Document:

exv10w2

 

Exhibit 10.2

EXECUTION COPY

REGISTRATION RIGHTS AGREEMENT

BY AND BETWEEN

DOBSON COMMUNICATIONS CORPORATION,

AS ISSUER          

AND

LEHMAN BROTHERS INC.,

MORGAN STANLEY & CO. INCORPORATED

AND

BEAR STEARNS & CO., INC.

AS INITIAL PURCHASERS          

DATED AS OF SEPTEMBER 13, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Section	 	 	Page
	1.

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	Shelf Registration
	 	 	4	 
	 
	 	 	 	 	 	 
	3.

	 	Additional Interest
	 	 	6	 
	 
	 	 	 	 	 	 
	4.

	 	Registration Procedures
	 	 	7	 
	 
	 	 	 	 	 	 
	5.

	 	Registration Expenses
	 	 	14	 
	 
	 	 	 	 	 	 
	6.

	 	Indemnification and Contribution
	 	 	15	 
	 
	 	 	 	 	 	 
	7.

	 	Rule 144A
	 	 	19	 
	 
	 	 	 	 	 	 
	8.

	 	Participation in Underwritten Registrations
	 	 	19	 
	 
	 	 	 	 	 	 
	9.

	 	Selection of Underwriters
	 	 	20	 
	 
	 	 	 	 	 	 
	10.

	 	Miscellaneous
	 	 	20	 

 

 

          Registration Rights Agreement, dated as of September 13, 2005, by and among Dobson
Communications Corporation (together with any successor entity, herein referred to as the “Issuer”)
and the initial purchasers (the “Initial Purchasers”) named in the Purchase Agreement, dated
September 13, 2005, among the Issuer and the Initial Purchasers (the “Purchase Agreement”).

          Pursuant to the Purchase Agreement, the Initial Purchasers have agreed to purchase
(the “Initial Placement”) from the Issuer up to $150,000,000 aggregate principal amount 1.50% Senior
Convertible Debentures due 2025 (the “Securities”) (or up to $180,000,000 aggregate principal
amount if the Initial Purchasers exercise in full their option to purchase additional Securities,
as set forth in the Purchase Agreement). The Securities may be convertible into fully paid,
nonassessable Class A common stock, $0.001 par value per share, of the Issuer (the “Common Stock”)
on the terms, and subject to the conditions, set forth in the Indenture (as defined herein). To
induce the Initial Purchasers to purchase the Securities, the Issuer has agreed to provide the
registration rights set forth in this Agreement pursuant to the Purchase Agreement.

          The parties hereby agree as follows:

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

     Additional Interest: As defined in Section 3(a) hereof.

     Additional Interest Payment Date: Each April 1 and October 1, commencing April 1,
2006.

     Agreement: This Registration Rights Agreement, as amended, modified or otherwise
supplemented from time to time in accordance with the terms hereof.

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

     Business Day: A day other than a Saturday, Sunday or any day on which banking
institutions in The City of New York are authorized or obligated by law or executive order
to close.

     Closing Date: The date of this Agreement.

     Commission: The Securities and Exchange Commission.

     Common Stock: As defined in the preamble hereto.

     Effectiveness Period: As defined in Section 2(a)(iii) hereof.

     Effectiveness Target Date: As defined in Section 2(a)(ii) hereof.

 

 

     Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission thereunder.

     Holder: A Person who owns, beneficially or otherwise, Transfer Restricted Securities.

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

     Initial Placement: As defined in the preamble hereto.

     Initial Purchasers: As defined in the preamble hereto.

     Issuer: As defined in the preamble hereto.

     Losses: As defined Section 6(d) hereof.

     Majority of Holders: Registered Holders of a number of shares of the then outstanding
Common Stock constituting Transfer Restricted Securities and an aggregate principal amount
of then outstanding Securities constituting Transfer Restricted Securities, such that the
sum of such shares of Common Stock and the shares of Common Stock issuable upon conversion
of such Securities constitute in excess of 50% of the sum of all of the then outstanding
shares of Common Stock constituting Transfer Restricted Securities and the number of shares
of Common Stock issuable upon conversion of then outstanding Securities constituting
Transfer Restricted Securities, in each case assuming that the Securities are then
convertible and that no cash is paid upon a conversion of Securities. For purposes of the
immediately preceding sentence, (i) any Holder may elect to make any request, notice,
demand, objection or other action hereunder with respect to all or any portion of Transfer
Restricted Securities held by it and only the portion as to which such action is taken
shall be included in the numerator of the fraction described in the preceding sentence and
(ii) Transfer Restricted Securities owned, directly or indirectly, by the Issuer or its
Affiliates shall be deemed not to be outstanding.

     NASD: National Association of Securities Dealers, Inc.

     New Securities: As defined in Section 10(d).

     Offering Memorandum: means the Offering Memorandum relating to the Securities, dated
as September 7, 2005.

     Person: An individual, partnership, corporation, unincorporated organization, limited
liability company, trust, joint venture or a government or agency or political subdivision
thereof.

2

 

     Prospectus: The prospectus included in a 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 430A
promulgated pursuant to the Securities Act), as amended or supplemented by any prospectus
supplement and by all other amendments thereto, including post-effective amendments, and
all material incorporated by reference into such Prospectus.

     Purchase Agreement: As defined in the preamble hereto.

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

     Questionnaire Deadline: As defined in Section 2(b) hereof.

     Record Holder: With respect to any Additional Interest Payment Date, each Person who
is a Holder on the record date with respect to such Additional Interest Payment Date, which
record date shall be the March 15 or September 15 preceding the relevant Additional
Interest Payment Date.

     Registration Default: As defined in Section 3(a) hereof.

     Securities: As defined in the preamble hereto.

     Securities Act: Securities Act of 1933, as amended, and the rules and resolutions of
the Commission thereunder.

     Shelf Filing Deadline: As defined in Section 2(a)(i) hereof.

     Shelf Registration Statement: As defined in Section 2(a)(i) hereof.

     Suspension Notice: As defined in Section 4(c) hereof.

     Suspension Period: As defined in Section 4(b)(i) hereof.

     TIA: Trust Indenture Act of 1939, as amended, and the rules and regulations of the
Commission thereunder, in each case, as in effect on the date the Indenture is qualified
under the TIA.

     Transfer Restricted Securities: Each of the Securities (including any such Securities
reissued or resold by the Issuer pursuant to the terms of the Indenture) and each of the
shares of Common Stock or New Securities issued upon conversion of Securities until the
earliest of, in the case of any such Securities or share(s) of Common Stock or New
Securities:

     (i) the date on which such Securities (including any such Securities reissued
or resold by the Issuer pursuant to the terms of the Indenture) or such shares of
Common Stock or New Securities issued

3

 

upon conversion thereof have been effectively registered under the Securities
Act and disposed of in accordance with the Shelf Registration Statement;

     (ii) the date on which such Securities (including any such Securities reissued
or resold by the Issuer pursuant to the terms of the Indenture) or such shares of
Common Stock or New Securities issued upon conversion thereof are transferred in
compliance with Rule 144 under the Securities Act or may be sold or transferred by
a person who is not an affiliate of the Issuer pursuant to Rule 144 under the
Securities Act (or any other similar provision then in force) without any volume or
manner of sale restrictions thereunder; or

     (iii) the date on which such Securities (including any such Securities
reissued or resold by the Issuer pursuant to the terms of the Indenture) or such
shares of Common Stock or New Securities issued upon conversion cease to be
outstanding (whether as a result of repurchase and cancellation, conversion or
otherwise).

