Exhibit 10.3
REGISTRATION RIGHTS
AGREEMENT
Dated as of April 2,
2007
By and Among
ADVANCED MEDICAL OPTICS,
INC.
as Issuer,
and
AMO HOLDINGS, INC.
AMO USA, INC.
IRONMAN MERGER CORPORATION
QUEST VISION TECHNOLOGY, INC.
VISX, INCORPORATED
WAVEFRONT SCIENCES, INC.,
as Guarantors,
and
UBS SECURITIES LLC and GOLDMAN,
SACHS & CO. and
BANC OF AMERICA SECURITIES LLC,
as Initial Purchasers
7
1 / 2 % Senior
Subordinated Notes due 2017
TABLE OF
CONTENTS
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Page
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1.
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Definitions
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1
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2.
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Exchange Offer
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4
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3.
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Shelf Registration
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8
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4.
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Liquidated Damages
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8
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5.
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Registration Procedures
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10
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6.
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Registration Expenses
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18
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7.
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Indemnification
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19
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8.
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Rules 144 and 144A
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21
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9.
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Underwritten Registrations
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22
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10.
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Miscellaneous
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22
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(a)
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No Inconsistent Agreements
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22
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(b)
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Adjustments Affecting Registrable
Notes
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22
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(c)
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Amendments and Waivers
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22
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(d)
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Notices
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23
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(e)
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Successors and Assigns
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24
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(f)
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Counterparts
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24
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(g)
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Headings
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24
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(h)
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Governing Law
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24
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(i)
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Severability
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24
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(j)
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Securities Held by the Issuers or Their
Respective Affiliates
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24
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(k)
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Third-Party Beneficiaries
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24
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(l)
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Entire Agreement
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24
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SIGNATURES
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25
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-i-
REGISTRATION RIGHTS
AGREEMENT
This Registration Rights Agreement
(this “ Agreement ”) is dated as of
April 2, 2007, by and among Advanced Medical Optics, Inc., a
Delaware corporation (the “ Company ”), each of
the Guarantors that are listed on Schedule I hereto (collectively,
with any entity that in the future executes a supplemental
indenture pursuant to which such entity agrees to guarantee the
Notes (as defined herein), the “ Guarantors ”
and, together with the Company, the “ Issuers
”), and UBS Securities LLC, Goldman, Sachs & Co. and
Banc of America Securities LLC (the “ Initial
Purchasers ”).
This Agreement is
entered into in connection with the Purchase Agreement, dated as of
March 27, 2007, by and among the Issuers and the Initial
Purchasers (the “ Purchase Agreement ”),
relating to the offering of $250,000,000 aggregate principal amount
of the Company’s 7 1
/
2 % Senior
Subordinated Notes due 2017 (the “ Notes ”). The
execution and delivery of this Agreement is a condition to the
Initial Purchasers’ obligation to purchase the Notes under
the Purchase Agreement.
The parties hereby agree as
follows:
Section 1.
Definitions
As used in this Agreement, the
following terms shall have the following meanings:
“ action ” shall
have the meaning set forth in Section 7(c) hereof.
“ Advice ” shall
have the meaning set forth in Section 5 hereof.
“ Agreement ”
shall have the meaning set forth in the first introductory
paragraph hereto.
“ Applicable Period
” shall have the meaning set forth in Section 2(b)
hereof.
“ Board of Directors
” shall have the meaning set forth in Section 5
hereof.
“ Business Day ”
shall mean a day that is not a Legal Holiday.
“ Commission ”
shall mean the Securities and Exchange Commission.
“ Day ” shall
mean a calendar day.
“ Damages Payment Date
” shall have the meaning set forth in Section 4(b)
hereof.
“ Delay Period ”
shall have the meaning set forth in Section 5
hereof.
“ DTC ” shall
have the meaning set forth in Section 5 hereof.
“ Effectiveness Period
” shall have the meaning set forth in Section 3(b)
hereof.
“ Exchange Act ”
shall mean the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission promulgated
thereunder.
