Document:

Exhibit 10.1

SIXTH
LOAN MODIFICATION AGREEMENT

This Sixth Loan Modification Agreement (this “Loan
Modification Agreement’) is entered into as of October 9, 2006, by and between SILICON VALLEY BANK, a California-chartered
bank, with its principal place of business at 3003 Tasman Drive, Santa
Clara, California 95054 (“Bank”) and COLLAGENEX
PHARMACEUTICALS, INC., a Delaware corporation with its chief
executive office located at 41 University Drive, Newtown, Pennsylvania 18940 (“Borrower”).

1.                                       DESCRIPTION
OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and
obligations which may be owing by Borrower to Bank, Borrower is indebted to
Bank pursuant to a loan arrangement dated as of March 19, 2001, evidenced by,
among other documents, a certain Loan and Security Agreement dated as of March
19, 2001, between Borrower and Bank, as amended (as amended, the “Loan
Agreement”).  Capitalized terms used but
not otherwise defined herein shall have the same meaning as in the Loan
Agreement.

Hereinafter, all indebtedness and obligations owing by
Borrower to Bank shall be referred to as the “Obligations”.

2.                                       DESCRIPTION
OF COLLATERAL.  Repayment of the
Obligations is secured by the Collateral as described in the Loan Agreement and
the Intellectual Property Collateral, as described in the Intellectual Property
Security Agreement dated as of March 19, 2001, between the Borrower and the
Bank (together with any other collateral security granted to Bank, the “Security
Documents”).

Hereinafter, the Security Documents, together with all
other documents evidencing, securing or otherwise executed in connection with
the Obligations shall be referred to as the “Existing Loan Documents”.

3.                                       DESCRIPTION
OF CHANGE IN TERMS.

Modifications to Loan Agreement.  From and after the execution of this Loan
Modification Agreement, the Loan Agreement shall be amended as follows:

i.                                          By deleting
Section 1 of the Schedule to the Loan Agreement in its entirety and inserting
the following in lieu thereof:

“1            Credit Limit

(Section 1.1):         An amount not to exceed the lesser of
(A) or (B), below:

 

(A)                              (i)            $10,000,000.00  (the “Maximum Credit Limit”); minus

(ii)           the aggregate amounts then undrawn on
all outstanding letters of credit, foreign exchange contracts, or any other
accommodations issued or incurred, or caused to be issued or incurred by
Silicon for the account and/or benefit of the Borrower.

(B)                                (i)            80% of the amount of the Borrower’s
Eligible Receivables; plus

(ii)                                  (a)
from October 9, 2006 through June 30, 2007, $5,000,000, (b) from July 1, 2007
through December 31, 2007, $2,500,000, and (c) from January 1, 2008 and
thereafter, $0.00; minus

(iii)                               the
aggregate amounts then undrawn on all outstanding letters of credit, foreign
exchange contracts, or any other accommodations issued or incurred, or caused
to be issued or incurred by Silicon for the account and/or benefit of the
Borrower.

Letter of
Credit/Foreign Exchange Contract/Cash Management Services Sublimit

(Sections 1.5, 1.6 and
1.7):  $2,000,000.00”

ii.                                       By deleting the “Maturity
Date” set forth in Section 4 of the Schedule to the Loan Agreement in its
entirety and inserting the following in lieu thereof:

“October 9, 2008.”

iii.                                    By deleting the
Minimum Tangible Net Worth covenant in Section 5a. of the Schedule to the Loan
Agreement in its entirety and inserting the following in lieu thereof:

“a. Minimum Tangible Net Worth:

Borrower shall at all times maintain a Tangible Net
Worth, tested quarterly, of not less than the sum of (i) plus (ii) plus (iii)
below:

(i)            (a)
as of September 30, 2006, $13,000,000;

 

(b) as of December 31, 2006 and each quarter end
thereafter, $8,000,000;

plus

(ii) 
50% of Borrower’s quarterly net income (if positive) in fiscal year
2007;

plus

(iii) 50% of all consideration received after
the date hereof from proceeds from the issuance of any equity securities of the
Borrower and/or subordinated debt incurred by the Borrower.

Tangible Net Worth shall exclude deferred
licensing fees and capitalized product development fees.  In no event shall the required amount of this
Minimum Tangible Net Worth covenant be decreased.”

iv.                                   By adding the
following Section 5b. after Section 5a. of the Schedule to Loan Agreement:

“b.           Minimum
Liquidity:

At all times, tested quarterly, the sum of
(i) the Borrower’s unrestricted cash maintained at Bank plus (ii) 80% of
the Borrower’s Eligible Receivables outstanding less than ninety (90) days from
invoice date Base minus (iii) all outstanding Loans, Letters of Credit
and other Obligations outstanding under this Agreement of not less than
$10,000,000.”

v.                                      By deleting
EXHIBIT B thereto in its entirety and inserting in lieu thereof EXHIBIT B
attached hereto.

4.                                       RATIFICATION
OF INTELLECTUAL PROPERTY SECURITY AGREEMENT. 
Borrower hereby ratifies, confirms and reaffirms, all and singular, the
terms and conditions of a certain Intellectual Property Security Agreement
dated as of March 19, 2001 between Borrower and Bank, and acknowledges,
confirms and agrees that, except as previously disclosed in writing to Bank and
except as set forth in Schedule A annexed hereto, said Intellectual Property
Security Agreement contains an accurate and complete listing of all
Intellectual Property Collateral (as defined in said Intellectual Property
Security Agreement) and shall remain in full force and effect.

5.                                       RATIFICATION
OF PERFECTION CERTIFICATE.  Borrower
hereby ratifies, confirms, and reaffirms, all and singular, the terms and
disclosures contained in a certain

 

Perfection
Certificate delivered to the Bank on or about June 7, 2004, and acknowledges,
confirms and agrees the disclosures and information provided therein has not
changed, as of the date hereof.

6.                                       CONSISTENT
CHANGES.  The Existing Loan Documents are
hereby amended wherever necessary to reflect the changes described above.

7.                                       RATIFICATION
OF LOAN DOCUMENTS.  Borrower hereby
ratifies, confirms, and reaffirms all terms and conditions of the Existing Loan
Documents and all security or other collateral granted to the Bank, and
confirms that the indebtedness secured thereby includes, without limitation,
the Obligations.

8.                                       NO
DEFENSES OF BORROWER.  The Borrower
hereby acknowledges and agrees that the Borrower has no offsets, defenses,
claims, or counterclaims against the Bank or the Bank’s officers, directors,
employees, attorneys, representatives, predecessors, affiliates, subsidiaries,
parents, successors, and assigns with respect to the Obligations, and/or the
Existing Loan Documents, and that if the Borrower now has, or ever did have,
any offsets, defenses, claims, or counterclaims against the Bank or the Bank’s
officers, directors, employees, attorneys, representatives, predecessors,
affiliates, subsidiaries, parents, successors, and assigns, whether known or
unknown, at law or in equity, from the beginning of the world through this date
and through the time of execution of this Loan Modification Agreement, with
respect to the Obligations and/or the Existing Loan Documents, all of them are
hereby expressly WAIVED, and the
Borrower hereby RELEASES the Bank
and the Bank’s officers, directors, employees, attorneys, representatives,
predecessors, successors, and assigns from any liability therefor.

9.                                       FEES.  Borrower shall pay to Bank a modification fee
in the amount of $12,500.00, which fee shall be (i) deemed fully earned as of
the date hereof, (ii) payable on the date which is one year from the date of
this Loan Modification Agreement, and (iii) retained by Bank and not applied in
reduction of the Obligations.  In
addition, the Borrower shall reimburse Bank for all legal fees and expenses
incurred in connection with this amendment to the Existing Loan Documents.

10.                                 CONTINUING
VALIDITY.  Borrower understands and
agrees that in modifying the existing Obligations, Bank is relying upon
Borrower’s representations, warranties, and agreements, as set forth in the
Existing Loan Documents.  Except as
expressly modified pursuant to this Loan Modification Agreement, the terms of
the Existing Loan Documents remain unchanged and in full force and effect.  Bank’s agreement to modify the existing
Obligations pursuant to this Loan Modification Agreement in no way shall
obligate Bank to make any future modifications to the Obligations.  Nothing in this Loan Modification Agreement
shall constitute a satisfaction of the Obligations.  It is the intention of Bank and Borrower to
retain as liable parties all makers of Existing Loan Documents, unless the
party is expressly released by Bank in writing. 
No maker will be released by virtue of this Loan Modification Agreement.

 

11.                                 JURISDICTION/VENUE.  Borrower accepts for itself and in connection
with its properties, unconditionally, the non-exclusive jurisdiction of any
state or federal court of competent jurisdiction in the Commonwealth of
Massachusetts in any action, suit, or proceeding of any kind against it which
arises out of or by reason of this Loan Modification Agreement; provided,
however, that if for any reason Bank cannot avail itself of the courts of the
Commonwealth of Massachusetts, then venue shall lie in Santa Clara County,
California.  NOTWITHSTANDING THE
FOREGOING,  THE BANK SHALL HAVE THE RIGHT
TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR ITS PROPERTY IN THE
COURTS OF ANY OTHER JURISDICTION WHICH THE BANK DEEMS NECESSARY OR APPROPRIATE
IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE THE BANK’S RIGHTS
AGAINST THE BORROWER OR ITS PROPERTY.

[The
remainder of this page is intentionally left blank]

 

This Loan Modification Agreement is executed as a
sealed instrument under the laws of the Commonwealth of Massachusetts as of the
date first written above.

	
  BORROWER:

  	
   

  	
  BANK:

  
	
   

  	
   

  	
   

  
	
  COLLAGENEX
  PHARMACEUTICALS, INC.

  	
   

  	
  SILICON VALLEY BANK

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Nancy C.
  Broadbent 

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas F. Gordon

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Nancy C.
  Broadbent 

  	
   

  	
   

  	
  Name:

  	
  Thomas F. Gordon

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  SVP & CFO

  	
   

  	
   

  	
  Title:

  	
  Vice President 

  	
   

  	 

 

The undersigned ratifies, confirms and reaffirms, all
and singular, the terms and conditions of a certain Unconditional Guaranty
dated March 19, 2001 (the “Guaranty”) and a certain Security Agreement dated
March 19, 2001 (the “Security Agreement”) and acknowledges, confirms and agrees
that the Guaranty and the Security Agreement shall remain in full force and
effect and shall in no way be limited by the execution of this Loan
Modification Agreement, or any other documents, instruments and/or agreements
executed and/or delivered in connection herewith

MMP, INC.