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

     2. Shelf Registration.

     (a) The Issuer shall:

     (i) not later than 90 days after the date hereof (the “Shelf Filing
Deadline”), cause to be filed a registration statement for an offering to be made
on a continuous basis pursuant to Rule 415 under the Securities Act (including any
documents incorporated by reference therein, the “Shelf Registration Statement”),
which Shelf Registration Statement shall provide for resales of all Transfer
Restricted Securities held by Holders that have provided the information required
pursuant to the terms of Section 2(b) hereof;

     (ii) use commercially reasonable efforts to cause the Shelf Registration
Statement to be declared effective by the Commission not later than 180 days after
the date hereof (the “Effectiveness Target Date”); and

     (iii) use commercially reasonable efforts to keep the Shelf Registration
Statement continuously effective, supplemented and amended as required by the
provisions of Section 4(b) hereof to the extent necessary to ensure that it (A) is
available for resales by the Holders of Transfer Restricted Securities entitled to
the benefit of this Agreement and (B)

4

 

conforms with the requirements of this Agreement and the Securities Act for a
period (the “Effectiveness Period”) ending on the earliest of:

     (1) the date when the Holders of the Transfer Restricted
Securities (including any Securities reissued or resold by the
Issuer pursuant to the terms of the Indenture) that are not
affiliates of the Issuer are able to sell all Transfer Restricted
Securities immediately without volume, manner of sale, filing and
others restriction under Rule 144(k) under the Securities Act; or

     (2) the date when all Transfer Restricted Securities
(including any Securities reissued or resold by the Issuer
pursuant to the terms of the Indenture) are registered under the
Shelf Registration Statement and sold pursuant thereto; and

     (3) the date when all Transfer Restricted Securities
(including any such Securities reissued or resold by the Issuer
pursuant to the terms of the Indenture) have ceased to be
outstanding (whether as a result of repurchase and cancellation,
conversion or otherwise).

          (b) To have its Transfer Restricted Securities included in the Shelf Registration Statement
pursuant to this Agreement, each Holder shall complete the Selling Securityholder Notice and
Questionnaire, the form of which is contained in Annex A to the Offering Memorandum relating to the
Securities (the “Questionnaire”). The Issuer shall mail the Questionnaire to each Holder not less
than 20 Business Days (but not more than 40 Business Days) prior to the time the Issuer intends in
good faith to have the Shelf Registration Statement declared effective by the Commission. Holders
are required to complete and deliver the Questionnaire to the Issuer within 10 days prior to the
effectiveness of the Registration Statement (the “Questionnaire Deadline”) in order to be named as
selling securityholders in the Prospectus at the time that the Shelf Registration Statement is
declared effective. Upon receipt of a Questionnaire from a Holder on or prior to the Questionnaire
Deadline, the Issuer shall include such Holder’s Transfer Restricted Securities in the Shelf
Registration Statement and the Prospectus. In addition, promptly upon the request of a Holder given
to the Issuer at any time, the Issuer shall deliver a Questionnaire to such Holder. Any Holder
that does not complete and deliver a Questionnaire prior to the Questionnaire Deadline may not be
named as a selling securityholder in the Shelf Registration Statement at the time that it is
declared effective. Upon receipt of a completed Questionnaire from a Holder who did not complete
and deliver a Questionnaire prior to the Questionnaire Deadline, the Issuer shall, within 20
Business Days of such receipt, file such amendments to the Shelf Registration Statement or
supplements to a related Prospectus as are necessary to permit such Holder to deliver such
Prospectus to transferees of Transfer Restricted Securities; provided, that the Issuer shall not be
obligated to file more than one amendment or

5

 

supplement for all such Holders in any one fiscal quarter unless the aggregate principal
amount of all Transfer Restricted Securities requested to be included in such amendment or
supplement by all such Holders exceeds $10,000,000.

          The Issuer will give notice to all Holders of the effectiveness of the Shelf Registration
Statement by issuing a press release.

          (c) Upon receipt of written request for additional information from the Issuer, each Holder
who intends to be named as a selling securityholder in the Shelf Registration Statement shall
furnish to the Issuer in writing, within 20 Business Days after such Holder’s receipt of such
request, such additional information regarding such Holder and the proposed distribution by such
Holder of its Transfer Restricted Securities, in connection with the Shelf Registration Statement
or Prospectus or preliminary Prospectus included therein and in any application to be filed with or
under state securities law, as the Issuer may reasonably request. In connection with all such
requests for information from Holders of Transfer Restricted Securities, the Issuer shall notify
such Holders of the requirements set forth in this paragraph regarding their obligation to provide
the information requested pursuant to this Section 2. Each Holder as to which the Shelf
Registration Statement is being effected agrees to furnish promptly to the Issuer all information
required to be disclosed in order to make information previously furnished to the Issuer by such
Holder not materially misleading.

          3. Additional Interest.

          (a) If:

     (i) the Shelf Registration Statement is not filed with the Commission prior to
or on the Shelf Filing Deadline;

     (ii) the Shelf Registration Statement has not been declared effective by the
Commission prior to or on the Effectiveness Target Date;

     (iii) except as provided in the last sentence of Section 4(b)(i) hereof, the
Shelf Registration Statement is filed and declared effective but, during the
Effectiveness Period, shall thereafter cease to be effective or fail to be usable
for its intended purpose without being succeeded within five Business Days by a
post-effective amendment to the Shelf Registration Statement, a supplement to the
Prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c),
14 or 15(d) of the Exchange Act that cures such failure and, in the case of a
post-effective amendment, is itself immediately declared effective; or

     (iv)      (A) prior to or on the 45th or 60th day, as the
case may be, of any Suspension Period, such suspension has not been terminated or
(B) Suspension Periods exceed an aggregate of 90 days in any 360 day period,

6

 

(each such event referred to in foregoing clauses (i) through (iv), a “Registration Default”), the
Issuer hereby agrees to pay additional interest (“Additional Interest”) with respect to the
Transfer Restricted Securities from and including the day following the Registration Default to but
excluding the day on which the Registration Default has been cured, accruing at a rate, to each
holder of Securities, (x) with respect to the first 90-day period during which a Registration
Default shall have occurred and be continuing, equal to 0.25% per annum of the principal amount of
the Securities, and (y) with respect to the period commencing on the 91st day following
the day the Registration Default shall have occurred and be continuing, equal to 0.50% per annum of
the principal amount of the Securities; provided that in no event shall Additional Interest accrue
at an aggregate rate per year exceeding 0.50% of the principal amount of the Securities. No
Additional Interest shall be payable on any Securities that have been converted into shares of
Common Stock.

          (b) All accrued Additional Interest shall be paid in arrears to Record Holders by the Issuer
on each Additional Interest Payment Date by wire transfer of immediately available funds or by
federal funds check. Following the cure of all Registration Defaults relating to any particular
Securities, the accrual of Additional Interest with respect to such Securities will cease. The
Issuer agrees to deliver all notices, certificates and other documents contemplated by the
Indenture in connection with the payment of Additional Interest.

          All obligations of the Issuer set forth in this Section 3 that are outstanding with respect to
any Transfer Restricted Security at the time such security ceases to be a Transfer Restricted
Security shall survive until such time as all such obligations with respect to such Transfer
Restricted Security shall have been satisfied in full. The Additional Interest set forth above
shall be the exclusive monetary remedy available to the Holders of Transfer Restricted Securities
for such Registration Default.

          4. Registration Procedures.

          (a) In connection with the registration of the Transfer Restricted Securities, the Issuer
shall comply with all the provisions of Section 4(b) hereof and shall use commercially reasonable
efforts to effect such registration to permit the sale of the Transfer Restricted Securities being
sold in accordance with the intended method or methods of distribution thereof, and pursuant
thereto, shall as expeditiously as possible prepare and file with the Commission a Shelf
Registration Statement relating to the registration on any appropriate form under the Securities
Act.

          (b) In connection with the Shelf Registration Statement and any Prospectus required by this
Agreement to permit the sale or resale of Transfer Restricted Securities, the Issuer shall:

     (i) Subject to any notice by the Issuer in accordance with this Section 4(b)
of the existence of any fact or event of the kind described in Section
4(b)(iii)(D), use commercially reasonable efforts to keep the Shelf

7

 

Registration Statement continuously effective during the Effectiveness Period;
upon the occurrence of any event that would cause the Shelf Registration Statement
or the Prospectus contained therein (A) to contain a material misstatement or
omission or (B) not be effective and usable for resale of Transfer Restricted
Securities during the Effectiveness Period, the Issuer shall file promptly an
appropriate amendment to the Shelf Registration Statement, a supplement to the
Prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c),
14 or 15(d) of the Exchange Act, in the case of clause (A), correcting any such
misstatement or omission, and, in the case of either clause (A) or (B), use
commercially reasonable efforts to cause such amendment to be declared effective
and the Shelf Registration Statement and the related Prospectus to become usable
for their intended purposes as soon as practicable thereafter. Notwithstanding the
foregoing, the Issuer may suspend the effectiveness and use of the Shelf
Registration Statement and Prospectus by written notice to the Holders for a period
not to exceed an aggregate of 45 days in any 90-day period (each such period, a
“Suspension Period”) and not to exceed an aggregate of 90 days in any 360-day
period if:

     (x) an event occurs and is continuing as a result of which the Shelf
Registration Statement would, in the Issuer’s reasonable judgment, contain
an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein
not misleading; and

     (y) the Issuer reasonably determines that the disclosure of such
event at such time would have a material adverse effect on the business of
the Issuer (and its subsidiaries, if any, taken as a whole);

provided that in the event the disclosure relates to a previously undisclosed
proposed or pending material business transaction, the disclosure of which would
impede the Issuer’s ability to consummate such transaction, the Issuer may extend a
Suspension Period from 45 days to 60 days in any 90-day period.

