EXHIBIT 4.3
5-3/4% CONVERTIBLE SUBORDINATED NOTES DUE 2004
REGISTRATION RIGHTS AGREEMENT
Dated as of June 15, 1997
by and among
PREMIERE TECHNOLOGIES, INC.,
as the Company,
and
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ & COMPANY LLC,
ALEX. ▇▇▇▇▇ & SONS INCORPORATED
and
▇▇▇▇▇▇▇▇▇, LUFKIN & ▇▇▇▇▇▇▇▇ SECURITIES CORPORATION,
as Purchasers
This Registration Rights Agreement is made and entered into as of June 15,
1997, by and among Premiere Technologies, Inc., a Georgia (the "Company"), and
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ & Company LLC, Alex. ▇▇▇▇▇ & Sons Incorporated and
▇▇▇▇▇▇▇▇▇, Lufkin & ▇▇▇▇▇▇▇▇ Securities Corporation (the "Purchasers") who have
purchased or have the right to purchase up to $150,000,000 in aggregate
principal amount of 5-3/4% Convertible Subordinated Notes due 2004 (the "Notes")
of the Company pursuant to the Purchase Agreement (as such term is defined
below).
This Agreement is made pursuant to the Purchase Agreement, dated June 25,
1997, among the Company and the Purchasers (the "Purchase Agreement"). In order
to induce the Purchasers to enter into the Purchase Agreement, the Company has
agreed to provide the registration rights provided for in this Agreement to the
Purchasers and their respective direct and indirect transferees (i) for the
benefit of the Purchasers, (ii) for the benefit of the holders from time to time
of the Notes (including the Purchasers) and the holders from time to time of the
Common Stock issuable or issued upon conversion of the Notes and (iii) for the
benefit of the securities constituting the Transfer Restricted Securities. The
execution of this Agreement is a condition to the closing of the transactions
contemplated by the Purchase Agreement.
The parties hereby agree as follows:
1. Definitions. As used in this Agreement, the following terms shall
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have the following meanings:
Accredited Investor Notes: Notes initially resold by the Purchasers
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pursuant to the Purchase Agreement to institutional "accredited investors"
(within the meaning of Rule 501(a)(1), (2), (3) or (7) promulgated by the SEC
under the Securities Act) (it being understood and agreed that such Notes shall
not include any Notes initially resold outside the United States to certain
persons in offshore transactions in reliance on Registration S under the
Securities Act) and all Notes issued upon registration of transfer of or in
exchange for such Notes.
Act: As defined in this Section 1.
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Advice: As defined in the last paragraph of Section 2(d) hereof.
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Affiliate: An affiliate of any specified person shall mean any other
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person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified person. For the purposes of this
definition, "control," when used with respect to any person, means the power to
direct the management and policies of such person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise and
the terms "affiliated," "controlling" and "controlled" have meanings correlative
to the foregoing.
Agreement: This Registration Rights Agreement, as the same may be amended,
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supplemented or modified from time to time in accordance with the terms hereof.
Business Day: Each Monday, Tuesday, Wednesday, Thursday and Friday that is
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not a day on which banking institutions in New York, New York are authorized or
obligated by law or executive order to close.
Closing Date: June 30, 1997.
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Common Stock: Common Stock, $.01 par value per share, of the Company and
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any other shares of common stock as may constitute "Common Stock" for purposes
of the Indenture, in each case, as issuable or issued upon conversion of the
Notes.
Company: Premiere Technologies, Inc., a Georgia corporation, and any
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successor corporation thereto.
controlling person: As defined in Section 6(a) hereof.
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Damages Payment Date: Each of the semi-annual interest payment dates
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provided in the Indenture.
Effectiveness Period: As defined in Section 2(a) hereof.
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Effectiveness Target Date: The 180th day following the Closing Date.
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Exchange Act: The Securities Exchange Act of 1934, as amended, and the
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rules and regulations promulgated by the SEC thereunder.
Filing Date: The 90th day after the Closing Date.
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Holder: Each owner of any Transfer Restricted Securities.
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Indemnified Person: As defined in Section 6(a) hereof.
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Indenture: The Indenture, dated as of the date hereof, between the Company
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and the Trustee, pursuant to which the Notes are being issued, as the same may
be amended, modified or supplemented from time to time in accordance with the
terms thereof.
Liquidated Damages: As defined in Section 3(a) hereof.
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Purchasers: As defined in the first paragraph hereof.
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Notes: The $150,000,000 aggregate principal amount of 5-3/4% Convertible
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Subordinated Notes due 2004 of the Company being issued pursuant to the
Indenture (together with up to $22,500,000 aggregate principal amount of such
Notes, if, and to the extent, the Purchasers' over-allotment option is
exercised).
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Proceeding: An action, claim, suit or proceeding (including, without
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limitation, an investigation or partial proceeding, such as a deposition),
whether commenced or threatened.
Prospectus: The prospectus included in any Registration Statement
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(including, without limitation, a prospectus that discloses information
previously omitted from a prospectus filed in reliance upon Rule 430A), as
amended or supplemented by any prospectus supplement, with respect to the resale
of any of the Transfer Restricted Securities covered by such Registration
Statement, and all other amendments and supplements to any such prospectus,
including post-effective amendments, and all materials incorporated by reference
or deemed to be incorporated by reference, if any, in such prospectus.
Purchase Agreement: As defined in the second paragraph hereof.
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Record Holder: (i) with respect to any Damages Payment Date relating
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to any Note as to which any such Liquidated Damages have accrued, the registered
Holder of such Note on the record date with respect to the interest payment date
under the Indenture on which such Damages Payment Date shall occur and (ii) with
respect to any Damages Payment Date relating to any shares of Common Stock as to
which any such Liquidated Damages have accrued, the registered Holder of such
shares 15 days prior to the next succeeding Damages Payment Date.
Registration Default: As defined in Section 3(a) hereof.
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Registration Statement: Any registration statement of the Company filed
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with the SEC pursuant to the Securities Act that covers the resale of any of the
Transfer Restricted Securities pursuant to the provisions of this Agreement,
including the Prospectus, amendments and supplements to such registration
statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto, and all material incorporated by reference or deemed to be
incorporated by reference, if any, in such registration statement.
Regulation S Notes: Notes initially resold by the Purchasers pursuant to
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the Purchase Agreement outside the United States to certain persons in offshore
transactions in reliance on Registration S under the Securities Act and all
Notes issued upon registration of transfer of or in exchange for such Notes.
Requisite Information: As defined in Section 2(c) hereof.
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Rule 144: Rule 144 promulgated by the SEC pursuant to the Securities Act,
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as such Rule may be amended from time to time, or any successor rule or
regulation.