	
  By:

  	
  /s/ Frank Ruffo

  	
   

  
	
   

  
	
  Name: 

  	
  Frank Ruffo

  	
   

  
	
   

  
	
  Title: 

  	
  Corporate
  Secretary & Treasurer

  	
   

  

 

 

EXHIBIT
B

COMPLIANCE
CERTIFICATE

TO:         SILICON
VALLEY BANK

FROM:   COLLAGENEX PHARMACEUTICALS, INC.

The undersigned authorized officer of CollaGenex
Pharmaceuticals, Inc. certifies that under the terms and conditions of the Loan
and Security Agreement between Borrower and Bank (the “Agreement”), (i)
Borrower is in complete compliance for the period ending                               with
all required covenants except as noted below and (ii) all representations and
warranties in the Agreement are true and correct in all material respects on
this date.  Attached are the required
documents supporting the certification. 
The Officer certifies that these are prepared in accordance with
Generally Accepted Accounting Principles (GAAP) consistently applied from one
period to the next except as explained in an accompanying letter or footnotes.  The Officer acknowledges that no borrowings
may be requested at any time or date of determination that Borrower is not in
compliance with any of the terms of the Agreement, and that compliance is
determined not just at the date this certificate is delivered.

Please indicate compliance status by circling Yes/No
under “Complies” column.

 

	
  Reporting
  Covenant

  	
   

  	
  Required

  	
   

  	
  Complies

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interim
  financial statements with CC

  	
   

  	
  Monthly within 30 days

  	
   

  	
  Yes  No

  
	
  Quarterly and
  Annual financial statements (CPA Audited)

  	
   

  	
  Within 5 days of filing with SEC

  	
   

  	
  Yes  No

  
	
  BBC A/R Agings,
  and deferred revenue schedule

  	
   

  	
  Monthly within 30 days

  	
   

  	
  Yes  No

  

 

	
  Financial Covenant

  	
   

  	
  Required

  	
   

  	
  Actual

  	
   

  	
  Complies

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maintain:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   Minimum Quarterly Tangible Net Worth

  	
   

  	
  $

  	
   

  	
  *

  	
  $

  	
   

  	
   

  	
  Yes No

  	
   

  
										

*Tangible Net
Worth requirement will be increased by (i) 50% of Borrower’s net income (if
positive) for fiscal year 2007 and, (ii) 50% of all consideration
received from the proceeds of the issuance of any equity securities of Borrower
and/or subordinated debt incurred by Borrower.

	
  Minimum Liquidity

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  $

  	
   

  	
   

  	
  Yes No

  	
   

  

 

	
  (a) Cash at Bank:

  	
   

  	
  $

  	
  ; 

  	
  plus

  
	
  (b) 80% of Eligible Receivables:

  	
   

  	
  $

  	
  ; 

  	
  minus

  
	
  (c) Outstanding Obligations:

  	
   

  	
  $

  	
   

  	
  =

  
	
  Liquidity (a)+(b)-(c)

  	
   

  	
  $

  	
   

  	
  .

  

 

 

 

	
  

  	
   

  	
  BANK USE ONLY

  
	
  Comments
  Regarding Exceptions: See Attached.

  	
   

  	
  Received by: 

  	
   

  	
   

  
	
  Sincerely,

  	
   

  	
   

  	
  AUTHORIZED SIGNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNATURE

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TITLE

  	
   

  	
  Verified:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  AUTHORIZED SIGNER

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATE

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Compliance Status:           Yes   NoEXHIBIT 4.1

UNITED DOMINION REALTY
TRUST, INC.

REGISTRATION RIGHTS
AGREEMENT

October 12, 2006

 

 

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”)
is made and entered into as of October 12, 2006, by and among United Dominion
Realty Trust, Inc., a Maryland corporation (the “Company”), and the
several initial purchasers (the “Initial Purchasers”) named in Schedule
A to that certain Purchase Agreement, dated October 5, 2006 (the “Purchase
Agreement”), for whom J.P. Morgan Securities Inc. is acting as
representative (in such capacity, the “Representative”), among the
Company and the Initial Purchasers.

In order to induce the Initial Purchasers to enter
into the Purchase Agreement, the Company has agreed to provide the registration
rights set forth in this Agreement.  The
execution of this Agreement is a condition to the closing under the Purchase
Agreement.  The terms “herein,” “hereof,”
“hereto,” “hereinafter” and similar terms, as used in this Agreement, shall in
each case refer to this Agreement as a whole and not to any particular section,
paragraph, sentence or other subdivision of this Agreement.

The Company agrees with the Initial Purchasers (i) for
their benefit as Initial Purchasers and (ii) for the benefit of the beneficial
owners (including the Initial Purchasers) from time to time of the Registrable
Securities (as defined herein) (each of the foregoing a “Holder” and,
together, the “Holders”), as follows:

1.             Definitions.  Capitalized terms used herein without
definition shall have the respective meanings set forth in the Purchase
Agreement.  As used in this Agreement,
the following terms shall have the following meanings:

(a)           “Additional
Filing Deadline Date” has the meaning set forth in Section 2(e) hereof.

(b)           “additional
interest” has the meaning set forth in Section 2(e) hereof.

(c)           “Additional
Interest Accrual Period” has the meaning set forth in Section 2(e) hereof.

(d)           “Additional
Interest Amount” has the meaning set forth in Section 2(e) hereof.

(e)           “Additional Interest
Payment Date” means each March 15 and September 15 of each year.

(f)            “Affiliate”
means, with respect to any specified person, an “affiliate,” as defined in Rule
144, of such person.

(g)           “Amendment
Effectiveness Deadline Date” has the meaning set forth in Section 2(d)
hereof.

(h)           “Business Day”
has the meaning set forth in the Indenture.

(i)            “Claim” has
the meaning set forth in Section 9(o) hereof.

 1
 

 

 

(j)            “Common Stock”
means the shares of common stock, $0.01 par value per share, of the Company and
any other shares of capital stock as may constitute “Common Stock” for purposes
of the Indenture, including the Underlying Common Stock.

(k)           “Conversion Rate”
has the meaning ascribed to it in the Indenture.

(l)            “Effectiveness
Deadline Date” has the meaning set forth in Section 2(a) hereof.

(m)          “Effectiveness
Period” means a period (subject to extension pursuant to Section 3(i)
hereof) that terminates when there are no Registrable Securities outstanding.

(n)           “Event” has
the meaning set forth in Section 2(e) hereof.

(o)           “Event Date”
has the meaning set forth in Section 2(e) hereof.

(p)           “Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC promulgated thereunder.

(q)            “Filing Deadline
Date” has the meaning set forth in Section 2(a) hereof.

(r)            “Form S-11”
means the Registration Statement on Form S-11 under the Securities Act.

(s)           “Form S-3”
means the Registration Statement on Form S-3 under the Securities Act.

(t)            “Holder” has
the meaning set forth in the preamble hereto.

(u)           “Holder
Information” has the meaning set forth in Section 6(b) hereof.

(v)           “Indemnifying
Party” has the meaning set forth in Section 6(c) hereof.

(w)          “Indenture”
means the Indenture, dated as of October 12, 2006, between the Company and the
Trustee, pursuant to which the Notes are being issued.

(x)            “Initial
Purchasers” has the meaning set forth in the preamble hereto.

(y)           “Initial Shelf
Registration Statement” has the meaning set forth in Section 2(a) hereof.

(z)            “Issue Date”
means October 12, 2006.

(aa)         “Managing
Underwriters” has the meaning set forth in Section 8(a) hereof.

(bb)         “Material Event”
has the meaning set forth in Section 3(i) hereof.

(cc)         “NASD Rules”
has the meaning set forth in Section 3(r) hereof.

 2
 

 

 

(dd)         “Notes” means
the 3.625% Convertible Senior Notes due 2011 of the Company to be purchased
pursuant to the Purchase Agreement.

(ee)         “Notice and
Questionnaire” means a written questionnaire containing substantially the
information called for by the “Form of Selling Securityholder Notice and
Questionnaire” attached as Appendix A to the Offering Memorandum of the
Company, dated October 5, 2006, relating to the Notes.

(ff)           “Notice Holder”
means, on a given date, any Holder that has delivered a Notice and
Questionnaire to the Company on or prior to such date, provided not all of such
Holder’s Registrable Securities that have been registered for resale pursuant
to a Notice and Questionnaire have been sold in accordance with a Shelf
Registration Statement.

(gg)         “Option Purchase
Date” has the meaning ascribed to it in the Indenture.

(hh)         “Proceeding”
has the meaning set forth in Section 6(c) hereof.

(ii)           “Prospectus”
means the prospectus included in any Shelf Registration Statement (including,
without limitation, a prospectus that discloses information previously omitted
from a prospectus filed as part of an effective registration statement in
reliance upon Rule 415 under the Securities Act), as amended or supplemented by
any amendment or prospectus supplement, including post-effective amendments and
any prospectus filed with respect to any Shelf Registration Statement pursuant
to Rule 424 under the Securities Act, and all materials incorporated by
reference or deemed to be incorporated by reference in such Prospectus.

(jj)           “Purchase Agreement”
has the meaning set forth in the preamble hereof.

(kk)         “Record Date”
means, (i) March 1, with respect to an Additional Interest Payment Date that
occurs on March 15 and (ii) September 1, with respect to an Additional Interest
Payment Date that occurs on September 15.

(ll)           “Record Holder”
means, with respect to an Additional Interest Payment Date relating to a
Registrable Security for which any Additional Interest Amount has accrued, a
Notice Holder that was the holder of record of such Registrable Security at the
close of business on the Record Date relating to such Additional Interest
Payment Date.

(mm)       “Registrable
Securities” means the Notes and the Underlying Common Stock and any
securities into or for which such Underlying Common Stock has been converted or
exchanged, and any security issued with respect thereto upon any stock
dividend, split or similar event until, in the case of any such security, the
earliest of:

(i)            the date on which
such security has been effectively registered under the Securities Act and
disposed of in accordance with the Registration Statement relating thereto;

 3
 

 

 

(ii)           the date on which
such security may be resold without restriction by a holder that is not an
affiliate of the Company pursuant to Rule 144(k) or any successor provision
thereto;

(iii)          the date on which
such security has been publicly sold pursuant to Rule 144 or any successor
provision thereto; and

(iv)          the date on which
such securtity ceases to be outstanding.