     (ii) Prepare and file with the Commission such amendments and post-effective
amendments to the Shelf Registration Statement as may be necessary to keep the
Shelf Registration Statement effective during the Effectiveness Period; cause the
Prospectus to be supplemented by any required Prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 under the Securities Act, and to
comply fully with the applicable provisions of Rules 424 and 430A under the
Securities Act in a timely manner; and comply with the provisions of the Securities
Act with respect to the disposition of all securities covered by the Shelf
Registration Statement during the applicable period in accordance with the

8

 

intended method or methods of distribution by the sellers thereof set forth in
the Shelf Registration Statement or supplement to the Prospectus; provided,
however, that in no event will such method(s) of distribution take the form of an
underwritten offering without the prior written agreement of the Issuer.

     (iii) Advise the underwriter(s), if any, and selling Holders promptly (but in
any event within five Business Days) and, if requested by such Persons, to confirm
such advice in writing:

     (A) when the Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to the Shelf
Registration Statement or any post-effective amendment thereto, when the
same has become effective,

     (B) of any request by the Commission for amendments to the Shelf
Registration Statement or amendments or supplements to the Prospectus or
for additional information relating thereto,

     (C) of the issuance by the Commission of any stop order suspending
the effectiveness of the Shelf Registration Statement under the Securities
Act or of the suspension by any state securities commission of the
qualification of the Transfer Restricted Securities for offering or sale
in any jurisdiction, or the initiation of any proceeding for any of the
preceding purposes, or

     (D) of the existence of any fact or the happening of any event (but
not the fact or event itself), during the Effectiveness Period, that makes
any statement of a material fact made in the Shelf Registration Statement,
the Prospectus, any amendment or supplement thereto, or any document
incorporated by reference therein untrue, or that requires the making of
any additions to or changes in the Shelf Registration Statement or the
Prospectus in order to make the statements therein not misleading.

If at any time the Commission shall issue any stop order suspending the
effectiveness of the Shelf Registration Statement, or any state securities
commission or other regulatory authority shall issue an order suspending the
qualification or exemption from qualification of the Transfer Restricted Securities
under state securities or Blue Sky laws, the Issuer shall use commercially
reasonable efforts to obtain the withdrawal or lifting of such order at the
earliest possible time and will provide to the Initial Purchasers and each Holder
who is named in the Shelf Registration Statement prompt notice of the withdrawal of
any such order.

9

 

     (iv) Furnish to one counsel for the selling Holders and each of the
underwriter(s), if any, before filing with the Commission, a copy of the Shelf
Registration Statement and copies of any Prospectus included therein or any
amendments or supplements to the Shelf Registration Statement or Prospectus (other
than documents incorporated by reference after the initial filing of the Shelf
Registration Statement), which documents will be subject to the review of such
holders and underwriter(s), if any, within five Business Days prior to filing with
the Commission the Shelf Registration Statement and Prospectus and any amendment or
supplement thereto, and the Issuer will not file the Shelf Registration Statement
or Prospectus or any amendment or supplement to the Shelf Registration Statement or
Prospectus (other than documents incorporated by reference) to which a selling
Holder of Transfer Restricted Securities covered by the Shelf Registration
Statement or the underwriter(s), if any, shall reasonably object prior to the
filing thereof.

     (v) In connection with an Underwritten Offering of the Transfer Restricted
Securities pursuant to the Shelf Registration Statement, make available at
reasonable times for inspection by one or more representatives of the selling
Holders, designated in writing by a Majority of Holders whose Transfer Restricted
Securities are included in the Shelf Registration Statement, any underwriter
participating in any distribution pursuant to the Shelf Registration Statement, and
any attorney or accountant retained by such selling Holders or any of the
underwriter(s), all financial and other records, pertinent corporate documents and
properties of the Issuer as shall be reasonably necessary to enable them to
exercise any applicable due diligence responsibilities, and cause the officers,
directors, managers and employees of the Issuer to supply all information
reasonably requested by any such representative or representatives of the selling
Holders, underwriter, attorney or accountant in connection with the Shelf
Registration Statement after the filing thereof and before its effectiveness,
provided, however, that any information designated by the Issuer as confidential at
the time of delivery of such information shall be kept confidential by the
recipient thereof and shall be subject, upon request of the Issuer, to the
execution by such persons of a confidentiality agreement in a form that is
reasonable in the context of a registered public offering.

     (vi) If requested by any selling Holders or the underwriter(s), if any,
promptly incorporate in the Shelf Registration Statement or Prospectus, pursuant to
a supplement or post-effective amendment if necessary, such information as such
selling Holders and underwriter(s), if any, may reasonably request to have included
therein, including, without limitation: (1) information relating to the “Plan of
Distribution” of the Transfer Restricted Securities, (2) information with respect
to the principal

10

 

amount of Securities or number of shares of Common Stock being sold to such
underwriter(s), (3) the purchase price being paid therefor and (4) any other terms
of the offering of the Transfer Restricted Securities to be sold in such offering;
and make all required filings of such Prospectus supplement or post-effective
amendment as soon as reasonably practicable after the Issuer is notified of the
matters to be incorporated in such Prospectus supplement or post-effective
amendment.

     (vii) Furnish to each selling Holder and each of the underwriter(s), if any,
upon their request, without charge, at least one copy of the Shelf Registration
Statement, as first filed with the Commission, and of each amendment thereto (and
any documents incorporated by reference therein or exhibits thereto (or exhibits
incorporated in such exhibits by reference) as such Person may request).

     (viii) Deliver to each selling Holder and each of the underwriter(s), if any,
without charge, as many copies of the Prospectus (including each preliminary
prospectus) and any amendment or supplement thereto as such Persons reasonably may
request; subject to any notice by the Issuer in accordance with this Section 4(b)
of the existence of any fact or event of the kind described in Section 4(b)(iii)
(D), the Issuer hereby consents to the use (in accordance with applicable law) of
the Prospectus and any amendment or supplement thereto by each of the selling
Holders and each of the underwriter(s), if any, in connection with the offering and
the sale of the Transfer Restricted Securities covered by the Prospectus or any
amendment or supplement thereto.

     (ix) The Issuer shall:

     (A) upon request, furnish to each Initial Purchaser and each
underwriter, if any, in such substance and scope as they may reasonably
request and as are customarily made by issuers to underwriters in primary
underwritten offerings for selling security holders, upon the date of
closing of any sale of Transfer Restricted Securities in an Underwritten
Registration:

     (1) a certificate, dated the date of such closing, signed by
the Chief Financial Officer of the Issuer covering such matters as
are customarily covered in closing certificates delivered to
underwriters in connection with underwritten offerings of
securities;

     (2) opinions, each dated the date of such closing, of counsel
to the Issuer covering such of the matters as are customarily
covered in legal opinions to

11

 

underwriters in connection with underwritten offerings of
securities; and

     (3) customary comfort letters, dated the date of such
closing, from the independent public accountants of the Issuer
(and from any other accountants whose report is contained or
incorporated by reference in the Shelf Registration Statement) in
the customary form and covering matters of the type customarily
covered in comfort letters to underwriters in connection with
underwritten offerings of securities;

     (B) set forth in full in the underwriting agreement, if any,
indemnification provisions and procedures which provide rights no less
protective than those set forth in Section 6 hereof with respect to all
parties to be indemnified; and

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

     (x) Before any public offering of Transfer Restricted Securities, cooperate
with the selling Holders, the underwriter(s), if any, and their respective counsel
in connection with the registration and qualification of the Transfer Restricted
Securities under the securities or Blue Sky laws of such jurisdictions in the
United States as the selling Holders or underwriter(s), if any, may reasonably
request and do any and all other acts or things necessary or advisable to enable
the disposition in such jurisdictions of the Transfer Restricted Securities covered
by the Shelf Registration Statement; provided, however, that the Issuer shall not
be required (A) to register or qualify as a foreign corporation or a dealer of
securities where it is not now so qualified or to take any action that would
subject it to the service of process in any jurisdiction where it is not now so
subject or (B) to subject itself to taxation in any such jurisdiction if it is not
now so subject.

