Document:

Exhibit 10.3

 

AMENDED AND RESTATED 2004 STOCK INCENTIVE PLAN

 

1.                                                    Purpose

 

The
purpose of this Amended and Restated 2004 Stock Incentive Plan (the “Plan”) of
Staples, Inc., a Delaware corporation (the “Company”), is to advance the
interests of the Company’s stockholders by enhancing the Company’s ability to
attract, retain and motivate persons who make (or are expected to make)
important contributions to the Company by providing such persons with equity
ownership opportunities and performance-based incentives and thereby better
aligning the interests of such persons with those of the Company’s
stockholders. Except where the context otherwise requires, the term “Company”
shall include any of the Company’s present or future parent or subsidiary
corporations as defined in Sections 424(e) or (f) of the
Internal Revenue Code of 1986, as amended, and any regulations promulgated
thereunder (the “Code”), and any other business venture (including, without
limitation, joint venture or limited liability company) in which the Company
has a controlling interest, as determined by the Board of Directors of the
Company (the “Board”).

 

2.                                                    Eligibility

 

All
of the Company’s employees, officers, directors, consultants, advisors, and
other service providers (including persons who have entered into an agreement
with the Company under which they will be employed by the Company in the
future) are eligible to be granted options, restricted stock, restricted stock
units, stock appreciation rights or other stock-based awards (each, an “Award”)
under the Plan. Each person who has been granted an Award under the Plan shall
be deemed a “Participant”.

 

3.                                                    Administration and Delegation

 

(a)                                  Administration
by Board of Directors. The Plan will be administered by the Board.
The Board shall have authority to grant Awards and to adopt, amend and repeal
such administrative rules, guidelines and practices relating to the Plan as it
shall deem advisable. The Board may correct any defect, supply any omission or
reconcile any inconsistency in the Plan or any Award in the manner and to the
extent it shall deem expedient to carry the Plan into effect and it shall be
the sole and final judge of such expediency. All decisions by the Board shall
be made in the Board’s sole discretion and shall be final and binding on all
persons having or claiming any interest in the Plan or in any Award. No
director or person acting pursuant to the authority delegated by the Board
shall be liable for any action or determination relating to or under the Plan
made in good faith.

 

(b)                                 Appointment
of Committees. To the extent permitted by applicable law, the
Board may delegate any or all of its powers under the Plan to one or more
committees or subcommittees of the Board (a “Committee”). Unless otherwise
determined by the Board, if a Committee is authorized to grant Awards to a
Covered Employee (as defined in Section 162(m) of the Code), such
Committee shall be comprised solely of two or more “outside directors” within
the meaning of Section 162(m) of the Code. All references in the Plan
to the “Board” shall mean the Board or a Committee of the Board or the officers
referred to in Section 3(c) to the extent that the Board’s powers or
authority under the Plan have been delegated to such Committee or officers.

 

(c)                                  Delegation
to Officers. To the extent permitted by applicable law, the
Board may delegate to one or more officers of the Company the power to grant
Awards to employees or officers of the Company or any of its present or future
subsidiary corporations and to exercise such other powers under the Plan as the
Board may determine, provided that the Board shall fix the terms of the Awards
to be granted by such officers (including the exercise price of such Awards,
which may include a formula by which the exercise price will be determined) and
the maximum number of shares subject to Awards that the officers may grant;
provided further, however, that no officer shall be authorized to grant Awards
to himself or herself or to any “executive officer” of the Company (as defined
by Rule 3b-7 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) or to any 

 

 

“officer”
of the Company (as defined by Rule 16a-1 under the Exchange Act).

 

4.                                                    Available for Awards

 

(a)                                  Number
of Shares. Subject to adjustment under Section 9, Awards
may be made under the Plan for up to 97,430,000 shares of common stock, $.0006
par value per share, of the Company (the “Common Stock”). For purposes of
counting the number of shares available for the grant of Awards under the Plan,
(i) shares of Common Stock covered by independent SARs shall be counted
against the number of shares available for the grant of Awards under the Plan; (ii) if
any Award (A) expires or is terminated, surrendered or canceled without
having been fully exercised or is forfeited in whole or in part (including as
the result of shares of Common Stock subject to such Award being repurchased by
the Company at the original issuance price pursuant to a contractual repurchase
right) or (B) results in any Common Stock not being issued because the
Award (other than a SAR) is settled for cash, the unused Common Stock covered
by such Award (other than a SAR) shall again be available for the grant of
Awards under the Plan; provided, however, in the case of Incentive Stock
Options (as hereinafter defined), the foregoing shall be subject to any
limitations under the Code; and (iii) shares of Common Stock tendered to
the Company by a Participant to (A) purchase shares of Common Stock upon
the exercise of an Award or (B) satisfy tax withholding obligations
(including shares retained from the Award creating the tax obligation) shall
not be added back to the number of shares available for the future grant of
Awards under the Plan.

 

In
addition, if any option or restricted stock award granted under the 1992 Plan
expires, is terminated, surrendered or canceled without having been fully
exercised, is forfeited in whole or in part (including as the result of shares
of Common Stock subject to such restricted stock award being repurchased by the
Company at the original issuance price pursuant to a contractual repurchase
right), then in each such case the unused Common Stock covered by such option
or restricted stock award shall be available for the grant of Awards under the
Plan, subject, however, in the case of Incentive Stock Options, to any
limitations under the Code; and further provided that shares of Common Stock
tendered to the Company to (A) purchase shares of Common Stock upon the
exercise of any such option or (B) satisfy tax withholding obligations
(including shares retained from the option or restricted stock award creating
the tax obligation) shall not be added back to the number of shares available
for the future grant of Awards under the Plan and that the aggregate number of
shares of Common Stock available for grant of Awards pursuant to this sentence
shall not exceed 51,000,000. Shares issued under the Plan may consist in whole
or in part of authorized but unissued shares or treasury shares.

 

(b)                                 Sub-limits. Subject to
adjustment under Section 9, the following sub-limits on the number of
shares of Common Stock subject to Awards shall apply:

 

(1)                                 Section 162(m) Per-Participant
Limit. The maximum number of shares of Common Stock with respect to which
Awards may be granted to any Participant under the Plan in any calendar year
shall be 3,450,000. The per-Participant limit described in this Section 4(b)(1) shall
be construed and applied consistently with Section 162(m) of the Code
(“Section 162(m)”).

 

(2)                                 Limit
on Awards other than Options and SARs. The maximum number of
shares with respect to which Awards other than Options and SARs may be granted
shall be one-half of the total number of shares of Common Stock covered by the
Plan (including any shares that may become available under this Plan pursuant
to Section 4(a)(2) hereof).

 

(3)                                 Limits
on Awards to Directors. The maximum number of shares with respect to
which Awards may be granted during the term of the Plan to directors who are
not employees of the Company shall be 2,000,000 and the maximum number of
shares of Common stock with respect to which Awards may be granted in any
calendar year to any director who is not an employee of the Company shall be
150,000.

 

 

5.                                                    Stock Options

 

(a)                                  General. The Board may
grant options to purchase Common Stock (each, an “Option”) and determine the
number of shares of Common Stock to be covered by each Option, the exercise
price of each Option and the conditions and limitations applicable to the
exercise of each Option, including conditions relating to applicable federal or
state securities laws, as it considers necessary or advisable. An Option which
is not intended to be an Incentive Stock Option (as hereinafter defined) shall
be designated a “Nonstatutory Stock Option”.

 

(b)                                 Incentive
Stock Options. An Option that the Board intends to be an “incentive
stock option” as defined in Section 422 of the Code (an “Incentive Stock
Option”) shall only be granted to employees of Staples, Inc., any of
Staples, Inc.’s present or future parent or subsidiary corporations as defined
in Sections 424(e) or (f) of the Code, and any other entities
the employees of which are eligible to receive Incentive Stock Options under
the Code, and shall be subject to and shall be construed consistently with the
requirements of Section 422 of the Code. The Company shall have no
liability to a Participant, or any other party, if an Option (or any part
thereof) that is intended to be an Incentive Stock Option is not an Incentive
Stock Option.

 

(c)                                  Exercise
Price. The Board shall establish the exercise price at the time each Option
is granted and specify it in the applicable option agreement; provided,
however, that the exercise price shall be not less than 100% of the fair market
value (the “Fair Market Value”) of the Common Stock, as determined by the
Board, at the time the Option is granted.

 

(d)                                 No
Reload Rights. Options granted under this Plan shall not contain
any provision entitling the optionee to the automatic grant of additional
Options in connection with any exercise of the original Option.

 

(e)                                  No
Repricing. Unless such action is approved by the Company’s
stockholders: (i) no outstanding Option granted under the Plan may be
amended to provide an exercise price per share that is lower than the
then-current exercise price per share of such outstanding Option (other than
adjustments pursuant to Section 9), and (ii) the Board may not cancel
any outstanding Option and grant in substitution therefor new Options under the
Plan covering the same or a different number of shares of Common Stock and having
an exercise price per share lower than the then-current exercise price per
share of the cancelled Option.

 

(f)                                    Duration
of Options. Each Option shall be exercisable at such times and
subject to such terms and conditions as the Board may specify in the applicable
option agreement provided, however, that no Option will be granted for a term
in excess of 10 years.

 

(g)                                 Exercise
of Option. Options may be exercised by delivery to the Company
of a written notice of exercise signed by the proper person or by any other
form of notice (including electronic notice) approved by the Company, together
with payment in full as specified in Section 5(h) for the number of
shares for which the Option is exercised. Shares of Common Stock subject to the
Option will be delivered by the Company following exercise either as soon as
practicable or, to the extent permitted by the Company in its sole discretion,
on a deferred basis in compliance with Section 409A of the Code (with the
Company’s obligation to be evidenced by an instrument providing for future
delivery of the deferred shares at the time or times specified by the Board).