“ Exchange Notes
” shall have the meaning set forth in Section 2(a)
hereof.
“ Exchange Offer
” shall have the meaning set forth in Section 2(a)
hereof.
“ Exchange Offer
Registration Statement ” shall have the meaning set forth
in Section 2(a) hereof.
“ Guarantees ”
shall mean, collectively, the full and unconditional guarantee of
the Company’s obligations under the Notes, the Exchange
Notes, or the Private Exchange Notes, as the case may be, by the
Guarantors.
“ Guarantors ”
shall have the meaning set forth in the first introductory
paragraph hereto and shall also include the Guarantors’
permitted successors and assigns.
“ Holder ” shall
mean any holder of a Registrable Note or Registrable
Notes.
“ Indenture ”
shall mean the Indenture, dated as of April 2, 2007, by and
between the Issuers and Wilmington Trust Company as trustee,
pursuant to which the Notes are being issued, as amended or
supplemented from time to time in accordance with the terms
thereof.
“ Initial Purchasers
” shall have the meaning set forth in the first introductory
paragraph hereof.
“ Inspectors ”
shall have the meaning set forth in Section 5(n)
hereof.
“ Issue Date ”
shall mean April 2, 2007, the date of original issuance of the
Notes.
“ Issuers ” shall
have the meaning set forth in the introductory paragraph hereto and
shall also include the Issuers’ permitted successors and
assigns.
“ Legal Holiday ”
shall mean a Saturday, a Sunday or a day on which banking
institutions in New York, New York are required by law, regulation
or executive order to remain closed.
“ Liquidated Damages
” shall have the meaning set forth in Section 4(a)
hereof.
“ Losses ” shall
have the meaning set forth in Section 7(a) hereof.
“ NASD ” shall
have the meaning set forth in Section 5(s) hereof.
“ Notes ” shall
have the meaning set forth in the second introductory paragraph
hereto.
“ Participant ”
shall have the meaning set forth in Section 7(a)
hereof.
-2-
“ Participating
Broker-Dealer ” shall have the meaning set forth in
Section 2(b) hereof.
“ Person ” shall
mean an individual, corporation, partnership, joint venture
association, joint stock company, trust, unincorporated
organization, limited liability company, government or any agency
or political subdivision thereof or any other entity.
“ Private Exchange
” shall have the meaning set forth in Section 2(b)
hereof.
“ Private Exchange
Notes ” shall have the meaning set forth in
Section 2(b) hereof.
“ Prospectus ”
shall mean 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 promulgated 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 material
incorporated by reference or deemed to be incorporated by reference
in such Prospectus.
“ Purchase Agreement
” shall have the meaning set forth in the second introductory
paragraph hereof.
“ Records ” shall
have the meaning set forth in Section 5(n) hereof.
“ Registrable Notes
” shall mean each Note upon its original issuance and at all
times subsequent thereto, each Exchange Note as to which
Section 2(c) hereof is applicable upon original issuance and
at all times subsequent thereto and each Private Exchange Note upon
original issuance thereof and at all times subsequent thereto, in
each case until (i) a Registration Statement (other than, with
respect to any Exchange Note as to which Section 2(c) hereof
is applicable, the Exchange Offer Registration Statement) covering
such Note, Exchange Note or Private Exchange Note has been declared
effective by the Commission and such Note, Exchange Note or such
Private Exchange Note, as the case may be, has been disposed of in
accordance with such effective Registration Statement,
(ii) such Note has been exchanged pursuant to the Exchange
Offer for an Exchange Note or Exchange Notes that may be resold
without restriction under state and federal securities laws,
(iii) such Note, Exchange Note or Private Exchange Note, as
the case may be, ceases to be outstanding for purposes of the
Indenture or (iv) such Note, Exchange Note or Private Exchange
Note has been sold in compliance with Rule 144 or is salable
pursuant to Rule 144(k).
“ Registration Default
” shall have the meaning set forth in Section 4(a)
hereof.
“ Registration
Statement ” shall mean any appropriate registration
statement of the Issuers covering any of the Registrable Notes
filed with the Commission under the Securities Act, and all
amendments and supplements to any such Registration Statement,
including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.