Rule 144A: Rule 144A promulgated by the SEC pursuant to the Securities
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Act, as such Rule may be amended from time to time, or any successor rule or
regulation.
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Rule 144A Notes: Notes initially resold by the Purchasers pursuant to the
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Purchase Agreement to "qualified institutional buyers" (as such term is defined
in Rule 144A) (it being understood and agreed that such Notes shall not include
any Notes initially resold outside the United States to certain persons in
offshore transactions in reliance on Registration S under the Securities Act)
and all Notes issued upon registration of transfer of or in exchange for such
Notes.
Rule 158: Rule 158 promulgated by the SEC pursuant to the Securities Act,
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as such Rule may be amended from time to time, or any successor rule or
regulation.
Rule 415: Rule 415 promulgated by the SEC pursuant to the Securities Act,
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as such Rule may be amended from time to time, or any successor rule or
regulation.
Rule 424: Rule 424 promulgated by the SEC pursuant to the Securities Act,
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as such Rule may be amended from time to time, or any successor rule or
regulation.
Rule 430A: Rule 430A promulgated by the SEC pursuant to the Securities
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Act, as such Rule may be amended from time to time, or any successor rule or
regulation.
SEC: The Securities and Exchange Commission.
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Securities Act: The Securities Act of 1933, as amended, and the rules and
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regulations promulgated by the SEC thereunder.
Shelf Registration Statement: As defined in Section 2 hereof.
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Special Counsel: The special counsel to the Holders.
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TIA: The Trust Indenture Act of 1939, as amended, and the rules and
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regulations promulgated by the SEC thereunder.
Transfer Restricted Securities: The Accredited Investor Notes, the Rule
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144A Notes and the Regulation S Notes, and the shares of Common Stock into which
such Notes are converted or convertible (including any shares of Common Stock
issued or issuable thereon upon any stock split, stock combination, stock
dividend or the like), upon original issuance thereof, and at all times
subsequent thereto, and associated related rights, if any, until, in the case of
any such Note or share (and associated rights) (i) the date on which the resale
thereof has been effectively registered under the Securities Act and disposed of
in accordance with the Registration Statement relating thereto, (ii) the date on
which such security has been distributed to the public pursuant to Rule 144 or
is saleable pursuant to paragraph (k) of Rule 144 or (iii) the date on which it
ceases to be outstanding, whichever date is earliest.
Trustee: The trustee under the Indenture.
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underwritten registration or underwritten offering: A registration in
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connection with which securities of the Company are sold to an underwriter for
reoffering to the public pursuant to an effective Registration Statement.
References herein to the term "Holders of a majority in aggregate principal
amount of Transfer Restricted Securities" or words to a similar effect shall
mean, with respect to any request, notice, demand, objection or other action by
the Holders hereunder or pursuant hereto (each, an "Act"), registered Holders of
a number of shares of then-outstanding Common Stock constituting Transfer
Restricted Securities and an aggregate principal amount of then outstanding
Notes constituting Transfer Restricted Securities, such that the sum of such
shares of Common Stock and the shares of Common Stock issuable upon conversion
of such Notes constitutes in excess of 50% of the sum of all of the then-
outstanding shares of Common Stock constituting Transfer Restricted Securities
and the number of shares of Common Stock issuable upon conversion of then-
outstanding Notes constituting Transfer Restricted Securities. For purposes of
the preceding sentence, Transfer Restricted Securities owned, directly or
indirectly, by the Company or its Affiliates shall be deemed not to be
outstanding.
2. Shelf Registration Statement
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(a) The Company agrees to file with the SEC as soon as reasonably
practicable after the Closing Date, but in no event later than the Filing Date,
a Registration Statement for an offering to be made on a continuous basis
pursuant to Rule 415 covering all of the Transfer Restricted Securities or
separate Registration Statements for an offering to be made on a continuous
basis pursuant to Rule 415 covering all of the Notes constituting Transfer
Restricted Securities and all of the Common Stock constituting Transfer
Restricted Securities, respectively (such Registration Statement or Statements,
collectively, the "Shelf Registration Statement"). Each Shelf Registration
Statement shall be on Form S-3 under the Securities Act or another appropriate
form selected by the Company permitting registration of such Transfer Restricted
Securities for resale by the Holders in the manner or manners reasonably
designated by Holders of a majority in aggregate principal amount of Transfer
Restricted Securities being sold (including, without limitation, up to two
underwritten offerings). The Company shall use all commercially reasonable
efforts to not permit any securities other than the Transfer Restricted
Securities to be included in any Shelf Registration Statement. The Company
shall use all commercially reasonable efforts to cause each Shelf Registration
Statement to be declared effective pursuant to the Securities Act as soon as
reasonably practicable following the filing thereof and to keep each Shelf
Registration Statement continuously effective under the Securities Act for two
years after the date on which all the Notes are sold (including those sold
pursuant to the over-allotment option granted to the Purchasers in the Purchase
Agreement) to the Purchasers (subject to extension pursuant to Sections 2(d)
hereof) (the "Effectiveness Period"), or such shorter period ending when there
cease to be any Transfer Restricted Securities outstanding.
(b) Supplements and Amendments. The Company shall use all commercially
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reasonable efforts to keep each Shelf Registration Statement continuously
effective by supplementing and amending the Shelf Registration Statement if
required by the rules, regulations or instructions
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applicable to the registration form used for such Shelf Registration Statement,
if required by the Securities Act or if reasonably requested by the Holders of a
majority in aggregate principal amount of the Transfer Restricted Securities or
by any underwriter of such Transfer Restricted Securities; provided, however,
that the Effectiveness Period shall be extended as provided in Section 2(d)
hereof.
(c) Selling Securityholder Information. Each Holder shall furnish to the
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Company such information regarding the distribution of its Transfer Restricted
Securities as is required by law to be disclosed in the applicable Registration
Statement (the "Requisite Information") prior to effecting any sale pursuant to
such Registration Statement.
The Company shall file, within two Business Days after the receipt of
notice from any Holder which includes the Requisite Information with respect to
such Holder, a Prospectus supplement pursuant to Rule 424 or otherwise amend or
supplement such Registration Statement to include in the Prospectus the
Requisite Information as to such Holder (and the Transfer Restricted Securities
held by such Holder), and the Company shall provide such Holder and the Special
Counsel within two Business Days after receipt of such notice with a copy of
such Prospectus as so amended or supplemented containing the Requisite
Information in order to permit such Holder to comply with the Prospectus
delivery requirements of the Securities Act in a timely manner with respect to
any proposed disposition of such Holder's Transfer Restricted Securities.
