REGISTRATION RIGHTS
AGREEMENT
Dated as of November 17,
2006
THE GUARANTORS LISTED ON SCHEDULE I
HERETO
CITIGROUP GLOBAL MARKETS INC.
BANC OF AMERICA SECURITIES LLC
J.P. MORGAN SECURITIES INC.
MERRILL LYNCH, PIERCE, FENNER &
SMITH INCORPORATED
9 1/8% Senior Secured Notes due
2014
9 1/4% Senior Secured Notes due 2016
9 5/8%/10 3/8% Senior Secured Toggle Notes due 2016
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Page
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Definitions
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1
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Exchange
Offer
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5
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Shelf
Registration
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8
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Market-Making
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9
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Additional
Interest
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13
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Registration
Procedures
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14
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Registration
Expenses
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20
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Indemnification
and Contribution
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21
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Rules 144
and 144A
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25
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Underwritten
Registrations
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25
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Miscellaneous
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26
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REGISTRATION RIGHTS
AGREEMENT
This
Registration Rights Agreement (this “ Agreement
”) is dated as of November 17, 2006, among HCA INC., a
Delaware corporation (the “ Issuer ”), the
guarantors listed on Schedule I hereto (the “
Guarantors ”) and CITIGROUP GLOBAL MARKETS INC., BANC
OF AMERICA SECURITIES LLC, J.P. MORGAN SECURITIES INC. and MERRILL
LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as representatives
(the “ Representatives ”) of the several initial
purchasers (the “ Initial Purchasers ”) named on
Schedule I to the Purchase Agreement (as defined
below).
This
Agreement is entered into in connection with the Purchase
Agreement, dated as of November 9, 2006 (the “ Purchase
Agreement ”), by and among Hercules Holding II, LLC
(“ Hercules Holding ”) and the Initial
Purchasers, which provides for, among other things, the sale by the
Issuer to the Initial Purchasers of $1,000,000,000 aggregate
principal amount of the Issuer’s 9 1/8% Senior Secured Notes
due 2014 (the “ 2014 Cash-Pay Notes ”),
$3,200,000,000 aggregate principal amount of the Issuer’s 9
1/4% Senior Secured Notes due 2016 (the “ 2016 Cash-Pay
Notes ”) and $1,500,000,000 aggregate principal amount of
the Issuer’s 9 5/8%/10 3/8% Senior Secured Toggle Notes due
2016 (the “ Toggle Notes ” and, together with
the 2014 Cash-Pay Notes and the 2016 Cash-Pay Notes, the “
Notes ”). The Notes are issued under an indenture,
dated as of the date hereof (as amended or supplemented from time
to time, the “ Indenture ”), among the Issuer,
the Guarantors and The Bank of New York, as trustee (the “
Trustee ”). Pursuant to the Purchase Agreement and the
Indenture, the Guarantors are required to guarantee (collectively,
the “ Guarantees ”) the Issuer’s
obligations under the Notes and the Indenture. References to the
“ Securities ” shall mean, collectively, the
Notes and, when issued, the Guarantees. In order to induce the
Initial Purchasers (including the Market Maker) to enter into the
Purchase Agreement, the Issuer has agreed to provide the
registration rights set forth in this Agreement for the benefit of
the Initial Purchasers and any subsequent holder or holders of the
Securities. The execution and delivery of this Agreement is a
condition to the Initial Purchasers’ obligations under the
Purchase Agreement.
The
parties hereby agree as follows:
As
used in this Agreement, the following terms shall have the
following meanings:
2014 Cash-Pay Notes : See the introductory paragraphs
hereto.
2016 Cash-Pay Notes : See the introductory paragraphs
hereto.
Additional Interest : See Section 5(a) hereof.
Advice : See the last paragraph of Section 6
hereof.
Agreement : See the introductory paragraphs
hereto.
Applicable Period : See Section 2(b) hereof.
Business Day : Shall have the meaning ascribed to such term
in Rule 14d-1 under the Exchange Act.
-2-
Effectiveness Date : With respect to any Shelf Registration
Statement, the 90th day after the Filing Date with respect thereto;
provided , however , that if the Effectiveness Date
would otherwise fall on a day that is not a Business Day, then the
Effectiveness Date shall be the next succeeding Business
Day.
Effectiveness Period : See Section 3(a) hereof.
Event Date : See Section 5(b) hereof.
Exchange Act : The Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated
thereunder.
Exchange Notes : See Section 2(a) hereof.
Exchange Offer : See Section 2(a) hereof.
Exchange Offer Registration Statement : See Section 2(a)
hereof.
Exchange Securities : See Section 2(a) hereof.
Filing Date : The 90th day after the delivery of a Shelf
Notice as required pursuant to Section 2(c) hereof; provided
, however , that if the Filing Date would otherwise fall on
a day that is not a Business Day, then the Filing Date shall be the
next succeeding Business Day.
