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REGISTRATION RIGHTS AGREEMENT

Registration Rights Agreement

REGISTRATION RIGHTS AGREEMENT
 | Document Parties: FERRELLGAS PARTNERS L P |  FERRELLGAS ESCROW LLC | CREDIT SUISSE FIRST BOSTON LLC You are currently viewing:
This Registration Rights Agreement involves

FERRELLGAS PARTNERS L P | FERRELLGAS ESCROW LLC | CREDIT SUISSE FIRST BOSTON LLC

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Title: REGISTRATION RIGHTS AGREEMENT
Governing Law: New York     Date: 4/22/2004
Law Firm: Latham & Watkins LLP; Mayer, Brown, Rowe & Maw LLP    

REGISTRATION RIGHTS AGREEMENT
, Parties: ferrellgas partners l p ,  ferrellgas escrow llc , credit suisse first boston llc
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                                                                     Exhibit 4.2

 

 

 

                                  $250,000,000

 

                              FERRELLGAS ESCROW LLC

                      FERRELLGAS FINANCE ESCROW CORPORATION

 

 

                           6 3/4% SENIOR NOTES DUE 2014

 

 

                          REGISTRATION RIGHTS AGREEMENT

                          -----------------------------

 

                                                                  April 20, 2004

 

CREDIT SUISSE FIRST BOSTON LLC

BANC OF AMERICA SECURITIES LLC

ABN AMRO INCORPORATED

BANC ONE CAPITAL MARKETS, INC.

BNP PARIBAS SECURITIES CORP.

PIPER JAFFRAY & CO.

SG COWEN   SECURITIES CORPORATION

WELLS FARGO SECURITIES, LLC

c/o Credit Suisse First Boston LLC

      Eleven Madison Avenue

      New York, New York 10010-3629

 

Dear Ladies and Gentlemen:

 

     Ferrellgas Escrow LLC, a Delaware limited liability company ("Escrow LLC"),

and   Ferrellgas   Finance Escrow   Corporation,   a Delaware   corporation   ("Escrow

Finance Corp.   "),   propose to issue and sell to Credit Suisse First Boston LLC,

Banc of America Securities LLC, ABN AMRO Incorporated, Banc One Capital Markets,

Inc., BNP Paribas   Securities   Corp.,   Piper Jaffray & Co., SG Cowen   Securities

Corporation   and   Wells   Fargo   Securities,   LLC   (collectively,    the   "Initial

Purchasers"),   upon the terms set forth in a purchase   agreement dated April 14,

2004 (the "Purchase   Agreement"),   $250,000,000 in aggregate principal amount of

their   63/4%   Senior   Notes due 2014 (the   "Initial   Securities").   The   Initial

Securities   will be issued   pursuant to an indenture dated as of the date hereof

(the   "Indenture"),   among Escrow LLC, Escrow Finance Corp.,   U.S. Bank National

Association,   as trustee (the "Trustee"),   and, on and after the Merger Date (as

defined below), Ferrellgas, L.P. a Delaware limited partnership (the "Company"),

and Ferrellgas Finance Corp., a Delaware corporation ("Finance Co.").   "Issuers"

shall mean,   prior to the Merger Date (as defined below),   Escrow LLC and Escrow

Finance   Corp.,   and on and after the Merger   Date,   the Company and Finance Co.

Capitalized   terms not herein   defined   have   meanings   assigned   to them in the

Purchase Agreement.

 

 

<PAGE>

 

 

     Pursuant   to the   Agreement   and Plan of Merger   (the   "Acquisition   Merger

Agreement")   dated as of February 8, 2004,   by and among FCI   Trading   Corp.,   a

Delaware   corporation   ("FCI"),   Diesel   Acquisition   LLC,   a   Delaware   limited

liability   company and a   wholly-owned   subsidiary   of FCI   ("Diesel"),   Ferrell

Companies,   Inc., a Kansas corporation,   and Blue Rhino Corporation,   a Delaware

corporation   ("Blue   Rhino   Corp."),   Diesel will merge with and into Blue Rhino

Corp.   with Blue   Rhino   Corp.   being the   surviving   entity   (the   "Acquisition

Merger"). Pursuant to the Acquisition Merger Agreement, FCI has agreed to pay to

the   then-former   common   stockholders   of Blue Rhino Corp.   $17.00 per share in

connection with the Acquisition Merger (the "Merger Consideration"). In order to

pay   the   Merger   Consideration   and   the   fees   and   expenses   relating   to the