     (xi) Cooperate with the selling Holders and the underwriter(s), if any, to
facilitate the timely preparation and delivery of certificates representing
Transfer Restricted Securities to be sold and not bearing any restrictive legends
(unless required by applicable securities laws); and enable such Transfer
Restricted Securities to be in such denominations and registered in such names as
the Holders or the underwriter(s), if any, may

12

 

request at least two Business Days before any sale of Transfer Restricted
Securities made by such underwriter(s).

     (xii) Use its commercially reasonable efforts to cause the Transfer Restricted
Securities covered by the Shelf Registration Statement to be registered with or
approved by such other U.S. governmental agencies or authorities as may be
necessary to enable the seller or sellers thereof or the underwriter(s), if any, to
consummate the disposition of such Transfer Restricted Securities.

     (xiii) Subject to Section 4(b)(i) hereof, if any fact or event contemplated by
Section 4(b)(iii)(D) hereof shall exist or have occurred, use its commercially
reasonable efforts to prepare a supplement or post-effective amendment to the Shelf
Registration Statement or related Prospectus or any document incorporated therein
by reference or file any other required document so that, as thereafter delivered
to the purchasers of Transfer Restricted Securities, the Prospectus will not
contain an untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light
of the circumstances in which they were made, not misleading.

     (xiv) Provide CUSIP numbers for all Transfer Restricted Securities not later
than the effective date of the Shelf Registration Statement and provide the Trustee
under the Indenture with certificates for the Securities that are in a form
eligible for deposit with The Depository Trust Company.

     (xv) Cooperate and assist in any filings required to be made with the NASD and
in the performance of any due diligence investigation by any underwriter that is
required to be retained in accordance with the rules and regulations of the NASD.

     (xvi) Otherwise use its commercially reasonable efforts to comply with all
applicable rules and regulations of the Commission and all reporting requirements
under the Exchange Act.

     (xvii) Cause the Indenture to be qualified under the TIA not later than the
effective date of the Shelf Registration Statement required by this Agreement, and,
in connection therewith, cooperate with the Trustee and the holders of Securities
to effect such changes to the Indenture as may be required for such Indenture to be
so qualified in accordance with the terms of the TIA; and execute and use its
commercially reasonable efforts to cause the Trustee thereunder to execute all
documents that may be required to effect such changes and all other forms and
documents required to be filed with the Commission to enable such Indenture to be
so qualified in a timely manner.

13

 

     (xviii) Cause all Transfer Restricted Securities covered by the Shelf
Registration Statement to be listed or quoted, as the case may be, on each
securities exchange or automated quotation system on which securities of the same
class issued by the Issuer are then listed or quoted.

     (xix) Provide to each Holder upon written request each document filed with the
Commission pursuant to the requirements of Section 13 and Section 15 of the
Exchange Act after the effective date of the Shelf Registration Statement, to the
extent that such documents are not available on the SEC’s EDGAR system.

     (xx) If requested by the underwriters, prepare and present to potential
investors customary “road show” or marketing materials in a manner consistent with
other new issuances of other securities similar to the Transfer Restricted
Securities.

          (c) Each Holder agrees by acquisition of a Transfer Restricted Security that, upon receipt of
any notice (a “Suspension Notice”) from the Issuer of the existence of any fact of the kind
described in Section 4(b)(iii)(D) hereof, such Holder will, and will use commercially reasonable
efforts to cause any underwriter(s) in an Underwritten Offering to, forthwith discontinue
disposition of Transfer Restricted Securities pursuant to the Shelf Registration Statement until:

     (i) such Holder has received copies of the supplemented or amended Prospectus
contemplated by Section 4(b)(xiii) hereof; or

     (ii) such Holder is advised in writing by the Issuer that the use of the
Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus.

If so directed by the Issuer, each Holder will deliver to the Issuer (at the Issuer’s expense) all
copies, other than permanent file copies then in such Holder’s possession, of the Prospectus
covering such Transfer Restricted Securities that was current at the time of receipt of such notice
of suspension.

          5. Registration Expenses.

          (a) All expenses incident to the performance of or compliance with this Agreement by the
Issuer shall be borne by the Issuer regardless of whether a Shelf Registration Statement becomes
effective, including, without limitation:

     (i) all registration and filing fees and expenses (including filings made by
the Initial Purchasers or any Holders with the NASD);

14

 

     (ii) all fees and expenses of compliance with federal securities and state
Blue Sky or securities laws;

     (iii) all expenses of printing (including printing of Prospectuses and
certificates for the Common Stock to be issued upon conversion of the Securities)
and the expenses of the Issuer for messenger and delivery services and telephone;

     (iv) all expenses of any persons in preparing or assisting in preparing, word
processing, printing and distributing any Registration Statement, any Prospectus,
any amendments or supplements thereto, any underwriting agreements, securities
sales agreements and other documents relating to the performance of and compliance
with this Agreement;

     (v) all fees and disbursements of counsel to the Issuer and, subject to
Section 5(b) below, the Holders of Transfer Restricted Securities;

     (vi) all application and filing fees in connection with listing (or
authorizing for quotation) the Common Stock on a national securities exchange or
automated quotation system pursuant to the requirements hereof; and

     (vii) all fees and disbursements of independent certified public accountants
of the Issuer (including the expenses of any special audit and comfort letters
required by or incident to such performance).

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

          (b) In connection with the Shelf Registration Statement required by this Agreement, including
any amendment or supplement thereto, and any other documents delivered to any Holders, the Issuer
shall reimburse the Initial Purchasers and the Holders of Transfer Restricted Securities being
registered pursuant to the Shelf Registration Statement, as applicable, for the reasonable fees and
disbursements of not more than one counsel for the Holders as may be chosen by a Majority of
Holders for whose benefit the Shelf Registration Statement is being prepared. The Issuer shall not
be required to pay any underwriting discount, commission or similar fee related to the sale of any
securities.

          6. Indemnification and Contribution.

          (a) In connection with any Shelf Registration Statement, the Issuer agrees to
indemnify and hold harmless each Holder of Securities, or such shares

15

 

of Common Stock or new Securities issued upon conversion thereof, covered thereby
(including the Initial Purchasers), the directors, officers, employees and agents of such
Holder and each person who controls such Holder within the meaning of either the Securities
Act or the Exchange Act, against any and all losses, claims, damages or liabilities, joint
or several, to which they or any of them may become subject under the Securities Act, the
Exchange Act or other federal or state statutory law or regulation, at common law or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement of
a material fact contained in such Shelf Registration Statement as originally filed or in
any amendment thereof, or in any preliminary Prospectus or Prospectus, or in any amendment
thereof or supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to
make the statements therein (in the case of the Prospectus, in light of the circumstances
under which they were made) not misleading, and agrees to reimburse each such indemnified
party, as incurred, for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage or liability (or
action in respect thereof); provided, however, that the Issuer will not be liable in any
case to the extent that any such loss, claim, damage or liability (1) arises out of or is
based upon any such untrue statement or alleged untrue statement or omission or alleged
omission made therein in reliance upon and in conformity with written information furnished
to the Issuer by or on behalf of any such indemnified party specifically for inclusion
therein; (2) arises from an offer or sale of Securities during a Suspension Period so long
as the Issuer had duly delivered prior to such sale a Suspension Notice in accordance with
Section 4(c) hereof; or (3) arises out of or is based upon an untrue statement or alleged
untrue statement or omission or alleged omission in a preliminary Prospectus and such
untrue statement or alleged untrue statement or omission or alleged omission was corrected
in the final Prospectus or an amendment or supplement thereto delivered by the Issuer to
the Holder or its affiliates or representatives on or prior to the confirmation of the sale
giving rise to any such loss, claim, damage or liability. This indemnity agreement will be
in addition to any liability that the Issuer may otherwise have.

