Attached files
file | filename |
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10-K - FORM 10-K - Knight-Swift Transportation Holdings Inc. | c14360e10vk.htm |
EX-32 - EXHIBIT 32 - Knight-Swift Transportation Holdings Inc. | c14360exv32.htm |
EX-3.2 - EXHIBIT 3.2 - Knight-Swift Transportation Holdings Inc. | c14360exv3w2.htm |
EX-2.1 - EXHIBIT 2.1 - Knight-Swift Transportation Holdings Inc. | c14360exv2w1.htm |
EX-3.1 - EXHIBIT 3.1 - Knight-Swift Transportation Holdings Inc. | c14360exv3w1.htm |
EX-31.2 - EXHIBIT 31.2 - Knight-Swift Transportation Holdings Inc. | c14360exv31w2.htm |
EX-31.1 - EXHIBIT 31.1 - Knight-Swift Transportation Holdings Inc. | c14360exv31w1.htm |
EX-10.5 - EXHIBIT 10.5 - Knight-Swift Transportation Holdings Inc. | c14360exv10w5.htm |
EX-23.1 - EXHIBIT 23.1 - Knight-Swift Transportation Holdings Inc. | c14360exv23w1.htm |
EX-21.1 - EXHIBIT 21.1 - Knight-Swift Transportation Holdings Inc. | c14360exv21w1.htm |
Exhibit 10.2
Execution Version
REGISTRATION RIGHTS AGREEMENT
Dated as of December 21, 2010
Among
SWIFT SERVICES HOLDINGS, INC.
and
The Other Several GUARANTORS Named Herein
and
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
and
MORGAN STANLEY & CO. INCORPORATED
and
WELLS FARGO SECURITIES, LLC
WELLS FARGO SECURITIES, LLC
and
The Other Several INITIAL PURCHASERS Named Herein
10.000% Senior Second Priority Secured Notes due 2018
TABLE OF CONTENTS
Page | ||||
Definitions |
1 | |||
Exchange Offer |
4 | |||
Shelf Registration |
7 | |||
Additional Interest |
9 | |||
Registration Procedures |
10 | |||
Registration Expenses |
17 | |||
Indemnification and Contribution |
18 | |||
Rule 144A |
22 | |||
Underwritten Registrations |
22 | |||
Miscellaneous |
23 |
i
REGISTRATION RIGHTS AGREEMENT
This Registration Rights Agreement (this Agreement) is dated as of December 21,
2010, among Swift Services Holdings, Inc. (the Company), a Delaware corporation, and the
guarantors named in Schedule A hereto (the Initial Guarantors), on the one hand, and
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. Incorporated and Wells
Fargo Securities, LLC and the other several Initial Purchasers named in Schedule B hereto
(collectively, the Initial Purchasers), on the other hand.
This Agreement is entered into in connection with the Purchase Agreement, dated as of December
15, 2010, among the Company, the Initial Guarantors and the Initial Purchasers (the Purchase
Agreement), which provides for, among other things, the sale by the Company to the Initial
Purchasers of 500.0 million aggregate principal amount of the Companys 10.000% Senior Second
Priority Secured Notes Due 2018 (the Notes), which will be guaranteed on a senior second
priority basis by each of the Guarantors. The Notes are issued under an indenture, dated as of
December 21, 2010 (as amended or supplemented from time to time, the Indenture), between
the Company, the Guarantors and U.S. Bank National Association, as trustee (the Trustee).
In order to induce the Initial Purchasers to enter into the Purchase Agreement, the Company and the
Guarantors have agreed to provide the registration rights set forth in this Agreement for the
benefit of the Initial Purchasers and, except as otherwise set forth herein, any subsequent holder
or holders of 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 Notes will have the
terms and provisions described in the Indenture.
The parties hereby agree as follows:
1. Definitions.
As used in this Agreement, the following terms shall have the following meanings:
Additional Guarantor: Any subsidiary of Parent that executes a Guarantee under the
Indenture after the date of this Agreement.
Additional Interest: See Section 4(a)
hereof.
Advice: See the last paragraph of
Section 5 hereof.
Agreement: See the
introductory paragraphs hereto.
Applicable
Period: See Section 2(b) hereof.
Business Day: Shall have the meaning ascribed to such term in Rule 14d-1 under the
Exchange Act.
Company: See the introductory paragraphs
hereto.
Effectiveness Deadline: See
Section 4(a) hereof.
Effectiveness Period: See Section 3(b) hereof.
Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC promulgated thereunder.
Exchange Notes: See Section 2(a) hereof.
Exchange Offer: See Section 2(a) hereof.
Exchange Offer Registration Statement: See Section 2(a) hereof.
FINRA: See Section 5(r) hereof.
Guarantees: The guarantees of the Notes and the guarantees of the Exchange Notes by
the Guarantors under the Indenture.
Guarantor: The Initial Guarantors, any Additional Guarantors and any
Guarantors successor that Guarantees the Notes. Any Guarantor released from its obligations
pursuant to Section 11.05 of the Indenture shall simultaneously be released from obligations
hereunder, and shall not thereafter be a Guarantor under this Agreement.
Holder: Any holder of a Registrable Security or Registrable Securities.
Indenture: See the introductory paragraphs hereto.
Information: See Section 5(n) hereof.
Initial Guarantors: See the introductory paragraphs and Schedule A hereto.
Initial Purchasers: See the introductory paragraphs and Schedule B hereto.
Initial Shelf Registration: See Section 3(a) hereof.
Inspectors: See Section 5(n) hereof.
Issue Date: December 21, 2010, the date of original issuance of the Notes.
Notes: See the introductory paragraphs hereto.
Parent: Shall mean Swift Transportation Company, a Delaware corporation.
Participant: See Section 7(a) hereof.
Participating Broker-Dealer: See Section 2(b) hereof.
Person: An individual, trustee, corporation, partnership, limited liability company,
joint stock company, trust, unincorporated association, union, business association, firm or other
legal entity.
2
Prospectus: The prospectus included in any Registration Statement (including,
without limitation, any prospectus subject to completion and a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rules 430A or 430C 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: See the introductory paragraphs
hereof.
Records: See Section 5(n) hereof.
Registrable Securities: Each Note upon its original issuance and at all times
subsequent thereto and each Exchange Note as to which Section 2(c)(ii) hereof is applicable
upon original issuance and at all times subsequent thereto and, in each case, any related
guarantees, until, in each case, the earliest to occur of (i) a Registration Statement covering
such Note or Exchange Note (and any related guarantees) has been declared effective by the SEC and
such Note or Exchange Note (and any related guarantees), as the case may be, has been sold and
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 or Exchange Note (and
any related guarantees), as the case may be, ceases to be outstanding for purposes of the Indenture
or (iv) such Note is eligible to be sold pursuant to Rule 144 by a Person that is not an
affiliate (as defined in Rule 405) of the Company or any of the Guarantors.
Registration Default: See Section 4(a) hereof.
Registration Statement: Any registration statement of the Company and the Guarantors
that covers any of the Notes or the Exchange Notes (and any related guarantees) filed with the SEC
under the Securities Act, including, in each case, the Prospectus, amendments and supplements to
such registration statement, including post-effective amendments, all exhibits, and all material
incorporated by reference or deemed to be incorporated by reference in such registration statement.
Rule 144: Rule 144 under the Securities Act.
Rule 144A: Rule 144A under the Securities Act.
Rule 405: Rule 405 under the Securities Act.
Rule 415: Rule 415 under the Securities Act.
Rule 424: Rule 424 under the Securities Act.
SEC: The U.S. Securities and Exchange
Commission.
Securities Act: The Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.
3
Shelf Notice: See Section 2(c)
hereof.
Shelf Registration: See
Section 3(b) hereof.
Shelf Registration Statement: Any Registration Statement relating to a Shelf
Registration.
Shelf Suspension Period: See Section 3(a)
hereof.