Acquisition Merger, (a) Ferrellgas Partners,   L.P.   ("Ferrellgas   Partners") (i)

issued, on April 14, 2004,   approximately   $163 million of its common units in a

public equity   offering and (ii) will issue   approximately   $32.8 million of its

common units to certain   members of Ferrellgas   Partners' and Blue Rhino Corp.'s

management in several   private   equity   offerings and (b) the Issuers will issue

the   Offered   Securities.   The   net   proceeds   of the   offering   of the   Offered

Securities,   together with additional   funds such that the total initial deposit

described   below   shall   equal   100% of the   aggregate   principal   amount of the

Offered   Securities,   plus accrued and unpaid interest on the Offered Securities

to, but not including, August 5, 2004, will be deposited in an escrow account in

accordance   with the terms and   conditions   contained in that certain escrow and

security agreement (the "Escrow and Security Agreement") dated as of the Closing

Date (as defined   below),   by and among Escrow LLC,   Escrow Finance   Corp.,   the

Trustee and LaSalle Bank, National Association ("LaSalle"),   as escrow agent and

securities intermediary, pending the consummation of the Acquisition Merger.

 

     Upon the   consummation   of the   Acquisition   Merger and the   occurrence   of

certain   other   conditions,   it is expected   that the funds   deposited   into the

escrow account pursuant to the Escrow and Security Agreement will be released to

the Issuers   pursuant   thereto.   In accordance with the terms of the Acquisition

Merger   Agreement,   such funds,   together with other funds sufficient to pay the

Merger Consideration,   will be deposited into another escrow account pursuant to

the terms of an escrow agreement (the   "Acquisition   Escrow   Agreement"),   to be

dated as of or prior to the date of the consummation of the Acquisition   Merger,

by and among FCI, Blue Rhino Corp. and LaSalle, as escrow agent. Pursuant to the

Acquisition   Escrow   Agreement,   it is   expected   that   all such   funds   will be

released    to   a   paying    agent   for    payment   of   the   Merger    Consideration

simultaneously   with the   effectiveness of the merger of Blue Rhino LLC with and

into the Company   and the Escrow   Mergers (as   defined   below)   (such date,   the

"Merger Date").

 

 

                                       2

<PAGE>

 

 

     Pursuant to the Contribution Agreement dated as of February 8, 2004, by and

among FCI, Ferrellgas, Inc., a Delaware corporation, Ferrellgas Partners and the

Company,    FCI   has   agreed   to   convert   (such   conversion,    the   "Blue   Rhino

Conversion")   Blue Rhino Corp.   into a limited   liability   company   ("Blue Rhino

LLC").   Upon the   Blue   Rhino   Conversion,   FCI will   contribute   to   Ferrellgas

Partners a portion of the membership   interests in Blue Rhino LLC and Ferrellgas

Partners will assume FCI's obligations under the Acquisition Merger Agreement to

pay the Merger   Consideration,   together with specific other obligations.   After

that   contribution,   Ferrellgas   Partners   will   contribute   to the   Company its

membership   interests in Blue Rhino LLC and the Company   will assume   Ferrellgas

Partners'   obligations to pay the Merger   Consideration,   together with specific

other obligations.   Blue Rhino LLC will then be merged with and into the Company

with the Company   being the surviving   entity.   As   consideration   for FCI's net

contribution   to   Ferrellgas   Partners,   Ferrellgas   Partners   will issue to FCI

common units representing limited partner interests in Ferrellgas Partners.

 

     On the Merger   Date,   Escrow LLC will merge with and into the Company   with

the Company being the surviving   entity and Escrow Finance Corp. will merge with

and into Finance Corp.   with Finance   Corp.   being the   surviving   entity,   each

pursuant to Section   253(a) of the   Delaware   General   Corporation   Law; and the

Company and Finance Co. will succeed to the obligations of Escrow LLC and Escrow

Finance Corp. under the Indenture, the Initial Securities and this Agreement.