-3-
“ Requesting Participating
Broker-Dealer ” shall have the meaning set forth in
Section 2(b) hereof.
“ Rule 144 ”
shall mean Rule 144 promulgated under the Securities Act, as such
Rule may be amended from time to time, or any similar rule (other
than Rule 144A) or regulation hereafter adopted by the
Commission providing for offers and sales of securities made in
compliance therewith resulting in offers and sales by subsequent
holders that are not affiliates of an issuer of such securities
being free of the registration and prospectus delivery requirements
of the Securities Act.
“ Rule 144A ”
shall mean Rule 144A promulgated under the Securities Act, as such
Rule may be amended from time to time, or any similar rule (other
than Rule 144) or regulation hereafter adopted by the
Commission.
“ Rule 415 ”
shall mean Rule 415 promulgated under the Securities Act, as such
Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission.
“ Securities Act
” shall mean the Securities Act of 1933, as amended, and the
rules and regulations of the Commission promulgated
thereunder.
“ Shelf Filing Event
” shall have the meaning set forth in Section 2(c)
hereof.
“ Shelf Registration
” shall have the meaning set forth in Section 3(a)
hereof.
“ Shelf Registration
Statement ” shall mean a Registration Statement filed in
connection with a Shelf Registration.
“ TIA ” shall
mean the Trust Indenture Act of 1939, as amended.
“ Trustee ” shall
mean the trustee under the Indenture and the trustee (if any) under
any indenture governing the Exchange Notes and Private Exchange
Notes.
“ Underwritten registration
or underwritten offering ” shall mean a registration in
which securities of the Issuers are sold to an underwriter for
reoffering to the public.
Section 2. Exchange
Offer
(a) The Issuers shall (i) use
commercially reasonable efforts to file a Registration Statement
(the “ Exchange Offer Registration Statement ”)
with the Commission on an appropriate registration form with
respect to a registered offer (the “ Exchange Offer
”) to exchange any and all of the Registrable Notes for a
like aggregate principal amount of notes, together with the
Guarantees endorsed thereon (the “ Exchange Notes
”), that are identical in all material respects to the Notes
(except that the Exchange Notes shall not contain terms with
respect to transfer restrictions or Liquidated Damages upon a
Registration Default), (ii) use all commercially reasonable
efforts to cause the Exchange Offer Registration Statement to be
declared effective under the Securities Act and (iii) use all
commercially reasonable efforts to consummate the Exchange Offer
within 180 days after the Issue
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Date. Upon the Exchange Offer Registration
Statement being declared effective by the Commission, the Issuers
will offer the Exchange Notes in exchange for surrender of the
Notes. The Issuers shall keep the Exchange Offer open for not less
than 30 days (or longer if required by applicable law) after the
date notice of the Exchange Offer is mailed to Holders.
Each Holder that participates in the
Exchange Offer will be required to represent to the Issuers in
writing that (i) any Exchange Notes to be received by it will
be acquired in the ordinary course of its business, (ii) it
has no arrangement or understanding with any Person to participate
in the distribution (within the meaning of the Securities Act) of
the Exchange Notes in violation of the provisions of the Securities
Act, (iii) it is not an affiliate of the Issuers (as defined
in Rule 405 under the Securities Act) or, if it is such an
affiliate, it will comply with the registration and prospectus
delivery requirements of the Securities Act to the extent
applicable, (iv) if such Holder is not a broker-dealer, it is
not engaged in, and does not intend to engage in, a distribution of
Exchange Notes and (v) if such Holder is a broker-dealer that
will receive Exchange Notes for its own account in exchange for
Notes that were acquired as a result of market-making or other
trading activities, it will deliver a prospectus in connection with
any resale of such Exchange Notes.