Guarantees : See the introductory paragraphs
hereto.
Guarantors : See the introductory paragraphs
hereto.
Hercules Holding : See the introductory paragraphs
hereof.
Holder : Any holder of a Registrable Security or Registrable
Securities.
Indenture : See the introductory paragraphs
hereto.
Information : See Section 6(n) hereof.
Initial Purchasers : See the introductory paragraphs
hereto.
Initial Shelf Registration : See Section 3(a)
hereof.
Inspectors : See Section 6(n) hereof.
Issue Date : November 17, 2006, the date of original
issuance of the Notes.
Issuer : See the introductory paragraphs hereto.
Market-Maker : See Section 4(a) hereof.
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Market-Making Registration : See Section 4(a)(i)
hereof.
Market-Making Registration Statement : See
Section 4(a)(i) hereof.
NASD : See Section 6(r) hereof.
New Guarantees : See Section 2(a) hereof.
Notes : See the introductory paragraphs hereto.
Participant : See Section 8(a) hereof.
Participating Broker-Dealer : See Section 2(b)
hereof.
Person : An individual, trustee, corporation, partnership,
limited liability company, joint stock company, trust,
unincorporated association, union, business association, firm or
other legal entity.
Private Exchange : See Section 2(b) hereof.
Private Exchange Notes : See Section 2(b) hereof.
Prospectus : The prospectus included in any Registration
Statement (including, without limitation, any prospectus subject to
completion and a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A under the
Securities Act and any term sheet filed pursuant to Rule 433
under the Securities Act), as amended or supplemented by any
prospectus supplement, and all other amendments and supplements to
the Prospectus, including post-effective amendments, and all
materials incorporated by reference or deemed to be incorporated by
reference in such Prospectus.
Purchase Agreement : See the introductory paragraphs
hereof.
Records : See Section 6(n) hereof.
Registrable Securities : Each Security upon its original
issuance and at all times subsequent thereto, each Exchange
Security as to which Section 2(c)(iv) hereof is applicable
upon original issuance and at all times subsequent thereto and each
Private Exchange Note (and the related Guarantees) upon original
issuance thereof and at all times subsequent thereto, until, in
each case, the earliest to occur of (i) a Registration
Statement (other than, with respect to any Exchange Securities as
to which Section 2(c)(iv) hereof is applicable, the Exchange
Offer Registration Statement) covering such Security, Exchange
Security or Private Exchange Note (and the related Guarantees) has
been declared effective by the SEC and such Security, Exchange
Security or such Private Exchange Note (and the related
Guarantees), as the case may be, has been disposed of in accordance
with such effective Registration Statement, (ii) such Security
has been exchanged pursuant to the Exchange Offer for an Exchange
Security or Exchange Securities that may be resold without
restriction under state and federal securities laws,
(iii) such Security, Exchange Security or Private Exchange
Note (and the related Guarantees), as the case may be, ceases to be
outstanding for purposes of the Indenture or (iv) such
Security, Exchange Security or Private Exchange Note (and the
related Guarantees), as the case may be, may be resold without
restriction pursuant to Rule 144(k) (as amended or
replaced).
-4-
Registration Statement : Any registration statement of the
Issuer that covers any of the Securities, the Exchange Securities
or the Private Exchange Notes (and the related Guarantees) filed
with the SEC under the Securities Act, including, in each case, the
Prospectus, amendments and supplements to such registration
statement, including post-effective amendments, all exhibits, and
all material incorporated by reference or deemed to be incorporated
by reference in such registration statement.
Representatives : See the introductory paragraphs
hereof.
Rule 144 : Rule 144 (as amended or replaced) under
the Securities Act.
Rule 144A : Rule 144A (as amended or replaced)
under the Securities Act.
Rule 144(k) : Rule 144(k) (as amended or replaced)
under the Securities Act.
Rule 405 : Rule 405 (as amended or replaced) under
the Securities Act.
Rule 415 : Rule 415 (as amended or replaced) under
the Securities Act.
Rule 424 : Rule 424 (as amended or replaced)under
the Securities Act.
SEC : The U.S. Securities and Exchange
Commission.
Securities : See the introductory paragraphs
hereto.
Securities Act : The Securities Act of 1933, as amended, and
the rules and regulations of the SEC promulgated
thereunder.
Shelf Notice : See Section 2(c) hereof.
Shelf Registration : See Section 3(b) hereof.
Shelf Registration Statement : Any Registration Statement
relating to a Shelf Registration.
Shelf Suspension Period : See Section 3(a)
hereof.
Subsequent Shelf Registration : See Section 3(b)
hereof.
TIA : The Trust Indenture Act of 1939, as
amended.
Toggle Notes : See the introductory paragraphs
hereto.
Trustee : The trustee under the Indenture and the trustee
under any indenture (if different) governing the Exchange
Securities and Private Exchange Notes (and the related
Guarantees).