 

     As an   inducement   to the   Initial   Purchasers,   the   Issuers   jointly   and

severally agree with the Initial   Purchasers,   for the benefit of the holders of

the Initial Securities (including,   without limitation, the Initial Purchasers),

the Exchange   Securities (as defined below) and the Private Exchange   Securities

(as defined below) (collectively, the "Holders"), as follows:

 

     1. Registered Exchange Offer. The Issuers shall, at their own cost, prepare

and,   not later than 140 days after (or if the 140th day is not a business   day,

the first   business day   thereafter)   the date of original   issue of the Initial

Securities (the "Issue Date"),   file with the Securities and Exchange Commission

(the   "Commission") a registration   statement (the "Exchange Offer   Registration

Statement") on an appropriate   form under the Securities Act of 1933, as amended

(the   "Securities   Act"),   with   respect   to a proposed   offer (the   "Registered

Exchange Offer") to the Holders of Transfer Restricted Securities (as defined in

Section 6 hereof), who are not prohibited by any law or policy of the Commission

from   participating   in the Registered   Exchange   Offer, to issue and deliver to

such Holders, in exchange for the Initial Securities, a like aggregate principal

amount of debt   securities   (the   "Exchange   Securities")   of the Issuers issued

under the   Indenture   and   identical   in all   material   respects   to the Initial

Securities   (except   for   the   transfer   restrictions   relating   to the   Initial

Securities   and the   provisions   relating to the matters   described in Section 6

hereof) that would be registered under the Securities Act. The Issuers shall use

their   reasonable   best   efforts   to   cause   such   Exchange   Offer   Registration

Statement to become   effective   under the   Securities Act within 230 days (or if

the 230th day is not a business day, the first   business day   thereafter)   after

the Issue   Date of the   Initial   Securities   and shall keep the   Exchange   Offer

Registration   Statement   effective   for not   less   than 30 days (or   longer,   if

required by   applicable   law) after the date notice of the   Registered   Exchange

Offer is first mailed to the Holders   (such   period   being called the   "Exchange

Offer Registration Period").

 

 

                                        3

<PAGE>

 

 

     If the Issuers effect the Registered   Exchange   Offer,   the Issuers will be

entitled to close the Registered   Exchange Offer 30 days after the   commencement

thereof   provided   that the Issuers   have   accepted   all the Initial   Securities

theretofore   validly   tendered in   accordance   with the terms of the   Registered

Exchange Offer.

 

     Following   the   declaration   of the   effectiveness   of the   Exchange   Offer

Registration Statement,   the Issuers shall as promptly as reasonably practicable

commence   the   Registered   Exchange   Offer,   it   being   the   objective   of   such

Registered    Exchange   Offer   to   enable   each   Holder   of   Transfer   Restricted

Securities (as defined in Section 6(d) hereof)   electing to exchange the Initial

Securities   for   Exchange   Securities   (assuming   that   such   Holder   is   not an

affiliate of the Issuers within the meaning of the Securities Act,   acquires the

Exchange   Securities in the ordinary course of such Holder's business and has no

arrangements   with any person to participate in the distribution of the Exchange

Securities   and is not   prohibited by any law or policy of the   Commission   from

participating   in   the   Registered    Exchange   Offer)   to   trade   such   Exchange

Securities   from and after their receipt without any limitations or restrictions

under the Securities Act and without material   restrictions under the securities

laws of the several states of the United States.

 

     Each   Holder   participating   in the   Registered   Exchange   Offer   shall   be

required   to   represent   to the   Issuers   in   writing   that   at the   time of the

consummation   of the   Registered   Exchange   Offer,   (i) any Exchange   Securities

received by such Holder will be acquired in the ordinary course of its business,

(ii) such Holder will have no arrangements or   understanding   with any person to

participate in the   distribution   of the   Securities or the Exchange   Securities

within   the   meaning   of   the   Securities   Act,   (iii)   such   Holder   is   not an

"affiliate,"   as defined in Rule 405 of the Securities Act, of the Issuers or if

it is an affiliate, such Holder 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,   that it is not   engaged   in, and does not

intend to engage in, the distribution of the Exchange Securities and (v) if such

Holder is a broker-dealer,   that it will receive Exchange Securities for its own

account in exchange   for Initial   Securities   that were   acquired as a result of

market-making   activities   or   other   trading   activities   and   that   it will be

required   to   acknowledge   that   it   will   deliver   a   prospectus    meeting   the

requirements   of the   Securities   Act in   connection   with   any   resale   of such

Exchange Securities.