(b) The Issuers and the Initial
Purchasers acknowledge that the staff of the Commission has taken
the position that any broker-dealer that elects to exchange Notes
that were acquired by such broker-dealer for its own account as a
result of market-making or other trading activities for Exchange
Notes in the Exchange Offer (a “ Participating
Broker-Dealer ”) may be deemed to be an
“underwriter” within the meaning of the Securities Act
and must deliver a prospectus meeting the requirements of the
Securities Act in connection with any resale of such Exchange Notes
(other than a resale of an unsold allotment resulting from the
original offering of the Notes).
The Issuers and the Initial
Purchasers also acknowledge that the staff of the Commission has
taken the position that if the Prospectus contained in the Exchange
Offer Registration Statement includes a plan of distribution
containing a statement to the above effect and the means by which
Participating Broker-Dealers may resell the Exchange Notes, without
naming the Participating Broker-Dealers or specifying the amount of
Exchange Notes owned by them, such Prospectus may be delivered by
Participating Broker-Dealers to satisfy their prospectus delivery
obligations under the Securities Act in connection with resales of
Exchange Notes for their own accounts, so long as the Prospectus
otherwise meets the requirements of the Securities Act.
In light of the foregoing, if
requested by a Participating Broker-Dealer (a “ Requesting
Participating Broker-Dealer ”), the Issuers agree to use
all reasonable best efforts to keep the Exchange Offer Registration
Statement continuously effective for a period not to exceed 180
days after the date on which the Exchange Registration Statement is
declared effective, or such longer period if extended pursuant to
the last paragraph of Section 5 hereof (such period, the
“ Applicable Period ”), or such earlier date as
each Requesting Participating Broker-Dealer shall have notified the
Issuers in writing that such Requesting Participating Broker-Dealer
has resold all Exchange Notes acquired by it in the Exchange Offer.
The Issuers shall include a plan of distribution in such Exchange
Offer Registration Statement that meets the requirements set forth
in the preceding paragraph.
-5-
If, prior to consummation of the
Exchange Offer, the Initial Purchasers or any Holder, as the case
may be, holds any Notes acquired by it that have, or that are
reasonably likely to be determined to have, the status of an unsold
allotment in an initial distribution, or if any Holder is not
entitled to participate in the Exchange Offer, the Issuers upon the
request of any such Initial Purchaser or any such Holder, as the
case may be, shall simultaneously with the delivery of the Exchange
Notes in the Exchange Offer, issue and deliver to any such Initial
Purchaser or any such Holder, as the case may be, in exchange (the
“ Private Exchange ”) for such Notes held by the
Initial Purchasers or any such Holder, as the case may be, a like
principal amount of notes, together with the Guarantees endorsed
thereon (the “ Private Exchange Notes ”), of the
Issuers that are identical in all material respects to the Exchange
Notes except that the Private Exchange Notes may be subject to
restrictions on transfer and bear a legend to such effect. 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).
For each Note surrendered in the
Exchange Offer, the Holder will receive an Exchange Note having a
principal amount equal to that of the surrendered Note. Interest on
each Exchange Note and Private Exchange Note issued pursuant to the
Exchange Offer and in the Private Exchange will accrue from the
last interest payment date on which interest was paid on the Notes
surrendered in exchange therefor or, if no interest has been paid
on the Notes, from the Issue Date.
Upon consummation of the Exchange
Offer in accordance with this Section 2, the Issuers shall
have no further registration obligations other than the
Issuers’ continuing registration obligations with respect to
(i) Private Exchange Notes, (ii) Exchange Notes held by
Participating Broker-Dealers and (iii) Notes or Exchange Notes
as to which clause (c)(iii) of this Section 2
applies.
In connection with the Exchange
Offer, the Issuers shall:
(1) mail or cause to be mailed to
each Holder 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) utilize the services of a
depositary for the Exchange Offer with an address in the Borough of
Manhattan, The City of New York, which may be the Trustee or an
affiliate thereof;
(3) 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 shall
remain open; and
(4) otherwise comply in all material
respects with all applicable laws, rules and
regulations.