          The Issuer also agrees to indemnify or contribute to Losses of, as provided in Section
6(d) hereof, any underwriters of Securities registered under a Shelf Registration
Statement, their employees, officers, directors and agents and each person who controls
such underwriters on substantially the same basis as that of the indemnification of the
Initial Purchasers and the selling Holders provided in this Section 6(a).

          (b) Each Holder of Securities, or such shares of Common Stock or new Securities Issue
upon conversion thereof, covered by a Shelf Registration Statement (including the Initial
Purchasers) severally agrees to indemnify and hold harmless (i) the Issuer, (ii) each of
the directors of the Issuer, (iii) each of the

16

 

officers of the Issuer who signs such Registration Statement and (iv) each Person who
controls the Issuer within the meaning of either the Securities Act or the Exchange Act to
the same extent as the foregoing indemnity from the Issuer to each such Holder, but only
with respect to written information furnished to the Issuer by or on behalf of such Holder
specifically for inclusion in the documents referred to in the foregoing indemnity. This
indemnity agreement will be in addition to any liability that any such Holder may otherwise
have.

          (c) Promptly after receipt by an indemnified party under this Section 6 of notice of
the commencement of any action, such indemnified party will, if a claim in respect thereof
is to be made against the indemnifying party under this Section 6, notify the indemnifying
party in writing of the commencement thereof; but the failure so to notify the indemnifying
party (i) will not relieve the indemnifying party from liability under paragraph (a) or (b)
above unless and to the extent it did not otherwise learn of such action and such failure
results in the forfeiture by the indemnifying party of substantial rights and defenses, and
(ii) will not, in any event, relieve the indemnifying party from any obligations to any
indemnified party other than the indemnification obligation provided in paragraph (a) or
(b) above. The indemnifying party shall be entitled to appoint counsel (including local
counsel) of the indemnifying party’s choice at the indemnifying party’s expense to
represent the indemnified party in any action for which indemnification is sought (in which
case the indemnifying party shall not thereafter be responsible for the fees and expenses
of any separate counsel retained by the indemnified party or parties except as set forth
below); provided, however, that such counsel shall be reasonably satisfactory to the
indemnified party. The indemnifying party shall not be liable for any settlement of any
proceeding effected without its written consent. Notwithstanding the indemnifying party’s
election to appoint counsel to represent the indemnified party in an action, the
indemnified party shall have the right to employ separate counsel (including local
counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of
such separate counsel (and local counsel) if (i) the use of counsel chosen by the
indemnifying party to represent the indemnified party would present such counsel with a
conflict of interest, (ii) the actual or potential defendants in, or targets of, any such
action include both the indemnified party and the indemnifying party and the indemnified
party shall have reasonably concluded that there may be legal defenses available to it
and/or other indemnified parties that are different from or additional to those available
to the indemnifying party, (iii) the indemnifying party shall not have employed counsel
satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after notice of the institution of such action or (iv) the indemnifying
party shall authorize the indemnified party to employ separate counsel at the expense of
the indemnifying party. It is understood that the indemnifying party shall not, in
connection with any proceeding or related proceedings in the same jurisdiction, be liable
for the fees and expenses of more than one separate firm (in addition to any local counsel)
for all such indemnified

17

 

parties and that all such fees and expenses shall be reimbursed as they are incurred.
An indemnifying party will not, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with respect to any
pending or threatened claim, action, suit or proceeding in respect of which indemnification
or contribution may be sought hereunder (whether or not the indemnified parties are actual
or potential parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability arising out
of such claim, action, suit or proceeding.

          (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section 6
is unavailable to or insufficient to hold harmless an indemnified party for any reason,
then each applicable indemnifying party, in lieu of indemnifying such indemnified party,
shall have a joint and several obligation to contribute to the aggregate losses, claims,
damages and liabilities (including legal or other expenses reasonably incurred in
connection with investigating or defending the same) (collectively “Losses”) to which such
indemnified party may be subject in such proportion as is appropriate to reflect the
relative benefits received by such indemnifying party, on the one hand, and such
indemnified party, on the other hand, from the Initial Placement and the Shelf Registration
Statement that resulted in such Losses; provided, however, that in no case shall the
Initial Purchasers or any subsequent Holder of any Security or such shares of Common Stock
or New Securities issued upon conversion thereof be responsible, in the aggregate, for any
amount in excess of the purchase discount or commission applicable to such Security, or in
the case of shares of Common Stock or New Securities issued upon conversion thereof,
applicable to the Security that was convertible into such Common Stock or New Security, nor
shall any underwriter be responsible for any amount in excess of the underwriting discount
or commission applicable to the Securities or such shares of Common Stock or New Securities
issued upon conversion thereof purchased by such underwriter under the Shelf Registration
Statement that resulted in such Losses. If the allocation provided by the immediately
preceding sentence is unavailable for any reason, the indemnifying party and the
indemnified party shall contribute in such proportion as is appropriate to reflect not only
such relative benefits but also the relative fault of such indemnifying party, on the one
hand, and such indemnified party, on the other hand, in connection with the statements or
omissions that resulted in such Losses as well as any other relevant equitable
considerations. Benefits received by the Issuer shall be deemed to be equal to the total
net proceeds from the Initial Placement (before deducting expenses) as set forth in the
Purchase Agreement. Benefits received by the Initial Purchasers shall be deemed to be
equal to the total purchase discounts and commissions as set forth on the cover page of the
Offering Memorandum, and benefits received by any other Holders shall be deemed to be equal
to the value of receiving Securities or such shares of Common Stock or New Securities
issued upon conversion thereof, as applicable, registered under the Securities Act.
Benefits received by

18

 

any underwriter shall be deemed to be equal to the total underwriting discounts and
commissions, as set forth on the cover page of the Prospectus forming a part of the
Registration Statement that resulted in such Losses. Relative fault shall be determined by
reference to whether any alleged untrue statement or omission relates to information
provided by the indemnifying party, on the one hand, or by the indemnified party, on the
other hand. The parties agree that it would not be just and equitable if contribution were
determined by pro rata allocation or any other method of allocation that did not take
account of the equitable considerations referred to above. Notwithstanding the provisions
of this paragraph (d), 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. For purposes of this Section 6,
each person who controls a Holder within the meaning of either the Securities Act or the
Exchange Act and each director, officer, employee and agent of such Holder shall have the
same rights to contribution as such Holder, and each person who controls the Issuer within
the meaning of either the Securities Act or the Exchange Act, each officer of the Issuer
who shall have signed the Registration Statement and each director of the Issuer shall have
the same rights to contribution as the Issuer, subject in each case to the applicable terms
and conditions of this paragraph (d).

The provisions of this Section 6 will remain in full force and effect, regardless of any
investigation made by or on behalf of any Holder or the Issuer or any of the officers,
directors or controlling persons referred to in Section 6 hereof, and will survive the sale
by a Holder of Securities or such shares of Common Stock or New Securities issued upon
conversion thereof covered by a Registration Statement.

          7. Rule 144A. In the event the Issuer is not subject to Section 13 or 15(d) of the Exchange
Act, the Issuer hereby agrees with each Holder, for so long as any Transfer Restricted Securities
remain outstanding, to make available to any Holder or beneficial owner of Transfer Restricted
Securities in connection with any sale thereof and any prospective purchaser of such Transfer
Restricted Securities from such Holder or beneficial owner, the information required by Rule
144A(d)(4) under the Securities Act in order to permit resales of such Transfer Restricted
Securities pursuant to Rule 144A.

          8. Participation in Underwritten Registrations. No Holder may participate in any Underwritten
Registration hereunder unless such Holder:

     (i) agrees to sell such Holder’s Transfer Restricted Securities on the basis
provided in any underwriting arrangements approved by the Persons entitled
hereunder to approve such arrangements; and

     (ii) completes and executes all reasonable questionnaires, powers of attorney,
indemnities, underwriting agreements, lock-up letters

19

 

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

          9. Selection of Underwriters. The Holders of Transfer Restricted Securities covered by the
Shelf Registration Statement who desire to do so may sell such Transfer Restricted Securities in an
Underwritten Offering if approved by the Issuer, as provided in Section 4(b)(ii). In any such
Underwritten Offering, the investment banker or investment bankers and manager or managers that
will administer the offering will be selected by a Majority of Holders whose Transfer Restricted
Securities are included in such offering; provided, that such investment bankers and managers must
be reasonably satisfactory to the Issuer.