Subsequent Shelf Registration: See
Section 3(b) hereof.
TIA: The Trust
Indenture Act of 1939, as amended.
Trustee: The trustee under the Indenture and the trustee under any indenture (if
different) governing the Exchange Notes (and any related guarantees).
Underwritten registration or underwritten offering: A registration in which securities
of the Company and the Guarantors are sold to an underwriter for reoffering to the public.
Except as otherwise specifically provided, all references in this Agreement to acts, laws,
statutes, rules, regulations, releases, forms, no-action letters and other regulatory requirements
(collectively, Regulatory Requirements) shall be deemed to refer also to any amendments
thereto and all subsequent Regulatory Requirements adopted as a replacement thereto having
substantially the same effect therewith; provided that Rule 144 shall not be deemed to amend or
replace Rule 144A.
2. Exchange Offer.
(a) Unless the Exchange Offer would violate applicable law or any applicable
interpretation of the staff of the SEC, the Company and the Guarantors shall use their reasonable
best efforts to file with the SEC a registration statement (the Exchange Offer Registration
Statement) on an appropriate registration form with respect to a registered offer (the
Exchange Offer) to exchange any and all of the Registrable Securities for a like
aggregate principal amount of debt securities of the Company (the Exchange Notes),
guaranteed by the Guarantors under the Indenture, with terms substantially identical in all
material respects to the Notes, as applicable, except that (i) the Exchange Notes shall contain no
restrictive legend thereon, and (ii) interest on the Exchange Notes shall accrue in accordance with
the paragraph set forth immediately below. The Exchange Offer shall comply with all applicable
tender offer rules and regulations under the Exchange Act and other applicable laws. The Company
and the Guarantors shall use their reasonable best efforts to cause the Exchange Offer Registration
Statement to be declared effective under the Securities Act.
4
Upon the Exchange Offer Registration Statement becoming effective, the Company and the
Guarantors will offer the Exchange Notes in exchange for surrender of the Notes. The Company and
the Guarantors will keep the Exchange Offer open for at least 20 Business Days (or longer if
required by applicable law) after the date that notice of the Exchange Offer is mailed to Holders.
For each Note surrendered to the Company and the Guarantors
pursuant to the Exchange Offer, the Holder who surrendered such Note shall receive an Exchange Note
having a principal amount equal to that of the surrendered Note. Interest on each Exchange Note
will accrue (y) from the later of (i) the last interest payment date on which interest was paid on
the Note surrendered in exchange therefor or (ii) if the Note is surrendered for exchange between
the record date for an interest payment date to occur on or after the date of such exchange and as
to which interest will be paid and such interest payment date, the date of such interest payment
date or (z) if no interest has been paid on such Note, from the Issue Date.
Each Holder (including, without limitation, each Participating Broker-Dealer) that
participates in the Exchange Offer, as a condition to participation in the Exchange Offer, will be
required to represent to the Company in writing (which may be contained in the applicable letter of
transmittal) that: (i) any Exchange Notes acquired in exchange for Registrable Securities tendered
are being acquired in the ordinary course of business of the Person receiving such Exchange Notes,
whether or not such recipient is such Holder itself; (ii) at the time of the commencement or
consummation of the Exchange Offer neither such Holder nor, to the actual knowledge of such Holder,
any other Person receiving Exchange Notes from such Holder has an arrangement or understanding with
any Person to participate in the distribution (within the meaning of the Securities Act) of the
Exchange Notes in violation of the provisions of the Securities Act; (iii) neither the Holder nor,
to the actual knowledge of such Holder, any other Person receiving Exchange Notes from such Holder
is an affiliate (as defined in Rule 405) of the Company or any of the Guarantors; (iv) if such
Holder is not a broker-dealer, neither such Holder nor, to the actual knowledge of such Holder, any
other Person receiving Exchange Notes from such Holder is engaging in or intends to engage in a
distribution of the Exchange Notes; and (v) if such Holder is a Participating Broker-Dealer that
will receive Exchange Notes for its own account in exchange for Registrable Securities that were
acquired as a result of market-making or other trading activities, such Holder will deliver a
prospectus with any resale of such Exchange Notes; provided that the Company and the Guarantors
shall make available, during the period required by the Securities Act, a prospectus meeting the
requirements of the Securities Act for use by Participating Broker-Dealers and other persons, if
any, with similar prospectus delivery requirements for use in connection with any resale of
Exchange Notes.
No securities other than the Exchange Notes and the Notes (and any related guarantees)
shall be included in the Exchange Offer Registration Statement.
(b) The Company and the Guarantors shall include within the Prospectus contained in the
Exchange Offer Registration Statement a section entitled Plan of Distribution, which
shall indicate that any broker-dealer who holds Registrable Securities that were acquired for its
own account as a result of market-making activities or other trading activities (other than
Registrable Securities acquired directly from the Company or any of the Guarantors) (a
Participating Broker-Dealer) may exchange such Registrable Securities pursuant to the
Exchange Offer; however, such Participating 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 resales of the Exchange Notes received by
such broker-dealer in the Exchange Offer, which prospectus delivery requirements may be satisfied
by the delivery by such broker-dealer of the Prospectus contained in the Exchange Offer
Registration Statement. Such Plan of Distribution section shall also
contain all other information with respect to resales by Participating Broker-Dealers that the SEC
may require in order to permit such resales pursuant thereto.
5
The Company and the Guarantors shall use their reasonable best efforts to keep the Exchange
Offer Registration Statement effective and to amend and supplement the Prospectus contained therein
to the extent necessary in order to permit such Prospectus to be lawfully delivered by all Persons
subject to the prospectus delivery requirements of the Securities Act for resales of Exchange Notes
for such period of time as is necessary to comply with applicable law in connection with any resale
of Exchange Notes; provided, however, that such period shall not be required to exceed 90
days or such longer period if extended pursuant to the last paragraph of Section 5 hereof (the
Applicable Period).
In connection with the Exchange Offer, the Company and the Guarantors shall, subject to
applicable law:
(1) mail, or cause to be mailed, to each Holder of record entitled to participate in
the Exchange Offer a copy of the Prospectus forming part of the Exchange Offer Registration
Statement, together with an appropriate letter of transmittal and related documents;
(2) use their reasonable best efforts to keep the Exchange Offer open for not less than
20 Business Days from the date that notice of the Exchange Offer is mailed to Holders (or
longer if required by applicable law);
(3) utilize the services of a depositary for the Exchange Offer with an address in the
Borough of Manhattan, The City of New York or in Wilmington, Delaware;
(4) permit Holders to withdraw tendered Notes at any time prior to the close of
business, New York time, on the last Business Day on which the Exchange Offer remains open;
and
(5) otherwise comply in all material respects with all laws, rules and regulations applicable to the Exchange Offer.
As soon as practicable after the close of the Exchange Offer, the Company and the Guarantors
shall, subject to applicable law:
(1) accept for exchange all Registrable Securities validly tendered and not validly
withdrawn pursuant to the Exchange Offer;
(2) deliver to the Trustee for cancellation all Registrable Securities so accepted
for exchange; and
(3) cause the Trustee to authenticate and deliver promptly to each Holder of Notes,
Exchange Notes equal in principal amount to the Notes of such Holder so tendered 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.
6
The Exchange Offer shall not be subject to any conditions, other than that (i) the Exchange
Offer does not violate applicable law or any applicable interpretation of the staff of the SEC;
(ii) no action or proceeding shall have been instituted or threatened in any court or by any
governmental agency that would be reasonably likely to materially impair the ability of the Company
or any of the Guarantors to proceed with the Exchange Offer, and no material adverse development
shall have occurred in any existing action or proceeding with respect to the Company or any of the
Guarantors; and (iii) all governmental approvals shall have been obtained, which approvals the
Company and the Guarantors deem necessary for the consummation of the Exchange Offer.