As soon as practicable after the
close of the Exchange Offer and the Private Exchange, if any, the
Issuers shall:
(1) accept for exchange all
Registrable Notes validly tendered and not validly withdrawn by the
Holders pursuant to the Exchange Offer and the Private Exchange, if
any;
-6-
(2) deliver or cause to be delivered
to the Trustee for cancellation all Notes so accepted for exchange;
and
(3) cause the Trustee to
authenticate and deliver promptly to each such Holder of Notes,
Exchange Notes or Private Exchange Notes, as the case may be, equal
in principal amount to the Registrable 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 Commission, (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 Issuers 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
Issuers and (iii) all governmental approvals shall have been
obtained, which approvals the Issuers deem necessary for the
consummation of the Exchange Offer or Private Exchange.
The Exchange Notes and the Private
Exchange Notes shall be issued under (i) the Indenture or
(ii) an indenture identical in all material respects to the
Indenture (in either case, with such changes as are necessary to
comply with any requirements of the Commission to effect or
maintain the qualification thereof under the TIA or exemption from
such qualification) and which, in either case, has been qualified
under the TIA and shall provide that (a) the Exchange Notes
shall not be subject to the transfer restrictions set forth in the
Indenture and (b) the Private Exchange Notes shall 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) In the event that (i) any
changes in law or the applicable interpretations of the staff of
the Commission do not permit the Issuers to effect the Exchange
Offer, (ii) for any reason the Exchange Offer is not
consummated within 180 days of the Issue Date, (iii) any
Holder, other than any of the Initial Purchasers, is prohibited by
law or the applicable interpretations of the staff of the
Commission from participating in the Exchange Offer or, in the case
of any Holder that participates in the Exchange Offer, such Holder
does not receive Exchange Notes 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 Issuers within the meaning of the Securities Act)
or (iv) any Initial Purchaser so requests with respect to
Notes or Private Exchange Notes that have, or that are reasonably
likely to be determined to have, the status of unsold allotments in
an initial distribution (each such event referred to in clauses
(i) through (iv) of this sentence, a “ Shelf
Filing Event ”), then the Issuers shall file a Shelf
Registration pursuant to Section 3 hereof.
-7-
Section 3. Shelf
Registration
If at any time a Shelf Filing Event
shall occur, then:
(a) Shelf Registration . The
Issuers shall file with the Commission a Registration Statement for
an offering to be made on a continuous basis pursuant to Rule 415
covering all of the Registrable Notes not exchanged in the Exchange
Offer, Private Exchange Notes and Exchange Notes as to which
Section 2(c)(iii) is applicable (the “ Shelf
Registration ”). The Issuers shall use all commercially
reasonable efforts to file with the Commission the Shelf
Registration as promptly as practicable. The Shelf Registration
shall be on an appropriate form permitting registration of such
Registrable Notes for resale by Holders in the manner or manners
designated by them (including, without limitation, one or more
underwritten offerings). The Issuers shall not permit any
securities other than the Registrable Notes to be included in the
Shelf Registration.
(b) The Issuers shall use their
reasonable best efforts (x) to cause the Shelf Registration to
be declared effective under the Securities Act on or prior to the
later of 180 calendar days after the Issue Date or 90 days after
the Shelf Registration is required to be filed with the Commission
and (y) to keep the Shelf Registration continuously effective
under the Securities Act for the period ending on the date which is
two years from the Issue Date, subject to extension pursuant to the
penultimate paragraph of Section 5 hereof (the “
Effectiveness Period ”), or such shorter period ending
when all Registrable Notes covered by the Shelf Registration have
been sold in the manner set forth and as contemplated in the Shelf
Registration; provided , however , that (i) the
Effectiveness Period in respect of the 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 and
(ii) the Issuers may suspend the effectiveness of the Shelf
Registration Statement by written notice to the Holders (A) as
a result of the filing of a post-effective amendment to the Shelf
Registration Statement to incorporate annual audited financial
information with respect to the Issuers where such post-effective
amendment is not yet effective and needs to be declared effective
to permit Holders to use the related Prospectus or (B) during
any Delay Period (as defined in Section 5 hereof).