          10. Miscellaneous.

          (a) Remedies. The Issuer acknowledges and agrees that any failure by the Issuer to comply
with its obligations under Section 2 hereof may result in material irreparable injury to the
Initial Purchasers or the Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event of any such failure,
the Initial Purchasers or any Holder may obtain such relief as may be required to specifically
enforce the obligations of the Issuer under Section 2 hereof. The Issuer further agrees to waive
the defense in any action for specific performance that a remedy at law would be adequate.

          (b) Adjustments Affecting Transfer Restricted Securities. The Issuer shall not take any
action with the primary purpose of adversely affecting the ability of the Holders of the Transfer
Restricted Securities as a class to include such Transfer Restricted Securities in a registration
undertaken pursuant to this Agreement.

          (c) No Inconsistent Agreements. The Issuer will not, on or after the date of this Agreement,
enter into any agreement with respect to its securities that is inconsistent with the rights
granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. In
addition, the Issuer shall not, on or after the date of this Agreement, grant to any of its
security holders (other than the Holders of Transfer Restricted Securities in such capacity) the
right to include any securities in the Shelf Registration Statement provided for in this Agreement
other than the Transfer Restricted Securities. Except as disclosed in the Offering Memorandum or
the Purchase Agreement, the Issuer has not previously entered into any agreement (which has not
expired or been terminated) granting any registration rights with respect to its securities to any
Person which rights conflict with the provisions hereof.

          (d) Amendments and Waivers. Except as provided in the next paragraph, this Agreement may not
be amended, modified or supplemented, and waivers or consents to or departures from the provisions
hereof may not be given, unless the Issuer has obtained the written consent of a Majority of
Holders or such greater percentage of the Holders as required by the Indenture.

20

 

          In the event of a merger or consolidation or sale, assignment, conveyance, transfer, lease or
other disposition of all or substantially all of the properties and assets of the Issuer and its
subsidiaries on a consolidated basis, the Issuer shall procure the assumption of its obligations
under this Agreement (which it is understood and agreed shall include the registration of any other
securities into which the Securities or the Common Stock (the “New Securities”) have become
convertible on substantially the same terms as provided for the registration of the Common Stock)
by the Person (if other than the Issuer) formed by such consolidation or into which the Issuer is
merged or the Person who acquires by sale, assignment, conveyance, transfer, lease or other
disposition all or substantially all of the properties and assets of the Issuer and its
subsidiaries on a consolidated basis and this Agreement may be amended, modified or supplemented
without the consent of any Holders to provide for such assumption of the Issuer’s obligations
hereunder (including the registration of any New Securities). Without the consent of each Holder
of Securities, no amendment or modification may change the provisions relating to the payment of
Additional Interest during the pendency of a Registration Default.

          Each Holder of Transfer Restricted Securities outstanding at the time of any amendment,
modification, supplement, waiver or consent or thereafter shall be bound by any amendment,
modification, supplement, waiver or consent effected pursuant to this Section 10(d), whether or not
any notice, writing or marking indicating such amendment, modification, supplement, waiver or
consent appears on the Transfer Restricted Securities or is delivered to such Holder.

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

     (i) if to a Holder, at the address set forth on the records of the registrar
under the Indenture or the transfer agent of the Common Stock, as the case may be;

     (ii) if to the Initial Purchasers, shall be delivered or sent by mail, telex
or facsimile transmission to:

          Lehman Brothers Inc., 745 Seventh Avenue, New York, New York 10019,
Attention: Syndicate Department (Fax: 646-834-8133), with a copy, in the
case of any notice pursuant to Section 8(d), to the Director of
Litigation, Office of the General Counsel, Lehman Brothers Inc., 399 Park
Avenue, 10th Floor, New York, NY 10019 (Fax: 212-520-0421)

          with a copy to Weil, Gotshal & Manges LLP, 200 Crescent Court, Suite
300, Dallas, Texas 75201, Attention: Stuart Ogg, Esq. (Fax: 214-746-7777);
and

21

 

     (iii) if to the Issuer, shall be delivered or sent by mail, telex or facsimile
transmission to:

     1. the address of the Company set forth in the Offering Memorandum,
Attention: Bruce R. Knooihuizen, Executive Vice President and Chief
Financial Officer/Ronald L. Ripley, Vice President and Senior Corporate
Counsel (Fax: 405-529-8515)

     with a copy to Mayer, Brown, Rowe & Maw LLP, 71 South Wacker
Drive, Chicago, Illinois 60606, Attention: Paul Theiss, Esq. (Fax:
312-706-8218).

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

          (f) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of each of the parties, including without limitation and without the
need for an express assignment, subsequent Holders of Transfer Restricted Securities; provided,
however, that (i) this Agreement shall not inure to the benefit of or be binding upon a successor
or assign of a Holder unless and to the extent such successor or assign acquired Transfer
Restricted Securities from such Holder and (ii) nothing contained herein shall be deemed to permit
any assignment, transfer or other disposition of Transfer Restricted Securities in violation of the
terms of the Purchase Agreement or the Indenture. If any transferee of any Holder shall acquire
Transfer Restricted Securities, in any manner, whether by operation of law or otherwise, such
Transfer Restricted Securities shall be held subject to all of the terms of this Agreement, and by
taking and holding such Transfer Restricted Securities such person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of this Agreement.

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

          (h) Securities Held by the Issuer or Its Affiliates. Whenever the consent or approval of
Holders of a specified percentage of Transfer Restricted Securities is required hereunder, Transfer
Restricted Securities held by the Issuer or its “affiliates” (as such term is defined in Rule 405
under the Securities Act) shall not be counted in determining whether such consent or approval was
given by the Holders of such required percentage.

22

 

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

          (j) Governing Law. This Agreement shall be governed by, and construed in accordance with, the
law of the State of New York.

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

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

23

 

          In Witness Whereof, the parties have executed this Agreement as of the date first
written above.

	 	 	 	 	 
	 	Dobson Communications Corporation

 	 
	 	By:  	/s/ Ronald L. Ripley
 	 
	 	 	Name:  	Ronald L. Ripley 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	Lehman Brothers Inc.

 	 
	 	By:  	Lehman Brothers Inc.
 	 
	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                      /s/ Brian M. Reilly
 	 
	 	 	Name:  	Brian M. Reilly 	 
	 	 	For itself and as representative of the

several Initial Purchasersexv10w1

 

Exhibit 10.1

 
 
 

  

Corporate Leadership Team

Incentive Plan

  

 

As
adopted effective March 2, 2005

(Updated September 13, 2005)

 

 

Wilsons Leather

Corporate Leadership Team Incentive Plan

A.       INTRODUCTION AND PURPOSE

          This Plan has been developed to provide opportunities for Wilsons The Leather Experts Inc.
(hereinafter “Wilsons Leather”) to motivate and reward associates through annual incentive awards.
Eligible participants include the Executive Officers, all Vice Presidents, Directors and all
associates below the Director level that are designated by the Incentive Committee. Cash awards
are based on actual results measured against pre-established corporate financial objectives (the
“Annual Corporate Financial Objectives”). In addition to the Annual Corporate Financial
Objectives, each Executive Officer, unless the Compensation Committee determines otherwise, will be
subject to position-specific measures (“Annual Individual Performance Measures”) and eligible
participants other than Executive Officers also may be subject to Annual Individual Performance
Measures. Awards are paid in cash to provide an immediate reward and supplement the Wilsons
Leather base compensation program. Generally, payments are made in March or April following the
end of each Plan Year.

          This plan is intended to be as simple as possible so that the goals are very clear to all
parties. Important features of the Plan are described in this document. Any questions regarding
the interpretation of this Plan, or any details not covered in this document, will be determined by
the Incentive Committee in its sole discretion.

B.       INCENTIVE PLAN PROVISIONS

1.       ADMINISTRATION

         The Human Resources group administers the Plan. An Incentive Committee, consisting of
the Vice President-Human Resources and the Chief Executive Officer, selects the
participants in the Plan, establishes Targeted Award Amounts, as defined below, for
participants who are not Executive Officers, resolves disputes on interpretation and
application of the Plan except as otherwise provided in the Plan, and determines which
participants, in addition to Executive Officers, shall have Annual Individual Performance
Measures. The Chief Executive Officer shall determine the Annual Individual Performance
Measures for each participant (other than the Chief Executive Officer) subject to Annual
Individual Performance Measures. The Compensation Committee establishes Targeted Award
Amounts for participants at the Executive Officer level and shall determine the Annual
Individual Performance Measures for the Chief Executive Officer. The Annual Corporate
Financial Objectives for each Plan Year will be established by the Compensation Committee.