Underwritten registration or underwritten offering : A
registration in which securities of the Issuer is sold to an
underwriter for reoffering to the public.
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Except
as otherwise specifically provided, all references in this
Agreement to acts, laws, statutes, rules, regulations, releases,
forms, no-action letters and other regulatory requirements
(collectively, “ Regulatory Requirements ”)
shall be deemed to refer also to any amendments thereto and all
subsequent Regulatory Requirements adopted as a replacement thereto
having substantially the same effect therewith; provided
that Rule 144 shall not be deemed to amend or replace
Rule 144A.
(a) Unless
the Exchange Offer would violate applicable law or any applicable
interpretation of the staff of the SEC, the Issuer shall use its
reasonable best efforts to file with the SEC a Registration
Statement (the “ Exchange Offer Registration Statement
”) on an appropriate registration form with respect to a
registered offer (the “ Exchange Offer ”) to
exchange any and all of the Registrable Securities for a like
aggregate principal amount of debt securities of the Issuer (the
“ Exchange Notes ”), guaranteed, to the extent
applicable, on an senior secured basis by the Guarantors (the
“ New Guarantees ” and, together with the
Exchange Notes, the “ Exchange Securities ”),
that are identical in all material respects to the 2014 Cash Pay
Notes, 2016 Cash Pay Notes or Toggle Notes, as applicable, except
that (i) the Exchange Notes shall contain no restrictive
legend thereon, (ii) interest thereon shall accrue from the
last date on which interest was paid on such Notes or, if no such
interest has been paid, from the Issue Date and (iii) the
Exchange Securities shall be entitled to the benefits of the
Indenture or a trust indenture which is identical in all material
respects to the Indenture (other than such changes to the Indenture
or any such identical trust indenture as are necessary to comply
with the TIA) and which, in either case, has been qualified under
the TIA. The Exchange Offer shall comply with all applicable tender
offer rules and regulations under the Exchange Act and other
applicable laws. The Issuer shall use its reasonable best efforts
to (x) prepare and file with the SEC the Exchange Offer
Registration Statement with respect to the Exchange Offer;
(y) keep the Exchange Offer open for at least 20 Business Days
(or longer if required by applicable law) after the date that
notice of the Exchange Offer is mailed to Holders; and
(z) consummate the Exchange Offer on or prior to the 360th day
following the Issue Date.
Each
Holder (including, without limitation, each Participating
Broker-Dealer) that participates in the Exchange Offer, as a
condition to participation in the Exchange Offer, will be required
to represent to the Issuer in writing (which may be contained in
the applicable letter of transmittal) that: (i) any Exchange
Securities acquired in exchange for Registrable Securities tendered
are being acquired in the ordinary course of business of the Person
receiving such Exchange Securities, whether or not such recipient
is such Holder itself; (ii) at the time of the commencement or
consummation of the Exchange Offer neither such Holder nor, to the
actual knowledge of such Holder, any other Person receiving
Exchange Securities from such Holder has an arrangement or
understanding with any Person to participate in the distribution
(within the meaning of the Securities Act) of the Exchange
Securities in violation of the Securities Act; (iii) neither
the Holder nor, to the actual knowledge of such Holder, any other
Person receiving Exchange Securities from such Holder is an
“affiliate” (as defined in Rule 405) of the Issuer
or, if it is an affiliate of the Issuer, it will comply with the
registration and prospectus delivery requirements of the Securities
Act to the extent applicable and will provide information to be
included in the Shelf Registration Statement in accordance with
Section 6 hereof in order to have their Securities included in
the Shelf Registration Statement and benefit from the provisions
regarding Additional Interest in Section 5 hereof;
(iv) if such Holder is not a broker-dealer, neither such
Holder nor, to the actual knowledge of such Holder, any other
Person receiving Exchange Securities from such Holder is engaging
or intends to engage in a distribution of the Exchange Securities;
and (v) if such Holder is a Participating Broker-Dealer, such
Holder has acquired the Registrable Securities for its own account
in exchange for Securities that
were acquired
as a result of market-making activities or other trading activities
and that it will comply with the applicable provisions of the
Securities Act (including, but not limited to, the prospectus
delivery requirements thereunder).
Upon
consummation of the Exchange Offer in accordance with this
Section 2, the provisions of this Agreement shall continue to
apply, mutatis mutandis , solely with respect to
Registrable Securities that are Private Exchange Notes (and the
related Guarantees), Exchange Securities as to which
Section 2(c)(iv) is applicable and Exchange Securities held by
the Market-Maker and Participating Broker-Dealers, and the Issuer
shall have no further obligation to register Registrable Securities
(other than Private Exchange Notes (and the related Guarantees) and
Exchange Securities as to which clause 2(c)(iv) hereof applies)
pursuant to Section 3 hereof.
No
securities other than the Exchange Securities shall be included in
the Exchange Offer Registration Statement.