(c) Supplements and
Amendments . The Issuers agree to supplement or make amendments
to the Shelf Registration Statement as and when required by the
rules, regulations or instructions applicable to the registration
form used for such Shelf Registration Statement or by the
Securities Act or rules and regulations thereunder for shelf
registration, or if reasonably requested by the Holders of a
majority in aggregate principal amount of the Registrable Notes
covered by such Registration Statement or by any underwriter of
such Registrable Notes.
Section 4. Liquidated
Damages
(a) The Issuers and the Initial
Purchasers agree that the Holders will suffer damages if the
Issuers fail to fulfill their 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 Issuers agree that if:
(i) the Exchange Offer is not
consummated on or prior to the 180th day following the Issue Date,
or, if that day is not a Business Day, the next day that is a
Business Day; or
-8-
(ii) the Shelf Registration
Statement is required to be filed but is not declared effective by
the later of 180 calendar days after the Issue Date or 90 days
after the Shelf Registration is required to be filed with the
Commission, or, if either such day is not a Business Day, the next
day that is a Business Day or is declared effective by such date
but thereafter ceases to be effective or usable, except if the
Shelf Registration ceases to be effective or usable as specifically
permitted by the penultimate paragraph of Section 5
hereof;
(each such event referred to in
clauses (i) and (ii) a “ Registration
Default ”), liquidated damages in the form of additional
cash interest (“ Liquidated Damages ”) will
accrue on the affected Notes and the affected Exchange Notes, as
applicable. The rate of Liquidated Damages will be 0.25% per
annum for the first 90-day period immediately following the
occurrence of a Registration Default, increasing by an additional
0.25% per annum with respect to each subsequent 90-day period
up to a maximum amount of additional interest of 1.00% per
annum, from and including the date on which any such Registration
Default shall occur to, but excluding, the earlier of (1) the
date on which all Registration Defaults have been cured or
(2) the date on which all the Notes and Exchange Notes
otherwise become freely transferable by Holders other than
affiliates of the Issuers without further registration under the
Securities Act. Liquidated Damages shall be the exclusive monetary
remedy available to the Holders of the Registrable Notes with
respect to Registration Defaults; provided , however
, that if the Issuers fail to timely pay such Liquidated Damages,
the Holders may pursue any remedy available to them at law, in
equity or otherwise.
Notwithstanding the foregoing,
(1) the amount of Liquidated Damages payable shall not
increase because more than one Registration Default has occurred
and is pending and (2) a Holder of Notes or Exchange Notes who
is not entitled to the benefits of the Shelf Registration Statement
( i.e ., such Holder has not elected to include information)
shall not be entitled to Liquidated Damages with respect to a
Registration Default that pertains to the Shelf Registration
Statement.
(b) So long as Notes remain
outstanding, the Issuers shall notify the Trustee within five
Business Days after each and every date on which an event occurs in
respect of which Liquidated Damages is required to be paid. Any
amounts of Liquidated Damages due pursuant to clauses (a)(i) or
(a)(ii) of this Section 4 will be payable in cash
semi-annually on each May 1 and November 1 (each a
“ Damages Payment Date ”), commencing with the
first such date occurring after any such Liquidated Damages
commence to accrue, to Holders to whom regular interest is payable
on such Damages Payment Date with respect to Notes that are
Registrable Securities. The amount of Liquidated Damages for
Registrable Notes will be determined by multiplying the applicable
rate of Liquidated Damages by the aggregate principal amount of all
such Registrable Notes outstanding on the Damages Payment Date
following such Registration Default in the case of the first such
payment of Liquidated Damages with respect to a Registration
Default (and thereafter at the next succeeding Damages Payment Date
until the cure of such Registration Default), multiplied by a
fraction, the numerator of which is the number of days such
Liquidated Damages rate was applicable during such period
(determined on the basis of a 360-day year comprised of twelve
30-day months and, in the case of a partial month, the actual
number of days elapsed), and the denominator of which is
360.