 

(h)                                 Payment
Upon Exercise. Common Stock purchased upon the exercise of an
Option granted under the Plan shall be paid for as follows:

 

(1)                                 in cash or by
check, payable to the order of the Company;

 

(2)                                 except as the
Board may, in its sole discretion, otherwise provide in an option agreement, by
(i) delivery of an irrevocable and unconditional undertaking by a
creditworthy broker to deliver promptly to the Company sufficient funds to pay
the exercise price and any required tax withholding or (ii) delivery by
the Participant to the Company of a copy of irrevocable and unconditional
instructions to a creditworthy broker to promptly pay to the Company the
exercise price and any required tax withholding;

 

 

(3)                                 if provided for
in the option agreement or approved by the Company, in its sole discretion, by
delivery (either by actual delivery or attestation) of shares of Common Stock
owned by the Participant valued at their Fair Market Value, provided (i) such
method of payment is then permitted under applicable law, (ii) such Common
Stock, if acquired directly from the Company was owned by the Participant for
such minimum period of time, if any, as may be established by the Board in its
discretion, and (iii) such Common Stock is not subject to any repurchase,
forfeiture, unfulfilled vesting or other similar requirements;

 

(4)                                 if provided for
in the option agreement or approved by the Company, in its sole discretion, by
payment of such other lawful consideration as the Board may determine, but in
no event may such consideration include delivery of a promissory note of the
Participant to the Company; or

 

(5)                                 by any
combination of the above permitted forms of payment.

 

(i)                                     Substitute
Options. In connection with a merger or consolidation of an
entity with the Company or the acquisition by the Company of property or stock
of an entity, the Board may grant Options in substitution for any options or
other stock or stock-based awards granted by such entity or an affiliate
thereof. Substitute Options may be granted pursuant to this Section 5(i) on
such terms as the Board deems appropriate in the circumstances, notwithstanding
any limitations on Options contained in the other sections of this Section 5
or in Section 2, so long as (a) the excess of the aggregate fair
market value of the shares subject to each substituted option immediately after
the issuance of such substituted option over the aggregate exercise price of such
option does not exceed the excess of the aggregate fair market value of all
shares subject to the original option immediately before the issuance of such
substituted option over the aggregate exercise price of the original option and
(b) the ratio of the option exercise price to the fair market value of the
stock for the substitute option is not greater than the ratio of the option
exercise price to the fair market value of the original option immediately
before such substitution.

 

(j)                                     Amendment
of Options. Subject to the provisions of Section 10(f),
the Board may amend an Option to convert it into a Stock Appreciation Right.

 

6.                                                    Stock Appreciation Rights

 

(a)                                  Nature
of Stock Appreciation Rights. A Stock Appreciation Right,
or SAR, is an Award entitling the holder on exercise to receive an amount in
cash or Common Stock or a combination thereof (such form to be determined by
the Board) determined solely by reference to appreciation, from and after the
date of grant, in the fair market value of a share of Common Stock. The date as
of which such appreciation or other measure is determined shall be the exercise
date unless another date is specified by the Board.

 

(b)                                 Grant
of Stock Appreciation Rights. Stock Appreciation Rights
may be granted in tandem with, or independently of, Options granted under the
Plan.

 

(1)                                 Rules Applicable
to Tandem Awards. When Stock Appreciation Rights are granted in
tandem with Options, (a) the Stock Appreciation Right will be exercisable
only at such time or times, and to the extent, that the related Option is
exercisable (except to the extent designated by the Board in connection with an
Acquisition Event or a Change in Control Event) and will be exercisable in
accordance with the procedure required for exercise of the related Option; (b) the
Stock Appreciation Right will terminate and no longer be exercisable upon the
termination or exercise of the related Option, except to the extent designated
by the Board in connection with an Acquisition Event or a Change in Control
Event and except that a Stock Appreciation Right granted with respect to less
than the full number of shares covered by an Option will not be reduced until
the number of shares as to which the related Option has been exercised or has
terminated exceeds the number of shares not covered by the Stock Appreciation
Right; (c) the Option will terminate and no longer be exercisable upon the
exercise of the related Stock Appreciation Right; and (d) the Stock
Appreciation Right will be transferable only with the related 

 

 

Option.

 

(2)                                 Exercise
of Independent Stock Appreciation Rights. A Stock Appreciation Right
not granted in tandem with an Option will become exercisable at such time or
times, and on such conditions, as the Board may specify. The Board may at any
time accelerate the time at which all or any part of the Right may be
exercised.

 

(c)                                        Exercise
of Stock Appreciation Rights. Stock Appreciation Rights
may be exercised by delivery to the Company of a written notice of exercise
signed by the proper person or by any other form of notice (including
electronic notice) approved by the Company.

 

7.                                                    Restricted Stock; Restricted Stock Units

 

(a)                                  Grants. The Board may
grant Awards entitling recipients to acquire shares of Common Stock (“Restricted
Stock”), subject to the right of the Company to repurchase all or part of such
shares at their issue price or other stated or formula price (or to require
forfeiture of such shares if issued at no cost) from the recipient in the event
that conditions specified by the Board in the applicable Award are not
satisfied prior to the end of the applicable restriction period or periods
established by the Board for such Award. Instead of granting Awards for
Restricted Stock, the Board may grant Awards entitling the recipient to receive
shares of Common Stock to be delivered in the future (“Restricted Stock Units”)
subject to such terms and conditions on the delivery of the shares of Common
Stock as the Board shall determine (each Award for Restricted Stock or
Restricted Stock Units, a “Restricted Stock Award”).

 

(b)                                 Terms
and Conditions. The Board shall determine the terms and conditions
of any such Restricted Stock Award, including the conditions for repurchase (or
forfeiture) and the issue price, if any.

 

(c)                                  Limitations
on Vesting. Restricted Stock Awards that vest based on the
passage of time alone shall be zero percent vested prior to the first
anniversary of the date of grant, no more than 33 1/3 % vested after the said
first anniversary of the date of grant and before the second anniversary of the
date of grant, and no more than 66 2/3 % vested after the second anniversary of
the date of grant and before the third anniversary of the date of grant.
Restricted Stock Awards that vest based on performance alone shall not vest
earlier than the first anniversary of the date of grant. Restricted Stock
Awards that vest upon the passage of time and provide for accelerated vesting
based on performance shall not vest earlier than the first anniversary of the
date of grant. Notwithstanding the preceding provisions of this Section 7(c)(1),
the Board may grant Restricted Stock Awards that are not subject to any
limitations on vesting with respect to up to 5% of the total number of shares
of Common Stock covered by the Plan (excluding any shares that may become
available under this Plan pursuant to Section 4(a)(2) hereof).

 

Notwithstanding
any other provision of this Plan, the Board may, in its discretion, either at
the time a Restricted Stock Award is made or at any time thereafter, waive its
right to repurchase shares of Common Stock (or waive the forfeiture thereof) or
remove or modify any part or all of the restrictions applicable to the
Restricted Stock Award, provided that the Board may only exercise such rights
in extraordinary circumstances which shall include, without limitation, death
or disability of the Participant; estate planning needs of the Participant; a
merger, consolidation, sale, reorganization, recapitalization, or change in
control of the Company; or any other nonrecurring significant event affecting
the Company, a Participant or the Plan.

 

8.                                                    Other Stock-Based Awards

 

Other
Awards of shares of Common Stock and other Awards that are valued in whole or
in part by reference to, or are otherwise based on, shares of Common Stock or
other property, including without limitation rights to purchase shares of
Common Stock (“Other Stock Unit Awards”), may be granted hereunder to
Participants. Such Other Stock Unit Awards shall also be available as a form of
payment in the settlement of other Awards granted under the Plan or as payment
in lieu of compensation to which a Participant is otherwise entitled. 

 

 

Other
Stock Unit Awards may be paid in shares of Common Stock or cash, as the Board
shall determine. Subject to the provisions of the Plan, the Board shall
determine the conditions of each Other Stock Unit Awards, including any
purchase price applicable thereto; provided, however, that the limitations on
vesting and exceptions thereto contained in Section 7(c)(1) of the
Plan shall also apply to all Other Stock Unit Awards.

 

9.                                                    Adjustments for Changes in Common Stock and Certain Other Events

 

(a)                                  Changes
in Capitalization. In the event of any stock split, reverse stock
split, stock dividend, recapitalization, combination of shares,
reclassification of shares, spin-off or other similar change in capitalization
or event, or any distribution to holders of Common Stock other than an ordinary
cash dividend, (i) the number and class of securities available under this
Plan, (ii) the sub-limits set forth in Section 4(b), (iii) the
number and class of securities and exercise price per share subject to each
outstanding Option, (iv) the repurchase price per share subject to each
outstanding Restricted Stock Award and (v) the terms of each other
outstanding stock-based Award shall be adjusted by the Company in the same
proportion (or substituted Awards may be made, if applicable). If this Section 9(a) applies
and Section 9(c) also applies to any event, Section 9(c) shall
be applicable to such event, and this Section 9(a) shall not be
applicable.

 

(b)                                 Liquidation
or Dissolution. In the event of a proposed liquidation or
dissolution of the Company, the Board shall upon written notice to the
Participants provide that all then unexercised Options will (i) become
exercisable in full as of a specified time at least 10 business days prior to
the effective date of such liquidation or dissolution and (ii) terminate
effective upon such liquidation or dissolution, except to the extent exercised
before such effective date. The Board may specify the effect of a liquidation
or dissolution on any Restricted Stock Award granted under the Plan at the time
of the grant.

 

(c)                                  Reorganization
Events.

 

(1)                            Definition. A “Reorganization
Event” shall mean: (a) any merger or consolidation of the Company with or
into another entity as a result of which all of the outstanding shares of
Common Stock are converted into or exchanged for the right to receive cash,
securities or other property or (b) any exchange of all of the Common
Stock for cash, securities or other property pursuant to a share exchange
transaction.

