant Notice, the Stock Option Agreement and
the Plan.  Optionholder further
acknowledges that as of the Date of Grant, this Stock Option Grant Notice, the
Stock Option Agreement and the Plan set forth the entire understanding between
Optionholder and the Company regarding the acquisition of stock in the Company
and supersede all prior oral and written agreements on that subject with the
exception of (i) options previously granted and delivered to Optionholder under
the Plan, and (ii) the following agreements only:

 

	
  OTHER
  AGREEMENTS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CORGENTECH INC.

  	
   

  	
  OPTIONHOLDER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  John P.
  McLaughlin

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  President and
  Chief Executive Officer

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
										

 

ATTACHMENTS:  Stock Option Agreement, the Plan and the
Notice of Exercise

 

 

CORGENTECH INC.

2003 EQUITY INCENTIVE PLAN

 

STOCK OPTION AGREEMENT

(NONSTATUTORY STOCK OPTION)

 

Pursuant to your Stock Option Grant Notice (“Grant Notice”) and
this Stock Option Agreement, Corgentech
Inc. (the “Company”)
has granted you an option under its 2003
Equity Incentive Plan (the “Plan”) to purchase the number of shares of
the Company’s Common Stock indicated in your Grant Notice at the exercise price
indicated in your Grant Notice.  Defined
terms not explicitly defined in this Stock Option Agreement but defined in the
Plan shall have the same definitions as in the Plan.

 

The details of your option are as follows:

 

1.             VESTING.  Subject to the limitations contained herein,
your option will vest as provided in your Grant Notice, provided that vesting
will cease upon the termination of your Continuous Service and that your
vesting may be accelerated as provided in the Plan.

 

2.             NUMBER OF SHARES AND EXERCISE PRICE.  The number of shares of Common Stock subject
to your option and your exercise price per share referenced in your Grant
Notice may be adjusted from time to time for Capitalization Adjustments.

 

3.             EXERCISE PRIOR TO VESTING (“EARLY EXERCISE”).  If permitted in your Grant Notice (i.e., the “Exercise
Schedule” indicates that “Early Exercise” of your option is permitted) and
subject to the provisions of your option, you may elect at any time that is
both (i) during the period of your Continuous Service and (ii) during the term
of your option, to exercise all or part of your option, including the nonvested
portion of your option; provided, however,
that:

 

(a)           a
partial exercise of your option shall be deemed to cover first vested shares of
Common Stock and then the earliest vesting installment of unvested shares of
Common Stock;

 

(b)           any
shares of Common Stock so purchased from installments that have not vested as
of the date of exercise shall be subject to the purchase option in favor of the
Company as described in the Company’s form of Early Exercise Stock Purchase
Agreement; and

 

(c)           you
shall enter into the Company’s form of Early Exercise Stock Purchase Agreement
with a vesting schedule that will result in the same vesting as if no early
exercise had occurred.

 

4.             METHOD OF PAYMENT.  Payment of the exercise price is due in full
upon exercise of all or any part of your option.  You may elect to make payment of the exercise
price in cash or by check or in any other manner permitted
by your Grant Notice, which may include one or more of the
following:

 

1

 

(a)           In
the Company’s sole discretion at the time your option is exercised and provided
that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, pursuant
to a program developed under Regulation T as promulgated by the Federal Reserve
Board that, prior to the issuance of Common Stock, results in either the
receipt of cash (or check) by the Company or the receipt of irrevocable
instructions to pay the aggregate exercise price to the Company from the sales
proceeds.

 

(b)           Provided
that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, by
delivery of already-owned shares of Common Stock either that you have held for
the period required to avoid a charge to the Company’s reported earnings
(generally six (6) months) or that you did not acquire, directly or indirectly
from the Company, that are owned free and clear of any liens, claims,
encumbrances or security interests, and that are valued at Fair Market Value on
the date of exercise.  “Delivery” for
these purposes, in the sole discretion of the Company at the time you exercise
your option, shall include delivery to the Company of your attestation of ownership
of such shares of Common Stock in a form approved by the Company.  Notwithstanding the foregoing, you may not
exercise your option by tender to the Company of Common Stock to the extent
such tender would violate the provisions of any law, regulation or agreement
restricting the redemption of the Company’s stock.

 

5.             WHOLE SHARES.  You may exercise your option only for whole
shares of Common Stock.

 

6.             SECURITIES LAW COMPLIANCE.  Notwithstanding anything to the contrary
contained herein, you may not exercise your option unless the shares of Common
Stock issuable upon such exercise are then registered under the Securities Act
or, if such shares of Common Stock are not then so registered, the Company has
determined that such exercise and issuance would be exempt from the
registration requirements of the Securities Act.  The exercise of your option also must comply
with other applicable laws and regulations governing your option, and you may
not exercise your option if the Company determines that such exercise would not
be in material compliance with such laws and regulations.