If any such Registration Statement refers to any Holder by name or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require, in the event that such reference to such Holder by
name or otherwise is not required by the Securities Act or any similar Federal
statute then in force, the deletion of the reference to such Holder in such
Registration Statement at any time subsequent to the time that such reference
ceases to be required.
(d) Certain Notices; Suspension of Sales. Each Holder agrees by
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acquisition of such Transfer Restricted Securities that, upon receipt of any
notice from the Company of the happening of any event of the kind described in
Section 4(c)(ii), 4(c)(iii), 4(c)(v) or 4(c)(vi) hereof, such Holder will
forthwith discontinue disposition of such Transfer Restricted Securities covered
by such Registration Statement and Prospectus (other than in transactions exempt
from the registration requirements under the Securities Act) until such Holder's
receipt of the copies of the supplemented or amended Prospectus contemplated by
Sections 4(c)(i) and 4(k) hereof, or until it is advised in writing (the
"Advice") by the Company that the use of the applicable Prospectus may be
resumed, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by
reference in such Prospectus. If the Company shall give any such notice, the
Effectiveness Period shall be extended by the number of days during such period
from and including the date of the giving of such notice to and including the
date when each Holder shall have received (x) the copies of the supplemented or
amended Prospectus contemplated by Sections 4(i) and 4(k) hereof or (y) the
Advice, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by
reference in such Prospectus.
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3. Liquidated Damages
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(a) The Company and the Purchasers agree that the Holders will suffer
damages if the Company fails to fulfill its obligations pursuant to Section 2
hereof and that it would not be possible to ascertain the extent of such
damages. Accordingly, the Company hereby agrees to pay liquidated damages
("Liquidated Damages") to each Holder under the circumstances and to the extent
set forth below:
(i) if the Shelf Registration Statement has not been filed with the SEC
on or prior to the Filing Date; or
(ii) if each Shelf Registration Statement is not declared effective by
the SEC on or prior to the applicable Effectiveness Target Date; or
(iii) any Shelf Registration Statement ceases to be effective or usable
at any time during the Effectiveness Period (without being succeeded on the
same day immediately by a post-effective amendment or supplement to such
Registration Statement that cures such failure and that is itself, in the
case of post-effective amendment, immediately declared effective) for a
period of time which shall exceed 90 days in the aggregate in any period of
365 consecutive days;
(any of the foregoing, a "Registration Default"). In the event of any such
Registration Default, the Company shall accrue Liquidated Damages to each Holder
during the first 90-day period immediately in an amount equal to $.05 per week
per $1,000 principal amount of Notes and, if applicable, on an equivalent basis
per share (i.e., $.00165 per week per share) (subject to appropriate adjustment
in the event of any stock split, stock combination, stock dividends and the
like) of Common Stock constituting Transfer Restricted Securities held by such
Holder for each week or portion thereof that the Registration Default continues.
The weekly rate at which such Liquidated Damages accrue shall increase by an
additional $.05 per $1,000 principal amount of Notes and, if applicable, an
equivalent amount per week per share (subject to adjustment as set forth above)
of Common Stock constituting Transfer Restricted Securities for each subsequent
continuing 90-day period following the occurrence of such Registration Default
until all Registration Defaults have been cured; provided, however, that
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Liquidated Damages shall not at any time exceed $.25 per week per $1,000
principal amount of Notes or, as applicable, an equivalent amount per week per
share (i.e., $.00825 per week per share) (subject to adjustment as set forth
above) of Common Stock constituting Transfer Restricted Securities. Following
the cure of all Registration Defaults, the accrual of Liquidated Damages shall
cease (without in any way limiting the effect of any subsequent Registration
Default). A Registration Default under clause (i) above shall be cured on the
date that the applicable Shelf Registration Statement is filed with the SEC; a
Registration Default under clause (ii) above shall be cured on the date that the
applicable Shelf Registration Statement is declared effective by the SEC; and a
Registration Default under clause (iii) above shall be cured on the date the
applicable Shelf Registration Statement is declared effective or otherwise
usable.
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(b) The Company shall notify the Trustee within one Business Day after
each and every date on which a Registration Default occurs. Liquidated Damages
shall be paid by the Company to the Record Holders on each Damages Payment Date
by wire transfer of immediately available funds to the accounts specified by
them or by mailing checks to their registered addresses as they appear in the
Note register (as defined in the Indenture), in the case of the Notes, and in
the register of the Company for the Common Stock, in the case of shares of
Common Stock, if no such accounts have been specified on or before the Damages
Payment Date; provided, however, that any Liquidated Damages accrued with
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respect to any Note or portion thereof called for redemption on a redemption
date, repurchased in connection with a Repurchase Event (as defined in the
Indenture) on a repurchase date, or converted into shares of Common Stock on a
conversion date prior to the Damages Payment Date, shall, in any such event, be
paid instead to the Holder who submitted such Note or portion thereof for
redemption, repurchase or conversion on the applicable redemption date,
repurchase date or conversion date, as the case may be, on such date (promptly
following the conversion date, in the case of conversion of a Note). In no
event shall the Company be required to pay Liquidated Damages in excess of the
applicable maximum weekly amount set forth above, regardless of whether one or
multiple Registration Defaults shall exist.
(c) All of the Company's obligations set forth in this Section 3 which are
unsatisfied to any extent with respect to any Transfer Restricted Securities at
the time such security ceases to be a Transfer Restricted Security shall survive
until such time as all such obligations with respect to such security have been
satisfied in full (notwithstanding the earlier termination of this Agreement).
(d) Any payments due and payable pursuant to this Section 3 with respect
to any Notes shall be subject to the provisions of Article IV of the Indenture
as if such payments were additional interest on the Notes.
4. Registration Procedures. In connection with the Company's
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registration obligations hereunder, the Company shall effect such registrations
on the appropriate form selected by the Company to permit the resale of Transfer
Restricted Securities in accordance with the intended method or methods of
disposition thereof, and pursuant thereto the Company shall:
(a) No fewer than five Business Days prior to the initial filing of a
Registration Statement or Prospectus and no fewer than two Business Days prior
to the filing of any amendment or supplement thereto (excluding, unless
requested, any document that would be incorporated or deemed to be incorporated
therein by reference), furnish to the registered (as of the most recent
reasonably practicable date which shall not be more than two Business Days prior
to the date such document is personally delivered, delivered to a next-day
courier, deposited in the mail or telecopied, as the case may be) Holders,
Special Counsel and the managing underwriters, if any, copies of all such
documents proposed to be filed (excluding, unless requested, those incorporated
or deemed to be incorporated by reference) and cause the officers and directors
of the Company, counsel to the Company and independent certified public
accountants to the Company to respond to such inquiries as shall be necessary in
connection with such Registration Statement, in the opinion of Special
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Counsel and counsel to such underwriters, to conduct a reasonable investigation
within the meaning of the Securities Act. The Company shall not file any such
Registration Statement or related Prospectus or any amendments or supplements
thereto to which the Holders of a majority in aggregate principal amount of the
Transfer Restricted Securities, Special Counsel, or the managing underwriters,
if any, shall reasonably object on a timely basis, provided, that the Company
may assume, for the purposes of this subparagraph (a), that objections to the
inclusion of information specifically requested to be included in the
Registration Statement by the staff of the SEC, or in a written opinion of
counsel to the Company required to be in the Registration Statement, or
specifically required by the Securities Act or other applicable law, shall not
be deemed to be reasonable.