The Exchange Notes shall be issued under (i) the Indenture or (ii) an indenture identical in
all material respects to the Indenture and which, in either case, has been qualified under the TIA
or is exempt from such qualification and shall provide that the Exchange Notes shall not be subject
to the transfer restrictions set forth in the Indenture. The Indenture or such indenture shall
provide that the Exchange Notes and the Notes shall vote and consent together on all matters as one
class and that none of the Exchange Notes or the Notes will have the right to vote or consent as a
separate class on any matter.
(c) If, (i) because of any change in applicable law or in currently prevailing
interpretations of the staff of the SEC, the Company or any of the Guarantors is not permitted to
effect the Exchange Offer or (ii) upon receipt of a written notification from any Holder prior to
the 20th Business Day following the consummation of the Exchange Offer representing that (A) it is
prohibited by law or SEC policy from participating in the Exchange Offer, (B) it may not resell the
Exchange Notes acquired by it in the Exchange Offer to the public without delivering a prospectus
and the Prospectus contained in the Exchange Offer Registration Statement is not appropriate or
available for such resales, (C) it is a Participating Broker-Dealer, or (D) it is an affiliate of
the Company and will not receive Exchange Notes in the Exchange Offer that may be freely
transferred without restriction under federal securities laws, in the case of each of clauses (i)
and (ii) of this sentence, then the Company and the Guarantors shall promptly deliver to the
Trustee (to deliver to the Holders) written notice thereof (the Shelf Notice) and shall
file a Shelf Registration pursuant to Section 3 hereof.
3. Shelf Registration.
If at any time a Shelf Notice is delivered as contemplated by Section 2(c)
hereof,
then:
(a) Shelf Registration. The Company and the Guarantors shall use their
reasonable best efforts to promptly file with the SEC a Registration Statement for an
offering to be made on a continuous basis pursuant to Rule 415 covering all of the
Registrable Securities (the Initial Shelf Registration). The Initial Shelf
Registration shall be on Form S-1 or another appropriate form permitting registration of
such Registrable Securities for resale by Holders in the manner or manners designated by
them (including, without limitation, one or more underwritten offerings). The Company and
the Guarantors shall not permit any securities other than the Registrable Securities to be included
in the Initial Shelf Registration or any Subsequent Shelf Registration (as defined below).
7
The Company and the Guarantors shall use their reasonable best efforts to cause the Shelf
Registration to be declared effective under the Securities Act and to keep the Initial Shelf
Registration continuously effective under the Securities Act until the earliest of (i) the date
that is one (1) year from the Issue Date and (ii) such shorter period ending when all Registrable
Securities covered by the Shelf Registration Statement have been sold in the manner set forth and
as contemplated in the Initial Shelf Registration or, if applicable, a Subsequent Shelf
Registration.
Notwithstanding anything to the contrary in this Agreement, at any time, the Company and the
Guarantors may delay the filing of any Initial Shelf Registration Statement or Subsequent Shelf
Registration or delay or suspend the effectiveness thereof, for a reasonable period of time, but
not in excess of 45 consecutive days or more than three (3) times during any calendar year (each, a
Shelf Suspension Period), if the Board of Directors of the Company or Parent determines
reasonably and in good faith that the filing of any such Initial Shelf Registration Statement or
Subsequent Shelf Registration the continuing effectiveness thereof would require the disclosure of
non-public material information that, in the reasonable judgment of the Board of Directors of the
Company, would be detrimental to the Company or any of the Guarantors if so disclosed or would
otherwise materially adversely affect a financing, acquisition, disposition, merger or other
material transaction or such action is required by applicable law.
(b) Withdrawal of Stop Orders; Subsequent Shelf Registrations. If the Initial Shelf
Registration or any Subsequent Shelf Registration ceases to be effective for any reason at any time
during the one year after such registration statement becomes effective (the Effectiveness
Period) (other than because of the sale of all of the Notes registered thereunder), the
Company and the Guarantors shall use their reasonable best efforts to obtain the prompt withdrawal
of any order suspending the effectiveness thereof, and in any event shall file an additional Shelf
Registration Statement pursuant to Rule 415 covering all of the Registrable Securities covered by
and not sold under the Initial Shelf Registration or an earlier Subsequent Shelf Registration
(each, a Subsequent Shelf Registration). If a Subsequent Shelf Registration is filed, the
Company and the Guarantors shall use their reasonable best efforts to cause the Subsequent Shelf
Registration to be declared effective under the Securities Act as soon as practicable after such
filing and to keep such subsequent Shelf Registration continuously effective for a period equal to
the number of days in the Effectiveness Period less the aggregate number of days during which the
Initial Shelf Registration or any Subsequent Shelf Registration was previously continuously
effective. As used herein the term Shelf Registration means the Initial Shelf Registration and
any Subsequent Shelf Registration.
(c) Supplements and Amendments. The Company and the Guarantors shall promptly
supplement and amend the Shelf Registration if required by the rules, regulations or instructions
applicable to the registration form used for such Shelf Registration, if required by the Securities
Act, or if reasonably requested by the Holders
of a majority in aggregate principal amount of the Registrable Securities (or their counsel)
covered by such Registration Statement with respect to the information included therein with
respect to one or more of such Holders, or, if reasonably requested by any underwriter of
such Registrable Securities, with respect to the information included therein with respect
to such underwriter.
8
4. Additional Interest.
(a) The Company and the Guarantors and the Initial Purchasers agree that the Holders will
suffer damages if the Company or any Guarantor fails to fulfill its obligations under Section 2 or
Section 3 hereof and that it would not be feasible to ascertain the extent of such damages
with precision. Accordingly, the Company and the Guarantors agree to pay additional interest on the
Notes (Additional Interest) if (A) the Company and the Guarantors have not exchanged
Exchange Notes for all Notes validly tendered in accordance with the terms of the Exchange Offer on
or prior to the 180th day after the Issue Date, (B) the Company and the Guarantors are required to
file a Shelf Registration Statement and such Shelf Registration Statement is not declared effective
on or prior to the later of the 180th day after the Issue Date and the 30th day after the
obligation to file such Shelf Registration Statement arises (the Effectiveness Deadline)
or (C) such Shelf Registration ceases to be effective at any time during the Effectiveness Period
(other than because of the sale of all of the Notes registered thereunder) (each a
Registration Default), then Additional Interest shall accrue on the principal amount of
the Notes at a rate of 0.25% per annum (which rate will be increased by an additional 0.25% per
annum for each subsequent 90 day period that such Additional Interest continues to accrue,
provided that the rate at which such Additional Interest accrues may in no event exceed
1.00% per annum) (such Additional Interest to be calculated by the Company) commencing on the (x)
181st day after the Issue Date, in the case of clause (A) above, (y) the day after the
Effectiveness Deadline in the case of clause (B) above or (z) the day such Shelf Registration
ceases to be effective in the case of clause (C) above; provided, however, that upon the
exchange of the Exchange Notes for all Notes tendered (in the case of clause (A) of this
Section 4), upon the effectiveness of the applicable Shelf Registration Statement (in the
case of (B) of this Section 4), or upon the effectiveness of the applicable Shelf
Registration Statement which had ceased to remain effective (in the case of clause (C) of this
Section 4), Additional Interest on the Notes as a result of such clause (or the relevant
subclause thereof), as the case may be, shall cease to accrue. Notwithstanding any other provisions
of this Section 4, (i) Additional Interest shall not accrue and the Company and the
Guarantors shall not be obligated to pay any Additional Interest provided for in Section
4(a)(B) during a Shelf Suspension Period permitted by Section 3(a) hereof;
provided, that no Additional Interest shall accrue on the Notes following the second
anniversary of the Issue Date and (ii) the Additional Interest described in this Section 4
is the sole and exclusive remedy available to Holders due a Registration Default. Additional
Interest shall be payable in the same form elected by the Company for the payment of interest for
the applicable interest payment period, on the same dates and to the same persons that the Company
makes other interest payments on the Notes, until the Registration Default is corrected.