(nn)          “Registration
Expenses” has the meaning set forth in Section 5 hereof.

(oo)         “Registration
Statement” means any registration statement, under the Securities Act, of
the Company that covers any of the Registrable Securities pursuant to this
Agreement, including the Prospectus, amendments and supplements to such
registration statement, including post-effective amendments, all exhibits and
all materials incorporated by reference or deemed to be incorporated by
reference in such registration statement, Prospectus, amendment or supplement.

(pp)         “Representative”
has the meaning set forth in the preamble hereto.

(qq)         “Rule 144”
means Rule 144 under the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the SEC.

(rr)           “Rule 144A”
means Rule 144A under the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the SEC.

(ss)         “SEC” means
the Securities and Exchange Commission.

(tt)           “Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations
promulgated by the SEC thereunder.

(uu)         “Shelf
Registration Statement” means the Initial Shelf Registration Statement, any
Subsequent Shelf Registration Statement and any WKSI Shelf.

(vv)         “Subsequent Shelf
Registration Statement” has the meaning set forth in Section 2(b) hereof.

(ww)       “Subsequent Shelf
Registration Statement Effectiveness Deadline Date” has the meaning set
forth in Section 2(d) hereof.

(xx)          “Suspension
Notice” has the meaning set forth in Section 3(i) hereof.

(yy)         “Suspension Period”
has the meaning set forth in Section 3(i) hereof.

(zz)          “TIA” means
the Trust Indenture Act of 1939, as amended.

 4
 

 

 

(aaa)       “Trustee” means
U.S. Bank National Association, the trustee under the Indenture.

(bbb)      “Underlying Common Stock”
means the Common Stock issuable upon conversion of the Notes.

(ccc)       “WKSI Shelf”
has the meaning set forth in Section 2(a) hereof.

2.             Shelf Registration.

(a)           The Company shall
prepare and file, or cause to be prepared and filed, with the SEC, as soon as
practicable but in any event by the date (the “Filing Deadline Date”)
that is ninety (90) days after the Issue Date, a Registration Statement (the “Initial
Shelf Registration Statement”) for an offering to be made on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act registering the
resale from time to time by Holders thereof of all of the Registrable
Securities (or, if registration of Registrable Securities not held by Notice
Holders is not permitted by the rules and regulations of the SEC, then
registering the resale from time to time by Notice Holders of their Registrable
Securities).  The Company may satisfy the
foregoing obligation by designating as the Initial Shelf Registration Statement
for the purposes of this Agreement no later than the Filing Deadline Date a
previously filed shelf registration statement that has become automatically
effective under the procedures available to “well-known seasoned issuers” in
accordance with the Securities Act (a “WKSI Shelf”).  The Initial Shelf Registration Statement
shall be on Form S-11 or Form S-3 or another appropriate form and shall provide
for the registration of such Registrable Securities for resale by such Holders
in accordance with any reasonable method of distribution elected by the
Holders.  The Company shall use its
reasonable best efforts to (i) cause the Initial Shelf Registration Statement
to become effective under the Securities Act as promptly as practicable but in
any event by the date (the “Effectiveness Deadline Date”) that is one
hundred eighty (180) days after the Issue Date or otherwise make available a
WKSI Shelf for use by Holders by such date and (ii) keep the Initial Shelf
Registration Statement (or any Subsequent Shelf Registration Statement)
continuously effective under the Securities Act until the expiration of the
Effectiveness Period.  If the obligation
set forth in the preceding sentence is satisfied by the filing of a Shelf
Registration Statement relating to the Registrable Securities, at the time the
Initial Shelf Registration Statement becomes effective under the Securities
Act, each Holder that became a Notice Holder on or prior to the date that is
ten (10) Business Days prior to such time of effectiveness shall be named as a
selling securityholder in the Initial Shelf Registration Statement and the
related Prospectus in such a manner as to permit such Holder to deliver such
Prospectus to purchasers of Registrable Securities in accordance with
applicable law.  If the Company shall
satisfy its obligations hereunder through the designation of a WKSI Shelf as
the Initial Shelf Registration Statement for purposes of this Agreement, each
Holder that became a Notice Holder on or prior to the date that is ten (10)
Business Days prior to the date of the Prospectus thereunder first made
available for use by Notice Holders shall be named as a selling securityholder
in such Prospectus in such a manner as to permit such Holder to deliver such
Prospectus to purchasers of Registrable Securities in accordance with applicable
law.  The Company shall issue a release
through a reputable national 

 5
 

 

 

newswire
service of its filing of (or intention to designate a WKSI Shelf as) the
Initial Shelf Registration Statement and of either the anticipated effective
date thereof or, if the Company shall satisfy its obligations under this
Agreement through the designation of a WKSI Shelf as the Initial Shelf
Registration Statement, the date on which the Company will first make available
a Prospectus under such WKSI Shelf for use by Notice Holders.

(b)           Subject to Section
3(i) below, if any Shelf Registration Statement ceases to be effective under
the Securities Act for any reason at any time during the Effectiveness Period,
the Company shall use its reasonable best efforts to promptly cause such Shelf
Registration Statement to become effective under the Securities Act (including
obtaining the prompt withdrawal of any order suspending the effectiveness of
such Shelf Registration Statement), and in any event shall, within thirty (30)
days of such cessation of effectiveness, (i) amend such Shelf Registration
Statement in a manner reasonably expected to obtain the withdrawal of any order
suspending the effectiveness of such Shelf Registration Statement or (ii) file
an additional Registration Statement (a “Subsequent Shelf Registration
Statement”) for an offering to be made on a delayed or continuous basis
pursuant to Rule 415 of the Securities Act registering the resale from time to
time by Holders thereof of all securities that are Registrable Securities as of
the time of such filing (or, if registration of Registrable Securities not held
by Notice Holders is not permitted by the rules and regulations of the SEC,
then registering the resale from time to time by Notice Holders of their
securities that are Registrable Securities as of the time of such filing).  If a Subsequent Shelf Registration Statement
is filed, the Company shall use its reasonable best efforts to (A) cause such
Subsequent Shelf Registration Statement to become effective under the
Securities Act as promptly as practicable after such filing, but in no event
later than the Subsequent Shelf Registration Statement Effectiveness Deadline
Date and (B) keep such Subsequent Shelf Registration Statement (or another
Subsequent Shelf Registration Statement) continuously effective until the end
of the Effectiveness Period.  Any such
Subsequent Shelf Registration Statement shall be on Form S-11 or Form S-3 or
another appropriate form and shall provide for the registration of such
Registrable Securities for resale by such Holders in accordance with any
reasonable method of distribution elected by the Holders.

(c)           The Company shall
supplement and amend any Shelf Registration Statement if required by the rules,
regulations or instructions applicable to the registration form used by the
Company for such Shelf Registration Statement, if required by the Securities
Act or as reasonably requested by an Initial Purchaser or by the Trustee on
behalf of the Holders of the Registrable Securities covered by such Shelf
Registration Statement.

(d)           (i)  Each Holder of Registrable Securities agrees
that, if such Holder wishes to sell Registrable Securities pursuant to a Shelf
Registration Statement and related Prospectus, it will do so only in accordance
with this Section 2(d) and Section 3(i). 
Each Holder of Registrable Securities wishing to sell Registrable
Securities pursuant to a Shelf Registration Statement and related Prospectus
agrees to deliver a completed and executed Notice and Questionnaire to the
Company prior to any attempted or actual distribution of Registrable Securities
under a Shelf Registration Statement. 
From and after the date the Initial Shelf Registration Statement becomes
effective under 

 6
 

 

 

the Securities
Act, or in the event the Company designates a WKSI Shelf as a Registration
Statement for purposes of this Agreement, from and after the date of the
Prospectus thereunder first made available for use by Notice Holders, the
Company shall, as promptly as reasonably practicable after the date such Holder
became a Notice Holder, and in any event, subject to clause (B) below, within
the later of (x) ten (10) Business Days after such date or (y) ten (10)
Business Days after the expiration of any Suspension Period that either (I) is
in effect when such Holder became a Notice Holder or (II) is put into effect
within five (5) Business Days after the date such Holder became a Notice
Holder,

(A)          if required by
applicable law, file with the SEC a supplement to the related Prospectus or a
post-effective amendment to the Shelf Registration Statement or file with the
SEC a Subsequent Shelf Registration Statement and any necessary supplement or
amendment to any document incorporated therein by reference and file any other
required document with the SEC so that such Notice Holder is named as a selling
securityholder in a Shelf Registration Statement and the related Prospectus in
such a manner as to permit such Notice Holder to deliver a Prospectus to
purchasers of the Registrable Securities in accordance with applicable law; provided,
the Company shall not be required to file more than three (3) post-effective
amendments or supplements to the Prospectus during any fiscal quarter;

(B)           if, pursuant to
Section 2(d)(i)(A), the Company shall have filed a post-effective amendment to
the Shelf Registration Statement or filed a Subsequent Shelf Registration
Statement, the Company shall use its reasonable best efforts to cause such
post-effective amendment or Subsequent Shelf Registration Statement, as the
case may be, to become effective under the Securities Act as promptly as
practicable, but in any event by the date (the “Amendment Effectiveness
Deadline Date,” in the case of a post-effective amendment) that is thirty
(30) days after the date such post-effective amendment, is required by this
Section 2(d) to be filed with the SEC and by the date (the “Subsequent Shelf
Registration Statement Effectiveness Deadline Date,” in the case of a
Subsequent Shelf Registration Statement) that is sixty (60) days after the date
such Subsequent Shelf Registration Statement is required by this Section 2(d)
to be filed with the SEC;

(C)           the Company shall
provide such Notice Holder a reasonable number of copies of any documents filed
pursuant to clause (A) above, it being understood and agreed that delivery of
an electronic copy of any such documents shall satisfy the Company’s obligation
hereunder unless the Notice Holder notifies the Company that it wishes to
receive paper copies;

(D)          the Company shall
notify such Notice Holder as promptly as practicable after the effectiveness
under the Securities Act of any post-effective 

 7
 

 

 

amendment or
Subsequent Shelf Registration Statement filed pursuant to clause (A) above;

(E)           if such Holder
became a Notice Holder during a Suspension Period, or a Suspension Period is
put into effect within five (5) Business Days after the date such Holder became
a Notice Holder, the Company shall so inform such Notice Holder and shall take
the actions set forth in clauses (A), (B), (C) and (D) above within ten (10) Business
Days after expiration of such Suspension Period in accordance with Section
3(i); and

(F)           if, under applicable
law, the Company has more than one option as to the type or manner of making
any such filing, the Company shall make the required filing or filings in the
manner or of a type that is reasonably expected to result in the earliest
availability of a Prospectus for effecting resales of Registrable Securities.