 

 

2.      TERMS OF PARTICIPATION AND PRORATIONS

         Incentive-eligible positions, Targeted Award Amounts, the Annual Corporate Financial
Objectives and any applicable Annual Individual Performance Measures will be established
and communicated, as early as practicable after the beginning of each Plan Year.

         a.       Eligibility Requirements.

         You must be actively employed by Wilsons Leather or one of its direct or
indirect subsidiaries as of the last day of the Plan Year (not the calendar year)
in order to receive an incentive award payment (“Incentive Award Payment”) for that
year. In addition, in order to receive an Incentive Award Payment for a Plan Year,
you must be in an incentive eligible position as of the last day of the Plan Year,
so that associates who transfer during a Plan Year from an incentive eligible
position to an ineligible position will receive no Incentive Award Payment for that
year. Incentive Award Payments generally will be distributed in March or April
following the close of financial records for the Plan Year.

         Associates on written warning status either at the end of the Plan Year or on
the date the Incentive Award Payment otherwise would be made will receive no
Incentive Award Payment for that Plan Year. Further, associates terminated on or
after the last day of a Plan Year but prior to the date of the Incentive Award
Payment for such Plan Year for a reason that Wilsons Leather determines to be for
cause will receive no Incentive Award Payment for that Plan Year.

         b.       Pro-rated Awards.

         Part-time associates designated by Wilsons Leather as eligible participants
will be eligible to receive a pro-rata Incentive Award Payment reflecting their
part-time status.

         Associates who become participants during a Plan Year will be eligible to
receive a pro-rated Incentive Award Payment for that year reflecting their time as
an eligible participant.

         Associates who transfer from an eligible position to another eligible position
during a Plan Year will receive a pro-rata Incentive Award Payment based on the
time spent in each of the eligible positions. In this situation, and any other
situation where adjustments in base salary occur throughout the year, the base
salary in, and Targeted Award Amount for, each position will be used to calculate
the pro-rata Incentive Award Payment reflecting time and pay in each situation.

         In each case, a pro-rated Incentive Award Payment will be paid for a Plan Year
only if all the requirements of Section B.2.a. are satisfied for that year. For
purposes of pro-rating Incentive Award Payments under the preceding two paragraphs,
a transfer or other event that occurs prior to the 15th day of a month
will be deemed to have occurred on the first

2

 

day of that month, and a transfer or other event that occurs on or after the
15th day of a month will be deemed to occur on the first day of the
following month.

         A Company-paid leave-of-absence which exceeds eight weeks will result in the
Incentive Award Payment being pro-rated to reflect time on leave which is greater
than eight weeks. An unpaid leave-of-absence will result in the Incentive Award
Payment being pro-rated for time on unpaid-leave status.

3.      PERFORMANCE MEASURES

         a.       The Annual Corporate Financial Objectives

         The Annual Corporate Financial Objectives shall be established by the Compensation
Committee after the beginning of each Plan Year and shall be based on operating profit as
determined in accordance with generally accepted accounting principles (after reduction for
bonus expense and related taxes) or on such alternative performance measures as the
Compensation Committee shall determine after the beginning of the Plan Year.

         b.       Annual Individual Performance Measures.

         The Chief Executive Officer shall establish Annual Individual Performance Measures
after the beginning of the Plan Year for each other Executive Officer, unless the
Compensation Committee determines otherwise, and, in addition, for each eligible
participant other than an Executive Officer that the Incentive Committee determines should
be subject to Annual Individual Performance Measures. The Compensation Committee shall
establish Annual Individual Performance Measures after the beginning of the Plan Year for
the Chief Executive Officer. The Annual Individual Performance Measures may be objective,
subjective or a combination of objective and subjective Annual Individual Performance
Measures that shall be weighted in such manner as shall be determined by the Chief
Executive Officer (or, with respect to Annual Individual Performance Measures for the Chief
Executive Officer, as shall be determined by the Compensation Committee), provided that
Annual Individual Performance Measures for eligible associates on the merchant staff
(“Merchant Associates”) shall be based on performance against Wilsons Leather’s gross
margin plan (as described in Section B.4.d.).

         c.       Purpose of Performance Measures

         The performance measures will be established with the intent to motivate and reward
our associates for contributions that successfully drive Wilsons Leather’s businesses.

         d.       Communication

         A personalized award sheet will be provided to each participant, which outlines the
basis upon which incentives will be awarded.

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4.      INCENTIVE AWARD PAYMENTS

         a.       Targeted Award Amount

         A targeted award amount (“Targeted Award Amount”) shall be established as provided in
Section B.1. for each participant each Plan Year, expressed as a percentage of base salary,
as early as practicable after the beginning of the Plan Year. While your Targeted Award
Amount communicated to you as early as practicable after the beginning of each Plan Year is
based on your base salary established during the annual review process conducted by Wilsons
Leather as early as practicable after the beginning of the Plan Year, your actual Incentive
Award Payment will reflect any changes in your base salary during the Plan Year (subject to
the pro-ration provisions set forth in Section B.2.b).

         Your Targeted Award Amount is the amount of your Incentive Award Payment which will be
earned by you with respect to a Plan Year (assuming no change in your base salary and no
transfer between positions during the year) if 100% of the Annual Corporate Financial
Objectives are achieved, 100% of your Annual Individual Performance Measures, if any, are
met, and if the other conditions to your receipt of your Incentive Award Payment set forth
in or established pursuant to this Plan are satisfied.

         b.       Effect on Incentive Award Payments if Annual Corporate
Financial Objectives are Not Achieved

         If less than 90% of the Annual Corporate Financial Objectives are achieved, no
Incentive Award Payment will be made under the Plan to any participant other than eligible
Merchant Associates, whose Incentive Award Payment shall be determined pursuant to Section
B.4.d. If 90% or more, but less than 100%, of the Annual Corporate Financial Objectives
are achieved, the percentage of the Targeted Award Amount that an eligible participant will
receive for that Plan Year as an Incentive Award Payment shall be determined on a sliding
scale established by the Chief Executive Officer and approved by the Compensation Committee
as early as practicable after the beginning of the Plan Year, subject to reduction as
provided in Section B.4.c. and, with respect to Merchant Associates, subject to reduction
or addition as provided in Section B.4.d. If 100% or more of the Annual Corporate
Financial Objectives are achieved, an eligible participant will receive as an Incentive
Award Payment 100% of the Targeted Award Amount, subject to reduction as provided in
Section B.4.c. and, with respect to Merchant Associates, subject to reduction or addition
as provided in Section B.4.d. In no event will the Incentive Award Payment to a
participant for a Plan Year exceed the Participant’s Targeted Award Amount for the Plan
Year (except as otherwise provided in Section B.4.d. with respect to Merchant Associates)
and all Incentive Award Payments shall be subject to reduction as provided in Section
B.4.c. if the Annual Individual Performance Measures of the applicable participant, if any,
are not achieved, or to reduction or addition as provided in Section B.4.d. with respect to
Merchant Associates, and to Section B.2. The Compensation Committee shall determine the
percentage of the Annual Corporate Financial Objectives that have been achieved for a Plan
Year, which determination shall be final and binding.