(b) The Company and the Guarantors shall notify the Trustee within five business days after
each and every date on which a Registration Default occurs. The amount of Additional Interest will
be determined by the Company by multiplying the applicable Additional Interest rate by the
principal amount of the Registrable Securities, multiplied by a fraction, the
numerator of which is the number of days such Additional Interest rate was applicable during such
period (determined on the basis of a 365 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 365.
9
5. Registration Procedures.
In connection with the filing of any Registration Statement pursuant to Section 2 or 3
hereof, the Company and the Guarantors 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
Company and the Guarantors hereunder the Company and the Guarantors shall:
(a) Before filing (i) any Shelf Registration Statement or any amendment or supplement
thereto or (ii) any Registration Statement, Prospectus or amendment or supplement thereto
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 the
Company or the Guarantors have received prior written notice that it will be a Participating
Broker-Dealer in the Exchange Offer, the Company and the Guarantors shall furnish to and
afford counsel for the Holders of the Registrable Securities covered by such Registration
Statement (with respect to a Registration Statement filed pursuant to Section 3
hereof) or counsel for such Participating Broker-Dealer (with respect to any such
Registration Statement), as the case may be, and counsel to 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 three business days prior to such filing). The Company and
the Guarantors 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 Securities covered by such Registration Statement, their counsel, or the
managing underwriters, if any, shall reasonably object.
(b) Prepare and file with the SEC 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, the Applicable Period or until consummation of the Exchange Offer, 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 to the extent required by applicable law; and comply with the provisions of the
Securities Act and the Exchange Act applicable to it 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 an
Participating Broker-Dealer covered by any such Prospectus in all material respects.
10
(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 the Company or the Guarantors have received written notice that it will be a Participating
Broker-Dealer in the Exchange Offer, notify the selling Holders of Registrable Securities (with
respect to a Registration Statement filed pursuant to Section 3 hereof), or each such
Participating Broker-Dealer (with respect to any such Registration Statement), as the case may be,
their counsel and the managing underwriters, if any, promptly (but in any event within three
Business Days), and 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, (ii) of the issuance by the SEC 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 Securities or resales of Exchange Notes by Participating Broker-Dealers the
representations and warranties of the Company or any Guarantors contained in any agreement
(including any underwriting agreement) contemplated by Section 5(m) hereof cease to be true
and correct, (iv) of the receipt by the Company or any Guarantor of any notification with respect
to the suspension of the qualification or exemption from qualification of a Registration Statement
or any of the Registrable Securities or the Exchange Notes to be sold by any Participating
Broker-Dealer for offer or sale in any jurisdiction, or the initiation or threatening of any
proceeding for such purpose, and (v) of the happening of any event, the existence of any condition
or any information becoming known to the Company or any Guarantor that makes any statement made in
such Registration Statement or related Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that requires the making of any
changes in or amendments or supplements to such Registration Statement, Prospectus or documents so
that, in the case of the Registration Statement, it will not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading, and that in the case of the Prospectus, it will not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading.
(d) Use their reasonable best efforts to prevent the issuance of any order suspending the
effectiveness of a Registration Statement or of any order preventing or suspending the use of a
Prospectus or suspending the qualification (or exemption from qualification) of any of the
Registrable Securities or the Exchange Notes to be sold by any Participating Broker-Dealer, for
sale in any jurisdiction.
(e) If a Shelf Registration is filed pursuant to Section 3 and if requested during
the Effectiveness Period by the managing underwriter or underwriters (if any) or the Holders of a
majority in aggregate principal amount of the Registrable Securities being sold in connection with
an underwritten offering, (i) as promptly as reasonably practicable incorporate in a prospectus
supplement or post-effective amendment such
information as the managing underwriter or underwriters (if any), such Holders or counsel for
either of them reasonably request to be included therein and (ii) make all required filings
of such prospectus supplement or such post-effective amendment.
11
(f) 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, furnish to each
selling Holder of Registrable Securities (with respect to a Registration Statement filed pursuant
to Section 3 hereof) and to each such Participating Broker-Dealer who so requests (with
respect to any such Registration Statement) and to their respective counsel and each managing
underwriter, if any, at the sole expense of the Company and the Guarantors, one conformed copy of
the Registration Statement or Registration Statements and each post-effective amendment thereto,
including financial statements and schedules, and, if requested (unless filed on Edgar), all
documents incorporated or deemed to be incorporated therein by reference and all exhibits.
(g) 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, deliver to each
selling Holder of Registrable Securities (with respect to a Registration Statement filed pursuant
to Section 3 hereof), or each such Participating Broker-Dealer (with respect to any such
Registration Statement), as the case may be, their respective counsel, and the underwriters, if
any, at the sole expense of the Company and the Guarantors, as many copies of the Prospectus or
Prospectuses (including each form of preliminary prospectus) and each amendment or supplement
thereto and (unless filed on Edgar) any documents incorporated by reference therein as such Persons
may reasonably request; and, subject to the last paragraph of this Section 5, the Company
and the Guarantors hereby consent to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders of Registrable Securities or each such Participating
Broker-Dealer, as the case may be, and the underwriters or agents, if any, and dealers, if any, in
connection with the offering and sale of the Registrable Securities covered by, or the sale by
Participating Broker-Dealers of the Exchange Notes pursuant to, such Prospectus and any amendment
or supplement thereto.
(h) Prior to any public offering of Registrable Securities or any delivery of a
Prospectus contained in the Exchange Offer Registration Statement by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, use their reasonable
best efforts to register or qualify, and to cooperate with the selling Holders of Registrable
Securities or each such Participating Broker-Dealer, as the case may be, the managing underwriter
or underwriters, if any, and their respective counsel in connection with the registration or
qualification (or exemption from such registration or qualification) of such Registrable Securities
for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United
States as any selling Holder, Participating Broker-Dealer, or the managing underwriter or
underwriters reasonably request in writing; provided,
12
however, that where Exchange Notes
held by Participating Broker-Dealers or Registrable Securities are offered other than through an underwritten offering,
the Company and the Guarantors agree to cause their counsel to perform Blue Sky investigations and
file registrations and qualifications required to be filed pursuant to this Section 5(h),
keep each such registration or qualification (or exemption therefrom) effective during the period
such Registration Statement is required to be kept effective and do any and all other acts or
things necessary or advisable to enable the disposition in such jurisdictions of the Exchange Notes
held by Participating Broker-Dealers or the Registrable Securities covered by the applicable
Registration Statement; provided, however, that the Company and Guarantors shall not be
required to (A) qualify generally to do business in any jurisdiction where the Company or any
Guarantor is not then so qualified, (B) take any action that would subject them to general service
of process in any such jurisdiction where it is not then so subject or (C) subject themselves to
taxation in excess of a nominal dollar amount in any such jurisdiction where the Company or any
Guarantor is not then so subject.
(i) If a Shelf Registration is filed pursuant to Section 3 hereof, cooperate
with the selling Holders of Registrable Securities and the managing underwriter or underwriters, if
any, to facilitate the timely preparation and delivery of certificates representing Registrable
Securities to be sold, which certificates shall not bear any restrictive legends and shall be in a
form eligible for deposit with The Depository Trust Company; and enable such Registrable Securities
to be in such denominations (subject to applicable requirements contained in the Indenture) and
registered in such names as the managing underwriter or underwriters, if any, or Holders may
request.
(j) Subject to the proviso in Section 5(h), use their reasonable best efforts
to cause the Registrable Securities covered by the Registration Statement to be registered with or
approved by such other U.S. governmental agencies or authorities as may be necessary to enable the
seller or sellers thereof or the underwriter or underwriters, if any, to consummate the disposition
of such Registrable Securities, except as may be required solely as a consequence of the nature of
such selling Holders business, in which case the Company and the Guarantors will cooperate in all
respects with the filing of such Registration Statement and the granting of such approvals.