 

     The   Issuers   and the   Initial   Purchasers   acknowledge   that,   pursuant to

current interpretations by the Commission's staff of Section 5 of the Securities

Act, in the absence of an applicable exemption therefrom,   (i) each Holder which

is a broker-dealer   electing to exchange Initial Securities acquired for its own

account as a result of market making activities or other trading activities, for

Exchange   Securities   (an   "Exchanging    Dealer"),    may   be   deemed   to   be   an

"underwriter"   within the meaning of the   Securities   Act and therefore   will be

required to deliver a prospectus   containing   the   information   set forth in (a)

Annex A hereto   (on the cover of the   prospectus),   (b)   Annex B hereto   (in the

"Exchange Offer   Procedures" and the "Purpose of the Exchange Offer" sections of

the prospectus),   and (c) Annex C hereto (in the "Plan of Distribution"   section

of the   prospectus)   in connection   with a sale of any such Exchange   Securities

received by such Exchanging Dealer pursuant to the Registered Exchange Offer and

(ii) an Initial   Purchaser that elects to sell Exchange   Securities   acquired in

exchange   for   Securities   constituting   any portion of an unsold   allotment   is

required to deliver a prospectus   containing the   information   required by Items

507 or 508 of   Regulation   S-K under   the   Securities   Act,   as   applicable,   in

connection with such sale.

 

 

                                       4

<PAGE>

 

 

     The Issuers   shall use their   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 such   persons   must comply with such

requirements in order to resell the Exchange Securities; provided, however, that

(i) in the case where such   prospectus   and any amendment or supplement   thereto

must be delivered by an Exchanging Dealer or an Initial   Purchaser,   such period

shall be the lesser of 180 days and the date on which all Exchanging Dealers and

the Initial   Purchasers   have sold all Exchange   Securities held by them (unless

such   period is extended   pursuant   to Section   3(j) below) and (ii) the Issuers

shall make such prospectus and any amendment or supplement thereto, available to

any   broker-dealer   for   use in   connection   with   any   resale   of any   Exchange

Securities for a period of not less than 90 days after the   consummation   of the

Registered Exchange Offer.

 

     If,   upon   consummation   of the   Registered   Exchange   Offer,   any   Initial

Purchaser   holds   Initial   Securities   acquired   by it as   part   of its   initial

distribution,   the   Issuers,   simultaneously   with the   delivery of the Exchange

Securities pursuant to the Registered Exchange Offer, shall issue and deliver to

such Initial   Purchaser upon the written request of such Initial   Purchaser,   in

exchange   (the   "Private   Exchange")   for the   Initial   Securities   held by such

Initial   Purchaser,   a like principal   amount of debt   securities of the Issuers

issued under the Indenture and identical in all material respects (including the

existence   of   restrictions   on   transfer   under   the   Securities   Act   and   the

securities   laws of the   several   states of the   United   States,   but   excluding

provisions relating to the matters described in Section 6 hereof) to the Initial

Securities (the "Private   Exchange   Securities").   The Initial   Securities,   the

Exchange   Securities and the Private Exchange Securities are herein collectively

called the   "Securities."   The Private   Exchange   Securities shall bear the same

CUSIP as the Exchange Securities.

 

     In connection with the Registered Exchange Offer, the Issuers shall:

 

          (a)   mail,   or   cause   to   be   mailed,   to   each   Holder   entitled   to

     participate   in the   Registered   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;

 

          (b) keep the Registered   Exchange Offer open for not less than 30 days

     (or longer, if required by applicable law) after the date notice thereof is

     first mailed to such Holders;

 

 

                                       5

<PAGE>

 

 

          (c) utilize the services of a depositary for the   Registered   Exchange

     Offer with an address in the   Borough of   Manhattan,   The City of New York,

     which may be the Trustee or an affiliate of the Trustee;

 

          (d) permit Holders to withdraw   tendered   Securities at any time prior

     to the close of business,   New York time, on the last business day on which

     the Registered Exchange Offer shall remain open; and

 

          (e)   otherwise   comply in all material   respects   with all   applicable

     laws.

