DISH DBS
Corporation
$1,000,000,000
7.875% Senior Notes due
2019
REGISTRATION RIGHTS
AGREEMENT
This Registration Rights Agreement (this “
Agreement ”) is made and entered into as of
August 17, 2009 by and among DISH DBS Corporation, a Colorado
corporation (the “ Company ”), the
Guarantors named in the Purchase Agreement (as defined below) (the
“ Guarantors ”), and Deutsche Bank
Securities Inc. (the “ Purchaser ”), who
have agreed to purchase $1,000,000,000 aggregate principal amount
of the Company’s 7.875% Senior Notes due 2019 (the “
Notes ”) upon the terms and conditions set
forth in the Purchase Agreement, dated as of August 12, 2009 (the
“ Purchase Agreement ”), among the
Company, the Guarantors and the Purchaser.
This Agreement is made pursuant to the Purchase
Agreement. As an inducement to the Purchaser to purchase
the Notes, the Company has agreed to provide the registration
rights set forth in this Agreement. The execution and
delivery of this Agreement is a condition to the obligations of the
Purchaser under the Purchase Agreement. Capitalized
terms used herein without definition shall have the meanings
assigned to them in the Indenture, of even date herewith, among the
Company, the Guarantors and U.S. Bank National Association, as
Trustee, relating to the Notes (the “ Indenture
”).
The parties hereby agree as follows:
As used in this Agreement, the following defined
terms shall have the following meanings:
“ Affiliate
”: As defined in Rule 144(a)(1) under the
Securities Act.
“ Broker-Dealer
”: Any broker or dealer registered as such under
the Exchange Act.
“ Business Day
”: Any day other than a Saturday, Sunday or other
day on which commercial banks in the State of New York or the State
of Colorado are authorized or required by law or executive order to
close.
“ Closing Date
”: The date hereof.
“ Commission
”: The Securities and Exchange Commission, or any
other federal agency at any time administering the Exchange Act or
the Securities Act, whichever is the relevant statute for the
particular purpose.
“ Consummate
”: The Exchange Offer shall be deemed
“Consummated” for purposes of this Agreement upon the
occurrence of (i) the filing and effectiveness under the
Securities Act of the Exchange Offer Registration Statement
relating to the Exchange Notes to be issued in the Exchange Offer,
(ii) the maintenance of such Exchange Offer continuously
effective and the keeping of the Exchange Offer open for a period
not less than the period required pursuant to Section 3(b) hereof,
and (iii) the delivery by the Company to the Registrar under
the Indenture, Exchange Notes in the same aggregate principal
amount as the aggregate principal amount of the Notes that were
tendered by Holders thereof pursuant to the Exchange
Offer.
“ Consummation Deadline
”: As defined in Section 3(b) hereof.
“ Effectiveness Deadline
”: As defined in Sections 3(a) and 4(a)
hereof.
“ Exchange Act
”: The Securities Exchange Act of 1934, as
amended.
“ Exchange Notes
”: The Company’s 7.875% Senior Notes due
2019, guaranteed by the Guarantors to the same extent as the Notes,
to be issued pursuant to the Indenture: (i) in the Exchange
Offer or (ii) as contemplated by Section 6 hereof.
“ Exchange Offer
”: The exchange and issuance by the Company of a
principal amount of Exchange Notes (which shall be registered,
pursuant to the Exchange Offer Registration Statement) equal to the
outstanding principal amount of Notes that are tendered by such
Holders in connection with such exchange and issuance.
“ Exchange Offer Registration
Statement ”: A Registration Statement relating to the
Exchange Offer, including the related Prospectus.
“ Filing Deadline
”: As defined in Sections 3(a) and 4(a)
hereof.
“ FINRA
”: Financial Industry Regulatory
Authority.
“ Free Writing Prospectus
” means each free
writing prospectus (as defined in Rule 405 under the Securities
Act) prepared by or on behalf of the Company or used or referred to
by the Company in connection with the sale of the Notes or the
Exchange Notes.
“ Holders
”: As defined in Section 2 hereof.
“ Issuer Information
” shall have the
meaning set forth in Section 8(a) hereof.
“ Prospectus
”: The prospectus included in a Registration
Statement at the same time such Registration Statement is declared
effective, as amended or supplemented by any prospectus
supplement and
by all other amendments thereto, including post-effective
amendments, and all material incorporated by reference into such
Prospectus.
“ Recommencement Date
”: As defined in Section 6(d) hereof.
“ Registration Default
”: As defined in Section 5 hereof.