(b) The
Issuer shall include within the Prospectus contained in the
Exchange Offer Registration Statement a section entitled
“Plan of Distribution,” which shall contain a summary
statement of the positions taken or policies made by the staff of
the SEC with respect to the potential “underwriter”
status of any broker-dealer that is the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act)
of Exchange Notes received by such broker-dealer in the Exchange
Offer (a “ Participating Broker-Dealer ”),
whether such positions or policies have been publicly disseminated
by the staff of the SEC or such positions or policies represent the
prevailing views of the staff of the SEC. Such “Plan of
Distribution” section shall also expressly permit, to the
extent permitted by applicable policies and regulations of the SEC,
the use of the Prospectus by all Participating Broker-Dealers, and
include a statement describing the means by which Participating
Broker-Dealers may resell the Exchange Securities in compliance
with the Securities Act.
The
Issuer shall use its reasonable best efforts to keep the Exchange
Offer Registration Statement effective and to amend and supplement
the Prospectus contained therein in order to permit such Prospectus
to be lawfully delivered by all Persons subject to the prospectus
delivery requirements of the Securities Act for such period of time
as is necessary to comply with applicable law in connection with
any resale of the Exchange Securities; !provided ,
however , that such period shall not be required to exceed
90 days, or such longer period if extended pursuant to the
last paragraph of Section 6 hereof (the “ Applicable
Period ”).
If,
prior to consummation of the Exchange Offer, the Initial Purchasers
hold any Notes acquired by them that have the status of an unsold
allotment in the initial distribution, the Issuer, upon the request
of the Initial Purchasers, shall simultaneously with the delivery
of the Exchange Notes issue and deliver to the Initial Purchasers,
in exchange (the “ Private Exchange ”) for such
Notes held by any such Holder, a like principal amount of notes
(the “ Private Exchange Notes ”) of the Issuer,
guaranteed by the Guarantors, that are identical in all material
respects to the Exchange Notes except for the placement of a
restrictive legend on such Private Exchange Notes. The Private
Exchange Notes shall be issued pursuant to the same indenture as
the Exchange Notes and bear the same CUSIP number as the Exchange
Notes if permitted by the CUSIP Service Bureau.
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In
connection with the Exchange Offer, the Issuer shall:
(1) mail, or cause
to be mailed, to each Holder of record entitled to participate in
the Exchange Offer a copy of the Prospectus forming part of the
Exchange Offer Registration Statement, together with an appropriate
letter of transmittal and related documents;
(2) use their
respective reasonable best efforts to keep the Exchange Offer open
for not less than 20 Business Days from the date that notice of the
Exchange Offer is mailed to Holders (or longer if required by
applicable law);
(3) utilize the
services of a depositary for the Exchange Offer with an address in
the Borough of Manhattan, The City of New York or in Wilmington,
Delaware;
(4) permit Holders
to withdraw tendered Notes at any time prior to the close of
business, New York time, on the last Business Day on which the
Exchange Offer remains open; and
(5) otherwise
comply in all material respects with all laws, rules and
regulations applicable to the Exchange Offer.
As
soon as practicable after the close of the Exchange Offer and any
Private Exchange, the Issuer shall:
(1) accept for
exchange all Registrable Securities validly tendered and not
validly withdrawn pursuant to the Exchange Offer and any Private
Exchange;
(2) deliver to the
Trustee for cancellation all Registrable Securities so accepted for
exchange; and
(3) cause the
Trustee to authenticate and deliver promptly to each Holder of
Notes, Exchange Notes or Private Exchange Notes, as the case may
be, equal in principal amount to the Notes of such Holder so
accepted for exchange; provided that, in the case of any
Notes held in global form by a depositary, authentication and
delivery to such depositary of one or more replacement Notes in
global form in an equivalent principal amount thereto for the
account of such Holders in accordance with the Indenture shall
satisfy such authentication and delivery requirement.
The
Exchange Offer and the Private Exchange shall not be subject to any
conditions, other than that (i) the Exchange Offer or Private
Exchange, as the case may be, does not violate applicable law or
any applicable interpretation of the staff of the SEC; (ii) no
action or proceeding shall have been instituted or threatened in
any court or by any governmental agency which might materially
impair the ability of the Issuer to proceed with the Exchange Offer
or the Private Exchange, and no material adverse development shall
have occurred in any existing action or proceeding with respect to
the Issuer; and (iii) all governmental approvals shall have
been obtained, which approvals the Issuer deems necessary for the
consummation of the Exchange Offer or Private Exchange.
The
Exchange Securities and the Private Exchange Notes (and related
guarantees) shall be issued under (i) the Indenture or
(ii) an indenture identical in all material respects to the
Indenture and
-8-
which, in
either case, has been qualified under the TIA or is exempt from
such qualification and shall provide that the Exchange Securities
shall not be subject to the transfer restrictions set forth in the
Indenture. The Indenture or such indenture shall provide that the
Exchange Notes, the Private Exchange Notes and the Notes shall vote
and consent together on all matters as one class and that none of
the Exchange Notes, the Private Exchange Notes or the Notes will
have the right to vote or consent as a separate class on any
matter.