(b) As expeditiously as reasonably possible, prepare and file with the SEC
such amendments, including post-effective amendments, to each Registration
Statement as may be necessary to keep such Registration Statement continuously
effective for the applicable time period set forth in Section 2(a) hereof; cause
the related 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 the Exchange Act with respect to the disposition of all securities covered
by such Registration Statement during such period in accordance with the
intended method or methods of disposition by the Holder set forth in such
Registration Statement as so amended or in such Prospectus as so supplemented
(including, without limitation, the filing of any Prospectus supplement pursuant
to Rule 424 in order to add or change any selling security holder information
(including any such supplements or amendments pursuant to Section 2(c) hereof,
provided such Holder to which such change applies complies with the Requisite
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Information requirements of Section 2(c) hereof));
(c) As expeditiously as reasonably possible, notify the registered (as of
the most recent reasonably practicable date which shall not be more than two
Business Days prior to the date such notice is personally delivered, delivered
to a next-day courier, deposited in the mail or telecopied, as the case may be)
Holders, Special Counsel and the managing underwriters, if any, promptly (and in
the case of an event specified by clause (i)(A) of this paragraph in no event
fewer than two Business Days prior to such filing), and (if requested by any
such person), confirm such notice in writing, (i)(A) when a Prospectus or any
Prospectus supplement or post-effective amendment is proposed to be filed, and,
(B) with respect to a Registration Statement or any post-effective amendment,
when the same has become effective, (ii) of any request of the SEC or any other
Federal or state governmental authority for amendments or supplements to such
Registration Statement or related Prospectus or for additional information
related thereto, (iii) of the issuance by the SEC, any state securities
commission, any other governmental agency or any court of any stop order, order
or injunction suspending or enjoining the use or the effectiveness of the
Registration Statement or the initiation of any proceedings for that purpose,
(iv) if at any time any of the representations and warranties of the Company
contained in any agreement (including any underwriting agreement) contemplated
by Section 4(m) hereof are not true and correct in all material respects, (v) of
the receipt by the Company of any notification with respect to the suspension of
the qualification or exemption from qualification of any of the Transfer
Restricted Securities for sale in any jurisdiction, or the initiation or
threatening of any proceeding for such purpose, and (vi) of the
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existence of any fact and the happening of any event that makes any statement
made in such Registration Statement or related Prospectus untrue in any material
respect, or that requires the making of any changes in such Registration
Statement or Prospectus so that in the case of the Registration Statement, it
will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading and that, in the case of the Prospectus, such Prospectus
will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading;
(d) Use all commercially reasonable efforts to avoid the issuance of, or,
if issued, obtain the withdrawal of any stop order or order enjoining or
suspending the use or effectiveness of a Registration Statement or the lifting
of any suspension of the qualification (or exemption from qualification) of any
of the Transfer Restricted Securities for sale in any jurisdiction, at the
earliest practicable moment;
(e) If requested by the Special Counsel, the managing underwriters, if
any, or the Holders of a majority in aggregate principal amount of the Transfer
Restricted Securities being sold in connection with such offering, (i) promptly
include in a Prospectus supplement or post-effective amendment such information
as the Special Counsel, the managing underwriters, if any, and such Holders
reasonably request to be included therein, and (ii) make all required filings of
such Prospectus supplement or such post-effective amendment as soon as
reasonably practicable after the Company has received notification of the
matters to be included in such Prospectus supplement or post-effective
amendment; provided, however, that the Company shall not be required to take any
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action pursuant to this Section 4(e) that would, in the opinion of counsel for
the Company, violate applicable law;
(f) As expeditiously as reasonably possible, furnish to each Holder who so
requests, Special Counsel and each managing underwriter, if any, without charge,
at least one conformed copy of each Registration Statement and each amendment
thereto, including financial statements (but excluding schedules, all documents
incorporated or deemed to be incorporated therein by reference and all exhibits,
unless requested in writing by such Holder, Special Counsel or managing
underwriter);
(g) As expeditiously as reasonably possible, deliver to each Holder, the
Special Counsel, and the underwriters, if any, without charge, as many copies of
the Prospectus or Prospectuses (including each form of Prospectus) and each
amendment or supplement thereto as such persons may reasonably request; and,
unless the Company shall have given notice to such Holder pursuant to Section
2(d), the Company hereby consents to the use of such Prospectus and each
amendment or supplement thereto by each of the selling Holders of Transfer
Restricted Securities and the underwriters, if any, in connection with the
offering and sale of the Transfer Restricted Securities covered by such
Prospectus and any amendment or supplement thereto, provided, however, that no
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Holder shall be entitled to use the Prospectus unless and until such Holder
shall have furnished to the Company any and all Requisite Information pursuant
to Section 2(c) hereof;
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(h) Use all commercially reasonable efforts to register or qualify, or
cooperate with the Holders of Transfer Restricted Securities to be sold, the
underwriters, if any, and their respective counsel in connection with the
registration or qualification (or exemption from such registration or
qualification) of, such Transfer Restricted Securities for offer and sale under
the securities or Blue Sky laws of such jurisdictions within the United States
as any Holder or underwriter reasonably requests in writing, keep each such
registration or qualification (or exemption therefrom) effective during the
period such Registration Statement is required to be kept effective and do any
and all other acts or things necessary legally to enable the disposition in such
jurisdictions of the Transfer Restricted Securities covered by the applicable
Registration Statement; provided, however, that the Company shall not be
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required to qualify generally to do business in any jurisdiction where it is not
then so qualified, take any action that would subject it to general service of
process in any such jurisdiction where it is not then so subject or subject the
Company to any tax in any such jurisdiction where it is not then so subject;
(i) In connection with any sale or transfer of Transfer Restricted
Securities that will result in such securities no longer being Transfer
Restricted Securities, cooperate with the Holders and the managing underwriters,
if any, to (A) facilitate the timely preparation and delivery of certificates
representing Transfer Restricted Securities to be sold, which certificates shall
not bear any restrictive legends, shall bear a CUSIP number different from the
CUSIP number for the Transfer Restricted Securities and shall be in a form
eligible for deposit with The Depository Trust Company and (B) enable such
Transfer Restricted Securities to be in such denominations and registered in