“ Registration Statement
”: Any registration statement of the Company
relating to (a) an offering of Exchange Notes pursuant to an
Exchange Offer or (b) the registration for resale of Transfer
Restricted Securities pursuant to the Shelf Registration Statement,
in each case, that is filed pursuant to the provisions of this
Agreement, including the Prospectus included therein, all
amendments and supplements thereto (including post-effective
amendments) and all exhibits and material incorporated by reference
therein.
“ Regulation S
”: Regulation S promulgated under the Securities
Act.
“ Rule 144
”: Rule 144 promulgated under the Securities
Act.
“ Securities Act
”: The Securities Act of 1933, as
amended.
“ Shelf Registration
Statement ”: As defined in Section 4(a)
hereof.
“ Suspension Notice
”: As defined in Section 6(d) hereof.
“ TIA
”: The Trust Indenture Act of 1939 (15 U.S.C.
Section 77aaa-77bbbb) as in effect on the date of the
Indenture.
“ Transfer Restricted
Securities ”: Each Note, until the
earliest to occur of (a) the date on which such Note is
exchanged in an Exchange Offer for an Exchange Note which is
entitled to be resold to the public by the Holder thereof without
complying with the prospectus delivery requirements of the
Securities Act, (b) the date on which such Note has been
disposed of in accordance with a Shelf Registration Statement,
(c) the date on which such Note may be sold to the public in
accordance with Rule 144 under the Securities Act by a person that
is not an “affiliate” (as defined in Rule 144 under the
Securities Act) of us where no conditions of Rule 144 are then
applicable (other than the holding period requirement in paragraph
(d)(1)(ii) of Rule 144 so long as such holding period requirement
is satisfied at such time of determination) or (d) each
Exchange Note until the date on which such Exchange Note is
disposed of by a Broker-Dealer pursuant to the “Plan of
Distribution” contemplated by the Exchange Offer Registration
Statement (including the delivery of the Prospectus contained
therein).
“ Underwritten Registration or
Underwritten Offering ”: A registration in
which securities of the Company are sold to an underwriter for
reoffering to the public.
A person is deemed to be a holder of Transfer
Restricted Securities (each, a “ Holder ”
and, collectively, the “ Holders ”)
whenever such Person owns Transfer Restricted
Securities.
SECTION
3.
REGISTERED EXCHANGE
OFFER
(a) Unless the
Company
determines, after consultation with
counsel, either (x) that an Exchange Offer with respect to the
Notes is not permitted by applicable law or Commission policy or
(y) that such an Exchange Offer is not effective to make
Exchange Notes freely tradeable to the extent contemplated hereby
under applicable law or Commission policy (after the procedures set
forth in Section 6(a) below have been complied with), the Company
shall: (i) cause an Exchange Offer Registration
Statement to be filed with the Commission as soon as reasonably
practicable after the Closing Date, but in no event later than 180
days after the Closing Date (such 180th day being the “
Filing Deadline ”), (ii) use its
reasonable best efforts to cause such Exchange Offer Registration
Statement to become effective at the earliest possible time, but in
no event later than 270 days after the Closing Date (such 270th day
being the “ Effectiveness Deadline ”),
(iii) in connection with the foregoing, (A) file all
pre-effective amendments to such Exchange Offer Registration
Statement as may reasonably be necessary in order to cause it to
become effective, (B) file, if applicable, a post-effective
amendment to such Exchange Offer Registration Statement pursuant to
Rule 430A under the Securities Act, and (C) cause all
necessary filings, if any, in connection with the registration and
qualification of the Exchange Notes to be made under the Blue Sky
laws of such jurisdictions as are necessary to permit Consummation
of the Exchange Offer, and (iv) upon the effectiveness of such
Exchange Offer Registration Statement, use its reasonable best
efforts to commence and Consummate the Exchange Offer such that the
Exchange Offer is Consummated not later than the 315th day after
the Closing Date. The Exchange Offer shall be on the
appropriate form permitting (i) registration of the Exchange
Notes to be offered in exchange for the Notes that are Transfer
Restricted Securities and (ii) resales of Exchange Notes by
Broker-Dealers that tendered the Exchange Notes that such
Broker-Dealer acquired for its own account as a result of
market-making activities or other trading activities (other than
Notes acquired directly from the Company or any of its Affiliates)
as contemplated by Section 3(c) below.
(b) The Company shall
use its reasonable best efforts to cause an Exchange Offer
Registration Statement with respect to the Exchange Notes to be
effective continuously and shall keep the Exchange Offer open for a
period of not less than the minimum period required under
applicable federal and state securities laws to Consummate the
Exchange Offer; provided , however , that in no event
shall such period be less than twenty (20) Business
Days. The Company shall cause the Exchange Offer to
comply with all applicable federal and state securities
laws. No securities other than Exchange Notes shall be
included in any Exchange Offer Registration
Statement. The Company shall use its reasonable best
efforts to cause the Exchange Offer to be Consummated not later
than the 315th day after the Closing Date (such 315th day being the
“ Consummation Deadline ”).