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         c.       Reductions if Annual Individual Performance Measures Are Not
Achieved

         This Section B.4.c. applies only to eligible participants (except Merchant Associates)
who are subject to Annual Individual Performance Measures. With respect to each Executive
Officer (other than the Chief Executive Officer or as otherwise determined by the
Compensation Committee) and each other eligible participant (other than a Merchant
Associate) that the Incentive Committee determines should be subject to Annual Individual
Performance Measures, the Chief Executive Officer after the beginning of each Plan Year
shall establish Annual Individual Performance Measures and a weighting of the Annual
Individual Performance Measures. After the end of the Plan Year, the Chief Executive
Officer shall determine the composite percentage of the Annual Individual Performance
Measures that a participant achieved, which determination shall be final and binding. The
Chief Executive Officer’s Annual Individual Performance Measures shall be established by
the Compensation Committee after the beginning of each Plan Year and weighted by the
Compensation Committee. After the end of the Plan Year, the Compensation Committee shall
determine the composite percentage of the Annual Individual Performance Measures that the
Chief Executive Officer achieved, which determination shall be final and binding. That
percentage so determined by the Chief Executive Officer (or, with respect to the Annual
Individual Performance Measures for the Chief Executive Officer, by the Compensation
Committee) shall be multiplied by 40% of the Incentive Award Payment that participant would
have received under Section B.4.b. (i.e., based upon the extent to which the Annual
Corporate Financial Objectives were achieved) if 100% of the Annual Individual Performance
Measures had been achieved, and the product of such multiplication shall be added to 60% of
the Incentive Award Payment that participant would have received under Section B.4.b.
(i.e., based upon the extent to which the Annual Corporate Financial Objectives were
achieved) if 100% of the Annual Individual Performance Measures had been achieved (subject
to further pro-ration or elimination, if any, provided for in Section B.2.) to determine
the participant’s Incentive Award Payment for that Plan Year.

         d.       Modification of Incentive Award Payments for Merchant Associates

         This Section B.4.d. applies only to Merchant Associates. With respect to eligible
Merchant Associates, the Incentive Award Payment shall be determined pursuant to this
Section B.4.d., and Section B.4.c. shall not be applicable notwithstanding anything to the
contrary provided in any other Section or Subsection of this Plan. The Chief Executive
Officer after the beginning of the Plan Year shall establish Annual Individual Performance
Measures, if any, for the Merchant Associates based on performance against Wilsons
Leather’s gross margin plan, which gross margin plan may be based on gross margin dollars,
gross margin return on inventory or such other gross margin objectives as the Compensation
Committee may determine and may be a Company gross margin plan or a business unit gross
margin plan applicable to Merchant Associates in that unit, as determined by the
Compensation Committee. As soon as practical after the beginning of the Plan Year, the
Incentive Committee shall determine the

5

 

percentage of the Incentive Award Payment for Merchant Associates that shall be based
on the achievement of Annual Corporate Financial Objectives (the “Corporate Objectives
Percentage”) and the percentage of the Incentive Award Payment for Merchant Associates that
shall be based on the achievement of the Annual Individual Performance Measures, if any,
(the “Gross Margin Percentage”). The sum of the Corporate Objectives Percentage and the
Gross Margin Percentage shall equal 100%. The Incentive Award Payment for each eligible
Merchant Associate for a Plan Year shall consist of two components: (i) the Corporate
Objectives Percentage multiplied by 100% of the Incentive Award Payment the Merchant
Associate would have received pursuant to Section B.4.b. (i.e., based upon the extent to
which the Annual Corporate Financial Objectives were achieved) if the Merchant Associate
had not been subject to Annual Individual Performance Measures, and (ii) the Gross Margin
Percentage multiplied by the Merchant Specific Amount. For this purpose, the Merchant
Specific Amount shall be 0 if Wilsons Leather’s gross margin plan is not achieved for the
Plan Year, 100% of the participant’s Targeted Award Amount if Wilsons Leather’s gross
margin plan is achieved but not exceeded for the Plan Year and a percentage of the Targeted
Award Amount determined pursuant to the sliding scale established by the Chief Executive
Officer and approved by the Compensation Committee as early as practical after the
beginning of the Plan Year (not less than 100% of the participant’s Targeted Award Amount
and not to exceed 150% of the participant’s Targeted Award Amount) if Wilsons Leather’s
gross margin plan is exceeded for the Plan Year. Notwithstanding the foregoing, the
Merchant Specific Amount may be reduced in the discretion of the Incentive Committee after
the end of the Plan Year to the extent determined by the Incentive Committee if Wilsons
Leather’s inventory levels exceed those provided in Wilsons Leather’s plan.

         e.       Incentive Award Payments in Addition to Pool Payments

         The Incentive Award Payments made pursuant to this Section B.4. are in addition to the
Incentive Pool payments to be made pursuant to Section B.5.

5.      Pool Payments

         a.       Total Pool

         To the extent that more than 100% of the Annual Corporate Financial Objectives are
achieved in a Plan Year, 20% of the excess shall constitute the incentive pool (the
“Incentive Pool”). Not more than the amount of the Incentive Pool shall be distributed
among the eligible participants pursuant to this Section B.5. For purposes of this Section
B.5.a., the amount of the distributions among the eligible participants shall be deemed to
include all payroll taxes of Wilsons Leather. The only Executive Officers who shall
receive distributions from the Incentive Pool for a Plan Year are Executive Officers who
also receive Incentive Award Payments for that Plan Year under Section B.4, unless
otherwise provided by the Compensation Committee. The only participants other than
Executive Officers who shall receive distributions from the Incentive Pool for a Plan Year
are participants who also receive Incentive Award Payments for that Plan Year under Section
B.4, unless otherwise provided by the Incentive Committee.

6

 

         b.       Distribution Among Participants

         As soon as practicable after the later of beginning of the Plan Year or the date a
person becomes an eligible participant, the Incentive Committee shall establish an amount
in dollars that the eligible participant shall be entitled to receive from the Incentive
Pool for that Plan Year for each $1,000,000 in excess of Annual Corporate Financial
Objectives for that Plan Year (pro-rated for amounts that are less than $1,000,000). With
respect to Executive Officers, such amounts shall be approved by the Compensation
Committee. The Incentive Committee shall have discretion to adjust such dollar amounts in
the event of promotions, changes from part-time status to full-time status, from full-time
status to part-time status or changes in part-time status, but shall not be required to do
so. The initial dollar amounts for distribution from the Incentive Pool to each eligible
participant in the event the Annual Corporate Financial Objectives are exceeded shall be
included in the personalized award sheet provided to each participant. Notwithstanding
anything herein stated, (i) no participant will be entitled to any distribution from the
Incentive Pool for a Plan Year in which the participant does not receive an Incentive Award
Payment, unless otherwise provided by the Compensation Committee or the Incentive
Committee, as applicable, (ii) if the total distributions to be made pursuant to this
Section B.5. would otherwise exceed the amount of the Incentive Pool, the distributions
will be pro-rated among the eligible participants based on ratios equal to what they would
have received if the Incentive Pool had not been capped at 20% of the amount in excess of
100% of the Annual Corporate Financial Objectives, and (iii) distributions to a participant
from the Incentive Pool shall be limited by Section B.6. Total distributions pursuant to
this Section B.5. may be less than, but not more than, the total amount of the Incentive
Pool.

6.      Maximum Payment

         Notwithstanding anything to the contrary provided in this Plan, the total payment for
any Plan Year to any participant under this Plan (the sum of the participant’s Incentive
Plan Award and the payment to the participant from the Incentive Pool) shall not exceed
200% of the participant’s base salary established during the annual review process
conducted by Wilsons Leather as early as practicable after the beginning of the year,
adjusted to reflect any changes in a participant’s base salary during the Plan Year
(subject to the pro-ration provisions set forth in Section B.2.b.).

7.      General Provisions

         a.       Plan Year

         This Plan operates on a “Plan Year” that ends on the Saturday nearest January
31st of each year.

7

 

         b.       Tax Withholding

         Wilsons Leather may withhold from any payment to a participant under this Plan an
amount sufficient to cover any required withholding taxes, including the participant’s
social security and Medicare taxes (FICA) and federal, state and local income taxes with
respect to income arising from the payment. All amounts withheld shall be treated for
purposes of this Plan as payments or distributions to the participant with respect to whom
the withholding was made by Wilsons Leather.

C.       RIGHTS OF THE PARTICIPANT

          This Plan is not an employment agreement and does not ensure or evidence to any degree the
continued employment of any participant for any time, period or position. If a participant is
covered by a written employment agreement that specifically refers to this Plan, the participant’s
rights and benefits shall be governed by the terms of the employment agreement to the extent
inconsistent with this Plan.

          No participant shall, by virtue of this Plan, have any interest in any specific asset or
assets of Wilsons Leather or any of its direct or indirect subsidiaries. A participant has only an
unsecured right to receive an Incentive Award Payment and payment from the Incentive Pool, if any,
in accordance with, and at the time specified by, the Plan.

D.       RIGHTS OF WILSONS LEATHER

          Wilsons Leather reserves the right to change, amend, or terminate this Plan at any time, with
or without notice to participants. Any changes, amendments or Plan termination may be made only by
the Board of Directors of Wilsons Leather (the “Board”) or delegated by the Board by express
delegation to the Compensation Committee.

8

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