 

7.             TERM.  You may not exercise your option before the
commencement or after the expiration of its term.  The term of your option commences on the Date
of Grant and expires upon the earliest of the following:

 

(a)           three
(3) months after the termination of your Continuous Service for any reason
other than your Disability or death, provided that if during any part of such
three (3) month period your option is not exercisable solely because of the
condition set forth in Section 6, your option shall not expire until the
earlier of the Expiration Date or until it shall have been exercisable for an
aggregate period of three (3) months after the termination of your Continuous
Service;

 

(b)           twelve
(12) months after the termination of your Continuous Service due to your
Disability;

 

2

 

(c)           eighteen
(18) months after your death if you die either during your Continuous Service
or within three (3) months after your Continuous Service terminates;

 

(d)           the
Expiration Date indicated in your Grant Notice; or

 

(e)           the
day before the tenth (10th) anniversary of the Date of Grant.

 

8.             EXERCISE.

 

(a)           You
may exercise the vested portion of your option (and the unvested portion of
your option if your Grant Notice so permits) during its term by delivering a
Notice of Exercise (in a form designated by the Company) together with the
exercise price to the Secretary of the Company, or to such other person as the
Company may designate, during regular business hours, together with such
additional documents as the Company may then require.

 

(b)           By
exercising your option you agree that, as a condition to any exercise of your
option, the Company may require you to enter into an arrangement providing for
the payment by you to the Company of any tax withholding obligation of the
Company arising by reason of (1) the exercise of your option, (2) the lapse of
any substantial risk of forfeiture to which the shares of Common Stock are
subject at the time of exercise, or (3) the disposition of shares of Common
Stock acquired upon such exercise.

 

9.             TRANSFERABILITY.  Your option is not transferable, except by
will or by the laws of descent and distribution, and is exercisable during your
life only by you.  Notwithstanding the
foregoing, by delivering written notice to the Company, in a form satisfactory
to the Company, you may designate a third party who, in the event of your
death, shall thereafter be entitled to exercise your option.

 

10.          OPTION NOT A SERVICE CONTRACT.  Your option is not an employment or service
contract, and nothing in your option shall be deemed to create in any way
whatsoever any obligation on your part to continue in the employ of the Company
or an Affiliate, or of the Company or an Affiliate to continue your
employment.  In addition, nothing in your
option shall obligate the Company or an Affiliate, their respective
stockholders, Boards of Directors, Officers or Employees to continue any
relationship that you might have as a Director or Consultant for the Company or
an Affiliate.

 

11.          WITHHOLDING
OBLIGATIONS.

 

(a)           At
the time you exercise your option, in whole or in part, or at any time
thereafter as requested by the Company, you hereby authorize withholding from payroll
and any other amounts payable to you, and otherwise agree to make adequate
provision for (including by means of a “cashless exercise” pursuant to a
program developed under Regulation T as promulgated by the Federal Reserve
Board to the extent permitted by the Company), any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or
an Affiliate, if any, which arise in connection with the exercise of your
option.

 

(b)           Upon
your request and subject to approval by the Company, in its sole discretion,
and compliance with any applicable legal conditions or restrictions, the
Company

 

3

 

may withhold from fully
vested shares of Common Stock otherwise issuable to you upon the exercise of
your option a number of whole shares of Common Stock having a Fair Market
Value, determined by the Company as of the date of exercise, not in excess of
the minimum amount of tax required to be withheld by law (or such lower amount as
may be necessary to avoid variable award accounting).  If the date of determination of any tax
withholding obligation is deferred to a date later than the date of exercise of
your option, share withholding pursuant to the preceding sentence shall not be
permitted unless you make a proper and timely election under Section 83(b) of
the Code, covering the aggregate number of shares of Common Stock acquired upon
such exercise with respect to which such determination is otherwise deferred,
to accelerate the determination of such tax withholding obligation to the date
of exercise of your option. 
Notwithstanding the filing of such election, shares of Common Stock
shall be withheld solely from fully vested shares of Common Stock determined as
of the date of exercise of your option that are otherwise issuable to you upon
such exercise.  Any adverse consequences
to you arising in connection with such share withholding procedure shall be
your sole responsibility.

 

(c)           You
may not exercise your option unless the tax withholding obligations of the
Company and/or any Affiliate are satisfied. 
Accordingly, you may not be able to exercise your option when desired
even though your option is vested, and the Company shall have no obligation to
issue a certificate for such shares of Common Stock or release such shares of
Common Stock from any escrow provided for herein unless such obligations are
satisfied.

 

12.          NOTICES.  Any notices provided for in your option or
the Plan shall be given in writing and shall be deemed effectively given upon
receipt or, in the case of notices delivered by mail by the Company to you,
five (5) days after deposit in the United States mail, postage prepaid,
addressed to you at the last address you provided to the Company.

 

13.          GOVERNING PLAN DOCUMENT.  Your option is subject to all the provisions
of the Plan, the provisions of which are hereby made a part of your option, and
is further subject to all interpretations, amendments, rules and regulations,
which may from time to time be promulgated and adopted pursuant to the
Plan.  In the event of any conflict
between the provisions of your option and those of the Plan, the provisions of
the Plan shall control.

 

4

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"}]]