 

     As soon as practicable after the close of the Registered   Exchange Offer or

the Private Exchange, as the case may be, the Issuers shall:

 

          (x) accept for exchange all the   Securities   validly   tendered and not

     validly withdrawn pursuant to the Registered Exchange Offer and the Private

     Exchange;

 

          (y)   deliver,    or   caused   to   be   delivered,    to   the   Trustee   for

     cancellation all the Initial Securities so accepted for exchange; and

 

          (z) use reasonable   best efforts to cause the Trustee to   authenticate

     and deliver   promptly to each   Holder of the Initial   Securities,   Exchange

     Securities   or Private   Exchange   Securities,   as the case may be, equal in

     principal   amount to the Initial   Securities of such Holder so accepted for

     exchange.

 

     The Indenture will provide that the Exchange Securities will not be subject

to the   transfer   restrictions   set   forth   in the   Indenture   and   that all the

Securities   will vote and consent   together on all matters as one class and that

none of the   Securities   will   have   the   right   to vote or   consent   as a class

separate from one another on any matter.

 

     Interest on each Exchange   Security and Private   Exchange   Security   issued

pursuant   to the   Registered   Exchange   Offer and in the Private   Exchange   will

accrue from the last   interest   payment   date on which   interest was paid on the

Initial Securities   surrendered in exchange therefor or, if no interest has been

paid on the Initial   Securities,   from the date of original issue of the Initial

Securities.

 

     Notwithstanding   any other provisions   hereof, the Issuers will ensure that

(i) any Exchange Offer Registration   Statement and any amendment thereto and any

prospectus   forming   part   thereof and any   supplement   thereto   complies in all

material   respects   with   the   Securities   Act and   the   rules   and   regulations

thereunder,   (ii) any Exchange   Offer   Registration   Statement and any amendment

thereto does not, when it becomes   effective,   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 not misleading and (iii) any prospectus

forming part of any Exchange Offer Registration Statement, and any supplement to

such prospectus, does not include an untrue statement of a material fact or omit

to state a material fact required to be stated   therein or necessary in order to

make the statements   therein, in the light of the circumstances under which they

were made, not misleading.

 

 

                                       6

<PAGE>

 

 

     2.   Shelf   Registration.   If,   (i)   because   of   any   change   in   law or in

applicable   interpretations thereof by the staff of the Commission,   the Issuers

are not permitted to effect a Registered   Exchange   Offer,   as   contemplated   by

Section 1 hereof,   (ii) the Registered   Exchange Offer is not consummated within

260 days of the Issue Date,   (iii) any Initial   Purchaser   notifies   the Issuers

with respect to the Initial Securities (or the Private Exchange   Securities) not

eligible to be exchanged   for Exchange   Securities   in the   Registered   Exchange

Offer and held by it within 30 days   following   consummation   of the   Registered

Exchange Offer or (iv) any Holder   notifies the Issuers within 30 days following

consummation   of the   Registered   Exchange Offer that it is prohibited by law or

the Commission's   policy from participating in the Registered   Exchange Offer or

may not resell the Exchange Securities acquired by it in the Registered Exchange

Offer   to the   public   without   delivering   a   prospectus,   and   the   prospectus

contained in the Exchange Offer Registration Statement is not appropriate or not

available for such resales, the Issuers shall take the following actions:

 

          (a) The   Issuers   shall,   at their cost,   as   promptly   as   reasonably

     practicable after so required or requested   pursuant to this Section 2 file

     with the Commission and thereafter   shall use their reasonable best efforts

     to cause to be declared effective (i) in the case of Section 2(i) above, on

     or prior to the 260th day after the date of the   Indenture   and (ii) in the

     case of Section 2(ii),   2(iii) or 2(iv) above,   on or prior to the 90th day

     after the Shelf   Filing   Date (as   defined in Section   6(iv))   (the   "Shelf

     Registration   Statement" and, together with the Exchange Offer Registration

     Statement,   a   "Registration   Statement") on an appropriate   form under the

     Securities   Act relating to the offer and sale of the   Transfer   Restricted

     Securities   (as   defined in Section 6 hereof) by the Holders   thereof   from

     time to time in accordance   with the methods of   distribution   set forth in

     the Shelf   Registration   Statement   and Rule 415 under the   Securities   Act

     (hereinafter, the "Shelf Registration");   provided, however, that no Holder

     (other than an Initial   Purchaser) shall be entitled to have the Securities

     held by it covered by such Shelf Registration   Statement unless such Holder

     agrees   in   writing   to be bound by all the   provisions   of this   Agreement

     applicable to such Holder.