such names as the managing underwriters, if any, or Holders may reasonably
request at least two Business Days prior to any sale of Transfer Restricted
Securities;
(j) Use all commercially reasonable efforts to cause the offering of the
Transfer Restricted Securities covered by the Registration Statement to be
registered with or approved by such other governmental agencies or authorities
within the United States, except as may be required as a consequence of the
nature of a Holder's business, in which case the Company will cooperate in all
reasonable respects with the filing of such Registration Statement and the
granting of such approvals as may be reasonably necessary to enable the seller
or sellers thereof or the underwriters, if any, to consummate the disposition of
such Transfer Restricted Securities; provided, however, that the Company shall
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not be required to register the Transfer Restricted Securities in any
jurisdiction that would require the Company to qualify to do business in any
jurisdiction where it is not then so qualified, subject it to general service of
process in any such jurisdiction where it is not then so subject or subject the
Company to any tax in any such jurisdiction where it is not then so subject or
to;
(k) Upon the occurrence of any event contemplated by Section 4(c)(vi)
hereof, as promptly as reasonably practicable, prepare a supplement or
amendment, including, if appropriate, a post-effective amendment, to each
Registration Statement or a supplement to the related Prospectus or any document
incorporated or deemed to be incorporated therein by reference, and file any
other required document so that, as thereafter delivered, such Prospectus will
not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not
-11-
misleading, provided that, the Company may delay the filing and delivery of such
supplement or amendment if, and only for so long as, (i) such supplement or
amendment would require the Company to disclose material non-public information,
(ii) the Board of Directors of the Company determines in good faith that such
disclosure is adverse to the reasonable interests of the Company and its
shareholders, and (iii) the Company complies with its obligations, if any, to
pay Liquidated Damages;
(l) Prior to the effective date of the first Registration Statement
relating to the Transfer Restricted Securities, to provide a CUSIP number for
the Transfer Restricted Securities to be sold pursuant to the Registration
Statement;
(m) Enter into such agreements (including an underwriting agreements in
form, scope and substance as are customary in underwritten offerings) reasonably
satisfactory to the Company and take all such other reasonable actions in
connection therewith (including those reasonably requested by the managing
underwriters, if any, or the Holders of a majority in aggregate principal amount
of the Transfer Restricted Securities being sold) in order to expedite or
facilitate the sale of such Transfer Restricted Securities; provided, however,
------------------
that the Company is not required to facilitate an underwritten public offering
unless a request therefor shall have been made by the holders of a majority in
aggregate principal amount of the Transfer Restricted Securities being sold and,
in any event, the Company is not required to effect more than two underwritten
offerings. In such connection, whether or not an underwriting agreement is
entered into and whether or not the registration is an underwritten
registration, the Company shall (i) make such representations and warranties to
the Holders of such Transfer Restricted Securities and the underwriters, if any,
with respect to the business of the Company and its subsidiaries (including with
respect to businesses or assets acquired or to be acquired by any of them), and
the Registration Statement, Prospectus and documents, if any, incorporated or
deemed to be incorporated by reference therein, in each case, in form, substance
and scope as are customarily made by issuers to underwriters in underwritten
offerings, and confirm the same if and when requested; (ii) seek to obtain
opinions of counsel to the Company and updates thereof (which counsel and
opinions (in form, scope and substance) shall be reasonably satisfactory to the
managing underwriters, if any, and Special Counsel to the Holders of the
Transfer Restricted Securities being sold), addressed to each selling Holder of
Transfer Restricted Securities and each of the underwriters, if any, covering
the matters customarily covered in opinions requested in underwritten offerings
(including any such matters as may be reasonably requested by such Special
Counsel and underwriters); (iii) use all reasonable efforts to obtain customary
"cold comfort" letters and updates thereof from the independent certified public
accountants of the Company (and, if necessary, any other independent certified
public accountants of any subsidiary of the Company or of any business acquired
by the Company for which financial statements and financial data is, or is
required to be, included in the Registration Statement), addressed (where
reasonably possible) to each selling Holder of Transfer Restricted Securities
and each of the underwriters, if any, such letters to be in customary form and
covering matters of the type customarily covered in "cold comfort" letters in
connection with underwritten offerings; (iv) if an underwriting agreement is
entered into, provide that the underwriting agreement shall contain
indemnification provisions and procedures no less favorable to the selling
Holders of Transfer Restricted Securities and the underwriters, if any, than
those set forth in Section 6 hereof (or such other provisions and procedures
-12-
acceptable to Holders of a majority in aggregate principal amount of the
Transfer Restricted Securities covered by such Registration Statement and the
managing underwriters); and (v) deliver such documents and certificates as may
be reasonably requested by the Holders of majority in aggregate principal amount
of the Transfer Restricted Securities being sold, their Special Counsel or the
managing underwriters, if any, to evidence the continued validity of the
representations and warranties made pursuant to clause (i) of this Section 4(m)
and to evidence compliance with any customary conditions contained in the
underwriting agreement or other agreement entered into by the Company;
(n) As expeditiously as reasonably possible, make available for inspection
by a representative of the Holders of Transfer Restricted Securities being sold,
any underwriter participating in any such disposition of Transfer Restricted
Securities, if any, and any attorney, consultant or accountant retained by such
selling Holders or underwriter, at the offices where normally kept, during
reasonable business hours, all financial and other records, pertinent corporate
documents and properties of the Company and its subsidiaries as they may
reasonably request, and cause the officers, directors, agents and employees of
the Company and its subsidiaries to supply all information in each case
reasonably requested by any such representative, underwriter, attorney,
consultant or accountant in connection with such Registration Statement,
provided, however, that such persons shall first agree in writing with the
------------------
Company that any information that is reasonably and in good faith designated by
the Company in writing as confidential at the time of delivery or inspection (as
the case may be) of such information shall be kept confidential by such persons,
unless (i) disclosure of such information is required by court or administrative
order or is necessary to respond to inquiries of regulatory authorities, (ii)
disclosure of such information is required by law (including any disclosure
requirements pursuant to Federal securities laws in connection with the filing
of any Registration Statement or the use of any Prospectus), (iii) such
information becomes generally available to the public other than as a result of
a disclosure or failure to safeguard by any such person or (iv) such information
becomes available to any such person from a source other than the Company and
such source is not bound by a confidentiality agreement.