(k) 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, upon the occurrence of
any event contemplated by Section 5(c)(v) hereof, as promptly as practicable prepare and
(subject to Section 5(a) hereof) file with the SEC, at the sole expense of the Company and
the Guarantors, a supplement or post-effective amendment to the Registration Statement or a
supplement to the related Prospectus or any document incorporated therein by reference, or file any
other required document so that, as thereafter delivered to the purchasers of the Registrable
Securities being sold thereunder (with respect to a Registration Statement filed pursuant to
Section 3 hereof) or to the purchasers of the Exchange Notes to whom such Prospectus will
be delivered by a Participating Broker-Dealer (with respect to any such Registration Statement),
any such Prospectus will not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading.
13
(l) Prior to the effective date of the first Registration Statement relating to the
Registrable Securities, (i) provide the Trustee with certificates for the Registrable Securities in
a form eligible for deposit with The Depository Trust Company and (ii) provide a CUSIP number for
the Registrable Securities.
(m) In connection with an underwritten offering of Registrable Securities pursuant to a
Shelf Registration, enter into an underwriting agreement as is customary in underwritten offerings
of debt securities similar to the Notes (including, without limitation, a customary condition to
the obligations of the underwriters that the underwriters shall have received cold comfort
letters and updates thereof in form, scope and substance reasonably satisfactory to the managing
underwriter or underwriters from the independent certified public accountants of the Company,
Parent and the other Guarantors (and, if necessary, any other independent certified public
accountants of the Company, Parent or any of the other Guarantors, or of any business acquired by
the Company, Parent or any of the other Guarantors for which financial statements and financial
data are, or are required to be, included or incorporated by reference in the Registration
Statement), addressed to each of the underwriters, such letters to be in customary form and
covering matters of the type customarily covered in cold comfort letters in connection with
underwritten offerings of debt securities similar to the Notes), and take all such other actions as
are reasonably requested by the managing underwriter or underwriters in order to expedite or
facilitate the registration or the disposition of such Registrable Securities and, in such
connection, (i) make such representations and warranties to, and covenants with, the underwriters
with respect to the business of the Company and the Guarantors (including any acquired business,
properties or entity, if applicable), and the Registration Statement, Prospectus and documents,
if any, incorporated or deemed to be incorporated by reference therein, in each case, as are
customarily made by Company and the Guarantors to underwriters in underwritten offerings of debt
securities similar to the Notes, and confirm the same in writing if and when requested; (ii) obtain
the written opinions of counsel to the Company and the Guarantors, and written updates thereof in
form, scope and substance reasonably satisfactory to the managing underwriter or underwriters,
addressed to the underwriters covering the matters customarily covered in opinions reasonably
requested in underwritten offerings; and (iii) if an underwriting agreement is entered into, the
same shall contain indemnification provisions and procedures no less favorable to the sellers and
underwriters, if any, than those set forth in Section 7 hereof (or such other provisions
and procedures reasonably acceptable to Holders of a majority in aggregate principal amount of
Registrable Securities covered by such Registration Statement and the managing underwriter or
underwriters or agents, if any). The above shall be done at closing under such underwriting
agreement or as and to the extent required thereunder.
14
(n) 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, make
available for inspection by any Initial Purchasers, any selling Holder of such Registrable
Securities being sold (with respect to a Registration Statement filed pursuant to Section 3 hereof), or each such Participating Broker-Dealer, as the case may be, any underwriter
participating in any such disposition of Registrable Securities, if any, and any attorney,
accountant or other agent retained by any such selling Holder or each such Participating
Broker-Dealer (with respect to any such Registration Statement), as the case may be, or underwriter
(any such Initial Purchaser, Holders, Participating Broker-Dealers, underwriters, attorneys,
accountants or agents, collectively, the Inspectors), upon written request, at the
offices where normally kept, during business hours, all pertinent financial and other records,
pertinent corporate documents and instruments of Parent and subsidiaries of Parent (collectively,
the Records), as shall be reasonably necessary to enable them to exercise any applicable
due diligence responsibilities, and cause the officers, directors and employees of Parent and any
of its subsidiaries to supply all information (Information) reasonably requested by any
such Inspector in connection with such due diligence responsibilities. Each Inspector shall agree
in writing that it will keep the Records and Information confidential, to use the Information only
for due diligence purposes, to abstain from using the Information as the basis for any market
transactions in securities of Parent, the Company or any of their subsidiaries and that it will not
disclose any of the Records or Information that the Company and the Guarantors determine, in good
faith, to be confidential and notifies the Inspectors in writing are confidential unless (i) the
disclosure of such Records or Information is necessary to avoid or correct a misstatement or
omission in such Registration Statement or Prospectus, (ii) the release of such Records or
Information is ordered pursuant to a subpoena or other order from a court of competent
jurisdiction, (iii) disclosure of such Records or Information is necessary or advisable, in the
opinion of counsel for any Inspector, in connection with any action, claim, suit or proceeding,
directly or indirectly, involving or potentially involving such Inspector and arising out of, based
upon, relating to, or involving this Agreement or the Purchase Agreement, or any transactions
contemplated hereby or thereby or arising hereunder or thereunder, or (iv) the information in such
Records or Information has been made generally available to the public other than by an Inspector
or an affiliate (as defined in Rule 405), representative or agent thereof; provided,
however, that prior notice shall be provided as soon as practicable to the Company and the
Guarantors of the potential disclosure of any information by such Inspector pursuant to clauses
(i), (ii) or (iii) of this sentence to permit the Company and the Guarantors to obtain a protective
order (or waive the provisions of this paragraph (o)) and that such Inspector shall take such
actions as are reasonably necessary to protect the confidentiality of such information (if
practicable) to the extent-such action is otherwise not inconsistent with, an impairment of or in
derogation of the rights and interests of the Holder or any Inspector.
(o) Provide an indenture trustee for the Registrable Securities or the Exchange Notes,
as the case may be, and cause the Indenture or the trust indenture provided for in Section
2(a) hereof, as the case may be, to be qualified under the TIA not later than the effective
date of the first Registration Statement relating to the Registrable Securities; and in connection
therewith, cooperate with the trustee under any such indenture and the Holders of the Registrable
Securities, to effect such changes (if any) to such indenture as may be required for such indenture
to be so qualified in accordance with the terms of the
TIA; and execute, and use their commercially reasonable best efforts to cause such trustee
to execute, all documents as may be required to effect such changes, and all other forms and
documents required to be filed with the SEC to enable such indenture to be so qualified in a
timely manner.
15
(p) Comply in all material respects with all applicable rules and regulations of
the SEC and make generally available to their securityholders with regard to any applicable
Registration Statement, a consolidated earning statement satisfying the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule
promulgated under the Securities Act) no later than 45 days after the end of any fiscal
quarter (or 90 days after the end of any 12-month period if such period is a fiscal year)
(i) commencing at the end of any fiscal quarter in which Registrable Securities are sold to
underwriters in a firm commitment or best efforts underwritten offering and (ii) if not sold
to underwriters in such an offering, commencing on the first day of the first fiscal quarter
of the Company, after the effective date of a Registration Statement, which statements shall
cover said 12-month periods; provided that this requirement shall be deemed
satisfied by the Company and the Guarantors complying with Section 4.03 of the Indenture.
(q) If the Exchange Offer is to be consummated, upon delivery of the Registrable
Securities by Holders to the Company (or to such other Person as directed by the Company),
in exchange for the Exchange Notes, as the case may be, the Company shall mark, or cause to
be marked, on such Registrable Securities that such Registrable Securities are being
cancelled in exchange for the Exchange Notes, as the case may be; in no event shall such
Registrable Securities be marked as paid or otherwise satisfied.