 

          (b) The Issuers   shall use their   reasonable   best efforts to keep the

     Shelf Registration   Statement continuously effective in order to permit the

     prospectus   included therein to be lawfully delivered by the Holders of the

     relevant Securities, until the earliest of (a) the time when the Securities

     covered by the Shelf   Registration   Statement   can be sold pursuant to Rule

     144 under the   Securities   Act, or any successor   rule thereof   without any

     limitations   under clauses   (c),(e),(f)   and (h) of Rule 144, (b) two years

     from the date of the   Indenture   and (or for a longer   period   if   extended

     pursuant to Section   3(j)   below) and (c) the date on which all   Securities

     registered   thereunder are disposed of in accordance   therewith.   Either or

     both   of the   Issuers   shall   be   deemed   not to   have   used   its or   their

     reasonable best efforts to keep the Shelf Registration   Statement effective

     during the requisite   period if it or they   voluntarily   take(s) any action

     that would result in Holders of Securities   covered   thereby not being able

     to offer and sell such Securities during that period, unless such action is

     required by applicable law.

 

 

                                       7

<PAGE>

 

 

          (c)   Notwithstanding   any other   provisions   of this   Agreement to the

     contrary,   the Issuers shall cause the Shelf Registration Statement and the

     related   prospectus   and any   amendment or   supplement   thereto,   as of the

     effective date of the Shelf Registration Statement, amendment or supplement

     (i) to comply in all material respects with the applicable   requirements of

     the Securities Act and the rules and regulations of the Commission and (ii)

     not to contain any untrue   statement of a material   fact or omit to state a

     material fact   required to be stated   therein or necessary in order to make

     the statements therein, in light of the circumstances under which they were

     made, not misleading.

 

     3.   Registration   Procedures.   In   connection   with any Shelf   Registration

contemplated by Section 2 hereof and, to the extent   applicable,   any Registered

Exchange Offer contemplated by Section 1 hereof, the following   provisions shall

apply:

 

          (a) The Issuers shall (i) furnish to each Initial Purchaser,   prior to

     the   filing   thereof   with   the   Commission,   a copy   of   the   Registration

     Statement and each amendment   thereof and each   supplement,   if any, to the

     prospectus   included   therein   and, in the event that an Initial   Purchaser

     (with   respect to any   portion   of an unsold   allotment   from the   original

     offering) is   participating   in the Registered   Exchange Offer or the Shelf

     Registration Statement, the Issuers shall use their reasonable best efforts

     to reflect in each such document,   when so filed with the Commission,   such

     comments as such Initial   Purchaser   reasonably   may propose upon advice of

     counsel (it being understood that any final   determination shall be made by

     the Issuers in their reasonable   discretion);   (ii) include the information

     set   forth in   Annex A   hereto   on the   cover,   in   Annex B   hereto   in the

     "Exchange Offer Procedures" section and the "Purpose of the Exchange Offer"

     section and in Annex C hereto in the "Plan of Distribution"   section of the

     prospectus forming a part of the Exchange Offer Registration   Statement and

     include   the   information   set   forth in Annex D hereto   in the   Letter   of

     Transmittal   delivered pursuant to the Registered   Exchange Offer; (iii) if

     requested   by an Initial   Purchaser,   include the   information   required by

     Items 507 or 508 of Regulation S-K under the Securities Act, as applicable,

     in the   prospectus   forming   a   part   of the   Exchange   Offer   Registration

     Statement;   (iv) include   within the   prospectus   contained in the Exchange

     Offer   Registration   Statement a section   entitled "Plan of   Distribution,"

     reasonably   acceptable   to the Initial   Purchasers,   which shall   contain a

     summary   statement of the positions   taken or policies made by the staff of

     the Commission   with respect to the potential   "underwriter"   status of any

     broker-dealer   that is the beneficial owner (as defined in Rule 13d-3 under

     the Securities   Exchange Act of 1934, as amended (the   "Exchange   Act")) of

     Exchange   Securities   received   by   such   broker-dealer   in the   Registered

     Exchange Offer (a "Participating Broker-Dealer"), whether such positions or

     policies have been publicly   disseminated by the staff of the Commission or

     such   positions   or   policies,   in the   reasonable   judgment of the Initial

     Purchasers   based upon advice of counsel   (which may be in-house   counsel),

     represent the prevailing   views of the staff of the Commission;   and (v) in

     the   case of a Shelf   Registration   Statement,   include   the   names   of the

     Holders,   who propose to sell Securities pursuant to the Shelf Registration

     Statement, as selling securityholders.