(ii)           Notwithstanding
anything contained herein to the contrary, the Company shall be under no
obligation to name any Holder that is not a Notice Holder as a selling
securityholder in any Shelf Registration Statement or related Prospectus; provided,
however, that any Holder that becomes a Notice Holder (regardless of
when such Holder became a Notice Holder) shall be named as a selling
securityholder in a Shelf Registration Statement or related Prospectus in
accordance with the requirements of this Section 2(d) or Section 2(a), as
applicable.

(e)           The parties hereto
agree that the Holders of Registrable Securities will suffer damages, and that
it would not be feasible to ascertain the extent of such damages with
precision, if:

(i)            the Initial Shelf
Registration Statement has not been filed with the SEC on or prior to the
Filing Deadline Date or a WKSI Shelf shall not have been designated as the
Initial Shelf Registration Statement for purposes of this Agreement by such
date;

(ii)           the Initial Shelf
Registration Statement has not become effective under the Securities Act on or
prior to the Effectiveness Deadline Date or a Prospectus under a WKSI Shelf has
not been made available to Notice Holders by such date;

(iii)          either a supplement
to a Prospectus, a post-effective amendment or a Subsequent Shelf Registration
Statement is required to be filed with the SEC and fails to be filed with the
SEC within the prescribed period and in the manner set forth in Section 2(d)
(the date such filing is required to be made being an “Additional Filing
Deadline Date”) or, in the case of a post-effective amendment or a
Subsequent Shelf Registration Statement, such post-effective amendment or
Subsequent Registration Statement does not become effective under the
Securities 

 8
 

 

 

Act by the
Amendment Effectiveness Deadline Date or the Subsequent Shelf Registration
Statement Effectiveness Deadline Date, as the case may be;

(iv)          the Initial Shelf
Registration Statement or any Subsequent Registration Statement is filed with
the SEC and becomes effective under the Securities Act but shall thereafter
cease to be effective or a WKSI Shelf is designated as a Registration Statement
for purposes of the Agreement and thereafter ceases to be effective (without
being succeeded immediately by a new Registration Statement that is filed and
immediately becomes effective under the Securities Act) or usable for the offer
and sale of Registrable Securities in the manner contemplated by this Agreement
(other than as a result of a requirement to file a post-effective amendment or
prospectus supplement to the Registration Statement in order to make changes to
the information in the Prospectus regarding selling securityholders or the plan
of distribution) for a period of time (including any Suspension Period) which
shall exceed thirty (30) days in the aggregate in any three (3) month period or
ninety (90) days in the aggregate in any twelve (12) month period; or

(v)           any Registration
Statement or amendment thereto, at the time it becomes effective under the
Securities Act, or any Prospectus relating thereto, at the time it is filed
with the SEC or, if later, at the time the Registration Statement to which such
Prospectus relates becomes effective under the Securities Act, shall fail to
name each Holder as a selling securityholder in such a manner as to permit such
Holder to sell its Registrable Securities pursuant to such Registration
Statement and Prospectus in accordance with applicable law, which Holder was
entitled, pursuant to the terms of this Agreement, to be so named.

Each of the events of a type described in any of the
foregoing clauses (i) through (v) are individually referred to herein as an “Event,”
and

(V)           the Filing Deadline
Date, in the case of clause (i) above,

(W)         the Effectiveness
Deadline Date, in the case of clause (ii) above,

(X)          the Additional Filing
Deadline Date, the Amendment Effectiveness Deadline Date or the Subsequent
Shelf Registration Statement Effectiveness Deadline Date, as the case may be,
in the case of clause (iii) above,

(Y)           the date on which
the duration of the ineffectiveness or unusability of the Shelf Registration Statement
exceeds the number of days permitted by clause (iv) above, in the case of
clause (iv) above, and

(Z)           the date the
applicable Registration Statement or amendment thereto shall become effective
under the Securities Act, or the date the applicable Prospectus is filed with
the SEC or, if later, the time the Registration Statement to which such
Prospectus relates becomes 

 9
 

 

 

effective
under the Securities Act, as the case may be, in the case of clause (v) above,

are each herein referred to as an “Event Date.”  Events shall be deemed to continue until the
following dates with respect to the respective types of Events:

(A)          the date the Initial
Shelf Registration Statement is filed with the SEC or the date a WKSI Shelf is
designated as the Initial Shelf Registration Statement for purposes of this
Agreement, in the case of an Event of the type described in clause (i) above;

(B)           the date the Initial
Shelf Registration Statement becomes effective under the Securities Act or the
date as of which a Prospectus under a WKSI Shelf is first made available to
Notice Holders, in the case of an Event of the type described in clause (ii)
above;

(C)           the date a
supplement to a Prospectus, a post-effective amendment or a Subsequent Shelf
Registration Statement, whichever is required, is filed with the SEC (in the
case of a supplement) or becomes effective under the Securities Act (in the
case of a post-effective amendment or a Subsequent Shelf Registration
Statement), in the case of an Event of the type described in clause (iii)
above;

(D)          the date the
Registration Statement becomes effective and usable again or the date a
Subsequent Shelf Registration Statement is filed with the SEC pursuant to
Section 2(b) and becomes effective, in the case of an Event of the type
described in clause (iv) above; or

(E)           the date a
supplement to the Prospectus is filed with the SEC, or the date a
post-effective amendment to the Registration Statement becomes effective under
the Securities Act, or the date a Subsequent Shelf Registration Statement
becomes effective under the Securities Act, which supplement, post-effective
amendment or Subsequent Shelf Registration Statement, as the case may be, names
as selling securityholders, in such a manner as to permit them to sell their
Registrable Securities pursuant to the Registration Statement and Prospectus
supplement in accordance with applicable law, all Holders entitled as herein
provided to be so named, in the case of an Event of the type described in
clause (v) above.

Accordingly, commencing on (and including) the day
following any Event Date and ending on (but excluding) the next date on which
there are no Events that have occurred and are continuing (an “Additional
Interest Accrual Period”), the Company agrees to pay, as additional
interest (“additional interest”) and not as a penalty, an amount (the “Additional
Interest Amount”) at the rate described below, payable periodically on each
Additional Interest Payment Date to Record Holders, to the extent of, for each
such Additional Interest Payment Date, the unpaid Additional Interest Amount
that has accrued to (but excluding) such Additional Interest Payment Date (or,
if the Additional 

 10
 

 

 

Interest Accrual Period shall have ended prior to such
Additional Interest Payment Date, the day immediately after the last day of
such Additional Interest Accrual Period). 

The Additional Interest Amount shall accrue at a rate
per annum equal to one quarter of one percent (0.25%) for the first 90-day
period beginning on, and including, the day following an Event Date and
thereafter at a rate per annum equal to one half of one percent (0.50%) of the
aggregate principal amount of the Notes of which such Record Holders were
holders of record at the close of business on the applicable Record Date; provided,
however, that:

(I)            unless there shall
be a default in the payment of any Additional Interest Amount, no Additional
Interest Amounts shall accrue as to any Registrable Security from and after the
earlier of (x) the date such security is no longer a Registrable Security, (y)
the date, and to the extent, such Note is converted in accordance with the
Indenture and (z) the expiration of the Effectiveness Period;

(II)           only those Holders
(or their subsequent transferees) failing to be named as selling
securityholders in the manner prescribed in Section 2(e)(v) above shall be
entitled to receive any Additional Interest Amounts that have accrued solely
with respect to an Event of the type described in Section 2(e)(v) above (it
being understood that this clause (II) shall not impair any right of any Holder
to receive Additional Interest Amounts that have accrued with respect to an
Event other than an Event of the type described in Section 2(e)(v) above);

(III)         only those Holders
(or their subsequent transferees) whose delivery of a Notice and Questionnaire
gave rise to the obligation of the Company, pursuant to Section 2(d)(i), to
file and, if applicable, make effective under the Securities Act the
supplement, post-effective amendment or Subsequent Shelf Registration Statement
referred to in Section 2(e)(iii) above shall be entitled to receive any
Additional Interest Amounts that have accrued solely with respect to an Event
of the type described in Section 2(e)(iii) above (it being understood that this
clause (III) shall not impair any right of any Holder to receive Additional
Interest Amounts that have accrued with respect to an Event other than an Event
of the type described in Section 2(e)(iii) above); and

(IV)         if a Note ceases to
be outstanding during an Additional Interest Accrual Period for which an
Additional Interest Amount would be payable with respect to such Note, then the
Additional Interest Amount payable hereunder with respect to such Note shall be
prorated on the basis of the number of full days such Note is outstanding during
such Additional Interest Accrual Period.

Except as provided in the final paragraph of this
Section 2(e), (i) the rate of accrual of the Additional Interest Amount with
respect to any period shall not exceed the rate provided for in this Section
2(e) notwithstanding the occurrence of multiple concurrent Events and (ii)
following the cure of all Events requiring the payment by the Company of
Additional 

 11
 

 

 

Interest Amounts to the Holders pursuant to this
Section, the accrual of Additional Interest Amounts shall cease (without in any
way limiting the effect of any subsequent Event requiring the payment of
Additional Interest Amounts by the Company). 
All installments of additional interest shall be paid by wire transfer
of immediately available funds to the account specified by the Notice Holder
or, if no such account is specified, by mailing a check to such Notice Holder’s
address shown in the register of the registrar for the Notes or for the
Underlying Common Stock, as the case may be.

All of the Company’s obligations set forth in this
Section 2(e) that are outstanding with respect to any Registrable Security at
the time such Registrable Security ceases to be a Registrable Security shall
survive until such time as all such obligations with respect to such security
have been satisfied in full (notwithstanding termination of this Agreement
pursuant to Section 9(n)).

The parties hereto agree that the additional interest
provided for in this Section 2(e) constitutes a reasonable estimate of the
damages in respect of the Notes that may be incurred by Holders of the Notes by
reason of an Event, including, without limitation, the failure of a Shelf
Registration Statement to be filed, become effective under the Securities Act,
amended or replaced to include the names of all Notice Holders or available for
effecting resales of Registrable Securities in accordance with the provisions
hereof.