 

(2)                            Consequences
of a Reorganization Event on Awards. In connection with a
Reorganization Event, the Board shall take any one or more of the following
actions as to all or any outstanding Awards on such terms as the Board
determines: (i) provide that Awards shall be assumed, or substantially
equivalent Awards shall be substituted, by the acquiring or succeeding
corporation (or an affiliate thereof), (ii) upon written notice to a
Participant, provide that the Participant’s unexercised Options or other
unexercised Awards shall become exercisable in full and will terminate
immediately prior to the consummation of such Reorganization Event unless
exercised by the Participant within a specified period following the date of
such notice, (iii) in the event of a Reorganization Event under the terms
of which holders of Common Stock will receive upon consummation thereof a cash
payment for each share surrendered in the Reorganization Event (the “Acquisition
Price”), make or provide for a cash payment to a Participant equal to (A) the
Acquisition Price times the number of shares of Common Stock subject to the
Participant’s Options or other Awards (to the extent the exercise price does
not exceed the Acquisition Price) minus (B) the aggregate exercise price
of all such outstanding Options or other Awards, in exchange for the
termination of such Options or other Awards, (iv) provide that outstanding
Awards shall become exercisable or realizable, or restrictions applicable to a
Restricted Stock Award or other Award shall lapse, in whole or in part, prior
to or upon such Reorganization Event, (v) provide that, in connection with
a liquidation or dissolution of the Company, Awards shall convert into the right
to receive liquidation proceeds (if applicable, net of the exercise price
thereof) and (vi) any combination of the foregoing. To the extent all or
any portion of an Award becomes exercisable solely as a result of clause (ii) above,
the Board may provide that upon exercise of such Award the Participant shall
receive shares subject to a right of repurchase by the Company or its successor
at the Award exercise price; such repurchase right (A) shall lapse at the
same rate as the Award would have become exercisable under its terms and (B) shall
not apply to any shares subject to the Award that were exercisable under its
terms without regard to clause (ii) above.

 

 

10.                                             General Provisions Applicable to Awards

 

(a)                                  Transferability
of Awards. Awards shall not be sold, assigned, transferred,
pledged or otherwise encumbered by the person to whom they are granted, either
voluntarily or by operation of law, except by will or the laws of descent and
distribution or, other than in the case of an Incentive Stock Option, pursuant
to a qualified domestic relations order, and, during the life of the
Participant, shall be exercisable only by the Participant; provided, however,
that the Board may permit or provide in an Award for the gratuitous transfer of
the Award by the Participant to or for the benefit of any immediate family
member, family trust or family partnership established solely for the benefit
of the Participant and/or an immediate family member thereof if, with respect
to such proposed transferee, the Company would be eligible to use a Form S-8
for the registration of the sale of the Common Stock subject to such Award
under the Securities Act of 1933, as amended; provided, further, that the
Company shall not be required to recognize any such transfer until such time as
the Participant and such permitted transferee shall, as a condition to such
transfer, deliver to the Company a written instrument in form and substance
satisfactory to the Company confirming that such transferee shall be bound by
all of the terms and conditions of the Award. References to a Participant, to
the extent relevant in the context, shall include references to authorized
transferees.

 

(b)                                 Documentation. Each Award
shall be evidenced in such form (written, electronic or otherwise) as the Board
shall determine. Each Award may contain terms and conditions in addition to
those set forth in the Plan.

 

(c)                                  Board
Discretion. Except as otherwise provided by the Plan, each
Award may be made alone or in addition or in relation to any other Award. The
terms of each Award need not be identical, and the Board need not treat
Participants uniformly.

 

(d)                                 Termination
of Status. The Board shall determine the effect on an Award of
the disability, death, retirement, authorized leave of absence or other change
in the employment or other status of a Participant and the extent to which, and
the period during which, the Participant, the Participant’s legal
representative, conservator or guardian may exercise rights under the Award.

 

(e)                                  Withholding. The Company
may require each Participant to pay to the Company, or make provision
satisfactory to the Company for payment of, an amount sufficient to pay any
taxes, social security contributions, or other similar amounts required by law
to be withheld in connection with an Award to such Participant. If provided for
in an Award or approved by the Company, in its sole discretion, a Participant
may satisfy such tax obligations in whole or in part by delivery of shares of
Common Stock, including shares retained from the Award creating the tax
obligation, valued at their Fair Market Value; provided, however, that except
as otherwise provided by the Board, the total tax withholding where stock is
being used to satisfy such tax obligations cannot exceed the Company’s minimum
statutory withholding obligations (based on minimum statutory withholding rates
for federal and state tax purposes, including payroll taxes, that are
applicable to such supplemental taxable income). Shares surrendered to satisfy
tax withholding requirements cannot be subject to any repurchase, forfeiture,
unfulfilled vesting or other similar requirements. The Company may, to the
extent permitted by law, deduct any such tax obligations from any payment of
any kind otherwise due to a Participant.

 

(f)                                    Amendment
of Award. Except as prohibited by Section 5(e), the
Board may amend, modify or terminate any outstanding Award, including but not
limited to, substituting therefor another Award of the same or a different
type, changing the date of exercise or realization, converting an Incentive
Stock Option to a Nonstatutory Stock Option and converting an Option into a
SAR, provided that, in each such case, the Participant’s consent to such action
shall be required unless the Board determines that the action, taking into
account any related action, would not materially and adversely affect the
Participant.

 

(g)                                 Conditions
on Delivery of Stock. The Company will not be obligated to deliver
any shares of 

 

 

Common
Stock pursuant to the Plan or to remove restrictions from shares previously
delivered under the Plan until (i) all conditions of the Award have been
met or removed to the satisfaction of the Company, (ii) in the opinion of
the Company’s counsel, all other legal matters in connection with the issuance
and delivery of such shares have been satisfied, including any applicable
securities laws and any applicable stock exchange or stock market rules and
regulations, and (iii) the Participant has executed and delivered to the
Company such representations or agreements as the Company may consider
appropriate to satisfy the requirements of any applicable laws, rules or
regulations.

 

(h)                                 Acceleration. The Board may
at any time provide that any Award shall become immediately exercisable in full
or in part, free of some or all restrictions or conditions, or otherwise
realizable in full or in part, as the case may be; provided, however, that this
sentence shall apply to a Restricted Stock Award only to the extent consistent
with Sections 7(c)(2) and 10(j).

 

(i)                                     Deferral. The Board may provide
in an Award or in an amendment to an Award that the Participant may elect to
defer the delivery of shares of Common Stock that would otherwise be delivered
pursuant to such Award. The Board may establish such conditions on the
Participant’s election as it deems appropriate, including provisions to obtain
compliance with Section 409A of the Code.

 

(j)                                     Performance
Conditions. Notwithstanding any other provision of the Plan, if
the Committee determines at the time a Restricted Stock Award or an Other Stock
Unit Award is granted to a Participant who is then an officer, that such
Participant is, or is likely to be as of the end of the tax year in which the
Company would claim a tax deduction in connection with such Award, a Covered
Employee (as defined in Section 162(m) of the Code), then the
Committee may provide that this Section 10(j) is applicable to such
Award.

 

If
a Restricted Stock Award or an Other Stock Unit Award is subject to this Section 10(j),
then the lapsing of restrictions thereon and the distribution of Shares
pursuant thereto, as applicable, shall be subject to the achievement of one or
more objective performance goals established by the Committee, which shall be
based on one or more of the following measures: sales, earnings per share, return
on net assets, return on equity, adjusted operating profit, free cash flow,
total shareholder return, net income and customer service levels. The Committee
may determine that special one-time or extraordinary gains and/or losses and/or
other one-time or extraordinary events should or should not be included or
considered in the calculation of such measures. In addition, customer service
target levels will be based on predetermined tests of customer service levels
such as scores on blind test (“mystery”) shopping, customer comment card
statistics, customer relations statistics (e.g., number of customer
complaints), and delivery response levels. The Committee believes that
disclosure of further detail concerning the performance criteria may be confidential
commercial or business information, the disclosure of which would adversely
affect the Company. Such performance goals may vary by Participant and may be
different for different Awards. Such performance goals shall be set by the
Committee within the time period prescribed by, and shall otherwise comply with
the requirements of, Section 162(m) of the Code, or any successor
provision thereto, and the regulations thereunder.

 

The
Committee shall have the power to impose such other restrictions on Awards
subject to this Section 10(j) as it may deem necessary or appropriate
to ensure that such Awards satisfy all requirements for “performance-based
compensation” within the meaning of Section 162(m)(4)(C) of the Code,
or any successor provision thereto.

 

11.                                             Miscellaneous

 

(a)                                  No
Right To Employment or Other Status. No person shall have any
claim or right to be granted an Award, and the grant of an Award shall not be
construed as giving a Participant the right to continued employment or any
other relationship with the Company. The Company expressly reserves the right
at any time to dismiss or otherwise terminate its relationship with a
Participant free from any liability or claim under the Plan, except as
expressly provided in the applicable Award.

 

(b)                                 No
Rights As Stockholder. Subject to the provisions of the applicable
Award, no Participant shall 

 

 

have
any rights as a stockholder with respect to any shares of Common Stock to be
distributed with respect to an Award until becoming the record holder of such
shares. Notwithstanding the foregoing, in the event the Company effects a split
of the Common Stock by means of a stock dividend and the exercise price of and
the number of shares subject to such Option are adjusted as of the date of the
distribution of the dividend (rather than as of the record date for such
dividend), then an optionee who exercises an Option between the record date and
the distribution date for such stock dividend shall be entitled to receive, on
the distribution date, the stock dividend with respect to the shares of Common
Stock acquired upon such Option exercise, notwithstanding the fact that such
shares were not outstanding as of the close of business on the record date for
such stock dividend.

 

(c)                                  Effective
Date and Term of Plan. The Plan shall become effective on the date
on which it is approved by stockholders of the Company and shall remain in full
force and effect until terminated by the Board. No Awards shall be granted
under the Plan after the completion of ten years from the date on which the
Plan is adopted or was approved by the Company’s stockholders, whichever is
earlier, but Awards previously granted may extend beyond that date.

 

(d)                                 Amendment
of Plan. The Board may amend, suspend or terminate the Plan
or any portion thereof at any time, provided that no amendment requiring the
approval of the Company’s stockholders under any applicable tax requirement,
including without limitation Sections 162(m) and 422 of the Code,
shall become effective until such approval of the Company’s stockholders is
obtained and provided further that without approval of the Company’s
stockholders, no amendment may (i) increase the number of shares
authorized under the Plan (other than pursuant to Section 9), (ii) materially
increase the benefits provided under the Plan, (iii) materially expand the
class of participants eligible to participate in the Plan, (iv) expand the
types of Awards provided under the Plan or (v) make any other changes
which require stockholder approval under the rules of the Nasdaq National
Market, Inc. No Award shall be made that is conditioned on the approval of
the Company’s stockholders of any amendment to the Plan.