(o) Cause the Indenture to be qualified under the TIA not later than the
effective date of the first Registration Statement relating to the Transfer
Restricted Securities; and in connection therewith, cooperate with the Trustee
and the Holders of Notes constituting Transfer Restricted Securities to effect
such changes to the Indenture, if any, as may be required for such Indenture to
be so qualified in accordance with the terms of the TIA; and execute, and use
its best efforts to cause the Trustee to execute, all customary documents as may
be required to effect such changes, and all other forms and documents (including
Form T-1) required to be filed with the SEC to enable the Indenture to be so
qualified under the TIA in a timely manner.
(p) Comply with applicable rules and regulations of the SEC and make
generally available to its security holders earning statements satisfying the
provisions of Section 11(a) of the Securities Act or Rule 158 (or any similar
rule promulgated under the Securities Act), no later than 45 days after the end
of any 12-month period (or 90 days after the end of any 12-month period if such
period is a fiscal year) (i) commencing at the end of any fiscal quarter in
which Transfer Restricted
-13-
Securities are sold to underwriters in a firm commitment or best efforts
underwritten offering and (ii) if not sold to underwriters in such an offering,
commencing on the first day of the first fiscal quarter after the effective date
of a Registration Statement, which statement shall cover said period, consistent
with the requirements of Rule 158; and
(q) (i) list all shares of Common Stock covered by such Registration
Statement on any securities exchange on which the Common Stock is then listed or
(ii) authorize for quotation on the National Association of Securities Dealers
Automated Quotation System ("Nasdaq") or the National Market of Nasdaq all
Common Stock covered by such Registration Statement if the Common Stock is then
so authorized for quotation.
5. Registration Expenses
---------------------
(a) All fees and expenses incident to the performance of or compliance
with this Agreement by the Company shall be borne by it whether or not any
Registration Statement is filed or becomes effective and whether or not any
securities are offered or sold pursuant to any Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filings fees (including, without
limitation, fees and expenses (A) with respect to filings required to be made
with the National Association of Securities Dealers, Inc. and (B) in compliance
with securities or Blue Sky laws (including, without limitation and in addition
to that provided for in (b) below, fees and disbursements of counsel for the
underwriters or the Special Counsel in connection with Blue Sky qualifications
of the Transfer Restricted Securities and determination of the eligibility of
the Transfer Restricted Securities for investment under the laws of such
jurisdictions as the managing underwriters, if any, or Holders of a majority in
aggregate principal amount of Transfer Restricted Securities, may designate)),
(ii) printing expenses (including, without limitation, expenses of printing
certificates for Transfer Restricted Securities in a form eligible for deposit
with The Depository Trust Company and of printing Prospectuses if the printing
of Prospectuses is required by the managing underwriters, if any, or by the
Holders of a majority in aggregate principal amount of the Transfer Restricted
Securities included), (iii) messenger, telephone and delivery expenses, (iv)
fees and disbursements of counsel for the Company and the Special Counsel (plus
any local counsel deemed appropriate by the Holders of a majority in aggregate
principal amount of the Transfer Restricted Securities) in accordance with the
provisions of Section 5(b) hereof, (v) fees and disbursements of all independent
certified public accountants referred to in Section 4(m)(iii) (including,
without limitation, the expenses of any special audit and "comfort" letters
required by or incident to such performance), (vi) Securities Act liability
insurance, if the Company so desires such insurance, and (vii) fees and expenses
of all other persons retained by the Company. In addition, the Company shall
pay its internal expenses (including, without limitation, all salaries and
expenses of its officers and employees performing legal or accounting duties),
the expense of an annual audit and the fees and expenses incurred in connection
with the listing of the securities to be registered on any securities exchange
or the Nasdaq or the Nasdaq National Market. Notwithstanding anything in this
Agreement to the contrary, each Holder shall pay all underwriting discounts and
brokerage commissions with respect to any Transfer Restricted Securities sold by
it.
-14-
(b) In connection with any registration hereunder, the Company shall
reimburse the Holders of the Transfer Restricted Securities being registered or
tendered for in such registration for the reasonable fees and disbursements of
not more than one firm of attorneys representing the selling Holders (in
addition to any local counsel), which firm shall be chosen by the Holders of a
majority in aggregate principal amount of the Transfer Restricted Securities.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ & ▇▇▇▇▇▇ shall be Special Counsel for all purposes
hereof unless and until another Special Counsel shall have been selected by a
majority in aggregate principal amount of the Transfer Restricted Securities and
notice hereof shall have been given to the Company.
6. Indemnification
---------------
(a) The Company agrees to indemnify and hold harmless (i) each of the
Purchasers, (ii) each Holder, (iii) each person, if any, who controls (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act) any of the foregoing (any of the persons referred to in this clause (iii)
being hereinafter referred to as a "controlling person"), and (iv) the
respective officers, directors, partners, employees, representatives and agents
of the Purchasers, the Holders (including predecessor Holders), or any
controlling person (any person referred to in clause (i), (ii), (iii) or (iv)
may hereinafter be referred to as an "Indemnified Person"), from and against any
and all losses, claims, damages, liabilities, expenses and judgments caused by
any untrue statement or alleged untrue statement of a material fact contained in
any Registration Statement or Prospectus or in any amendment or supplement
thereto or in any preliminary Prospectus, or caused by 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 case of any Prospectus or
supplement thereto or any preliminary Prospectus, in light of the circumstances
under which they were made) not misleading, except insofar as such losses,
claims, damages, liabilities, expenses or judgments are caused by any such
untrue statement or omission or alleged untrue statement or omission based upon
information relating to any Indemnified Person furnished to the Company by or on
behalf of such Indemnified Person expressly for use therein; provided, however,
------------------
that the foregoing indemnity with respect to any preliminary Prospectus shall
not inure to the benefit of any Indemnified Person from whom the person
asserting such losses, claims, damages, liabilities, expenses and judgments
purchased securities if such untrue statement or omission or alleged untrue
statement or omission made in such preliminary Prospectus is eliminated or
remedied in the Prospectus and a copy of the Prospectus shall not have been
furnished to such person in a timely manner due to the wrongful action or
wrongful inaction of such Indemnified Person, whether as a result of negligence
or otherwise.