(c) If,
(i) because of any change in law or in currently prevailing
interpretations of the staff of the SEC, the Issuer is not
permitted to effect the Exchange Offer, (ii) the Exchange
Offer is not consummated within 360 days of the Issue Date,
(iii) any holder of Private Exchange Notes so requests in
writing to the Issuer at any time within 30 days after the
consummation of the Exchange Offer, or (iv) in the case of any
Holder that participates in the Exchange Offer, such Holder does
not receive Exchange Securities on the date of the exchange that
may be sold without restriction under state and federal securities
laws (other than due solely to the status of such Holder as an
affiliate of the Issuer within the meaning of the Securities Act)
and so notifies the Issuer within 30 days after such Holder
first becomes aware of such restrictions, then, in the case of each
of clauses (i) through (iv) of this sentence, the Issuer
shall promptly deliver to the Trustee (to deliver to the Holders)
written notice thereof (the “ Shelf Notice ”)
and shall file a Shelf Registration pursuant to Section 3
hereof.
If
at any time a Shelf Notice is delivered as contemplated by Section
2(c) hereof, then:
(a)
Shelf Registration . The Issuer shall promptly file with the
SEC a Registration Statement for an offering to be made on a
continuous basis pursuant to Rule 415 covering all of the
Registrable Securities (the “ Initial Shelf
Registration ”). The Issuer shall use its reasonable best
efforts to file with the SEC the Initial Shelf Registration on or
prior to the Filing Date. The Initial Shelf Registration shall be
on Form S-1 or another appropriate form permitting registration of
such Registrable Securities for resale by Holders in the manner or
manners designated by them (including, without limitation, one or
more underwritten offerings). The Issuer shall not permit any
securities other than the Registrable Securities and the Guarantees
to be included in the Initial Shelf Registration or any Subsequent
Shelf Registration (as defined below).
The
Issuer shall use its respective reasonable best efforts to cause
the Shelf Registration to be declared effective under the
Securities Act on or prior to the Effectiveness Date and to keep
the Initial Shelf Registration continuously effective under the
Securities Act until the earliest of (i) the date that is two
years from the Issue Date, (ii) such shorter period ending
when all Registrable Securities covered by the Initial Shelf
Registration have been sold in the manner set forth and as
contemplated in the Initial Shelf Registration or, if applicable, a
Subsequent Shelf Registration or (iii) the date upon which all
Registrable Securities become eligible for resale without regard to
volume, manner of sale or other restrictions contained in Rule
144(k) (the “ Effectiveness Period ”);
provided , however , that the Effectiveness Period in
respect of the Initial Shelf Registration shall be extended to the
extent required to permit dealers to comply with the applicable
prospectus delivery requirements of Rule 174 under the
Securities Act and as otherwise provided herein. Notwithstanding
anything to the contrary in this Agreement, at any time, the Issuer
may delay the filing of any Initial Shelf Registration Statement or
delay or suspend the effectiveness thereof, for a reasonable period
of time, but not in excess of 60 consecutive days or more than
three (3) times during any calendar year (each, a “
Shelf Suspension Period ”), if the Board of Directors
of the Issuer
-9-
determines
reasonably and in good faith that the filing of any such Initial
Shelf Registration Statement or the continuing effectiveness
thereof would require the disclosure of non-public material
information that, in the reasonable judgment of the Board of
Directors of the Issuer, would be detrimental to the Issuer if so
disclosed or would otherwise materially adversely affect a
financing, acquisition, disposition, merger or other material
transaction or if such action is required by applicable
law.
(b)
Withdrawal of Stop Orders; Subsequent Shelf Registrations .
If the Initial Shelf Registration or any Subsequent Shelf
Registration ceases to be effective for any reason at any time
during the Effectiveness Period (other than because of the sale of
all of the Securities registered thereunder), the Issuer shall use
its reasonable best efforts to obtain the prompt withdrawal of any
order suspending the effectiveness thereof, and in any event shall
file an additional Shelf Registration Statement pursuant to
Rule 415 covering all of the Registrable Securities covered by
and not sold under the Initial Shelf Registration or an earlier
Subsequent Shelf Registration (each, a “ Subsequent Shelf
Registration ”). If a Subsequent Shelf Registration is
filed, the Issuer shall use its reasonable best efforts to cause
the Subsequent Shelf Registration to be declared effective under
the Securities Act as soon as practicable after such filing and to
keep such subsequent Shelf Registration continuously effective for
a period equal to the number of days in the Effectiveness Period
less the aggregate number of days during which the Initial Shelf
Registration or any Subsequent Shelf Registration was previously
continuously effective. As used herein the term “ Shelf
Registration ” means the Initial Shelf Registration and
any Subsequent Shelf Registration.