(r) Use reasonable efforts to cooperate with each seller of Registrable
Securities covered by any Registration Statement and each underwriter, if any, participating
in the disposition of such Registrable Securities and their respective counsel in connection
with any filings required to be made with the Financial Industry Regulatory Authority, Inc.
(the FINRA).
(s) Use its respective reasonable best efforts to take all other steps reasonably
necessary to effect the registration of the Exchange Notes and/or Registrable Securities
covered by a Registration Statement contemplated hereby.
The Company may require each seller of Registrable Securities as to which any registration is
being effected to furnish to the Company such information regarding such seller and the
distribution of such Registrable Securities as the Company may, from time to time, reasonably
request. Furthermore, a Holder that sells Registrable Securities pursuant to a Shelf Registration
Statement will be required to be named as a selling security holder in the related Prospectus and
to deliver such Prospectus to purchasers of its Registrable Securities. The Company and the
Guarantors may exclude from such registration the Registrable Securities of any seller so long as
such seller fails to furnish such information within a reasonable time after receiving such
request. Each seller as to which any Shelf Registration is being effected 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 seller not materially misleading.
16
If any such Registration Statement refers to any Holder by name or otherwise as the holder of
any securities of the Company, then such Holder shall have the right to require (i) the insertion
therein of language, in form and substance reasonably satisfactory to such Holder, to the effect
that the holding by such Holder of such securities is not to be construed as a recommendation by
such Holder of the investment quality of the securities covered thereby and that such holding does
not imply that such Holder will assist in meeting any future financial requirements of the Company
and the Guarantors, or (ii) in the event that such reference to such Holder by name or otherwise is
not required by the Securities Act or any similar federal statute then in force, the deletion of
the reference to such Holder in any amendment or supplement to the Registration Statement filed or
prepared subsequent to the time that such reference ceases to be required.
Each Holder of Registrable Securities and each Participating Broker-Dealer agrees by its
acquisition of such Registrable Securities or Exchange Notes to be sold by such Participating
Broker-Dealer, as the case may be, that, upon actual receipt of any notice from the Company or a
Guarantor of the happening of any event of the kind described in Section 5(c)(ii), 5(c)(iv)
or 5(c)(v) hereof, such Holder will forthwith discontinue disposition of such Registrable
Securities covered by such Registration Statement or Prospectus or Exchange Notes to be sold by
such Holder or Participating Broker-Dealer, as the case may be, until such Holders or
Participating Broker-Dealers receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 5(k) hereof, or until it is advised in writing (the
Advice) by the Company or a Guarantor that the use of the applicable Prospectus may be
resumed, and has received copies of any amendments or supplements thereto. In the event that the
Company or a Guarantor shall give any such notice, each of the Applicable Period and the
Effectiveness Period shall be extended by the number of days during such periods from and including
the date of the giving of such notice to and including the date when each seller of Registrable
Securities covered by such Registration Statement or Exchange Notes to be sold by such
Participating Broker-Dealer, as the case may be, shall have received (x) the copies of the
supplemented or amended Prospectus contemplated by Section 5(k) hereof or (y) the Advice.
6. Registration Expenses.
All fees and expenses incident to the performance of or compliance with this Agreement by the
Company and the Guarantors of their obligations under Sections 2, 3, 4,
5 and 8 shall be borne by the Company and the Guarantors, whether or not the Exchange
Offer Registration Statement or any Shelf Registration Statement is filed or becomes effective or
the Exchange Offer is consummated, including, without limitation, (i) all registration and filing
fees (including, without limitation, (A) fees with respect to filings required to be made with
FINRA in connection with an underwritten offering and (B) fees and expenses of compliance with
state securities or Blue Sky laws (including, without limitation, reasonable fees and disbursements
of counsel in connection with Blue Sky qualifications of the Registrable Securities or Exchange
Notes and determination of the eligibility of the Registrable Securities or Exchange Notes for
investment under the laws of such jurisdictions in the United States (x) where the holders of
Registrable Securities are located, in the case of the Exchange Notes, or (y) as provided in
Section 5(h) hereof, in the case of Registrable Securities or Exchange Notes to be sold by
a Participating Broker-Dealer during the Applicable Period)), (ii) printing expenses, including,
without
17
limitation, printing prospectuses if the printing of prospectuses is requested by the managing underwriter or underwriters, if any, by the Holders of a majority in aggregate principal
amount of the Registrable Securities included in any Registration Statement or in respect of
Registrable Securities or Exchange Notes to be sold by any Participating Broker-Dealer during the
Applicable Period, as the case may be, (iii) fees and expenses of the Trustee, any exchange agent
and their counsel, (iv) fees and disbursements of counsel for the Company and the Guarantors and,
in the case of a Shelf Registration, reasonable fees and disbursements of one special counsel for
all of the sellers of Registrable Securities selected by the Holder of a majority in aggregate
principal amount of Registrable Securities covered by such Shelf Registration (which counsel shall
be reasonably satisfactory to the Company and the Guarantors) exclusive of any counsel retained
pursuant to Section 7 hereof, (v) fees and disbursements of all independent certified public
accountants referred to in Section 5(m) hereof (including, without limitation, the expenses of any
cold comfort letters required by or incident to such performance), (vi) rating agency fees, if
any, and any fees associated with making the Registrable Securities or Exchange Notes eligible for
trading through The Depository Trust Company, (vii) fees and expenses of all other Persons retained
by the Issuer and the Guarantors, and (viii) any fees and expenses incurred in connection with the
listing of the Notes to be registered on any securities exchange, and the obtaining of a rating of
the Notes, in each case, if applicable.
7. Indemnification and Contribution.
(a) The Company and each Guarantor, jointly and severally, agrees, to indemnify and hold
harmless each Holder of Registrable Securities, and each Participating Broker-Dealer selling
Exchange Notes during the Applicable Period, and each Person, if any, who controls such Person or
its affiliates within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (each,
a Participant) and each Initial Purchaser, to the fullest extent lawful, against any losses,
claims, damages or liabilities, joint or several, to which any Participant may become subject under
the Securities Act, the Exchange Act or otherwise, insofar as any such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon:
(1) any untrue statement or alleged untrue statement of any material fact contained in
any Registration Statement (or any amendment thereto), or Prospectus (as amended or
supplemented if the Company or the Guarantors shall have furnished any amendments or
supplements thereto) or any preliminary prospectus; or
(2) the omission or alleged omission to state, in any Registration Statement (or any
amendment thereto), or Prospectus (as amended or supplemented if the Company or the
Guarantors shall have furnished any amendments or supplements thereto) or any preliminary
prospectus or any other document or any amendment or supplement thereto, a material fact
required to be stated therein or necessary to make the statements therein not misleading,
18
except, in each case, insofar as such losses, claims, damages or liabilities are arising
out of or based upon any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with any information relating to any
Initial Purchaser or any Holder furnished to the Company or the Guarantors in writing by or
through the Initial Purchasers or any selling Holder expressly for use therein; and agree (subject to the limitations set forth in the proviso to this sentence) to reimburse, as
incurred, the Participant for any reasonable legal or other out-of-pocket expenses incurred by the
Participant in connection with investigating, defending against or appearing as a third-party
witness in connection with any such loss, claim, damage, liability or action; provided,
however, the Company and the Guarantors will not be liable in any such case to the extent that
any such loss, claim, damage, or liability arises out of or is based upon any untrue statement or
alleged untrue statement or omission or alleged omission made in any Registration Statement (or any
amendment thereto), or Prospectus (as amended or supplemented if the Company or the Guarantors
shall have furnished any amendments or supplements thereto) or any preliminary prospectus or any
amendment or supplement thereto in reliance upon and in conformity with written information
relating to any Participant furnished to the Company by such Participant or its agent expressly for
use therein. The indemnity provided for in this Section 7 will be in addition to any
liability that the Company and the Guarantors may otherwise have to Participants. Neither the
Company nor any of the Guarantors shall be liable under this Section 7 to any Participant
regarding any settlement or compromise or consent to the entry of any judgment with respect to any
pending or threatened claim, action, suit or proceeding in respect of which indemnification or
contribution may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise or consent is
consented to by the Company or the Guarantors, which consent shall not be unreasonably withheld.