If any Additional Interest Amounts are not paid when
due, then, to the extent permitted by law, such overdue Additional Interest
Amounts, if any, shall bear interest, compounded semi-annually, until paid at
the rate of interest payable with respect to overdue amounts on the Notes
pursuant to the Indenture.

(f)            The Trustee shall
be entitled, on behalf of Holders, to seek any available remedy for the
enforcement of this Agreement, including for the payment of any Additional
Interest Amount.

(g)           The Company
represents and agrees that, unless it obtains the prior consent of the Holders
of a majority of the Registrable Securities that are registered under the Shelf
Registration Statement at such time or the consent of the Initial Purchasers in
connection with any underwritten offering of Registrable Securities, and each
Holder represents and agrees that, unless it obtains the prior consent of the
Company and the Initial Purchasers, it will not make any offer relating to the
Registrable Securities that would constitute an “issuer free writing
prospectus,” as defined in Rule 433 (an “Issuer Free Writing Prospectus”), or
that would otherwise constitute a “free writing prospectus,” as defined in Rule
405, required to be filed with the SEC. 
The Company represents that any Issuer Free Writing Prospectus, when
taken together with the information in the Shelf Registration Statement and the
Prospectus, will not include any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading.

3.             Registration Procedures.  In connection with the registration
obligations of the Company under Section 2 hereof, the Company shall:

 12
 

 

 

(a)           Prepare and file
with the SEC a Shelf Registration Statement or Shelf Registration Statements on
Form S-11 or Form S-3 or any other appropriate form under the Securities Act
available for the sale of the Registrable Securities by the Holders thereof in
accordance with the intended method or methods of distribution thereof, and use
its reasonable best efforts to cause each such Shelf Registration Statement to
become effective under the Securities Act and remain effective under the
Securities Act or otherwise designate a WKSI Shelf as the Registration
Statement for purposes of this Agreement and make a Prospectus thereunder
available to the Notice Holders as provided herein; provided, that,
before filing any Shelf Registration Statement or Prospectus or any amendments
or supplements thereto with the SEC, the Company shall furnish to the Initial
Purchasers and counsel for the Holders and for the Initial Purchasers (or, if
applicable, separate counsel for the Holders) copies of all such documents
proposed to be filed and reflect in each such document when so filed with the
SEC such comments as the Initial Purchasers or such counsel reasonably shall
propose within three (3) Business Days of the delivery of such copies to the
Initial Purchasers and such counsel.

(b)           Prepare and file
with the SEC such amendments and post-effective amendments to each Registration
Statement as may be necessary to keep such Registration Statement continuously
effective until the expiration of the Effectiveness Period; cause the related
Prospectus to be supplemented by any required Prospectus supplement and, as so
supplemented, to be filed with the SEC pursuant to Rule 424 (or any similar
provisions then in force) under the Securities Act; and comply with the
provisions of the Securities Act applicable to them with respect to the
disposition of all securities covered by each Shelf Registration Statement
during the Effectiveness Period in accordance with the intended methods of
disposition by the sellers thereof set forth in such Registration Statement as
so amended or such Prospectus as so supplemented.

(c)           As promptly as
practicable, give notice to the Notice Holders, the Initial Purchasers and
counsel for the Holders and for the Initial Purchasers (or, if applicable,
separate counsel for the Holders):

(i)            when any
Prospectus, Prospectus supplement, Shelf Registration Statement or
post-effective amendment to a Shelf Registration Statement has been filed with
the SEC and, with respect to a Shelf Registration Statement or any
post-effective amendment, when the same has become effective under the
Securities Act;

(ii)           of any request,
following the effectiveness of a Shelf Registration Statement under the
Securities Act, by the SEC or any other governmental authority for amendments
or supplements to such Shelf Registration Statement or the related Prospectus
or for additional information;

(iii)          of the issuance by
the SEC or any other governmental authority of any stop order suspending the
effectiveness of any Shelf Registration Statement or the initiation or
threatening of any proceedings for that purpose;

 13
 

 

 

(iv)          of the receipt by
the Company or its legal counsel of any notification with respect to the
suspension of the qualification or exemption from qualification of any of the
Registrable Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose;

(v)           after the effective
date of any Shelf Registration Statement filed with the SEC pursuant to this
Agreement, of the occurrence of (but not the nature of or details concerning) a
Material Event; and

(vi)          of the determination
by the Company that a post-effective amendment to a Shelf Registration Statement
or a Subsequent Shelf Registration Statement will be filed with the SEC, which
notice may, at the discretion of the Company (or as required pursuant to
Section 3(i)), state that it constitutes a Suspension Notice, in which event
the provisions of Section 3(i) shall apply.

(d)           Use its reasonable
best efforts to (i) prevent the issuance of, and, if issued, to obtain the
withdrawal of, any order suspending the effectiveness of a Shelf Registration
Statement and (ii) obtain the lifting of any suspension of the qualification
(or exemption from qualification) of any of the Registrable Securities for sale
in any jurisdiction in which they have been qualified for sale, in either case
at the earliest possible moment, and provide prompt notice to each Notice Holder
and each Initial Purchaser, and counsel for the Holders and for the Initial
Purchasers (or, if applicable, separate counsel for the Holders), of the
withdrawal or lifting of any such order or suspension.

(e)           If requested by any
Initial Purchaser or any Notice Holder, as promptly as practicable incorporate
in a Prospectus supplement or a post-effective amendment to a Shelf
Registration Statement such information as such Initial Purchaser, such Notice
Holder or counsel for the Holders and for the Initial Purchasers (or, if
applicable, separate counsel for the Holders) shall determine to be required to
be included therein by applicable law and make any required filings of such
Prospectus supplement or such post-effective amendment; provided, however,
that the Company shall not be required to take any actions under this Section
3(e) that, in the written opinion of its counsel, are not in compliance with
applicable law.

(f)            As promptly as
practicable, furnish to each Notice Holder, counsel for the Holders and for the
Initial Purchasers (or, if applicable, separate counsel for the Holders) and
each Initial Purchaser, without charge, at least one (1) conformed copy of each
Shelf Registration Statement and each amendment thereto, including financial
statements but excluding schedules, all documents incorporated or deemed to be
incorporated therein by reference and all exhibits (unless requested in writing
to the Company by such Notice Holder, such counsel or such Initial Purchaser).

(g)           During the
Effectiveness Period, deliver to each Notice Holder, counsel for the Holders
and for the Initial Purchasers (or, if applicable, separate counsel for the
Holders) and each Initial Purchaser, in connection with any sale of Registrable
Securities pursuant to a Shelf Registration Statement, without charge, as many
copies of the 

 14
 

 

 

Prospectus or
Prospectuses relating to such Registrable Securities (including each
preliminary prospectus) and any amendment or supplement thereto as such Notice
Holder or such Initial Purchaser may reasonably request; and the Company hereby
consents (except during such periods that a Suspension Notice is outstanding
and has not been revoked) to the use of such Prospectus and each amendment or
supplement thereto by each Notice Holder, in connection with any offering and
sale of the Registrable Securities covered by such Prospectus or any amendment
or supplement thereto in the manner set forth therein.

(h)           Prior to any public
offering of the Registrable Securities pursuant to a Shelf Registration
Statement, use its reasonable best efforts to register or qualify or cooperate
with the Notice Holders in connection with the registration or qualification
(or exemption from such registration or qualification) of such Registrable
Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Notice Holder reasonably requests
in writing (which request may be included in the Notice and Questionnaire); use
its reasonable best efforts to keep each such registration or qualification (or
exemption therefrom) effective during the Effectiveness Period in connection
with such Notice Holder’s offer and sale of Registrable Securities pursuant to
such registration or qualification (or exemption therefrom) and do any and all
other acts or things reasonably necessary or advisable to enable the
disposition in such jurisdictions of such Registrable Securities in the manner
set forth in the relevant Shelf Registration Statement and the related
Prospectus; provided, however, that the Company will not be
required to (i) qualify generally to do business in any jurisdiction where it
is not then so qualified, or (ii) take any action that would subject it to
general service of process in suits, other than those arising out of the offering
or sale of Registrable Securities or arising in connection with this Agreement,
in any jurisdiction where it is not now so subject.

(i)            Upon: (A) the
occurrence or existence of any pending corporate development (a “Material
Event”) that, in the reasonable discretion of the Company, makes it
appropriate to suspend the availability of any Shelf Registration Statement and
the related Prospectus; (B) the issuance by the SEC of a stop order suspending
the effectiveness of any Shelf Registration Statement or the initiation of
proceedings with respect to any Shelf Registration Statement under Section 8(d)
or 8(e) of the Securities Act; or (C) the occurrence of any event or the
existence of any fact as a result of which any Shelf Registration Statement
shall contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, or any Prospectus shall contain any untrue statement of
a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading,

(i)            in the case of
clause (A) or (C) above, subject to the next sentence, as promptly as
practicable, prepare and file, if necessary pursuant to applicable law, a
post-effective amendment to such Shelf Registration Statement or a supplement
to such Prospectus or any document incorporated therein by reference or file
any other required document that would be incorporated by reference into 

 15
 

 

 

such Shelf
Registration Statement and Prospectus so that such Shelf Registration Statement
does not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, and so that such Prospectus does not contain any untrue
statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, as thereafter delivered to the purchasers
of the Registrable Securities being sold thereunder, and, in the case of a
post-effective amendment to a Shelf Registration Statement, subject to the next
sentence, use its reasonable best efforts to cause it to become effective under
the Securities Act as promptly as practicable, and

(ii)           give notice to the
Notice Holders and counsel for the Holders and for the Initial Purchasers (or,
if applicable, separate counsel for the Holders) and to each Initial Purchaser
that the availability of the Shelf Registration Statement is suspended (a “Suspension
Notice”) (and, upon receipt of any Suspension Notice, each Notice Holder
agrees not to sell any Registrable Securities pursuant to such Shelf
Registration Statement until such Notice Holder’s receipt of copies of the
supplemented or amended Prospectus provided for in clause (i) above or until
such Notice Holder is advised in writing by the Company that the Prospectus may
be used).