 

(e)                                  Provisions
for Foreign Participants. The Board may modify the terms and
conditions of Awards granted to Participants who are foreign nationals or
employed outside the United States, establish subplans under the Plan, or adopt
such modifications or procedures as the Board may determine to be necessary or
advisable to recognize differences in laws, rules, regulations or customs of
such foreign jurisdictions with respect to tax, securities, currency, employee
benefit, accounting or other matters.

 

(f)                                    Compliance
With Code Section 409A. No Award shall provide for
deferral of compensation that does not comply with Section 409A of the
Code, unless the Board, at the time of grant, specifically provides that the
Award is not intended to comply with Section 409A of the Code.

 

(g)                                 Governing
Law. The provisions of the Plan and all Awards made hereunder shall be
governed by and interpreted in accordance with the laws of the State of
Delaware, without regard to any applicable conflicts of law.Exhibit 4.5

 

REGISTRATION RIGHTS AGREEMENT

by and among

CASELLA WASTE SYSTEMS, INC.,

 

the Guarantors listed herein

and

Banc of America Securities LLC

J.P. Morgan Securities Inc.

Calyon Securities (USA) Inc.

 

Dated as of  July 9, 2009

 

 

REGISTRATION RIGHTS
AGREEMENT

 

This Registration Rights Agreement (this “Agreement”)
is made and entered into as of July 9, 2009, by and among Casella
Waste Systems, Inc., a Delaware corporation (the “Company”), the
subsidiaries listed on the signature pages hereof (collectively, the “Guarantors”),
and Banc of America Securities LLC, J.P. Morgan Securities Inc. and Calyon
Securities (USA) Inc. (collectively, the “Initial Purchasers”), who have agreed
to purchase the Company’s 11% Senior Second Lien Notes due 2014 (the “Notes”)
pursuant to the Purchase Agreement (as defined below).

 

This Agreement is made pursuant to the purchase
agreement, dated July 1, 2009 (the “Purchase Agreement”), among the
Company, the Guarantors and the Initial Purchasers (i) for the benefit of
the Initial Purchasers and (ii) for the benefit of the Holders (as defined
herein) from time to time of the Transfer Restricted Securities (as defined
herein), including the Initial Purchasers. 
In order to induce the Initial Purchasers to purchase the Securities (as
defined herein), the Company has agreed to provide the registration rights set
forth in this Agreement.  The execution
and delivery of this Agreement is a condition to the obligations of the Initial
Purchasers set forth in Section 5(g) of the Purchase Agreement.

 

The parties hereby agree as follows:

 

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

 

Additional Interest:  As defined in Section 5
hereof.

 

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

 

Business Day:  Any day other than a Saturday, Sunday or U.S.
federal holiday or a day on which banking institutions or trust companies
located in New York, New York are authorized or obligated to be closed.

 

Closing Date:  The date of
this Agreement.

 

Commission:  The Securities
and Exchange Commission.

 

Company:  As defined in
the preamble hereto.

 

Consummate:  A registered
Exchange Offer shall be deemed “Consummated” for purposes of this Agreement
upon the occurrence of (i) the filing and effectiveness under the Securities
Act of an Exchange Offer Registration Statement relating to the Exchange
Securities to be issued in the Exchange Offer, (ii) the maintenance of
such Exchange Offer Registration Statement continuously effective and the
keeping of the Exchange Offer open for a period not less than the minimum period
required pursuant to Section 3(c) hereof, and (iii) the delivery
by the Company to the Registrar under the Indenture of Exchange Securities in
the same aggregate 

 

 

principal amount as the
aggregate principal amount of Transfer Restricted Securities that were validly
tendered (and not withdrawn) by Holders thereof pursuant to the Exchange Offer.

 

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

 

Exchange Date:  As defined in Section 3(b) hereto.

 

Exchange Offer:  The
registration by the Company under the Securities Act of the Exchange Securities
pursuant to a Registration Statement which has been declared effective by the
Commission pursuant to which the Company offers the Holders of all outstanding
Transfer Restricted Securities the opportunity to exchange all such outstanding
Transfer Restricted Securities held by such Holders for Exchange Securities in
an aggregate principal amount equal to the aggregate principal amount of the
Transfer Restricted Securities validly tendered (and not withdrawn) in such
exchange offer by such Holders.

 

Exchange Offer Registration Statement: 
The Registration Statement relating to the Exchange Securities and the
Exchange Offer, including the related Prospectus, on any form selected by the
Company, in its sole discretion, that the Company is permitted to use by the rules and
regulations of the Commission.

 

Exchange Securities:  The 11% Senior
Second Lien Notes due 2014, of the same series under the Indenture as the
Transfer Restricted Securities, to be issued to Holders in exchange for
Transfer Restricted Securities pursuant to the Exchange Offer.

 

FINRA:  The Financial
Industry Regulatory Authority, Inc.

 

Freely Tradable: 
means, with respect to a Security, a Security that at any time of
determination (i) may be resold to the public in accordance with Rule 144
under the Securities Act (“Rule 144”) by a person that is not an “affiliate”
(as defined in Rule 144 under the Securities Act) of the Company (and
whether or not the Company has failed to file any required report under the
Exchange Act), (ii) does not bear any restrictive legends relating to the
Securities Act and (iii) does not bear a restricted CUSIP number.

 

Guarantees:  As defined in
the definition of “Securities” below.

 

Guarantors:  As defined in
the preamble hereto.

 

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

 

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

 

Indenture:  The Indenture,
dated as of July 9, 2009, by and among the Company, the Guarantors and
Wilmington Trust Company, 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.

 

2

 

Initial Purchasers:  As defined in
the preamble hereto.

 

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

 

Issuer Free Writing Prospectus:  As defined in Section 4(c) hereof.

 

Notes:  As defined in
the preamble hereto.

 

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

 

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

 

Registrar:  As defined
in the Indenture.

 

Registration Default:  As defined in Section 5
hereof.

 

Registration Statement:  Any registration
statement of the Company relating to (a) an offering of Exchange
Securities pursuant to an Exchange Offer or (b) the registration for
resale of Transfer Restricted Securities pursuant to a Shelf Registration
Statement, which is filed pursuant to the provisions of this Agreement, in each
case, including the Prospectus included therein, all amendments and supplements
thereto (including post-effective amendments) and all exhibits and material
incorporated by reference therein.  If
the Company is required to file a Registration Statement pursuant to this
Agreement, it may use any form selected by the Company, in its sole discretion,
that the Company is permitted to use by the rules and regulations of the
Commission.

 

Securities:  $180,000,000
in aggregate principal amount of the Notes, and securities issued in exchange
therefor or in lieu thereof pursuant to the Indenture.  Each Security is entitled to the benefit of
the guarantees provided for in the Indenture (the “Guarantees”)
and, unless the context otherwise requires, any reference herein to a “Security”,
an “Exchange Security” or a “Transfer Restricted Security” shall include a
reference to the related Guarantees.

 

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

 

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

 

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

 

Transfer Restricted Securities:  All Securities
that are not Freely Tradable.

 

Trust Indenture Act:  The Trust
Indenture Act of 1939, as amended.

 

3

 

 

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

 

SECTION 2.           Securities Subject to this
Agreement.

 

(a)           Transfer Restricted
Securities.  The securities
entitled to the benefits of this Agreement are the Transfer Restricted
Securities, for so long as they remain such.

 

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

 

SECTION 3.           Registered Exchange Offer.

 

(a)           Notwithstanding anything to the contrary in this Section 3,
the Company and the Guarantors shall not be required to register, commence or
Consummate an Exchange Offer if all of the Securities are Freely Tradable on or
before the Exchange Date, and the requirements to register, commence and
Consummate the Exchange Offer shall terminate at such time at which all the
Securities are Freely Tradable.

 

(b)           Unless the Exchange Offer shall not be permissible under
applicable law or Commission policy, or there are no Transfer Restricted
Securities outstanding, each of the Company and the Guarantors shall (i) cause
to be filed with the Commission, an Exchange Offer Registration Statement under
the Securities Act, (ii) use commercially reasonable efforts to cause such
Registration Statement to become effective, (iii) in connection with the
foregoing, (A) file all pre-effective amendments to such Registration
Statement as may be necessary in order to cause such Registration Statement to
become effective, (B) file, if applicable, a post-effective amendment to
such Registration Statement pursuant to Rule 430A under the Securities Act
and (C) cause all necessary filings in connection with the registration
and qualification of the Exchange Securities to be made under the state
securities or blue sky laws of such jurisdictions as are necessary to permit
Consummation of the Exchange Offer, and (iv) upon the effectiveness of
such Registration Statement, promptly commence the Exchange Offer.  Each of the Company and the Guarantors shall
use commercially reasonable efforts to Consummate the Exchange Offer not later
than 366 days following the Closing Date (or if such 366th day is not a
Business Day, the next succeeding Business Day) (the “Exchange Date”).  The Exchange Offer, if required pursuant to
this Section 3(b), shall be on an appropriate form permitting registration
of the Exchange Securities to be offered in exchange for the Transfer
Restricted Securities and to permit resales of Transfer Restricted Securities
held by Broker-Dealers as contemplated by Section 3(d) hereof.

 

(c)           If an Exchange Offer Registration Statement is required to
be filed and declared effective pursuant to Section 3(b) above, the
Company and the Guarantors shall cause the Exchange Offer Registration
Statement to be effective continuously and shall keep the Exchange Offer open
for a period of not less than the minimum period required under applicable
federal and state securities laws to Consummate the Exchange Offer; provided, however, that
in no event 

 

4

 

shall such period be less than 30 days after
the date notice of the Exchange Offer is mailed to the Holders.  The Company shall cause the Exchange Offer to
comply with all applicable federal and state securities laws.  No securities other than the Exchange
Securities shall be included in the Exchange Offer Registration Statement.  The Company shall use commercially reasonable
efforts to cause the Exchange Offer to be Consummated by the Exchange Date.