(c) The Company shall
include a “Plan of Distribution” section in the
Prospectus contained in each Exchange Offer Registration Statement
and indicate therein that any Broker-Dealer who holds Transfer
Restricted Securities that were acquired for the account of such
Broker-Dealer as a result of market-making activities or other
trading activities (other than Notes acquired directly from the
Company or any Affiliate of the Company), may exchange such
Transfer Restricted Securities pursuant to the Exchange
Offer. Such “Plan of
Distribution”
section
shall also contain all other information with respect to such sales
by such Broker-Dealers that the Commission may require in order to
permit such sales pursuant thereto, but such “Plan of
Distribution” shall not name any such Broker-Dealer or
disclose the amount of Transfer Restricted Securities held by any
such Broker-Dealer, except to the extent required by the Commission
as a result of a change in policy, rules or regulations after the
date of this Agreement.
Because such Broker-Dealer may be deemed to be
an “underwriter” within the meaning of the Securities
Act and must, therefore, deliver a prospectus meeting the
requirements of the Securities Act in connection with any initial
sale of any Exchange Notes received by such Broker-Dealer in the
Exchange Offer, the Company shall permit the use of the Prospectus
contained in each Exchange Offer Registration Statement by such
Broker-Dealer to satisfy such prospectus delivery
requirement. To the extent necessary to ensure that the
Prospectus contained in each Exchange Offer Registration Statement
is available for sales of Exchange Notes by Brokers-Dealers, the
Company shall use its reasonable best efforts to keep each Exchange
Offer Registration Statement continuously effective, supplemented,
amended and current as required by and subject to the provisions of
Sections 6(a) and 6(c) hereof and in conformity with the
requirements of this Agreement, the Securities Act and the
policies, rules and regulations of the Commission as announced from
time to time, for a period of six months from the date on which
each Exchange Offer is Consummated or such shorter period as will
terminate when all Transfer Restricted Securities covered by such
Registration Statement have been sold pursuant
thereto. The Company shall provide sufficient copies of
the latest version of such Prospectus to such Broker-Dealers,
promptly upon request, and in no event later than two Business Days
after such request, at any time during such period.
(d) The
Company represents, warrants and covenants that it (including its
agents and representatives) will not prepare, make, use, authorize,
approve or refer to any Free Writing Prospectus.
SECTION
4.
SHELF REGISTRATION
(x) cause to be filed a shelf registration
statement pursuant to Rule 415 under the Securities Act (the
“ Shelf Registration Statement ”),
relating to all Transfer Restricted
Securities, on
or prior to the later of (1) ninety (90) days after the date on
which the Company determines that an Exchange Offer Registration
Statement cannot be filed as a result of clause (a)(i) above,
(2) ninety (90) days after the date on which the Company
receives notice specified in clause (a)(ii) above, and (3) the
180th day after the Closing Date (such later date, the “
Filing Deadline ”); and
(y) shall use its reasonable best efforts
to cause such Shelf Registration Statement to become effective on
or prior to the 270th day after the Filing Deadline (such 270th
day, the “ Effectiveness Deadline
”). To the extent necessary to ensure that the
Shelf Registration Statement is available for sales of Transfer
Restricted Securities by the Holders thereof entitled to the
benefit of this Section 4(a) and other securities required to be
registered therein pursuant to Section 6(b)(ii) hereof, the Company
shall use its reasonable best efforts to keep such Shelf
Registration Statement required by this Section 4(a) continuously
effective, supplemented, amended and current as required by and
subject to the provisions of Sections 6(b) and (c) hereof and in
conformity with the requirements of this Agreement, the Securities
Act and the policies, rules and regulations of the Commission as
announced from time to time, for a period of at least two years (as
extended pursuant to Section 6(d) hereof) following the Closing
Date or such shorter period as will terminate where all Transfer
Restricted Securities covered by such Shelf Registration Statement
have been sold pursuant thereto.