(c)
Supplements and Amendments . The Issuer shall promptly
supplement and amend the Shelf Registration if required by the
rules, regulations or instructions applicable to the registration
form used for such Shelf Registration, if required by the
Securities Act, or if reasonably requested by the Holders of a
majority in aggregate principal amount of the Registrable
Securities (or their counsel) covered by such Registration
Statement with respect to the information included therein with
respect to one or more of such Holders, or, if reasonably requested
by any underwriter of such Registrable Securities, with respect to
the information included therein with respect to such
underwriter.
(a) For
the sole benefit of Merrill Lynch, Pierce, Fenner & Smith
Incorporated (in such capacity, the “ Market-Maker
”) or any of its affiliates (as defined in the rules and
regulations of the SEC), so long as (x) any of the Registrable
Securities or Exchange Securities are outstanding and (y) it
would be necessary under applicable laws, rules and regulations, in
the reasonable opinion of the Market-Maker, for the Market-Maker or
any of its affiliates to deliver a prospectus in connection with
market-making activities with respect to the Registrable Securities
or Exchange Securities and the Market-Maker or such affiliate
proposes to make a market in the Registrable Securities or Exchange
Securities as part of its business in the ordinary course, the
following provisions shall apply for the sole benefit of the
Market-Maker:
(i) The Issuer
shall file under the Securities Act one or more registration
statements, in a form approved by the Market-Maker (each such
filing, a “ Market-Making Registration ,” and
each such registration statement, the “ Market-Making
Registration Statement ”). The Issuer agrees to use its
reasonable best efforts to cause a Market-Making Registration
Statement with respect to the Exchange Securities (and, upon
reasonable request by the Market-Maker, the Issuer will use
commercially reasonable efforts to have such Market-Making
Registration Statement also cover the Existing Notes) to be
declared effective on or prior to (i) the date the Exchange
Of-
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fer is
completed pursuant to Section 2(a) above or (ii) the date the
Initial Shelf Registration becomes or is declared effective
pursuant to Section 3 above, and, in each case, to keep such
Market-Making Registration Statement continuously effective for so
long as the Market-Maker may be required to deliver a prospectus in
connection with transactions in the Registrable Securities or the
Exchange Securities, as the case may be. In the event that the
Market-Maker holds Securities at the time the Exchange Offer is to
be conducted under Section 2(a) above, the Issuer agrees that the
applicable Market-Making Registration shall provide for the resale
by the Market-Maker of such Registrable Securities or Exchange
Securities and shall use its reasonable best efforts to keep the
Market-Making Registration Statement continuously effective for so
long as the Market-Maker may be required to deliver a prospectus in
connection with the sale of such Registrable Securities or Exchange
Securities. The Issuer further agrees to supplement or make
amendments to each Market-Making Registration Statement, as and
when required by the rules, regulations or instructions applicable
to the registration form used by the Issuer for the applicable
Market-Making Registration Statement, and the Issuer agrees to
furnish to the Market-Maker copies of any such supplement or
amendment prior to its being used or promptly following its filing
with the SEC.
(ii)
Notwithstanding the foregoing, the Issuer may suspend the offering
and sale under a Market-Making Registration Statement for a period
or periods the Board of Directors of the Issuer reasonably
determines to be advisable for valid business reasons, but in any
event not in excess of 60 consecutive days or more than three
(3) times during any calendar year during which such
Market-Making Registration Statement is required to be effective
and usable hereunder (measured from the Effective Time of such
Market-Making Registration Statement to successive anniversaries
thereof) if (A) (i) the Board of Directors of the Issuer
determines in good faith that such action is in the best interests
of the Issuer or (ii) such Market-Making Registration
Statement, prospectus or amendment or supplement thereto contains
an untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading, and
(B) the Issuer notifies the Market-Maker within five days
before the effectiveness of such suspension.
(iii) The Issuer
shall notify the Market-Maker (A) when any post-effective
amendment to a Market-Making Registration Statement or any
amendment or supplement to the related prospectus has been filed,
and, with respect to any post-effective amendment, when the same
has become effective; (B) of any request by the SEC for any
post-effective amendment to a Market-Making Registration Statement,
any supplement or amendment to the related prospectus or for
additional information; (C) the issuance by the SEC of any
stop order suspending the effectiveness of a Market-Making
Registration Statement or the initiation of any proceedings for
that purpose; (D) of the receipt by the Issuer of any
notification with respect to the suspension of the qualification of
the Registrable Securities or Exchange Securities for sale in any
jurisdiction or the initiation or threatening of any proceedings
for such purpose; and (E) of the happening of any event that
makes any statement made in a Market-Making Registration Statement,
the related prospectus or any amendment or supplement thereto
untrue or that requires the making of any changes in a
Market-Making Registration Statement, such prospectus or any
amendment or supplement thereto, in order to make the statements
therein not misleading.