(b) In case any action shall be brought against any Indemnified Person,
based upon any Registration Statement or any such Prospectus or any amendment or
supplement thereto and with respect to which indemnity may be sought against the
Company, such Indemnified Person shall promptly notify the Company in writing
and the Company shall assume the defense thereof, including the employment of
counsel reasonably satisfactory to such Indemnified Person and payment of all
reasonable fees and expenses. Any Indemnified Person shall have the right to
employ separate counsel in any such action and participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Person, unless (i) the employment of such counsel
-15-
shall have been specifically authorized in writing by the Company, (ii) the
Company shall have failed to assume the defense and employ counsel or (iii) such
Indemnified Person or Persons shall have been advised by counsel that there may
be a conflict between the positions of the indemnifying party or parties and of
the indemnified party or parties in conducting the defense of such action or
proceeding or that there may be legal defenses available to such Indemnified
Person or Persons different from or in addition to those available to the
indemnifying party or parties (in which case the Company shall not have the
right to assume the defense of such action on behalf of such Indemnified Person,
it being understood, however, that the Company shall not, in connection with any
one such action or separate but substantially similar or related actions in the
same jurisdiction arising out of the same general allegations or circumstances,
be liable for the fees and expenses of more than one separate firm of attorneys
(in addition to any local counsel) for all such Indemnified Persons, which firm
shall be designated in writing by such Indemnified Persons, and that all such
fees and expenses shall be reimbursed as they are incurred). The Company shall
not be liable for any settlement of any such action effected without its written
consent but if settled with the written consent of the Company, the Company
agrees to indemnify and hold harmless any Indemnified Person from and against
any loss or liability by reason of such settlement. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.
(c) In connection with any Registration Statement pursuant to which any
Holder (or predecessor Holder) sold or offered for resale Transfer Restricted
Securities, such Holder (or predecessor Holder) agrees, severally and not
jointly, to indemnify and hold harmless the Company, its directors, its officers
and any person controlling the Company within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, to the same extent as the
foregoing indemnity from the Company to each Indemnified Person but only with
reference to information relating to such Indemnified Person furnished by or on
behalf of such Indemnified Person expressly for use in such Registration
Statement. In case any action shall be brought against the Company, any of its
directors, any such officer or any person controlling the Company based on such
Registration Statement and in respect of which indemnity may be sought against
any Indemnified Person, the Indemnified Person shall have the rights and duties
given to the Company (except that if the Company shall have assumed the defense
thereof, such Indemnified Person shall not be required to do so, but may employ
separate counsel therein and participate in defense thereof but the fees and
expenses of such counsel shall be at the expense of such Indemnified Person),
and the Company, its directors, any such officers and any person controlling the
Company shall have the rights and duties given to the Indemnified Person by
Section 6(b) hereof.
(d) If the indemnification provided for in this Section 6 is unavailable
to an indemnified party in respect of any losses, claims, damages, liabilities,
expenses or judgments referred to therein, then each 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, expenses and judgments (i) in such proportion as is appropriate to
reflect the
-16-
relative benefits received by the Company on the one hand and each Indemnified
Person on the other hand pursuant to the Purchase Agreement or from the offering
for resale of the Transfer Restricted Securities or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above but also the relative fault of the Company and each such
Indemnified Person in connection with the statements or omissions which resulted
in such losses, claims, damages, liabilities, expenses or judgments, as well as
any other relevant equitable considerations. The relative fault of the Company
and each such Indemnified Person shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission to state a material fact relates to information supplied by the
Company or such Indemnified Person and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.
The Company, the Holders and the Purchasers agree that it would not be
just and equitable if contribution pursuant to this Section 6(d) were determined
by pro rata allocation (even if the Indemnified Person 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, expenses or judgments
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 6, no Indemnified Person shall be required to contribute any amount in
excess of the amount by which the total net profit received by it in connection
with the sale of the Transfer Restricted Securities pursuant to this Agreement
exceeds the amount of any damages which such Indemnified Person 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 Indemnified Persons' obligations to contribute pursuant
to this Section 6(d) are several in proportion to the respective amount of
Transfer Restricted Securities included in and sold pursuant to any such
Registration Statement by each Indemnified Person and not joint.
7. Rules 144 and 144A
------------------
The Company shall file the reports required to be filed by it under the
Securities Act and the Exchange Act in a timely manner and, if at any time it is
not required to file such reports but in the past had been required to or did
file such reports, it will, upon the request of any Holder, make available other
information as required by, and so long as necessary to permit sales of its
Transfer Restricted Securities pursuant to, Rule 144 and Rule 144A.
Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to
require the Company to register any of its securities pursuant to the Exchange
Act.
-17-
8. Underwritten Registrations
--------------------------
If any of the Transfer Restricted Securities covered by any Shelf
Registration Statement are to be sold in an underwritten offering, the
investment banker or investment bankers and manager or managers that will
administer the offering will be investment bankers of recognized national
standing selected by the Holders of a majority in aggregate principal amount of
such Transfer Restricted Securities included in such offering, subject to the
consent of the Company (which will not be unreasonably withheld or delayed).
No person may participate in any underwritten registration hereunder
unless such person (i) agrees to sell such person's Transfer Restricted
Securities on the basis reasonably provided in any underwriting arrangements
approved by the persons entitled hereunder to approve such arrangements and (ii)
completes and executes all questionnaires, powers of attorney, indemnities
underwriting agreements, lock-up agreements and other documents reasonably
required under the terms of such underwriting arrangements.
9. Miscellaneous
-------------
(a) Remedies. In the event of a breach by the Company or by a Holder of
---------
any of their respective obligations under this Agreement, each Holder or the
Company, in addition to being entitled to exercise all rights granted by law,
including, without limitation, recovery of damages, will be entitled to specific
performance of its rights under this Agreement. The Company and each Holder
agree that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of any of the provisions of this Agreement
and hereby further agree that, in the event of any action for specific
performance in respect of such breach, they shall waive the defense that a
remedy at law would be adequate. This Section 9(a) shall not apply to any
breach for which Liquidated Damages have been specifically provided hereunder.
(b) No Inconsistent Agreements.
---------------------------
(i) The Company shall not enter into any agreement with respect to its
securities that is inconsistent with the rights specifically granted to the
Holders in this Agreement or otherwise conflicts with the provisions hereof.
Without limiting the generality of the foregoing, without the written consent of
the Holders of a majority in aggregate principal amount of the Transfer
Restricted Securities, the Company shall not hereafter grant to any person the
right to include any securities held by such person in any Registration
Statement filed pursuant to this Agreement.
(ii) The Company is not currently a party to any agreement granting
any registration rights with respect to any of its securities to any person
which conflicts with the Company's obligations hereunder, except for such rights
and conflicts (A) as have been irrevocably waived, (B) that subject the Transfer
Restricted Securities to be sold in an underwritten offering to be cutback prior
to the securities included in such offering by security holders exercising
piggyback registration rights with respect to such offering as specifically
described in the Offering Circular dated
-18-
June 25, 1997 with respect to the Notes (the "Offering Circular") and (C) that
could delay the time period with respect to amendments or supplements as
contemplated in this Agreement as specifically described in the Offering
Circular.