 

(d)           The Company shall indicate in a “Plan of Distribution”
section contained in the Prospectus forming a part of the Exchange Offer
Registration Statement that any Broker-Dealer who holds Transfer Restricted
Securities and that were acquired for its own account as a result of
market-making activities or other trading activities (other than Transfer
Restricted Securities acquired directly from the Company), may exchange such
Transfer Restricted Securities pursuant to the Exchange Offer; however, such
Broker-Dealer may be deemed to be an “underwriter” within the meaning of the
Securities Act and must, therefore, deliver a prospectus meeting the
requirements of the Securities Act in connection with any resales of the
Exchange Securities received by such Broker-Dealer in the Exchange Offer, which
prospectus delivery requirement may be satisfied by the delivery by such
Broker-Dealer of the Prospectus contained in the Exchange Offer Registration
Statement, as such Registration Statement may have been amended or supplemented
as of the date the Prospectus is required to be delivered.  Such “Plan of Distribution” section shall
also contain all other information with respect to such resales by
Broker-Dealers that the Commission may require in order to permit such resales
pursuant thereto, but such “Plan of Distribution” shall not name any such
Broker-Dealer or disclose the amount of Transfer Restricted Securities held by
any such Broker-Dealer except to the extent required by the Commission as a
result of a change in policy after the date of this Agreement.

 

Each of the Company and the Guarantors shall use
commercially reasonable efforts to keep the Exchange Offer Registration
Statement continuously effective, supplemented and amended as required by the
provisions of Section 6(c) hereof to the extent necessary to ensure
that it is available for resales of Transfer Restricted Securities acquired by
Broker-Dealers for their own accounts as a result of market-making activities
or other trading activities, and to ensure that it conforms with the
requirements of this Agreement, the Securities Act and the policies, rules and
regulations of the Commission as announced from time to time, for a period
ending on the earlier of (i) 365 days from the date on which the Exchange
Offer Registration Statement is declared effective and (ii) the date on which a
Broker-Dealer is no longer required to deliver a prospectus in connection with
market-making or other trading activities.

 

The Company shall provide reasonably sufficient
number of copies of the latest version of such Prospectus to Broker-Dealers
promptly upon request at any time during such 365-day (or shorter as provided
in the foregoing sentence) period in order to facilitate such resales.

 

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

 

5

 

SECTION 4.           Shelf Registration.

 

(a)           Shelf Registration.  If (i) the Company is not
required to file an Exchange Offer Registration Statement or to commence or
Consummate the Exchange Offer because the Exchange Offer is not permitted by
applicable law or Commission policy, and (ii) the Securities are not all
Freely Tradable on or before the Exchange Date, the Company and the Guarantors
shall

 

(x)            cause
to be filed a shelf registration statement pursuant to Rule 415 under the
Securities Act, which may be an amendment to the Exchange Offer Registration
Statement (in either event, the “Shelf Registration Statement”) on or prior to
30 days after such obligation arises but no earlier than the 366th day after
the Closing Date (or if such 366th day is not a
Business Day, the next succeeding Business Day) (such date being the “Shelf
Filing Deadline”), which Shelf Registration Statement shall provide for resales
of all Transfer Restricted Securities the Holders of which shall have provided
the information required pursuant to Section 4(b) hereof; and

 

(y)           use
commercially reasonable efforts to cause such Shelf Registration Statement to
be declared effective by the Commission within 90 days after filing such Shelf
Registration Statement.

 

Each of the Company and the Guarantors shall use
commercially reasonable efforts to supplement and amend such Shelf Registration
Statement as required by the provisions of Sections 6(b) and (c) hereof
to the extent necessary to ensure that it is available for resales of Transfer
Restricted Securities by the Holders of such Securities entitled to the benefit
of this Section 4(a), and to ensure that it conforms with the requirements
of this Agreement, the Securities Act and the policies, rules and
regulations of the Commission as announced from time to time.  Each of the Company and the Guarantors shall
use commercially reasonable efforts to keep such Shelf Registration Statement
continuously effective from the date on which the Shelf Registration Statement
is declared effective by the Commission until the earlier of the first
anniversary of the effective date of the Shelf Registration Statement and the
date all Transfer Restricted Securities covered by the Shelf Registration
Statement have either been sold as contemplated in the Shelf Registration
Statement or become Freely Tradable. 
Notwithstanding anything to the contrary, the requirements to file a
Shelf Registration Statement and to have such Shelf Registration Statement
become effective and remain effective shall terminate at such time at which all
of the Securities are Freely Tradable.

 

(b)           Provision by Holders of
Certain Information in Connection with the Shelf Registration Statement.  No Holder of Transfer Restricted
Securities may include any of its Transfer Restricted Securities in any Shelf
Registration Statement pursuant to this Agreement unless and until such Holder
furnishes to the Company in writing, within 10 Business Days after receipt of a
request therefor, such information as the Company may reasonably request for
use in connection with any Shelf Registration Statement or Prospectus or
preliminary Prospectus included therein. 
Each Holder as to which any Shelf Registration Statement is being
effected agrees to furnish promptly to the Company all information required to
be disclosed in order to 

 

6

 

make the information previously furnished to
the Company by such Holder not materially misleading.

 

(c)           Issuer Free Writing
Prospectuses.  Each Holder
represents and agrees that, unless it obtains the prior consent of the Company,
it will not make any offer relating to the Securities that would constitute an “issuer
free writing prospectus,” as defined in Rule 433 under the Securities Act
(an “Issuer Free Writing Prospectus”), or that would otherwise constitute a “free
writing prospectus,” as defined in Rule 405 under the Securities Act,
required to be filed with the Commission. 
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
the light of the circumstances under which they were made, not misleading.

 

(d)           If any of the Transfer Restricted Securities covered by
any Shelf Registration Statement are to be sold in an underwritten offering,
the underwriter or underwriters and manager or managers that will manage such
offering shall be selected by the Holders of a majority in aggregate principal
amount of such Transfer Restricted Securities included in such offering and, in
the case of an underwriter other than an Initial Purchaser, shall be reasonably
acceptable to the Company and on terms reasonably acceptable to the
Company.  The Company shall be required
to effect an underwritten offering only if the Company is required to file a
Shelf Registration Statement and in no event shall the Company be required to
effect more than two (2) underwritten offerings pursuant to this
Agreement.

 

SECTION 5.           Additional Interest.  In
the event that any of the Securities are not Freely Tradable Securities on or
before the Exchange Date and (i) the Exchange Offer, if required by this
Agreement, has not been Consummated on or before the Exchange Date; (ii) any
Shelf Registration Statement, if required hereby, has not been filed with the
Commission by the date that is 30 days following the Exchange Date, (iii) any
Shelf Registration Statement, if required hereby, has not been declared
effective prior to the later to occur of (x) the 90th day after such Shelf
Registration Statement was required to be filed hereby or (y) the date
that is 456 days after the Closing Date or (iv) any Registration Statement
required by this Agreement has been declared effective but ceases to be
effective at any time at which it is required to be effective under this
Agreement (for as long as such Registration Statement has not been succeeded by
a post-effective amendment to such Registration Statement that cures such
failure and that is declared effective) (each such event referred to in clauses
(i) through (iv), a “Registration Default”), the Company hereby agrees
that the interest rate borne by the Transfer Restricted Securities shall
increase by 0.25% per annum during the 90-day period immediately following the
occurrence of any Registration Default and shall increase by 0.25% per annum at
the end of each subsequent 90-day period (such increase “Additional Interest”),
but in no event shall such increase exceed 1.00% per annum.  At the earlier of (i) the cure of all
Registration Defaults or (ii) all Transfer Restricted Securities having
become Freely Tradable, the interest rate borne by the Transfer Restricted
Securities will be reduced to the original interest rate borne by the Transfer
Restricted Securities; provided, however,
that, if after any such reduction in interest rate due to the cure of a
Registration Default, a different Registration Default occurs, the interest
rate 

 

7

 

borne by the Transfer Restricted Securities
shall again be increased pursuant to the foregoing provisions.  In no event shall the Company be required to
pay Additional Interest for more than one Registration Default at any given
time.

 

SECTION 6.           Registration Procedures.

 

(a)           Exchange Offer
Registration Statement.  In
connection with the Exchange Offer, if required pursuant to Section 3(b) hereof,
the Company and the Guarantors shall comply with all of the provisions of Section 6(c) hereof
and shall use commercially reasonable efforts to effect such exchange to permit
the sale of Transfer Restricted Securities being sold in accordance with the
intended method or methods of distribution thereof.

 

(i)            As a condition to its participation
in the Exchange Offer pursuant to the terms of this Agreement, each Holder of
Transfer Restricted Securities shall furnish, upon the request of the Company,
prior to the Consummation thereof, a written representation to the Company
(which may be contained in the letter of transmittal contemplated by the
Exchange Offer Registration Statement) to the effect that (A) it is not an
affiliate of the Company, (B) it is not engaged in, and does not intend to
engage in, and has no arrangement or understanding with any Person to
participate in, a distribution of the Exchange Securities to be issued in the
Exchange Offer and (C) it is acquiring the Exchange Securities in its
ordinary course of business.  In
addition, all such Holders of Transfer Restricted Securities shall otherwise
cooperate in the Company’s preparations for, and the actions necessary to be
taken by the Company in connection with, the Exchange Offer.  Each Holder hereby acknowledges and agrees
that any Broker-Dealer and any such Holder using the Exchange Offer to
participate in a distribution of the securities to be acquired in the Exchange
Offer (1) could not under Commission policy as in effect on the date of
this Agreement rely on the position of the Commission enunciated in Morgan
Stanley and Co., Inc. (available June 5, 1991) and Exxon
Capital Holdings Corporation (available May 13, 1988), as interpreted
in the Commission’s letter to Shearman & Sterling dated July 2,
1993, and similar no-action letters (which may include any no-action letter
obtained pursuant to clause (i) above), and (2) must comply with the
registration and prospectus delivery requirements of the Securities Act in
connection with a secondary resale transaction and that such a secondary resale
transaction should be covered by an effective registration statement containing
the selling security holder information required by Item 507 or 508, as
applicable, of Regulation S-K if the resales are of Exchange Securities obtained
by such Holder in exchange for Transfer Restricted Securities acquired by such
Holder directly from the Company.

 

(b)           Shelf Registration
Statement.  If required
pursuant to Section 4, in connection with the Shelf Registration
Statement, each of the Company and the Guarantors shall comply with all the
provisions of Section 6(c) 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 each of the
Company and the Guarantors will prepare and file with the Commission a
Registration Statement relating to the registration on any appropriate form
under the Securities 

 

8

 

Act, which form shall be available for the
sale of the Transfer Restricted Securities in accordance with the intended
method or methods of distribution thereof in accordance with the time periods
set forth in Section 4.