The Company shall use its reasonable best efforts to
ensure that the use of the Prospectus may be resumed (x) in the case of clause
(A) above, as soon as, in the reasonable discretion of the Company, such
suspension is no longer appropriate, (y) in the case of clause (B) above, as
promptly as is practicable, and (z) in the case of clause (C) above, as soon
as, in the reasonable judgment of the Company, the Shelf Registration Statement
does not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading and the Prospectus does not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.  The period
during which the availability of the Shelf Registration Statement and any
Prospectus may be suspended (the “Suspension Period”) without the
Company incurring any obligation to pay additional interest pursuant to Section
2(e) shall not exceed thirty (30) days in the aggregate in any three (3) month
period or ninety (90) days in the aggregate in any twelve (12) month period.  The Effectiveness Period shall be extended by
the number of days from and including the date of the giving of the Suspension
Notice to and including the date on which the Notice Holder received copies of
the supplemented or amended Prospectus provided in clause (i) above, or the
date on which it is advised in writing by the Company that the Prospectus may
be used and has received copies of any additional or supplemental filings that
are incorporated or deemed incorporated by reference in such Prospectus.

(j)            Make available for
inspection upon written request given at least three (3) Business Days prior to
such inspection and during normal business hours by representatives for the
Notice Holders and any underwriters participating in any 

 16
 

 

 

disposition
pursuant to any Shelf Registration Statement and any broker-dealers, attorneys
and accountants retained by such Notice Holders or any such underwriters, all
relevant financial and other records and pertinent corporate documents and
properties of the Company and its subsidiaries, and cause the appropriate
officers, directors and employees of the Company and its subsidiaries to make
available for inspection during normal business hours all relevant information
reasonably requested by such representatives for the Notice Holders, or any
such underwriters, broker-dealers, attorneys or accountants in connection with
such disposition, in each case as is customary for similar “due diligence”
examinations; provided, however, that such persons shall, at the
Company’s request, first agree in writing with the Company that any information
that is reasonably and in good faith designated by the Company in writing as
confidential at the time of delivery of such information shall be kept
confidential by such persons and shall be used solely for the purposes of exercising
rights under this Agreement, unless (i) disclosure of such information is
required by court or administrative order or is necessary to respond to
inquiries of governmental or regulatory authorities, (ii) disclosure of such
information is required by law (including any disclosure requirements pursuant
to federal securities laws in connection with the filing of any Shelf
Registration Statement or the use of any Prospectus referred to in this
Agreement) or necessary to defend or prosecute a claim brought against or by
any such persons (e.g., to establish a “due diligence” defense), (iii) such
information becomes generally available to the public other than as a result of
a disclosure or failure to safeguard by any such person or (iv) such
information becomes available to any such person from a source other than the
Company and such source is not bound by a confidentiality agreement or is not
otherwise under a duty of trust to the Company; provided  further,
that the foregoing inspection and information gathering shall, to the greatest
extent possible, be coordinated on behalf of all the Notice Holders and the
other parties entitled thereto by the counsel, referred to in Section 5, for
the Holders in connection with Shelf Registration Statements.

(k)           Comply with all
applicable rules and regulations of the SEC; and make generally available to
its securityholders earnings statements (which need not be audited) satisfying
the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

(l)            If Notice Holders
are entitled to have certificates representing Registrable Securities
registered in their names, cooperate with each Notice Holder to facilitate the
timely preparation and delivery of certificates representing Registrable
Securities sold pursuant to a Shelf Registration Statement, which certificates
shall not bear any restrictive legends, and cause such Registrable Securities
to be in such denominations as are permitted by the Indenture and registered in
such names as such Notice Holder may request in writing at least two (2)
Business Days prior to any sale of such Registrable Securities.

(m)          Provide a CUSIP
number for all Registrable Securities covered by a Shelf Registration Statement
not later than the effective date of the Initial Shelf Registration Statement
or the date on which a Prospectus under a WKSI Shelf is first made available to
Notice Holders and provide the Trustee and the transfer agent for the Common
Stock with certificates for the Registrable Securities that are in a form eligible
for deposit with The Depository Trust Company.

 17

 

 

(n)           Cooperate and assist in any filings
required to be made with the National Association of Securities Dealers, Inc.

(o)           Take all actions and enter into such
customary agreements (including, if requested, an underwriting agreement in
customary form) as are necessary, or reasonably requested by the Holders of a
majority of the Registrable Securities being sold, in order to expedite or
facilitate disposition of such Registrable Securities; and in such connection,
whether or not an underwriting agreement is entered into and whether or not the
registration is an underwritten registration:

(i)            the Company shall make such
representations and warranties to the Holders of such Registrable Securities
and the underwriters, if any, in form, substance and scope as would be
customarily made by the Company to underwriters in similar offerings of
securities;

(ii)           the Company shall obtain opinions of
counsel of the Company and updates thereof (which counsel and opinions (in
form, scope and substance) shall be reasonably satisfactory to the Managing
Underwriters, if any, and to the counsel to the Holders of the Registrable
Securities being sold) addressed to each selling Holder and the underwriters,
if any, covering the matters that would be customarily covered in opinions requested
in sales of securities or underwritten offerings;

(iii)          the Company shall obtain “comfort
letters” and updates thereof from the Company’s independent registered public
accounting firm (and, if necessary, any other independent registered public accounting
firm of any subsidiary of the Company or of any business acquired by the
Company for which financial statements are, or are required to be, included in
any Shelf Registration Statement) addressed to the underwriters, if any, and
the selling Holders of Registrable Securities (to the extent consistent with
Statement on Auditing Standards No. 72 of the American Institute of Certified
Public Accounts), such letters to be in customary form and covering matters of
the type that would customarily be covered in “comfort letters” to underwriters
in connection with similar underwritten offerings;

(iv)          the Company shall, if an underwriting
agreement is entered into, cause any such underwriting agreement to contain
indemnification provisions and procedures substantially equivalent to the
indemnification provisions and procedures set forth in Section 6 hereof with
respect to the underwriters and all other parties to be indemnified pursuant to
said Section; and

(v)           the Company shall deliver such
documents and certificates as may be reasonably requested and as are
customarily delivered in similar offerings to the holders of a majority of the
Registrable Securities being sold and to the Managing Underwriters, if any;

 18
 

 

 

the above to be done at each closing under any underwriting
or similar agreement as and to the extent required thereunder.

(p)           Cause the Indenture to be qualified
under the TIA not later than the effective date of the Initial Shelf
Registration Statement; and, in connection therewith, cooperate with the Trustee
to effect such changes to the Indenture as may be required for the Indenture to
be so qualified in accordance with the terms of the TIA and execute, and use
its reasonable best efforts to cause the Trustee to execute, all documents as
may be required to effect such changes, and all other forms and documents
required to be filed with the SEC to enable the Indenture to be so qualified in
a timely manner.

(q)           Cause the Underlying Common Stock to
be listed on the New York Stock Exchange.

(r)            In the event that any broker-dealer
registered under the Exchange Act shall underwrite any Registrable Securities
or participate as a member of an underwriting syndicate or selling group or “participate
in a public offering” (within the meaning of the Conduct Rules (the “NASD
Rules”) of the National Association of Securities Dealers, Inc.) thereof,
whether as a Holder of such Registrable Securities or as an underwriter, a
placement or sales agent or a broker or dealer in respect thereof, or
otherwise, the Company will assist such broker-dealer in complying with the
requirements of such NASD Rules, including, without limitation, by: (i) if such
NASD Rules, including NASD Rule 2720, shall so require, engaging a “qualified
independent underwriter” (as defined in NASD Rule 2720) to participate in the
preparation of the Shelf Registration Statement relating to such Registrable
Securities, to exercise usual standards of due diligence in respect thereof
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 or price, as the case may be, of such Registrable
Securities; (ii) indemnifying any such qualified independent underwriter to the
extent of the indemnification of underwriters provided in Section 6 hereof; and
(iii) providing such information to such broker-dealer as may be required in
order for such broker-dealer to comply with the requirements of the NASD Rules.

4.             Holder’s Obligations.  Each Holder agrees, by acquisition of the
Registrable Securities, that no Holder of Registrable Securities shall be
entitled to sell any of such Registrable Securities pursuant to a Shelf
Registration Statement or to receive a Prospectus relating thereto, unless such
Holder has furnished the Company with a Notice and Questionnaire as required
pursuant to Section 2(d) hereof (including the information required to be
included in such Notice and Questionnaire) and the information set forth in the
next sentence. Each Notice Holder agrees promptly to furnish to the Company all
information required to be disclosed in order to make the information
previously furnished to the Company by such Notice Holder not misleading and
any other information regarding such Notice Holder and the distribution of such
Registrable Securities as the Company may from time to time reasonably request.
Any sale of any Registrable Securities by any Holder shall constitute a
representation and warranty by such Holder that the information relating to
such Holder and its plan of distribution is as set forth in the Prospectus
delivered by such Holder in connection with such disposition, that such
Prospectus does not as of the time of such sale contain any untrue statement of
a material fact 

 19
 

 

 

relating to or provided by such Holder or its plan of
distribution and that such Prospectus does not as of the time of such sale omit
to state any material fact relating to or provided by such Holder or its plan
of distribution necessary in order to make the statements in such Prospectus,
in the light of the circumstances under which they were made, not misleading.

5.             Registration Expenses.  The Company shall bear all fees and expenses
incurred in connection with the performance by the Company of its obligations
under Section 2 and Section 3 of this Agreement whether or not any of the Shelf
Registration Statements are filed or have become effective under the Securities
Act. Such fees and expenses (“Registration Expenses”) shall include,
without limitation, (i) all registration and filing fees and expenses
(including, without limitation, fees and expenses (x) with respect to filings
required to be made with the National Association of Securities Dealers, Inc.
and (y) of compliance with federal securities laws and state securities or Blue
Sky laws (including, without limitation, reasonable fees and disbursements of
counsel for the Holders in connection with Blue Sky qualifications of the
Registrable Securities under the laws of such jurisdictions as the Notice
Holders of a majority of the Registrable Securities being sold pursuant to a
Shelf Registration Statement may designate)), (ii) all printing expenses
(including, without limitation, expenses of printing certificates for
Registrable Securities in a form eligible for deposit with The Depository Trust
Company and printing Prospectuses), (iii) all duplication and mailing expenses
relating to copies of any Shelf Registration Statement or Prospectus delivered
to any Holders hereunder, (iv) all fees and disbursements of counsel for the
Company, (v) all fees and disbursements of the Trustee and its counsel and of
the registrar and transfer agent for the Common Stock, and (vi) Securities Act
liability insurance obtained by the Company in its sole discretion.  In addition, the Company shall pay its own
internal expenses (including, without limitation, all salaries and expenses of
officers and employees performing legal or accounting duties), the expense of
any annual audit or quarterly review, the fees and expenses incurred in connection
with the listing by the Company of the Registrable Securities on any securities
exchange or quotation system on which similar securities of the Company are
then listed and the fees and expenses of any person, including, without
limitation, special experts, retained by the Company.