(iv) If any event
contemplated by Section 4(a)(iii)(B), (D) and
(E) occurs during the period for which the Issuer is required
to maintain an effective Market-Making Registration Statement, the
Issuer shall promptly prepare and file with the SEC a
post-effective amendment to
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the applicable
Market-Making Registration Statement or a supplement to the related
prospectus or file any other required document so that the
prospectus will not include an untrue statement of a material fact
or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which
they were made, not misleading.
(v) In the event
of the issuance of any stop order suspending the effectiveness of a
Market-Making Registration Statement or of any order suspending the
qualification of the Registrable Securities or Exchange Securities
for sale in any jurisdiction, the Issuer shall use promptly its
reasonable best efforts to obtain its withdrawal.
(vi) The Issuer
shall furnish to the Market-Maker, in each case without charge to
the Market-Maker, at least one conformed copy of each Market-Making
Registration Statement and any post-effective amendment thereto and
electronic copies of the related prospectus and any amendment or
supplement thereto.
(vii) The Issuer
shall consent to the use of the prospectus contained in a
Market-Making Registration Statement or any amendment or supplement
thereto by the Market-Maker in connection with its market-making
activities.
(viii)
Notwithstanding the foregoing provisions of this Section 4,
the Issuer may for valid business reasons, including without
limitation, a potential acquisition, divestiture of assets or other
material corporate transaction, issue a notice that a Market-Making
Registration Statement is no longer effective or the prospectus
included therein is no longer usable for offers and sales of
Registrable Securities or Exchange Securities (or Existing Notes,
if applicable) and may issue any notice suspending use of such
Market-Making Registration Statement required under applicable
securities laws to be issued for so long as valid business reasons
exist and the Issuer shall not be obligated to amend or supplement
such Market-Making Registration Statement or the prospectus
included therein until it reasonably deems appropriate. The
Market-Maker agrees that upon receipt of any notice from the Issuer
pursuant to this Section 4(a)(viii), it will discontinue use
of each Market-Making Registration Statement until receipt of
copies of the supplemented or amended prospectus relating thereto
until advised in writing by the Issuer that the use of a
Market-Making Registration Statement may be resumed.
(b) In
connection with a Market-Making Registration, the Issuer shall
(i) make reasonably available for inspection by a
representative of, and counsel acting for, the Market-Maker all
relevant financial and other records, pertinent corporate documents
and properties of the Issuer and its subsidiaries and (ii) use
its reasonable best efforts to have its officers, directors,
employees, accountants and counsel supply all relevant information
reasonably requested by such representative or counsel or the
Market-Maker.
(c) Prior
to the effective date of a Market-Making Registration Statement,
the Issuer will use its reasonable best efforts to register or
qualify such Registrable or Exchange Securities (or Existing Notes,
if applicable), as applicable, for offer and sale under the
securities or blue sky laws of such jurisdictions as the
Market-Maker reasonably requests in writing and do any and all
other acts or things necessary or advisable to enable the offer and
sale in such jurisdictions of the Registrable Securities or
Exchange Securities (or Existing Notes, if applicable) covered by
such Market-Making Registration Statement; provided that
neither the Issuer nor any Guarantor will be required to qualify
generally to do
business in any
jurisdiction where it is not then so qualified or to take any
action which would subject it to general service of process or to
taxation in any such jurisdiction where it is not then so
subject.
(d) The
Issuer represents that each Market-Making Registration Statement,
any post-effective amendments thereto, any amendments or
supplements to the related prospectus and any documents filed by
them under the Exchange Act will, when they become effective or are
filed with the SEC, as the case may be, conform in all respects to
the requirements of the Securities Act and the Exchange Act and the
rules and regulations of the SEC thereunder and will not, as of the
effective date of such Market-Making Registration Statement or
post-effective amendments and as of the filing date of amendments
or supplements to such prospectus or filings under the Exchange
Act, 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 misleading; provided that no
representation or warranty is made as to information contained in
or omitted from a Market-Making Registration Statement or the
related prospectus in reliance upon and in conformity with written
information furnished to the Issuer by the Market-Maker
specifically for inclusion therein, which information the parties
hereto agree will be limited to the statements concerning the
Market-Making activities of the Market-Maker to be set forth on the
cover page and in the “Plan of Distribution” section of
the prospectus.