(b) Each Participant, severally and not jointly, agrees to indemnify and hold harmless the
Company and the Guarantors, their directors (or equivalent), their officers who sign any
Registration Statement, the Initial Purchasers, and each person, if any, who controls the Company,
any Guarantor or any Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of
the Exchange Act against any losses, claims, damages or liabilities to which the Company or any
Guarantor or any such director, officer or controlling person may become subject under the Act, the
Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue
statement of any material fact contained in any Registration Statement, Prospectus, any amendment
or supplement thereto, or any preliminary prospectus, or (ii) the omission or the alleged omission
to state therein a material fact necessary to make the statements therein not misleading, in each
case to the extent, but only to the extent, that such untrue statement or alleged untrue statement
or omission or alleged omission was made in reliance upon and in conformity with written
information concerning such Participant, furnished to the Company by or on behalf of such
Participant, specifically for use therein; and subject to the limitation set forth immediately
preceding this clause, will reimburse, as incurred, any reasonable legal or other out-of-pocket
expenses incurred by the Company or the Guarantors or any such director, officer or controlling
person in connection with investigating or defending against or appearing as a third party witness
in connection with any such loss, claim, damage, liability or action in respect thereof. The
indemnity provided for in this Section 7 will be in addition to any liability that the
Participants may otherwise have to the indemnified parties.
19
(c) Promptly after receipt by an indemnified party under this Section 7 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against an indemnifying party under this Section 7, notify the indemnifying party in
writing of the commencement thereof; provided that the failure to so notify the
indemnifying party will not relieve it from any liability which it may have to any indemnified
party under this Section 7 except to the extent that it has been materially prejudiced by
such failure (through the forfeiture of substantive rights and defenses) and shall not relieve the
indemnifying party from any liability that the indemnifying party may have to an indemnified party
other than under this Section 7. In case any such action is brought against any indemnified
party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, the
indemnifying party will be entitled to participate in and, to the extent that it shall elect,
jointly with all other indemnifying parties similarly notified, by written notice delivered to the
indemnified party promptly after receiving the aforesaid notice from such indemnified party, to
assume the defense thereof with counsel reasonably satisfactory to such indemnified party;
provided, however, if the defendants in any such action include both the indemnified party
and the indemnifying party and the indemnified party shall have reasonably concluded that a
conflict may arise between the positions of the indemnifying party and the indemnified party in
conducting the defense of any such action or that there may be legal defenses available to it
and/or other indemnified parties which are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to select separate
counsel to assume such legal defenses and to otherwise participate in the defense of such action on
behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to
such indemnified party of such indemnifying partys election so to assume the defense of such
action and approval by the indemnified party of counsel, the indemnifying party will not be liable
to such indemnified party under this Section 7 for any legal or other expenses subsequently
incurred by such indemnified party in connection with the defense thereof unless (i) the
indemnified party shall have employed separate counsel in accordance with the proviso to the
immediately preceding sentence (it being understood, however, that the indemnifying party shall not
be liable for the expenses of more than one separate counsel (together with local counsel (in each
jurisdiction)), which shall be selected by Participants who sold a majority in interest of the
Registrable Securities and/or Exchange Notes, as the case may be, subject to such litigation sold
by all such Participants in the case of paragraph (a) of this Section 7 or the Company and
the Guarantors in the case of paragraph (b) of this Section 7), representing the indemnified
parties who are parties to such action) or (ii) the indemnifying party shall not have employed
counsel satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after notice of commencement of the action, in each of which cases the fees and
expenses of counsel shall be at the expense of the indemnifying party. It is understood and agreed
that the indemnifying person shall not, in connection with any proceeding or separate but related
or substantially similar proceedings in the same jurisdiction arising out of the same general
allegations or circumstances, be liable for the reasonable fees and expenses of more than one
separate firm (in addition to any local counsel) representing the indemnified parties under
paragraph (a) or paragraph (b) of this Section 7, as the case may be, who are parties to
such action or actions. Any such separate firm for any Participants shall be designated in writing
by Participants who sold a majority in interest of the Registrable Securities and Exchange Notes
sold by all such Participants in the case of paragraph (a) of this Section 7 or the Company and the
Guarantors in the case of paragraph (b) of this Section 7. In the event that any
Participants are indemnified persons collectively entitled, in connection with a proceeding or
separate but related or substantially similar proceedings in a single jurisdiction, to the payment
of fees and expenses of a single separate firm under this Section 7(c), and any such
Participants cannot agree to a mutually acceptable separate firm to act as counsel thereto, then
such separate firm for all
such indemnified parties shall be designated in writing by Participants who sold a majority in
interest of the Registrable Securities and Exchange Notes sold by all such Participants.
20
(d) The indemnifying party under this Section 7 shall not be liable for any settlement
of any proceeding effected without its written consent, which will not be unreasonably withheld,
but if settled with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage,
liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing
sentence, if at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel as contemplated by this
Section 7, the indemnifying party agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is entered into more than 30
days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying
party shall not have reimbursed the indemnified party in accordance with such request prior to the
date of such settlement. No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement, compromise or consent to the entry of judgment in any
pending or threatened action, suit or proceeding in respect of which any indemnified party is or
could have been a party and indemnity was or could have been sought hereunder by such indemnified
party, unless such settlement, compromise or consent (i) includes an unconditional release of such
indemnified party from all liability on claims that are the subject matter of such action, suit or
proceeding and (ii) does not include any statements as to or any findings of fault, culpability or
failure to act by or on behalf of any indemnified party.
(e) In circumstances in which the indemnity agreement provided for in the preceding paragraphs
of this Section 7 is unavailable to, or insufficient to hold harmless, an indemnified party
in respect of any losses, claims, damages or liabilities (or actions in respect thereof) (other
than by virtue of the failure of an indemnified party to notify the indemnifying party of its right
to indemnification pursuant to paragraph (a) or (b) of this Section 7, where such failure
materially prejudices the indemnifying party (through the forfeiture of substantial rights or
defenses)), each indemnifying party, in order to provide for just and equitable contribution, shall
contribute to the amount paid or payable by such indemnified party as a result of such losses,
claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate
to reflect (i) the relative benefits received by the indemnifying party or parties on the one hand
and the indemnified party on the other from the offering of the Notes or (ii) if the allocation
provided by the foregoing clause (i) is not permitted by applicable law, not only such relative
benefits but also the relative fault of the indemnifying party or parties on the one hand and the
indemnified party on the other in connection with the statements or omissions or alleged statements
or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect
thereof). The relative benefits received by the Company and the Guarantors on the one hand and such
Participant on the other shall be deemed to be in the same proportion that the total net proceeds
from the offering (before deducting expenses) of the Notes received by the Company bear to the
total discounts and commissions received by such Participant in connection with the sale of the
Notes (or if such Participant did not receive discounts or commissions, the value of the Notes).
The relative fault of the parties shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company and the Guarantors on the one
hand, or the Participants on the
21
other, the parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission
or alleged statement or omission, and any other equitable considerations appropriate in the
circumstances. The parties agree that it would not be equitable if the amount of such contribution
were determined by pro rata or per capita allocation or by any other method of allocation that does
not take into account the equitable considerations referred to in the first sentence of this
paragraph (e). Notwithstanding any other provision of this paragraph (e), no Participant shall be
obligated to make contributions hereunder that in the aggregate exceed the total discounts,
commissions and other compensation or net proceeds on the sale of Notes received by such
Participant in connection with the sale of the Notes, less the aggregate amount of any damages that
such Participant has otherwise been required to pay by reason of the untrue or alleged untrue
statements or the omissions or alleged omissions to state a material fact, and no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes
of this paragraph (d), each person, if any, who controls a Participant within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act shall have the same rights to contribution
as the Participants, and each director of the Company or any Guarantor, each officer of the Company
or any Guarantor and each person, if any, who controls the Company or such Guarantor within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act, shall have the same rights to
contribution as the Company or such Guarantor.