6.             Indemnification, Contribution.

(a)           The Company agrees to indemnify,
defend and hold harmless each Initial Purchaser, each Holder, each person (a “Controlling
Person”), if any, who controls any Initial Purchaser or Holder within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
and the respective officers, directors, partners, employees, representatives
and agents of any Initial Purchaser, the Holders or any Controlling Person,
from and against any loss, damage, expense, liability, claim or any actions in
respect thereof (including the reasonable cost of investigation) which such
indemnified party may incur or become subject to under the Securities Act, the
Exchange Act or otherwise, as incurred, insofar as such loss, damage, expense,
liability, claim or action arises out of or is based upon any untrue statement
or alleged untrue statement of a material fact contained in any Shelf
Registration Statement or Prospectus, including any document incorporated by
reference therein, or in any amendment or supplement thereto or in any
preliminary prospectus, or arises out of or is based upon any omission or
alleged omission to state a material fact required to be stated in any Shelf
Registration Statement or in any amendment or supplement thereto or necessary
to make the 

 20
 

 

 

statements therein not misleading, or arises
out of or is based upon any omission or alleged omission to state a material
fact necessary in order to make the statements made in any Prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, in the light
of the circumstances under which such statements were made, not misleading, or
arises out of or is based upon any omission or alleged omission to state a material
fact necessary in order to make the statements made in any Issuer Free Writing
Prospectus or in any amendment or supplement thereto, in the light of the
circumstances under which such statements were made, not misleading, and the
Company shall reimburse, as incurred, the indemnified parties for any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such loss, damage, expense, liability, claim or action in respect
thereof; provided, however, that the Company shall not be
required to provide any indemnification pursuant to this Section 6(a) in any
such case insofar as any such loss, damage, expense, liability, claim or action
arises out of or is based upon any untrue statement or omission or alleged untrue
statement or omission of a material fact contained in, or omitted from, and in
conformity with information furnished in writing by or on behalf of the Initial
Purchasers or a Holder to the Company expressly for use in, any Shelf
Registration Statement or any Prospectus or any Issuer Free Writing Prospectus;
provided  further that, with respect to any untrue statement or
omission or alleged untrue statement or omission made in any preliminary
prospectus relating to a Shelf Registration Statement, the indemnity agreement
contained in this Section 6(a) shall not inure to the benefit of any Holder
from whom the person asserting any such losses, damages, expenses, liabilities,
claims or actions purchased the Registrable Securities concerned, to the extent
that a prospectus relating to such Registrable Securities was required to be
delivered by such Holder under the Securities Act in connection with such
purchase and any such loss, damage, expenses, liability, claim or action of
such Holder results from the fact that there was not sent or given to such
person, at or prior to the written confirmation of the sale of such Registrable
Securities to such person, at or prior to the written confirmation of the sale
of such Registrable Securities to such person, a copy of the final prospectus
provided the Company had previously furnished sufficient copies of such final
prospectus to such Holder in a timely manner as to reasonably permit such
Holder to send or give a copy of such final prospectus to such person at or prior
to the written confirmation of such sale; provided  further, however,
that this indemnity agreement will be in addition to any liability which the
Company may otherwise have to such indemnified party.

(b)           Each Holder, severally and not
jointly, agrees to indemnify, defend and hold harmless the Company and its
directors, officers, employees and any person who controls the Company within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act from and against any loss, damage, expense, liability, claim or any actions
in respect thereof (including the reasonable cost of investigation) which such
indemnified party may incur or become subject to under the Securities Act, the
Exchange Act or otherwise, insofar as such loss, damage, expense, liability,
claim or action arises out of or is based upon any untrue statement or alleged
untrue statement of a material fact contained in, and in conformity with
information (the “Holder Information”) furnished in writing by or on
behalf of such Holder to the Company expressly for use in, any Shelf
Registration Statement or Prospectus or Issuer Free Writing Prospectus, or
arises out of or is based upon any omission or alleged omission to state a
material fact in connection 

 21
 

 

 

with such
Holder Information required to be stated in any Shelf Registration Statement or
Prospectus or Issuer Free Writing Prospectus or necessary to make such Holder
Information not misleading; and, subject to the limitation set forth in the
immediately preceding clause, each Holder shall reimburse, as incurred, the
Company, as applicable, for any legal or other expenses reasonably incurred by
the Company or any such controlling person in connection with investigating or
defending any loss, damage, expense, liability, claim or action in respect
thereof.  This indemnity agreement will
be in addition to any liability which such Holder may otherwise have the
Company or any of its controlling persons. 
In no event shall the liability of any selling Holder of Registrable
Securities hereunder be greater in amount than the dollar amount of the
proceeds received by such Holder upon the sale, pursuant to the Shelf
Registration Statement, of the Registrable Securities giving rise to such
indemnification obligation.

(c)           If any action, suit
or proceeding (each, a “Proceeding”) is brought against any person in
respect of which indemnity may be sought pursuant to either Section 6(a) or
Section 6(b), such indemnified party shall promptly notify the person against
whom such indemnity may be sought (the “Indemnifying Party”) in writing
of the institution of such Proceeding and the Indemnifying Party shall assume
the defense of such Proceeding; provided, however, that the
omission to so notify such Indemnifying Party shall not relieve such
Indemnifying Party from any liability which it may have to such indemnified
party or otherwise.  Such indemnified
party shall have the right to employ its own counsel in any such case, but the
fees and expenses of such counsel shall be at the expense of such indemnified
party unless the employment of such counsel shall have been authorized in
writing by such Indemnifying Party in connection with the defense of such
Proceeding or such Indemnifying Party shall not have employed counsel to have
charge of the defense of such Proceeding within thirty (30) days of the receipt
of notice thereof or such indemnified party shall have reasonably concluded
upon the written advice of counsel that there may be one or more defenses
available to it that are different from, additional to or in conflict with
those available to such Indemnifying Party (in which case such Indemnifying
Party shall not have the right to direct that portion of the defense of such
Proceeding on behalf of the indemnified party), in any of which events such reasonable
fees and expenses shall be borne by such Indemnifying Party and paid as
incurred (it being understood, however, that such Indemnifying Party shall not
be liable for the expenses of more than one separate counsel in any one
Proceeding or series of related Proceedings together with reasonably necessary
local counsel representing the indemnified parties who are parties to such
action).  An Indemnifying Party shall not
be liable for any settlement of such Proceeding effected without the written
consent of such Indemnifying Party, but if settled with the written consent of
such Indemnifying Party, such Indemnifying Party agrees to indemnify and hold
harmless an indemnified party from and against any loss or liability by reason
of such settlement.  Notwithstanding the
foregoing sentence, if at any time an indemnified party shall have requested an
Indemnifying Party to reimburse such indemnified party for fees and expenses of
counsel as contemplated by the second sentence of this paragraph, then such
Indemnifying Party agrees that it shall be liable for any settlement of any
Proceeding effected without its written consent if (i) such settlement is
entered into more than sixty (60) Business Days after receipt by such
Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall
not have fully reimbursed such indemnified party in accordance with such 

 22
 

 

 

request prior
to the date of such settlement and (iii) such indemnified party shall have
given such Indemnifying Party at least thirty (30) days’ prior notice of its
intention to settle.  No Indemnifying
Party shall, without the prior written consent of any indemnified party, effect
any settlement of any pending or threatened Proceeding in respect of which such
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such Proceeding and does not include an
admission of fault or culpability or a failure to act by or on behalf of such
indemnified party.

(d)           If the
indemnification provided for in this Section 6 is unavailable to an indemnified
party under Section 6(a) or Section 6(b), or insufficient to hold such
indemnified party harmless, in respect of any losses, damages, expenses,
liabilities, claims or actions referred to therein, then each applicable
Indemnifying Party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, damages, expenses, liabilities, claims or actions (i) in such
proportion as is appropriate to reflect the relative benefits received by the
Company, on the one hand, and by the Holders or the Initial Purchasers, on the
other hand, from the offering of the Registrable Securities or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company, on
the one hand, and of the Holders or the Initial Purchasers, on the other hand,
in connection with the statements or omissions which resulted in such losses,
damages, expenses, liabilities, claims or actions, as well as any other
relevant equitable considerations.  The
relative fault of the Company, on the one hand, and of the Holders or the
Initial Purchasers, on the other hand, shall be determined by reference to, among
other things, whether the untrue statement or alleged untrue statement of a
material fact or omission or alleged omission relates to information supplied
by the Company or by the Holders or the Initial Purchasers and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.  The
amount paid or payable by a party as a result of the losses, damages, expenses,
liabilities, claims and actions referred to above shall be deemed to include any
reasonable legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any Proceeding.

(e)           The Company, the
Holders and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 6 were determined by pro
rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in Section 6(d) above.  Notwithstanding the provisions of this
Section 6, no Holder shall be required to contribute any amount in excess of
the amount by which the total price at which the Registrable Securities giving
rise to such contribution obligation and sold by such Holder were offered to
the public exceeds the amount of any damages which it 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’ respective obligations to
contribute 

 23
 

 

 

pursuant to
this Section 6 are several in proportion to the respective amount of
Registrable Securities they have sold pursuant to a Shelf Registration
Statement, and not joint.  The remedies
provided for in this Section 6 are not exclusive and shall not limit any rights
or remedies which may otherwise be available to any indemnified party at law or
in equity.

(f)            The indemnity and
contribution provisions contained in this Section 6 shall remain operative and
in full force and effect regardless of (i) any termination of this Agreement,
(ii) any investigation made by or on behalf of any Holder or any Initial Purchaser
or any person controlling any Holder or any Initial Purchaser, or the Company,
or the Company’s officers or directors or any person controlling the Company
and (iii) the sale of any Registrable Security by any Holder.

7.             Information Requirements.

(a)           The Company
covenants that, if at any time before the end of the Effectiveness Period it is
not subject to the reporting requirements of the Exchange Act, it will
cooperate with any Holder of Registrable Securities and take such further
action as any Holder of Registrable Securities may reasonably request in
writing (including, without limitation, making such representations as any such
Holder may reasonably request), all to the extent required from time to time to
enable such Holder to sell Registrable Securities without registration under
the Securities Act within the limitations of the exemptions provided by Rule
144, Rule 144A, Regulation S and Regulation D under the Securities Act and
customarily taken in connection with sales pursuant to such exemptions. Upon
the written request of any Holder, the Company shall deliver to such Holder a
written statement as to whether the Company has complied with the reporting
requirements of the Exchange Act, unless such a statement has been included in
the most recent report of the Company, as the case may be, filed with the SEC
pursuant to Section 13 or Section 15(d) of Exchange Act.