(b) Provision by
Holders of Certain Information in connection with the Shelf
Registration Statement . No Holder of Transfer
Restricted Securities may include any of its Transfer Restricted
Securities in any Shelf Registration Statement pursuant to this
Agreement unless and until such Holder furnishes to the Company in
writing, within twenty (20) days after receipt of a request
therefor, (i) the information specified in Item 507 or 508 of
Regulation S-K, as applicable, of the Securities Act, and any
successor provisions, for use in connection with any Shelf
Registration Statement or Prospectus or preliminary Prospectus
included therein and (ii) the undertaking specified in Section
8(b) hereof. No Holder of Transfer Restricted Securities
shall be entitled to liquidated damages pursuant to Section 5
hereof unless and until such Holder shall have used its reasonable
best efforts to provide all such information. Each
selling Holder agrees to furnish promptly to the Company all
information required to be disclosed in order to make the
information previously furnished to the Company by such Holder not
materially misleading.
SECTION
5.
LIQUIDATED DAMAGES
If (i) any Registration Statement required
by this Agreement is not filed with the Commission on or prior to
the applicable Filing Deadline, (ii) any such Registration
Statement has not been declared effective by the Commission on or
prior to the applicable Effectiveness Deadline, (iii) any
Exchange Offer has not been Consummated on or prior to the
Consummation Deadline or (iv) any Registration Statement
required by this Agreement is filed and declared effective but
shall thereafter (and before the second anniversary of the initial
sale) cease to be effective or fail to be usable in connection with
resales of the Transfer Restricted Securities without being
succeeded immediately by a post-effective amendment to such
Registration Statement that cures such failure and that is itself
immediately declared effective, and only for such time of
non-effectiveness or non-usability (each such event referred to in
clauses (i) through
(iv), a “
Registration Default ”), then the Company
hereby agrees to pay (and the Guarantors agree to guarantee such
payments) liquidated damages to each Holder of Transfer Restricted
Securities affected thereby for the first 90-day period immediately
following the occurrence of such Registration Default, in an amount
equal to $0.05 per week per $1,000 in principal amount of Transfer
Restricted Securities held by such Holder for each week or portion
thereof that the Registration Default continues. The
amount of the liquidated damages shall increase by an additional
$0.05 per week per $1,000 in principal amount of Transfer
Restricted Securities with respect to each subsequent 90-day period
until all Registration Defaults have been cured, the Transfer
Restricted Securities become freely tradable without registration
under the Securities Act or no Transfer Restricted Securities are
outstanding, up to a maximum amount of liquidated damages of $0.25
per week per $1,000 in principal amount of Transfer Restricted
Securities; provided that the Company shall in no event be required
to pay liquidated damages for more than one Registration Default at
any given time. All accrued liquidated damages shall be
paid to the Holders entitled thereto, in the manner provided for
the payment of interest, on each Interest Payment Date, as more
fully set forth in the Indenture and the
Notes. Notwithstanding anything to the contrary set
forth herein, (1) upon filing of an Exchange Offer
Registration Statement with respect to the Transfer Restricted
Securities (and/or, if applicable, the Shelf Registration
Statement), in the case of (i) above, (2) upon the
effectiveness of an Exchange Offer Registration Statement with
respect to the Transfer Restricted Securities (and/or, if
applicable, the Shelf Registration Statement), in the case of (ii)
above, (3) upon Consummation of an Exchange Offer with respect
to the Transfer Restricted Securities, in the case of (iii) above,
or (4) upon the filing of a post-effective amendment to a
Registration Statement or an additional Registration Statement that
causes the Exchange Offer Registration Statement with respect to
the Transfer Restricted Securities (and/or, if applicable, the
Shelf Registration Statement) to again be declared effective or
made usable in the case of (iv) above, the liquidated damages
payable with respect to the Transfer Restricted Securities as a
result of such clause (i), (ii), (iii) or (iv), as applicable,
shall cease.
Notwithstanding the fact that any securities for
which liquidated damages are due cease to be Transfer Restricted
Securities, all obligations of the Company to pay liquidated
damages with respect to securities shall survive until such time as
such obligations with respect to such securities shall have been
satisfied in full.
SECTION
6.
REGISTRATION
PROCEDURES
(a) Exchange Offer
Registration Statement . In connection with the
Exchange Offer, the Company shall (x) comply with all of the
provisions of Section 6(c) below, (y) use its reasonable best
efforts to effect such exchange and to permit the resale of
Exchange Notes by Broker-Dealers that tendered in the Exchange
Offer, Notes that such Broker-Dealer acquired for its own account
as a result of its market making activities as other trading
activities (other than Notes acquired directly from the Company or
any of its Affiliates) being sold in accordance with the intended
method or methods of distribution thereof, and (z) comply with
all of the following provisions:
(i) If, following the
date hereof there has been announced a change in Commission policy
with respect to exchange offers such as the Exchange Offer, that in
the reasonable opinion of counsel to the Company raises a
substantial question as to
whether any
Exchange Offer is permitted by applicable federal law, the Company
hereby agrees to seek a no-action letter or other favorable
decision from the Commission allowing the Company to Consummate
such Exchange Offer for such Transfer Restricted
Securities. The Company agrees to pursue the issuance of
such a decision to the Commission staff. In connection
with the foregoing, the Company agrees, to take all such other
actions as may be requested by the Commission or otherwise required
in connection with the issuance of such decision, including without
limitation (A) participating in telephonic conferences with
the Commission and (B) delivering to the Commission staff an
analysis prepared by counsel to the Company setting forth the legal
bases, if any, upon which such counsel has concluded that such an
Exchange Offer should be permitted.