 

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

 

(i)            use commercially
reasonable efforts to keep such Registration Statement continuously effective
for the period required by this Agreement and provide all requisite financial
statements (including, if required by the Securities Act or any regulation
thereunder, financial statements of the Guarantors for the period specified in Section 3
or 4 hereof, as applicable); upon the occurrence of any event that would cause
any such Registration Statement or the Prospectus contained therein (A) to
contain a material misstatement or omission or (B) not to be effective and
usable for resale of Transfer Restricted Securities during the period required
by this Agreement, the Company shall file promptly an appropriate amendment to
such Registration Statement, in the case of clause (A), correcting any such
misstatement or omission, and, in the case of either clause (A) or (B),
use commercially reasonable efforts to cause such amendment to be declared
effective and such Registration Statement and the related Prospectus to become
usable for their intended purpose(s) as soon as practicable thereafter;

 

(ii)           prepare and file
with the Commission such amendments and post-effective amendments to the
applicable Registration Statement as may be necessary to keep the Registration
Statement effective for the applicable period set forth in Section 3 or 4
hereof, as applicable, or such shorter period as will terminate when all
Transfer Restricted Securities covered by such Registration Statement have been
sold or are Freely Tradable; 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 such Registration Statement during the applicable
period in accordance with the intended method or methods of distribution by the
sellers thereof set forth in such Registration Statement or supplement to the
Prospectus;

 

(iii)          in the case of a
Shelf Registration Statement, advise the underwriter(s), if any, and selling
Holders promptly and, if requested by such Persons, to confirm such advice in
writing, (A) when the Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to any Registration
Statement or any post-effective amendment thereto, when the same has become
effective, (B) of any request by the Commission for amendments to the
Registration Statement or amendments or supplements to the Prospectus or for
additional information relating thereto, (C) of the 

 

9

 

issuance
by the Commission of any stop order suspending the effectiveness of the
Registration Statement under the Securities Act or of the suspension by any
state securities commission of the qualification of the Transfer Restricted
Securities for offering or sale in any jurisdiction, or the initiation of any
proceeding for any of the preceding purposes, (D) of the existence of any
fact or the happening of any event that makes any statement of a material fact
made in the Registration Statement, the Prospectus, any amendment or supplement
thereto, or any document incorporated by reference therein untrue, or that
requires the making of any additions to or changes in the 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
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, each of the Company and the Guarantors shall use commercially
reasonable efforts to obtain the withdrawal or lifting of such order at the
earliest practicable time;

 

(iv)          furnish without
charge to each selling Holder named in any Registration Statement, and each of
the underwriter(s), if any, at least three Business Days before filing with the
Commission, copies of any Registration Statement or any Prospectus included
therein or any amendments or supplements to any such Registration Statement or
Prospectus (including all documents incorporated by reference after the initial
filing of such Registration Statement), which documents will be subject to the
review and comment of such Holders and underwriter(s) in connection with
such sale, if any, for a period of at least three Business Days, and the
Company will not file any such Registration Statement or Prospectus or any
amendment or supplement to any such Registration Statement or Prospectus
(including all such documents incorporated by reference) to which any Holder of
more than 10% of the outstanding Transfer Restricted Securities (each, a “Significant
Holder”) covered by such Registration Statement or the underwriter(s), if any,
shall reasonably object in writing within three Business Days after the receipt
thereof (such objection to be deemed timely made upon compliance with the
notice provisions set forth in Section 10(d), including confirmation of
transmission, within such period).  The
objection of an Initial Purchaser or underwriter, if any, shall be deemed to be
reasonable if such Registration Statement, amendment, Prospectus or supplement,
as applicable, as proposed to be filed, contains a material misstatement or
omission;

 

(v)           in the case of a
Shelf Registration Statement, make available at reasonable times for inspection
by the Significant Holders, the managing underwriter(s), if any, participating
in any disposition pursuant to such Registration Statement and any attorney or
accountant retained by such Significant Holders or any of the underwriter(s),
all financial and other records, pertinent corporate documents and properties
of each of the Company and the Guarantors and cause the Company’s and the
Guarantors’ officers, directors and employees to supply all information
reasonably requested by any Significant Holder, underwriter, attorney or
accountant in connection with such Registration Statement or any post-effective
amendment thereto subsequent to the filing

 

10

 

thereof
and prior to its effectiveness and to participate in meetings with investors to
the extent reasonably requested by the managing underwriter(s), if any, until
such time as such information becomes publicly available; provided
that the Company may require each such party to sign a customary
confidentiality agreement in a form to be agreed;

 

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

 

(vii)         use commercially reasonable
efforts to confirm that the ratings assigned to the Notes will apply to the
Transfer Restricted Securities covered by the Registration Statement, if so
requested by the Holders of a majority in aggregate principal amount of
Securities covered thereby or the underwriter(s), if any;

 

(viii)        in the case of a Shelf
Registration Statement, furnish each selling Holder and each of the
underwriter(s), if any, without charge, at least one copy of the Registration
Statement, as first filed with the Commission, and of each amendment thereto,
including financial statements and schedules, all documents incorporated by
reference therein and all exhibits (including exhibits incorporated therein by
reference); provided, however, that timely filing of
any of the foregoing on the Interactive Data Electronic Applications (IDEA)
system of the Commission (a successor system) and availability publicly on the
Internet shall constitute furnishing of such documents to the Holders;

 

(ix)          in the case of a Shelf
Registration Statement, 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; each of the Company and the Guarantors
hereby consents to the use of the Prospectus and any amendment or supplement
thereto by each of the selling Holders and each of the underwriter(s), if any,
in connection with the offering and the sale of the Transfer Restricted
Securities covered by the Prospectus or any amendment or supplement thereto;

 

(x)           in the case of a Shelf
Registration Statement, enter into such agreements (including an underwriting
agreement), and make such representations and warranties, and take all such
other actions in connection therewith in order to expedite or facilitate 

 

11

 

the
disposition of the Transfer Restricted Securities pursuant to any Shelf
Registration Statement contemplated by this Agreement, all to such extent as
may be reasonably requested by Holders of a majority in aggregate principal
amount of Transfer Restricted Securities or the underwriters in connection with
any sale or resale pursuant to any Registration Statement contemplated by this
Agreement; and whether or not an underwriting agreement is entered into and
whether or not the registration is an Underwritten Registration, each of the
Company and the Guarantors shall:

 

(A)          furnish to the selling
Holders 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, upon the effectiveness of the Shelf
Registration Statement:

 

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

 

(2)           an opinion and negative
assurance letter, dated the date of effectiveness of the Shelf Registration
Statement of counsel for the Company and the Guarantors, covering the matters
reasonable satisfactory to the managing underwriters and covering matters of
the type customarily covered in opinions and negative assurance letters to
underwriters in connection with primary underwritten offerings; and

 

(3)           a customary comfort letter,
dated the date of effectiveness of the Shelf Registration Statement, from the
Company’s independent accountants, in the customary form and covering matters
of the type customarily requested to be covered in comfort letters by
underwriters in connection with primary underwritten offerings;

 

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

 

(C)          deliver such other documents
and certificates as may be reasonably requested by such parties to evidence
compliance with Section 6(c)(x)(A) hereof and with any customary
conditions contained in the underwriting agreement or other agreement entered
into by the Company or any of the Guarantors pursuant to this Section 6(c)(x),
if any.

 

12

 

If at any time after the
date of the effectiveness of any Shelf Registration Statement the
representations and warranties of the Company and the Guarantors contemplated
in Section 6(c)(x)(A)(1) hereof cease to be true and correct, the
Company or the Guarantors shall so advise the underwriter(s), if any, and each
selling Holder promptly and, if requested by such Persons, shall confirm such
advice in writing;

 

(xi)          in the case of a Shelf
Registration, prior to any public offering of Transfer Restricted Securities,
reasonably 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 state securities or blue sky
laws of such jurisdictions 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 none of the Company nor the Guarantors shall
be required to register or qualify as a foreign corporation where it is not
then so qualified or to take any action that would subject it to the service of
process in suits or to taxation in any jurisdiction where it is not then so
subject or make any changes to its certificate of incorporation or by-laws;

 

(xii)         in the case of a Shelf
Registration, and solely in those instances in which any Transfer Restricted
Securities are not held exclusively in book entry form, reasonably cooperate
with the selling Holders and the underwriter(s), if any, to facilitate the
timely preparation and delivery of certificates representing Transfer
Restricted Securities to be sold and not bearing any restrictive legends; and
enable such Transfer Restricted Securities to be in such denominations and
registered in such names as the Holders or the underwriter(s), if any, may
request at least two Business Days prior to any sale of Transfer Restricted
Securities made by such Holders or underwriter(s);

 

(xiii)        in the case of a Shelf
Registration, use commercially reasonable efforts to cause the Transfer
Restricted Securities covered by the Registration Statement to be registered
with or approved by such other 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, subject
to the proviso contained in Section 6(c)(xi) hereof;

 

(xiv)        in the case of a Shelf
Registration, if any fact or event contemplated by Section 6(c)(iii)(D) hereof
shall exist or have occurred, prepare a supplement or post-effective amendment
to the Registration Statement or related Prospectus or any document
incorporated therein by reference or file any other required document so that,
as thereafter delivered to the purchasers of Transfer Restricted Securities,
the Prospectus will not contain an untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein in
the light of the circumstances under which they were made, not misleading;

 

13

 

(xv)         provide a CUSIP number for
all Securities not later than the effective date of the Registration Statement
covering such Securities and provide the Trustee under the Indenture with
printed certificates for such Securities which are in a form eligible for
deposit with the Depository Trust Company and take all other action necessary
to ensure that all such Securities are eligible for deposit with the Depository
Trust Company;

 

(xvi)        in the case of a Shelf
Registration, cooperate and assist in any filings required to be made with
FINRA and in the performance of any due diligence investigation by any
underwriter (including any “qualified independent underwriter”) that is
required to be retained in accordance with the rules and regulations of
FINRA;

 

(xvii)       otherwise use commercially
reasonable efforts to comply with all applicable rules and regulations of
the Commission, and make generally available to its security holders, as soon
as reasonably practicable, an earnings statement meeting the requirements of Rule 158
under the Securities Act;

 