(e) At
the time of effectiveness of a Market-Making Registration Statement
(unless it is the same as the time of effectiveness of the Exchange
Offer Registration Statement) and concurrently with each time such
Market-Making Registration Statement or the related prospectus
shall be amended or such prospectus shall be supplemented, the
Issuer shall (if requested in writing by the Market-Maker) furnish
the Market-Maker and its counsel with a certificate of an
appropriate officer to the effect that:
(i) such
Market-Making Registration Statement has been declared
effective;
(ii) in the case
of an amendment or supplement, such amendment has become effective
under the Securities Act as of the date and time specified in such
certificate, if applicable; if required, such amendment or
supplement to the prospectus was filed with the SEC pursuant to the
subparagraph of Rule 424(b) under the Securities Act specified in
such certificate on the date specified therein; and
(iii) as of the
date of such Market-Making Registration Statement, amendment or
supplement, as applicable, such Market-Making Registration
Statement and the prospectus, as amended or supplemented, if
applicable, did not include any untrue statement of a material fact
and did not omit to state a material fact required to be stated
therein or necessary to make the statements therein not
misleading.
(f) The
Issuer, on the one hand, and the Market-Maker, on the other hand,
hereby agree to indemnify each other, and, if applicable,
contribute to the other, in accordance with Section 8 of this
Agreement.
(g) The
Issuer will comply with the provisions of this Section 4 at
its own expense.
(h) The
agreements contained in this Section 4 and the
representations, warranties and agreements contained in this
Agreement shall survive all offers and sales of the Existing Notes,
Registrable Securities or Exchange Securities and shall remain in
full force and effect, regardless of any ter-
mination or
cancellation of agreements outside this Section 4 of this
Agreement or any investigation made by or on behalf of any
indemnified party.
(i) For
purposes of this Section 4, any reference to the terms
“amend,” “amendment” or
“supplement” with respect to a Market-Making
Registration Statement or the prospectus contained therein shall be
deemed to refer to and include the filing under the Exchange Act of
any document deemed to be incorporated therein by
reference.
(a) The
Issuer and the Initial Purchasers agree that the Holders will
suffer damages if the Issuer fails to fulfill its obligations under
Section 2 or Section 3 hereof and that it would not be
feasible to ascertain the extent of such damages with precision.
Accordingly, the Issuer and the Guarantors agree to pay, jointly
and severally, as liquidated damages, additional interest on the
2014 Cash-Pay Notes, the 2016 Cash-Pay Notes and/or the Toggle, as
applicable (“ Additional Interest ”) if
(A) the Issuer has neither (i) exchanged Exchange
Securities for all Securities of a series validly tendered in
accordance with the terms of the Exchange Offer nor (ii) had a
Shelf Registration Statement declared effective, in either case on
or prior to the 360th day after the Issue Date,
(B) notwithstanding clause (A), the Issuer is required to file
a Shelf Registration Statement and such Shelf Registration
Statement is not declared effective on or prior to the 360th day
after the date such Shelf Registration Statement filing was
requested or required or (C), if applicable, a Shelf Registration
has been declared effective and such Shelf Registration ceases to
be effective at any time during the Effectiveness Period (other
than because of the sale of all of the Securities of a series
registered thereunder), then Additional Interest shall accrue on
the principal amount of the Notes in such series at a rate of 0.25%
per annum (which rate will be increased by an additional 0.25% per
annum for each subsequent 90 day period that such Additional
Interest continues to accrue, provided that the rate at
which such Additional Interest accrues may in no event exceed 1.00%
per annum) (such Additional Interest to be calculated by the
Issuer) commencing on the (x) 361st day after the Issue Date,
in the case of (A) above; (y) the 361st day after the
date such Shelf Registration Statement filing was requested or
required in the case of (B) above; or (z) the day such
Shelf Registration ceases to be effective in the case of (C) above;
provided , however , that upon the exchange of the
Exchange Securities for all Securities tendered (in the case of
clause (A) of this Section 5(a), upon the effectiveness
of the applicable Shelf Registration Statement (in the case of
clause (B) of this Section 5(a), or upon the
effectiveness of the applicable Shelf Registration Statement which
had ceased to remain effective (in the case of clause (C) of
this Section 5(a), Additional Interest on the Notes in respect
of which such events relate as a result of such clause (or the
relevant subclause thereof), as the case may be, shall cease to
accrue. Notwithstanding any other provisions of this
Section 5, the Issuer shall not be obligated to pay Additional
Interest provided in Section 5(a)(B) during a Shelf Suspension
Period permitted by Section 3(a) hereof.
(b) The
Issuer shall notify the Trustee within five business days after
each and every date on which an event occurs in respect of which
Additional Interest is required to be paid (an “ Event
Date ”). Any amounts of Additional Interest due pursuant
to (a) of this Section 5 will be payable in cash or in
the form of PIK interest, with respect to the Toggle Notes in the
same proportion the Issuer has elected to pay PIK interest with
respect to the applicable interest period, if applicable,
semiannually on each May 15 and November 15 (to the
holders of record on the May 1 and November 1 immediately preceding
such dates), commencing with the first such date occurring after
any such Additional Interest commences to accrue. The amount of
Additional Interest will be determined by the Issuer by multiplying
the applicable Additional Interest rate by the principal amount of
the Registrable Securities, multiplied by
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