(iii) Notwithstanding any term of this Agreement to the contrary, the
Company shall use all commercially reasonable efforts to obtain waivers from
holders of registration rights with respect to the Company's securities
("Existing Registration Rights Holders") of any rights to include any of their
shares of Common Stock ("Piggyback Shares") in any Registration Statement filed
pursuant to this Agreement and any other rights they otherwise would have with
respect to actions required to be taken by the Company under this Agreement.
Without limiting the foregoing, the Company shall, to the extent required to
obtain such waivers, offer to file, prior to or contemporaneously with the Shelf
Registration Statement required pursuant to Section 2(a) of this Agreement, a
shelf registration statement with respect to the Existing Registration Rights
Holders' Piggyback Shares with substantially the same terms that such Existing
Registration Rights Holders would otherwise have with respect to any Shelf
Registration Statement. In addition, the Company shall use all commercially
reasonable efforts to eliminate or minimize any adverse effects on the rights of
the Holders under this Agreement as a result of the Company's registration
rights agreements with the Existing Registration Rights Holders.
(iv) The Purchasers agree that the second paragraph of Section 2(c)
of this Agreement shall not require the Company to breach the third-party
obligation referenced in Section 9(b)(ii)(C) above if such third-party
obligation is not waived. The Company acknowledges that neither the agreement
set forth in the preceding sentence, the disclosure set forth in Section
9(b)(ii) above nor the covenants of the Company set forth in Section 9(b)(iii)
above shall relieve the Company of its obligation to pay Liquidated Damages
pursuant to and in accordance with Section 3 of this Agreement. Without
limiting the foregoing, with respect to amendments or supplements to a Shelf
Registration Statement, such Shelf Registration Statement shall "cease to be
usable" within the meaning of Section 3(a)(iii) of this Agreement for such
period which exceeds the applicable time period for filing and delivering
amendments or supplements, as the case may be, as required under this Agreement.
(c) No Adverse Action Affecting the Transfer Restricted Securities. The
---------------------------------------------------------------
Company will not take any action with respect to the Transfer Restricted
Securities which would adversely affect the ability of any of the Holders to
include such Transfer Restricted Securities in a registration undertaken
pursuant to this Agreement.
(d) No Piggyback on Registrations. After the date hereof, the Company
------------------------------
shall not grant to any of its security holders (other than the Holders in such
capacity) the right to include any of its securities in any Shelf Registration
Statement.
(e) Amendments and Waivers. The provisions of this
-----------------------
Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof, may not be given, without the written consent of the
-19-
Holders of a majority in aggregate principal amount of the Transfer Restricted
Securities; provided, however, that, for the purposes of this Agreement,
------------------
Transfer Restricted Securities that are owned, directly or indirectly, by either
the Company or an Affiliate of the Company are not deemed outstanding.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of
Holders whose Transfer Restricted Securities are being sold pursuant to an
underwritten offering and that does not directly or indirectly affect the rights
of other Holders may be given by Holders of a majority in aggregate principal
amount of the Transfer Restricted Securities being sold by such Holders pursuant
to such an underwritten offering; provided, however, that the provisions of this
-----------------
sentence may not be amended, modified, or supplemented except in accordance with
the provisions of the immediately preceding sentence.
(f) Notices. All notices and other communications provided for herein
--------
shall be made in writing by hand-delivery, next day air courier, certified
first-class mail, return receipt requested or telecopy:
(i) if to a Holder, to the address of such Holder as it appears
in the Note or Common Stock register of the Company, as applicable;
(ii) if to the Company, to:
Premiere Technologies, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇.▇.
The ▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attn.: Senior Vice President of Finance and Legal
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
with a copy to:
▇▇▇▇▇▇ & Bird LLP
One Atlantic Center
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Telecopy No: (▇▇▇) ▇▇▇-▇▇▇▇
(iii) if to the Special Counsel, to:
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ & ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇
▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇. ▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
-20-
or such other Special Counsel at such other address and
telecopy number as a majority in aggregate principal amount
of the Transfer Restricted Securities shall have given
notice to the Company as contemplated by Section 5(b)
hereof.
Except as otherwise provided in this Agreement, all such
communications shall be deemed to have been duly given, when delivered by hand,
if personally delivered; one Business Day after being timely delivered to a
next-day air courier, five Business Days after being deposited in the mail,
postage prepaid, if mailed; and when receipt is acknowledged by the recipient's
telecopier machine, if telecopied.
(g) Successors and Assigns. This Agreement shall inure to the
-----------------------
benefit of and be binding upon the successors and permitted assigns of each of
the parties and shall inure to the benefit of each existing and future Holder.
The Company may not assign its rights or obligations hereunder without the prior
written consent of the Holders of a majority in aggregate principal amount of
the Transfer Restricted Securities, other than by operation of law pursuant to a
merger or consolidation to which the Company is a party. In the event the Notes
constituting Transfer Restricted Securities become convertible into common stock
of another person pursuant to Section 15.6 of the Indenture, the Company shall
cause such person to assume the Company's obligations hereunder.
(h) Counterparts. This Agreement may be executed in any number
-------------
of counterparts by the parties hereto, 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 instrument.
(i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
--------------
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO
CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.
(j) Severability. The remedies provided herein are cumulative
-------------
and not exclusive of any remedies provided by law. If any term, provision,
covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated,
and the parties hereto shall use their best efforts to find and employ an
alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It is hereby
stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.
-21-
(k) Headings. The headings in this Agreement are for
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convenience of reference only and shall not limit or otherwise affect the
meaning hereof. All references made in this Agreement to "Section" and
"paragraph" refer to such Section or paragraph of this Agreement, unless
expressly stated otherwise.
(l) Attorneys' Fees. In any action or proceeding brought to
----------------
enforce any provision of this Agreement, or where any provision hereof is
validly asserted as a defense, the prevailing party, as determined by the court,
shall be entitled to recover its reasonable attorneys' fees in addition to any
other available remedy.
-22-
IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be duly executed as of the date first written above.
PREMIERE TECHNOLOGIES, INC.
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
---------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Senior Vice President of
Finance and Legal
The foregoing Registration Rights
Agreement is hereby confirmed and
agreed to as of the date first
written above:
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ & COMPANY LLC
ALEX. ▇▇▇▇▇ & SONS INCORPORATED
▇▇▇▇▇▇▇▇▇, LUFKIN & ▇▇▇▇▇▇▇▇ SECURITIES CORPORATION
By: ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ & COMPANY LLC
By: ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ & COMPANY GROUP, L.L.C.
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇
--------------------------------
Authorized Signatory
Acting on behalf of itself and the other
Purchasers