(xviii)      cause the Indenture to be
qualified under the Trust Indenture Act not later than the effective date of
the first 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 Trust Indenture Act; and to
execute, and use commercially reasonable efforts to cause the Trustee 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; and

 

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

 

In the case of a Shelf Registration Statement, each
Holder agrees by acquisition of a Transfer Restricted Security that, upon
receipt of any notice from the Company of the existence of any fact of the kind
described in Section 6(c)(iii)(D) hereof, such Holder will forthwith
discontinue disposition of Transfer Restricted Securities pursuant to the
applicable Registration Statement until such Holder’s receipt of the copies of
the supplemented or amended Prospectus contemplated by Section 6(c)(xiv)
hereof, or until it is advised in writing (the “Advice”) by the Company that
the use of the Prospectus may be resumed, and has received copies of any
additional or supplemental filings that are incorporated by reference in the
Prospectus.  If so directed by the
Company, each Holder will deliver to the Company (at the Company’s expense) all
copies, other than permanent file copies then in such Holder’s possession, of
the Prospectus covering such Transfer Restricted Securities that was current
immediately prior to of receipt of such notice. 
In the event the Company shall give any such notice, the time period
regarding the effectiveness of such Registration Statement set forth in Section
3 or 4 hereof, as applicable, shall be extended by the number of days during
the period from and including the date of the 

 

14

 

giving of such notice
pursuant to Section 6(c)(iii)(D) hereof to and including the date
when each selling Holder covered by such Registration Statement shall have
received the copies of the supplemented or amended Prospectus contemplated by Section 6(c)(xiv)
hereof or shall have received the Advice; provided, however,
that no such extension shall be taken into account in determining whether
Additional Interest shall be payable.

 

SECTION 7.             Registration
Expenses.

 

(a)           All expenses
incident to the Company’s and the Guarantors’ performance of or compliance with
this Agreement will be borne by the Company and the Guarantors, jointly and severally,
regardless of whether a Registration Statement becomes effective, including,
without limitation: (i) all registration and filing fees and expenses
(including filings made by any Initial Purchaser or Holder with the FINRA (and,
if applicable, the fees and expenses of any “qualified independent underwriter”
and its counsel that may be required by the rules and regulations of
FINRA)); (ii) all fees and expenses of compliance with federal securities
and state securities or blue sky laws; (iii) all expenses of printing
(including printing certificates for the Exchange Securities to be issued in
the Exchange Offer and printing of Prospectuses), messenger and delivery
services and telephone; (iv) all fees and disbursements of counsel for the
Company, the Guarantors and, to the extent contemplated by Section 7(b) hereof,
the Holders of Transfer Restricted Securities; (v) all application and
filing fees in connection with listing the Exchange Securities on a securities
exchange or automated quotation system pursuant to the requirements thereof;
and (vi) all fees and disbursements of independent certified public
accountants of the Company and the Guarantors (including the expenses of any
special audit and comfort letters required by or incident to such performance).

 

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

 

(b)           In connection
with any Shelf Registration Statement required by this Agreement, the Company
and the Guarantors, jointly and severally, will reimburse the Holders of
Transfer Restricted Securities being resold pursuant to the “Plan of
Distribution” contained in the Shelf Registration Statement, as applicable, for
the reasonable fees and disbursements of not more than one counsel, who shall
be Cahill Gordon & Reindel LLP or such other counsel as may be chosen
by the Holders of a majority in principal amount of the Transfer Restricted
Securities for whose benefit such Registration Statement is being prepared and
reasonably acceptable to the Company.

 

SECTION 8.             Indemnification.

 

(a)           The Company and
the Guarantors, jointly and severally, agree to indemnify and hold harmless (i) each
Holder and (ii) each Person, if any, who controls (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act) any Holder (any
of the Persons referred to in this clause (ii) being hereinafter referred
to as a “controlling person”) and 

 

15

 

(iii) the respective officers, directors,
partners, employees, representatives and agents of any Holder or any
controlling person (any Person referred to in clause (i), (ii) or (iii) may
hereinafter be referred to as an “Indemnified Holder”), to the fullest extent
lawful, from and against any and all losses, claims, damages, liabilities and
expenses (including, without limitation, and as incurred, reimbursement of all
reasonable costs of investigating, preparing, pursuing, settling, compromising,
paying or defending any claim or action, or any investigation or proceeding by
any governmental agency or body, commenced or threatened, including the
reasonable fees and expenses of counsel to any Indemnified Holder), joint or
several, directly or indirectly caused by, based upon or arising out of any
untrue statement or alleged untrue statement of a material fact contained in
any Registration Statement (or any amendment or supplement thereto) or
Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing
Prospectus (or any amendment or supplement thereto), or any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, except insofar as such losses,
claims, damages, liabilities or expenses are caused by an untrue statement or
omission or alleged untrue statement or omission that is made in reliance upon
and in conformity with information relating to any of the Holders furnished in
writing to the Company by any of the Holders expressly for use therein.  This indemnity agreement shall be in addition
to any liability which the Company or any of the Guarantors may otherwise have.

 

In case any action or proceeding (including any
governmental or regulatory investigation or proceeding) shall be brought or
asserted against any of the Indemnified Holders with respect to which indemnity
may be sought against the Company or the Guarantors, such Indemnified Holder
shall promptly notify the Company and the Guarantors in writing; provided, however, that
the failure to give such notice shall not relieve any of the Company or the
Guarantors of its obligations pursuant to this Section 8 except to the
extent that it has been materially prejudiced (through the forfeiture of
substantive rights and defenses) by such failure, and provided
further that the failure to give such notice shall not relieve any
of the Company or the Guarantors from any liability that it may have to an
Indemnified Holder otherwise than under this Section 8.  If any such proceeding shall be brought or
asserted against an Indemnified Holder and it shall have notified the Company
thereof, the Company shall assume the defense thereof and retain counsel
reasonably satisfactory to the Indemnified Holder (who shall not, without the
consent of the Indemnified Holder, be counsel to the Company) to represent the
Indemnified Person in such Proceeding, and the reasonable fees and expenses of
such counsel shall be reimbursed, as incurred, by the Company and the
Guarantors.  In any such proceeding, any
Indemnified Holder shall have the right to retain its own counsel, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Holder
unless (i) the Company and the Indemnified Holder shall have mutually
agreed to the contrary, (ii) the Company has failed to assume or proceed
in a timely and reasonable manner with the defense of such proceeding, or the
Company has failed within a reasonable time to retain counsel reasonably
satisfactory to the Indemnified Holder, (iii) counsel for such Indemnified
Holder determines in good faith that there is a conflict that requires separate
representation for the Company and the Guarantors and such Indemnified Holder
or (iv) the Indemnified Holder reasonably concludes that there may be
legal defenses available to it that are different from or in addition to those
available to the Company and the Guarantors. 
The Company and the Guarantors shall not, in connection with any one
such action or proceeding or 

 

16

 

separate but substantially
similar or related actions or proceedings in the same jurisdiction arising out
of the same general allegations or circumstances, be liable for the reasonable
fees and expenses of more than one separate firm of attorneys (in addition to
any local counsel (in any jurisdiction)) at any time for all Indemnified
Holders.  The Company and the Guarantors
shall be liable for any settlement of any such action or proceeding effected
with the Company’s and the Guarantors’ prior written consent (such consent not
to be unreasonably withheld), and each of the Company and the Guarantors agrees
to indemnify and hold harmless any Indemnified Holder from and against any
loss, claim, damage, liability or expense by reason of any settlement of any
action effected with the written consent of the Company and the
Guarantors.  The Company and the
Guarantors shall not, without the prior written consent of each Indemnified
Holder, settle or compromise or consent to the entry of judgment in or
otherwise seek to terminate any pending or threatened action, claim, litigation
or proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not any Indemnified Holder is a party thereto), unless
such settlement, compromise, consent or termination includes an unconditional
release of each Indemnified Holder from all liability arising out of such
action, claim, litigation or proceeding and does not contain any statement as
to or finding of fault, culpability or failure to act by or on behalf of any
Indemnified Holder.

 

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

 

(c)           If the
indemnification provided for in this Section 8 is unavailable to an
indemnified party under Section 8(a) or (b) hereof (other than by
reason of exceptions provided in those Sections) in respect of any losses, claims,
damages, liabilities or expenses referred to therein, then each applicable
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or expenses in such proportion as
is appropriate to reflect the relative benefits received by the Company and the
Guarantors, on the one hand, and the Holders, on the other hand, from the
offering of the Securities and the Exchange Securities, or if such allocation
is not permitted by applicable law, the relative fault of the Company and the
Guarantors, on the one hand, and the Holders, on the other hand, in connection
with the 

 

17

 

statements or omissions which resulted in
such losses, claims, damages, liabilities or expenses, as well as any other
relevant equitable considerations.  The
benefits received by the Company and the Guarantors shall be deemed to be equal
to the total gross proceeds to the Company and the Guarantors from the Initial
Placement plus the amount of Additional Interest which did not become payable
as a result of the filing of the Registration Statement, and the benefits
received by the Holders shall be deemed to be equal to (i) if the Holder
is an Initial Purchaser, the total discounts and commissions received by such
Initial Purchaser in the Initial Placement and (ii) if the Holder is not
an Initial Purchaser, the total net profit received by such Holder in connection
with the resale of the Securities or Exchange Securities. The relative fault of
the Company on the one hand and of the Indemnified Holders on the other shall
be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by the Company or any
of the Guarantors, on the one hand, or the Indemnified Holders, on the other
hand, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.  The amount paid or payable by a party as a
result of the losses, claims, damages, liabilities and expenses referred to above
shall be deemed to include, subject to the limitations set forth above, any
legal or other fees or expenses reasonably incurred by such party in connection
with investigating or defending any action or claim.

 

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

 

SECTION 9.             Participation
in Underwritten Registrations.  No Holder may participate in any Underwritten
Registration hereunder unless such Holder (a) agrees to sell such Holder’s
Transfer Restricted Securities on the basis provided in any underwriting
arrangements approved by the Persons entitled hereunder to approve such
arrangements and (b) completes and executes all reasonable questionnaires,
powers of attorney, indemnities, underwriting agreements, and other documents
customarily required under the terms of such underwriting arrangements.

 

18

 

SECTION 10.          Miscellaneous.