-9-
Section 5. Registration
Procedures
In connection with the filing of any
Registration Statement pursuant to Section 2 or 3 hereof, the
Issuers shall effect such registrations to permit the sale of the
securities covered thereby in accordance with the intended method
or methods of disposition thereof, and pursuant thereto and in
connection with any Registration Statement filed by the Issuers
hereunder, the Issuers shall:
(a) Prepare and file with the
Commission the Registration Statement or Registration Statements
prescribed by Section 2 or 3 hereof, and use their
commercially reasonable efforts or reasonable best efforts,
respectively, to cause each such Registration Statement to become
effective and remain effective as provided herein; provided
, however , that if (1) such filing is pursuant to
Section 3 hereof, or (2) a Prospectus contained in the
Exchange Offer Registration Statement filed pursuant to
Section 2 hereof is required to be delivered under the
Securities Act by any Participating Broker-Dealer who seeks to sell
Exchange Notes during the Applicable Period relating thereto,
before filing any Registration Statement or Prospectus or any
amendments or supplements thereto, the Issuers shall furnish to and
afford the Holders of the Registrable Notes covered by such
Registration Statement or each such Participating Broker-Dealer, as
the case may be, its counsel (if such counsel is known to the
Issuers) and the managing underwriters, if any, a reasonable
opportunity to review copies of all such documents (including
copies of any documents to be incorporated by reference therein and
all exhibits thereto) proposed to be filed (in each case at least
five Business Days prior to such filing or such later date as is
reasonable under the circumstances). The Issuers shall not file any
Registration Statement or Prospectus or any amendments or
supplements thereto if the Holders of a majority in aggregate
principal amount of the Registrable Notes covered by such
Registration Statement, or any such Participating Broker-Dealer, as
the case may be, its counsel, or the managing underwriters, if any,
shall reasonably object on a timely basis.
(b) Prepare and file with the
Commission such amendments and post-effective amendments to each
Shelf Registration Statement or Exchange Offer Registration
Statement, as the case may be, as may be necessary to keep such
Registration Statement continuously effective for the Effectiveness
Period or the Applicable Period, as the case may be; cause the
related Prospectus to be supplemented by any Prospectus supplement
required by applicable law, and as so supplemented to be filed
pursuant to Rule 424 (or any similar provisions then in force)
promulgated under the Securities Act; and comply with the
provisions of the Securities Act and the Exchange Act applicable to
them with respect to the disposition of all securities covered by
such Registration Statement as so amended or in such Prospectus as
so supplemented and with respect to the subsequent resale of any
securities being sold by a Participating Broker-Dealer covered by
any such Prospectus, in each case, in accordance with the intended
methods of distribution set forth in such Registration Statement or
Prospectus, as so amended.
(c) If (1) a Shelf Registration
is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement
filed pursuant to Section 2 hereof is required to be delivered
under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period relating
thereto from whom
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the Issuers have received timely
written notice that such Broker-Dealer will be a Participating
Broker-Dealer in the applicable Exchange Offer, notify the selling
Holders of Registrable Notes, or each such Participating
Broker-Dealer, as the case may be, their counsel (if such counsel
is known to the Issuers) and the managing underwriters, if any, as
promptly as possible, and, if requested by any such Person, confirm
such notice in writing, (i) when a Prospectus or any
Prospectus supplement or post-effective amendment has been filed,
and, with respect to a Registration Statement or any post-effective
amendment, when the same has become effective under the Securities
Act (including in such notice a written statement that any Holder
may, upon request, obtain, at the sole expense of the Issuers, one
conformed copy of such Registration Statement or post-effective
amendment including financial statements and schedules, documents
incorporated or deemed to be incorporated by reference and
exhibits), (ii) of the issuance by the Commission of any stop
order suspending the effectiveness of a Registration Statement or
of any order preventing or suspending the use of any preliminary
prospectus or the initiation of any proceedings for that purpose,
(iii) if at any time when a Prospectus is required by the
Securities Act to be delivered in connection with sales of the
Registrable Notes or resales of Exchange Notes by Participating
Broker-Dealers the representations and warranties of the Issuers
contained in any agreement (including any underwriting agreement)
contemplated by Section 5(m)(i) hereof cea