(ii) As a condition to
its participation in the Exchange Offer, each Holder of Transfer
Restricted Securities (including, without limitation, any Holder
who is a Broker-Dealer) shall furnish, upon the request of the
Company, prior to the Consummation of the applicable Exchange
Offer, a written representation to the Company (which may be
contained in the letter of transmittal contemplated by the related
Exchange Offer Registration Statement) to the effect that
(A) it is not an Affiliate of the Company, (B) it is not
engaged in, and does not intend to engage in, and has no
arrangement or understanding with any person to participate in, a
distribution of the Exchange Notes to be issued in the Exchange
Offer and (C) it is acquiring the Exchange Notes in its
ordinary course of business. Each Holder using an
Exchange Offer to participate in a distribution of the Exchange
Notes shall acknowledge and agree that, if the resales are of
Exchange Notes obtained by such Holder in exchange for Notes
acquired by such Holder directly from the Company or an Affiliate
thereof, it (1) could not, under Commission policy as in
effect on the date of this Agreement rely on the position of the
Commission enunciated in Exxon Capital Holdings Corporation
(available May 13, 1988) and Morgan Stanley and Co., Inc.
(available June 5, 1991), as interpreted in the Commission’s
letter to Shearman & Sterling dated July 2, 1993, and
similar no-action letters (including, if applicable, any no-action
letter obtained pursuant to clause (i) above), and (2) must
comply with the registration and prospectus delivery requirements
of the Securities Act in connection with a secondary resale
transaction and that such a secondary resale transaction should be
covered by an effective registration statement containing the
selling security holder information required by Item 507 or 508, as
applicable, of Regulation S-K or any successor
provisions.
(iii) Prior to
effectiveness of each Exchange Offer Registration Statement, the
Company shall provide a supplemental letter to the Commission
(A) stating that the Company is registering the related
Exchange Offer in reliance on the position of the Commission
enunciated in Exxon Capital Holdings Corporation (available
May 13, 1988) and Morgan Stanley and Co., Inc. (available
June 5, 1991), as interpreted in the Commission’s letter to
Shearman & Sterling dated July 2, 1993, and, if
applicable, any no-action letter obtained pursuant to clause (i)
above, (B) including a representation that neither the Company
nor any Guarantor has entered into any arrangement or understanding
with any Person to distribute the Exchange Notes to be received in
the Exchange Offer and that, to the best of the Company’s
information and belief, each Holder participating in the Exchange
Offer is acquiring the Exchange Notes in its
ordinary course
of business and has no arrangement or understanding with any Person
to participate in the distribution of the Exchange Notes received
in the Exchange Offer and (C) any other undertaking or
representation required by the Commission as set forth in any
no-action letter obtained pursuant to clause (i) above, if
applicable.
(b) Shelf
Registration Statement . In connection with each
Shelf Registration Statement, the Company shall: (i) comply
with all the provisions of Section 6(c) below and shall use its
reasonable best efforts to effect such registration to permit the
sale of the Transfer Restricted Securities being sold in accordance
with the intended method or methods of distribution thereof (as
indicated in the information furnished to the Company pursuant to
Section 4(b) hereof), and pursuant thereto the Company will prepare
and file with the Commission, a Registration Statement relating to
the registration on any appropriate form under the Securities Act,
which form shall be available for the sale of the Transfer
Restricted Securities in accordance with the intended method or
methods of distribution thereof within the time periods and
otherwise in accordance with the provisions hereof and
(ii) issue, upon the request of any Holder or purchaser of
Notes covered by any Shelf Registration Statement contemplated by
this Agreement, Exchange Notes having an aggregate principal amount
equal to the aggregate principal amount of Notes sold pursuant to
the Shelf Registration Statement and surrendered to the Company for
cancellation; the Company shall register Exchange Notes on the
Shelf Registration Statement for this purpose and issue the
Exchange Notes to the purchasers of securities subject to the Shelf
Registration Statement in the names as such purchasers shall
designate.
(c) General
Provisions . In connection with any Registration
Statement and any related Pr