 

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

 

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

 

(c)           Amendments
and Waivers.  The provisions
of this Agreement may not be amended, modified or supplemented, and waivers or
consents to or departures from the provisions hereof may not be given unless
the Company has (i) in the case of Section 5 hereof and this Section 10(c)(i),
obtained the written consent of Holders of all outstanding Transfer Restricted
Securities and (ii) in the case of all other provisions hereof, obtained
the written consent of Holders of a majority of the outstanding principal
amount of Transfer Restricted Securities (excluding any Transfer Restricted
Securities held by the Company or its Affiliates).  Notwithstanding the foregoing, a waiver or
consent to departure from the provisions hereof that relate exclusively to the
rights of Holders whose securities are being tendered pursuant to the Exchange
Offer or registered pursuant to a Shelf Registration Statement and that do not
affect directly or indirectly the rights of other Holders whose securities are
not being tendered pursuant to such Exchange Offer or registered pursuant to a
Shelf Registration Statement may be given by the Holders of a majority of the
outstanding principal amount of Transfer Restricted Securities being tendered
or registered, as applicable; provided, however,
that, with respect to any matter that directly or indirectly affects the rights
of any Initial Purchaser hereunder, the Company shall obtain the written
consent of each such Initial Purchaser with respect to which such amendment,
qualification, supplement, waiver, consent or departure is to be effective.

 

(d)           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, telecopier, 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, with a
copy to the Registrar under the Indenture; and

 

(ii)           if to the
Company:

 

Casella Waste Systems, Inc.

25 Green Hill Lane

P.O. Box 866

Rutland, VT  05701

 

19

 

Facsimile:   (802)
770-5030

Attention:   David
L. Schmitt, Vice President and General Counsel

 

With
a copy to:

 

Wilmer
Cutler Pickering Hale & Dorr LLP

60
State Street

Boston,
MA  02109

Facsimile:   (617)
526-5000

Attention:   Jeffrey
A. Stein

 

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

 

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

 

(e)           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.

 

(f)            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.

 

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

 

(h)           Governing
Law.  THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO THE CONFLICTS OF LAW RULES THEREOF.

 

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

 

(j)            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 

 

20

 

understanding of the parties hereto in
respect of the subject matter contained herein. 
There are no restrictions, promises, warranties or undertakings, other
than those set forth or referred to herein with respect to the registration
rights granted by the Company with respect to the Transfer Restricted
Securities.  This Agreement supersedes
all prior agreements and understandings between the parties with respect to
such subject matter.

 

21

 

 

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

 

	
   

  	
  CASELLA
  WASTE SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  John S. Quinn

  
	
   

  	
   

  	
  Name:
  John S. Quinn

  
	
   

  	
   

  	
  Title: Senior Vice President, Chief Financial
  Officer and Treasurer

  

 

22

 

	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALL
  CYCLE WASTE, INC.

  
	
   

  	
  ATLANTIC
  COAST FIBERS, INC.

  
	
   

  	
  B.
  AND C. SANITATION CORPORATION

  
	
   

  	
  BRISTOL
  WASTE MANAGEMENT, INC.

  
	
   

  	
  C.V.
  LANDFILL, INC.

  
	
   

  	
  CASELLA
  ALBANY RENEWABLES, LLC

  
	
   

  	
  CASELLA
  RECYCLING, LLC

  
	
   

  	
  CASELLA
  RENEWABLE SYSTEMS, LLC

  
	
   

  	
  CASELLA
  TRANSPORTATION, INC.

  
	
   

  	
  CASELLA
  WASTE MANAGEMENT OF MASSACHUSETTS, INC.

  
	
   

  	
  CASELLA
  WASTE MANAGEMENT OF N.Y., INC.

  
	
   

  	
  CASELLA
  WASTE MANAGEMENT OF PENNSYLVANIA, INC.

  
	
   

  	
  CASELLA
  WASTE MANAGEMENT, INC.

  
	
   

  	
  CASELLA
  WASTE SERVICES OF ONTARIO LLC

  
	
   

  	
  CHEMUNG
  LANDFILL LLC

  
	
   

  	
  COLEBROOK
  LANDFILL LLC

  
	
   

  	
  FAIRFIELD
  COUNTY RECYCLING, LLC

  
	
   

  	
  FCR
  CAMDEN, LLC

  
	
   

  	
  FCR
  FLORIDA, LLC

  
	
   

  	
  FCR
  GREENSBORO, LLC

  
	
   

  	
  FCR
  GREENVILLE, LLC

  
	
   

  	
  FCR
  MORRIS, LLC

  
	
   

  	
  FCR
  REDEMPTION, LLC

  
	
   

  	
  FCR
  TENNESSEE, LLC

  
	
   

  	
  FCR,
  LLC

  
	
   

  	
  FOREST
  ACQUISITIONS, INC.

  
	
   

  	
  GRASSLANDS,
  INC.

  
	
   

  	
  HAKES
  C & D DISPOSAL, INC.

  
	
   

  	
  HARDWICK
  LANDFILL, INC.

  
	
   

  	
  HIRAM
  HOLLOW REGENERATION CORP.

  
	
   

  	
  KTI
  BIO-FUELS, INC.

  
	
   

  	
  KTI
  ENVIRONMENTAL GROUP, INC.

  
	
   

  	
  KTI
  NEW JERSEY FIBERS, INC.

  
	
   

  	
  KTI
  OPERATIONS, INC.

  
	
   

  	
  KTI
  SPECIALTY WASTE SERVICES, INC.

  
	
   

  	
  KTI,
  INC.

  
	
   

  	
  LEWISTON
  LANDFILL LLC

  
	
   

  	
  NEW
  ENGLAND WASTE SERVICES OF MASSACHUSETTS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John S. Quinn

  
	
   

  	
   

  	
  Name: John S. Quinn

  
	
   

  	
   

  	
  Title: Vice President and Treasurer

  

 

23

 

	
   

  	
  NEW
  ENGLAND WASTE SERVICES OF ME, INC.

  
	
   

  	
  NEW
  ENGLAND WASTE SERVICES OF N.Y., INC.

  
	
   

  	
  NEW
  ENGLAND WASTE SERVICES OF VERMONT, INC.

  
	
   

  	
  NEW
  ENGLAND WASTE SERVICES, INC.

  
	
   

  	
  NEWBURY
  WASTE MANAGEMENT, INC.

  
	
   

  	
  NORTH
  COUNTRY ENVIRONMENTAL SERVICES, INC.

  
	
   

  	
  NORTHERN
  PROPERTIES CORPORATION OF PLATTSBURGH

  
	
   

  	
  NORTHERN
  SANITATION, INC.

  
	
   

  	
  PERC,
  INC.

  
	
   

  	
  PINE
  TREE WASTE, INC.

  
	
   

  	
  RESOURCE
  RECOVERY SYSTEMS, LLC

  
	
   

  	
  RESOURCE
  TRANSFER SERVICES, INC.

  
	
   

  	
  RESOURCE
  WASTE SYSTEMS, INC.

  
	
   

  	
  SCHULTZ
  LANDFILL, INC.

  
	
   

  	
  SOUTHBRIDGE
  RECYCLING & DISPOSAL PARK, INC.

  
	
   

  	
  SUNDERLAND
  WASTE MANAGEMENT, INC.

  
	
   

  	
  TRILOGY
  GLASS LLC

  
	
   

  	
  U.S.
  FIBER, LLC

  
	
   

  	
  WASTE-STREAM,
  INC.

  
	
   

  	
  WINTERS
  BROTHERS, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John S. Quinn

  
	
   

  	
   

  	
  Name: John S. Quinn

  
	
   

  	
   

  	
  Title: Vice President and Treasurer

  

 

24

 

	
   

  	
  BLUE MOUNTAIN RECYCLING, LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  FCR, LLC, its manager

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  John S. Quinn

  
	
   

  	
  Name: 

  	
  John S. Quinn

  
	
   

  	
  Title: 

  	
  Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CWM ALL WASTE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  John S. Quinn

  
	
   

  	
  Name: 

  	
  John S. Quinn

  
	
   

  	
  Title: 

  	
  Duly Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GROUNDCO LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  John S. Quinn

  
	
   

  	
  Name: 

  	
  John S. Quinn

  
	
   

  	
  Title: 

  	
  Duly Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE HYLAND FACILITY ASSOCIATES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  John S. Quinn

  
	
   

  	
  Name: 

  	
  John S. Quinn

  
	
   

  	
  Title: 

  	
  Duly Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAINE ENERGY RECOVERY COMPANY, LIMITED PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  KTI Environmental Group, Inc., general partner

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  John S. Quinn

  
	
   

  	
  Name:
  

  	
  John S. Quinn

  
	
   

  	
  Title:
  

  	
  Vice
  President and Treasurer

  

 

25

 

	
   

  	
  NEWS
  OF WORCESTER LLC

  
	
   

  	
  CASELLA
  MAJOR ACCOUNT SERVICES LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Casella Waste Systems, Inc., its sole member

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  John S. Quinn

  
	
   

  	
  Name: 

  	
  John S. Quinn

  
	
   

  	
  Title: 

  	
  Senior
  Vice President, Chief Financial Officer and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEWSME LANDFILL OPERATIONS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  John S. Quinn

  
	
   

  	
  Name: 

  	
  John S. Quinn

  
	
   

  	
  Title: 

  	
  Duly Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PERC MANAGEMENT COMPANY LIMITED PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  PERC, Inc., general partner

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  John S. Quinn

  
	
   

  	
  Name:
  

  	
  John S. Quinn

  
	
   

  	
  Title:
  

  	
  Vice
  President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TEMPLETON LANDFILL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  John S. Quinn

  
	
   

  	
  Name: 

  	
  John S. Quinn

  
	
   

  	
  Title: 

  	
  Duly Authorized Agent

  

 

26

 

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

 

	
  BANC
  OF AMERICA SECURITIES LLC

  J.P. MORGAN SECURITIES INC.

  	
   

  
	
  CALYON
  SECURITIES (USA) INC.

  As Representatives of the Initial Purchasers

  	
   

  
	
   

  	
   

  
	
  By:
  

  	
  Banc
  of America Securities LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen Jaeger

  	
   

  
	
   

  	
  Name:
  Stephen Jaeger

  	
   

  
	
   

  	
  Title:
  Managing Director

  	
   

  

 

27

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]