 

 

                                       8

<PAGE>

 

 

          (b) The Issuers shall give written   notice to the Initial   Purchasers,

      the Holders of the Securities and any Participating Broker-Dealer from whom

     either of the Issuers has received   prior written   notice that it will be a

     Participating   Broker-Dealer in the Registered Exchange Offer (which notice

     pursuant to clauses   (ii)-(v) hereof shall be accompanied by an instruction

     to suspend the use of the prospectus until the requisite   changes have been

     made):

 

               (i) when the Registration   Statement or any amendment thereto has

          been filed with the Commission and when the Registration   Statement or

          any post-effective amendment thereto has become effective;

 

               (ii)   of   any   request   by   the    Commission   for   amendments   or

          supplements to the Registration   Statement or the prospectus   included

          therein or for additional information;

 

               (iii)   of the   issuance   by the   Commission   of   any   stop   order

          suspending   the   effectiveness   of the   Registration   Statement or the

           initiation of any proceedings for that purpose;

 

               (iv) of the   receipt   by either   of the   Issuers   or their   legal

          counsel of any   notification   with   respect to the   suspension   of the

          qualification   of the Securities for sale in any   jurisdiction   or the

          initiation or threatening of any proceeding for such purpose; and

 

               (v) of the   happening   of any event that   requires the Issuers to

          make changes in the Registration   Statement or the prospectus in order

          that the   Registration   Statement or the   prospectus do not contain an

          untrue   statement of a material fact nor omit to state a material fact

          required   to be stated   therein or   necessary   to make the   statements

          therein (in the case of the prospectus,   in light of the circumstances

          under which they were made) not misleading.

 

          (c) The Issuers shall use their   reasonable best efforts to obtain the

     withdrawal   at the earliest   possible   time,   of any order   suspending   the

     effectiveness of the Registration Statement.

 

          (d) The Issuers shall   furnish to each Holder of   Securities   included

     within the coverage of the Shelf Registration, without charge, at least one

     copy of the Shelf Registration   Statement and any post-effective   amendment

     thereto,   including financial statements and schedules,   and, if the Holder

     so requests in writing,   all exhibits   thereto   (including   those,   if any,

      incorporated by reference).

 

 

                                       9

<PAGE>

 

 

          (e) The   Issuers   shall   deliver   to each   Exchanging   Dealer and each

     Initial Purchaser, and to any other Holder who so requests, without charge,

     at least one copy of the   Exchange   Offer   Registration   Statement   and any

     post-effective   amendment   thereto,    including   financial   statements   and

     schedules,   and, if any Initial Purchaser or any such Holder requests,   all

     exhibits thereto (including those incorporated by reference).

 

          (f) The Issuers shall, during the Shelf Registration   Period,   deliver

     to each   Holder of   Securities   included   within the   coverage of the Shelf

     Registration,   without charge, as many copies of the prospectus   (including

     each preliminary   prospectus) included in the Shelf Registration   Statement

     and any   amendment   or   supplement   thereto as such   person may   reasonably

     request. The Issuers consent,   subject to the provisions of this Agreement,

     to the use of the prospectus or any amendment or supplement thereto by each

     of the selling   Holders of the   Securities in connection   with the offering

     and sale of the Securities   covered by the prospectus,   or any amendment or

     supplement thereto, included in the Shelf Registration Statement.

 

          (g)   The   Issuers   shall   deliver   to   each   Initial   Purchaser,    any

     Exchanging Dealer,   any Participating   Broker-Dealer and such other persons

     required to deliver a prospectus   following the Registered   Exchange Offer,

     without   charge,   as many   copies of the final   prospectus   included in the

     Exchange   Offer   Registration   Statement   and any   amendment or   supplement

     thereto as such   persons   may   reasonably   request.   The   Issuers   consent,

     subject to the provisions of this   Agreement,   to the use of the prospectus

     or any   amendment   or   supplement   thereto   by any   Initial   Purchaser,   if

     necessary, any Participating   Broker-Dealer and such other persons required

     to   deliver   a   prospectus   following   the   Registered   Exchange   Offer   in

     connection with the offering and sale of the Exchange Securities covered by

     the prospectus,


 
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