(b)           The Company shall
file the reports required to be filed by it under the Exchange Act and shall
comply with all other requirements set forth in the instructions to Form S-3 in
order to allow it to be eligible to file registration statements on Form S-3.

8.             Underwritten Registrations.

(a)           If any of the
Registrable Securities covered by the Shelf Registration Statement are to be
offered and sold in an underwritten offering, the investment banker or
investment bankers and manager or managers that will administer the offering (“Managing
Underwriters”) shall be selected by the holders of a majority of such
Registrable Securities to be included in such offering.

(b)           No person may
participate in any underwritten registration hereunder unless such person (i)
agrees to sell such person’s Registrable Securities on the basis reasonably
provided in any underwriting arrangements approved by the persons entitled
hereunder to approve such arrangements and (ii) completes and executes all 

 24
 

 

 

questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements.

9.             Miscellaneous.

(a)           Remedies.  The Company acknowledges and agrees that any
failure by it to comply with its obligations under this Agreement may result in
material irreparable injury to the Initial Purchaser and the Holders for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure,
any Initial Purchaser or any Holder may obtain such relief as may be required
to specifically enforce the Company’s obligations under this Agreement.  The Company further agrees to waive the
defense in any action for specific performance that a remedy at law would be
adequate.  Notwithstanding the foregoing
two sentences, this Section 9(a) shall not apply to the subject matter referred
to in and contemplated by Section 2(e).

(b)           No Conflicting
Agreements.  The Company is not, as
of the date hereof, a party to, nor shall it, on or after the date of this
Agreement, enter into, any agreement with respect to its securities that
conflicts with the rights granted to the Holders in this Agreement.  The Company represents and warrants that the
rights granted to the Holders hereunder do not in any way conflict with the
rights granted to the holders of the Company’s securities under any other
agreements.  The Company will not take
any action with respect to the Registrable Securities which would adversely
affect the ability of any of the Holders to include such Registrable Securities
in a registration undertaken pursuant to this Agreement.  The Company represents and covenants that it
has not granted, and shall not grant, to any of its security holders (other
than the Holders in such capacity) the right to include any of its securities
in any Shelf Registration Statement filed pursuant to this Agreement.

(c)           Amendments and
Waivers.  The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the Company has obtained the written
consent of Holders of a majority of outstanding Registrable Securities; provided,
however, that, no consent is necessary from any of the Holders in the
event that this Agreement is amended, modified or supplemented for the purpose
of curing any ambiguity, defect or inconsistency that does not adversely affect
the rights of any Holders; provided  further, that the consent of
each Holder of a Note affected thereby shall be required in order to amend the
obligation of the Company to pay additional interest in accordance with the
provisions of this Agreement. 
Notwithstanding the foregoing, a waiver or consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the
rights of Holders of Registrable Securities whose securities are being sold
pursuant to a Shelf Registration Statement and that does not directly or
indirectly affect the rights of other Holders of Registrable Securities may be
given by Holders of at least a majority of the Registrable Securities being
sold by such Holders pursuant to such Shelf Registration Statement; provided,
however, that the provisions of this sentence may not be amended,
modified, or supplemented except in accordance with the provisions of the
immediately preceding sentence.  Each
Holder of 

 25
 

 

 

Registrable
Securities outstanding at the time of any such amendment, modification,
supplement, waiver or consent or thereafter shall be bound by any such
amendment, modification, supplement, waiver or consent effected pursuant to
this Section 9(c), whether or not any notice, writing or marking indicating
such amendment, modification, supplement, waiver or consent appears on the
Registrable Securities or is delivered to such Holder.

(d)           Notices.  All notices and other communications provided
for or permitted hereunder shall be made in writing by hand delivery, by
telecopier, by courier guaranteeing overnight delivery or by first-class mail,
return receipt requested, and shall be deemed given (A) when made, if made by
hand delivery, (B) upon confirmation, if made by telecopier, (C) one (1)
Business Day after being deposited with such courier, if made by overnight
courier or (D) on the date indicated on the notice of receipt, if made by
first-class mail, to the parties as follows:

(i)            if to a Holder, at
the most current address given by such Holder to the Company in a Notice and
Questionnaire or any amendment thereto;

(ii)           if to the Company,
to:

United Dominion Realty Trust, Inc.

1745 Shea Center Drive 

Suite 200

Highlands Ranch, Colorado  80129

Attention: Vice President- Legal Administration 

and Corporate Secretary

Telecopy No.:  (720) 283-2454

with a copy to:

Morrison & Foerster LLP

5200 Republic Plaza

370 Seventeenth Street

Denver Colorado 80202-5638

Attention: Warren L. Troupe, Esq.

(iii)          if to the Initial
Purchasers, to:

JPMorgan

277 Park Avenue

9th Floor

New York, New York  10172

Attention: Syndicate Desk

with a copy to:

Sidley Austin LLP

787 Seventh Avenue

 26
 

 

 

New York, New York 10019

Attention: Samir A. Gandhi, Esq.

or to such other address as such person may have
furnished to the other persons identified in this Section 9(d) in writing in
accordance herewith.

(e)           Majority of
Registrable Securities.  For purposes
of determining what constitutes holders of a majority of Registrable
Securities, as referred to in this Agreement, a majority shall constitute a
majority in aggregate principal amount of Registrable Securities, treating each
relevant holder of shares of Underlying Common Stock of the Notes as a holder of
the aggregate principal amount of Notes in respect of which such Common Stock
was issued.

(f)            Approval of
Holders.  Whenever the consent or
approval of Holders of a specified percentage of Registrable Securities is
required hereunder, Registrable Securities held by the Company or its “affiliates”
(as such term is defined in Rule 405 under the Securities Act) (other than the
Initial Purchasers or subsequent Holders of Registrable Securities, if the
Initial Purchasers or such subsequent Holders are deemed to be such affiliates
solely by reason of their holdings of such Registrable Securities) shall not be
counted in determining whether such consent or approval was given by the
Holders of such required percentage.

(g)           Third Party
Beneficiaries.  The Holders shall be
third party beneficiaries to the agreements made hereunder between the Company,
on the one hand, and the Initial Purchasers, on the other hand, and shall have
the right to enforce such agreements directly to the extent they may deem such
enforcement necessary or advisable to protect its rights or the rights of
Holders hereunder. The Trustee shall be entitled to the rights granted to it
pursuant to this Agreement.

(h)           Successors and
Assigns.  Any person who purchases
any Registrable Security from any Initial Purchaser or from any Holder shall be
deemed, for purposes of this Agreement, to be an assignee of such Initial
Purchaser or such Holder, as the case may be. 
This Agreement shall inure to the benefit of and be binding upon the
respective successors and assigns of each of the parties hereto and shall inure
to the benefit of and be binding upon each Holder of any Registrable Security.

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

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

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

 27
 

 

 

(l)            Severability.  If any term, provision, covenant or
restriction of this Agreement is held to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall
in no way be affected, impaired or invalidated thereby, and the parties hereto
shall use their reasonable best efforts to find and employ an alternative means
to achieve the same or substantially the same result as that contemplated by
such term, provision, covenant or restriction, it being intended that all of
the rights and privileges of the parties shall be enforceable to the fullest
extent permitted by law.

(m)          Entire Agreement.  This Agreement is intended by the parties
hereto as a final expression of their agreement and is intended to be a
complete and exclusive statement of the agreement and understanding of the
parties hereto in respect of the subject matter contained herein and the
registration rights granted by the Company with respect to the Registrable
Securities. Except as provided in the Purchase Agreement, there are no
restrictions, promises, warranties or undertakings, other than those set forth
or referred to herein, with respect to the registration rights granted by the
Company with respect to the Registrable Securities.  This Agreement supersedes all prior agreements
and undertakings among the parties with respect to such registration
rights.  No party hereto shall have any
rights, duties or obligations other than those specifically set forth in this
Agreement.

(n)           Termination.  This Agreement and the obligations of the
parties hereunder shall terminate upon the end of the Effectiveness Period,
except for any liabilities or obligations under Section 4, Section 5 or Section
6 hereof and the obligations to make payments of and provide for additional
interest under Section 2(e) hereof to the extent such additional interest
accrues prior to the end of the Effectiveness Period and to the extent any
overdue additional interest accrues in accordance with the last paragraph of
such Section 2(e), each of which shall remain in effect in accordance with its
terms.

(o)           Submission to
Jurisdiction.  Except as set forth
below, no claim, counterclaim or dispute of any kind or nature whatsoever
arising out of or in any way relating to this Agreement (“Claim”) may be
commenced, prosecuted or continued in any court other than the courts of the
State of New York located in the City and County of New York or in the United
States District Court for the Southern District of New York, which courts shall
have jurisdiction over the adjudication of such matters, and the Company hereby
consents to the jurisdiction of such courts and personal service with respect
thereto. The Company hereby consents to personal jurisdiction, service and
venue in any court in which any Claim arising out of or in any way relating to
this Agreement is brought by any third party against any Initial
Purchaser.  The Company agrees that a
final judgment in any such Proceeding brought in any such court shall be
conclusive and binding upon the Company, as applicable, and may be enforced in
any other courts in the jurisdiction of which the Company, as applicable, is or
may be subject, by suit upon such judgment.

[The Remainder of
This Page Intentionally Left Blank; Signature Page Follows]

 28
 

 

 

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

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  UNITED DOMINION REALTY TRUST, INC., a Maryland
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael A. Ernst

  	
   

  
	
   

  	
   

  	
  Michael A. Ernst

  
	
   

  	
   

  	
  Executive Vice
  President, Treasurer and Chief

  Financial Officer

  

 

 29
 

 

 

	
  Accepted and agreed to as of
  the date

  	
   

  	
   

  
	
  first above
  written:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  J.P. MORGAN
  SECURITIES INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   /s/ Santosh
  Sreenivasan

  	
   

  
	
   

  	
  Name: Santosh
  Sreenivasan

  	
   

  
	
   

  	
  Title: Vice
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  For itself and
  the other Initial Purchasers

  	
   

  
	
   

  	
  named in
  Schedule A to the Purchase Agreement

  	
   

  
						

 

 30

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