8. Rule 144A.
The Company and the Guarantors covenant and agree that, for so long as any Registrable
Securities remain outstanding, they will use reasonable best efforts to file the reports required
to be filed by it under the Securities Act and the Exchange Act and the rules and regulations
adopted by the SEC thereunder in a timely manner in accordance with the requirements of the
Securities Act and the Exchange Act and, if at any time the Company or any Guarantor is not
required to file such reports, the Company and the Guarantors will, upon the request of any Holder
or beneficial owner of Registrable Securities, make available such information necessary to permit
sales pursuant to Rule 144A.
9. Underwritten Registrations.
The Company and the Guarantors shall not be required to assist in an underwritten offering
unless requested by the Holders of a majority in aggregate principal amount of the Registrable
Securities. If any of the Registrable Securities covered by any Shelf Registration are to be sold
in an underwritten offering, the investment banker or investment bankers and manager or managers
that will manage the offering will be selected by the Holders of a majority in aggregate principal
amount of such Registrable Securities included in such offering and shall be reasonably acceptable
to the Company and the Guarantors.
No Holder of Registrable Securities may participate in any underwritten registration hereunder
unless such Holder (a) agrees to sell such Holders Registrable Securities on the basis provided in
any underwriting arrangements approved by the Persons entitled hereunder to approve such
arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such underwriting
arrangements.
22
10. Miscellaneous.
(a) No Inconsistent Agreements. The Company and the Guarantors have not as of the date
hereof, and the Company and the Guarantors shall not, after the date of this Agreement, enter into
any agreement with respect to any of their securities that is inconsistent with the rights granted
to the Holders of Registrable Securities in this Agreement or otherwise conflicts with the
provisions hereof. The rights granted to the Holders hereunder do not in any way conflict with and
are not inconsistent with the rights granted to the holders of the Companys and Guarantors other
issued and outstanding securities under any agreement in effect on the date hereof.
(b) Adjustments Affecting Registrable Securities. The Company and the Guarantors
shall not, directly or indirectly, take any action with respect to the Registrable Securities
as a class that would adversely affect the ability of the Holders of Registrable Securities to
include such Registrable Securities in a registration undertaken pursuant to this Agreement.
(c) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given,
otherwise than with the prior written consent of (I) the Company and the Guarantors, and (II) (A)
the Holders of not less than a majority in aggregate principal amount of the then outstanding
Registrable Securities and (B) in circumstances that would adversely affect the Participating
Broker-Dealers, the Participating Broker-Dealers holding not less than a majority in aggregate
principal amount of the Exchange Notes held by all Participating Broker-Dealers; provided,
however, that Section 7 and this Section 10(c) may not be amended, modified or
supplemented without the prior written consent of each Holder and each Participating Broker-Dealer
(including any person who was a Holder or Participating Broker-Dealer of Registrable Securities or
Exchange Notes, as the case may be, disposed of pursuant to any Registration Statement) adversely
affected by any such amendment, modification or supplement. Notwithstanding the foregoing, a waiver
or consent to depart from the provisions hereof with respect to a matter that relates exclusively
to the rights of Holders of Registrable Securities whose securities are being sold or tendered
pursuant to a Registration Statement and that does not directly or indirectly affect, impair, limit
or compromise the rights of other Holders of Registrable Securities may be given by Holders of at
least a majority in aggregate principal amount of the Registrable Securities being sold or tendered
pursuant to such Registration Statement.
23
(d) Notices. All notices and other communications (including, without limitation, any
notices or other communications to the Trustee) provided for or permitted hereunder shall be made
in writing by hand-delivery, registered first-class mail, next-day air courier or facsimile:
(1) if to a Holder of the Registrable Securities, or any Participating
Broker-Dealer, at the most current address of such Holder, or Participating Broker-Dealer,
as the case may be, set forth on the records of the registrar under the Indenture, with a
copy in like manner to the Initial Purchasers as follows:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
One Bryant Park
New York, New York 10036
Facsimile: (212) 901-7897
Attention: Legal Department
One Bryant Park
New York, New York 10036
Facsimile: (212) 901-7897
Attention: Legal Department
Morgan Stanley & Co. Incorporated
1585 Broadway
New York, New York 10036
Attention: Whitner H. Marshall
cc: Legal Department
1585 Broadway
New York, New York 10036
Attention: Whitner H. Marshall
cc: Legal Department
Wells Fargo Securities, LLC
One Wachovia Center
301 South College Street
Charlotte, North Carolina 28288-0737
Attention: Suzanne Alwan
One Wachovia Center
301 South College Street
Charlotte, North Carolina 28288-0737
Attention: Suzanne Alwan
with a copy to:
Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, New York 10017
Facsimile: (212) 455-2502
Attention: Lesley Peng
425 Lexington Avenue
New York, New York 10017
Facsimile: (212) 455-2502
Attention: Lesley Peng
(2) if to the Initial Purchasers, at the address specified in Section 10(d)(i);
(3) if to the Company or the Guarantors, at the address as follows:
Swift Services Holdings, Inc.
c/o Swift Transportation Company
2200 S. 75th Ave.
Phoenix, AZ 85403
Facsimile: (623) 907-7464
Attention: James Fry
c/o Swift Transportation Company
2200 S. 75th Ave.
Phoenix, AZ 85403
Facsimile: (623) 907-7464
Attention: James Fry
with copies to:
Scudder Law Firm, P.C., L.L.O.
411 South 13th St., 2nd Floor
Lincoln, NE 68508
Facsimile: (402) 435-3223
Attention: Earl Scudder
411 South 13th St., 2nd Floor
Lincoln, NE 68508
Facsimile: (402) 435-3223
Attention: Earl Scudder
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036
Facsimile: (917) 777-4112
Attention: Richard Aftanas
Four Times Square
New York, NY 10036
Facsimile: (917) 777-4112
Attention: Richard Aftanas
24
All such notices and communications shall be deemed to have been duly given when delivered by
hand, if personally delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; one Business Day after being timely delivered to a next-day air courier; and
upon written confirmation, if sent by facsimile.
Copies of all such notices, demands or other communications shall be concurrently
delivered by the Person giving the same to the Trustee at the address and in the manner
specified in such Indenture.
(e) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties hereto, the Holders and the
Participating Broker-Dealers; provided, however, that nothing herein shall be deemed to permit any
assignment, transfer or other disposition of Registrable Securities in violation of the terms of
the Purchase Agreement or the Indenture.
(f) Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement.
(g) Headings. The headings in this Agreement are for convenience of reference
only, are not a part of this Agreement and shall not limit or otherwise affect the meaning
hereof.
(h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED
ENTIRELY WITHIN THE STATE OF NEW YORK. EACH OF THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY
IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.
(i) Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction to be invalid, illegal, void, unenforceable
or against public policy, the remainder of the terms, provisions, covenants and restrictions set
forth herein shall remain in full force and effect and shall in no way be affected, impaired or
invalidated, and the parties hereto shall use their best efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions, covenants and restrictions
without including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.
25
(j) Notes Held by the Company or its Affiliates. Whenever the consent or approval of
Holders of a specified percentage of Registrable Securities is required hereunder, Registrable
Securities held by the Company or its affiliates (as such term is defined in Rule 405
under the Securities Act) shall not be counted in determining whether such consent or approval was
given by the Holders of such required percentage.
(k) Third-Party Beneficiaries. Holders of Registrable Securities and
Participating Broker-Dealers are intended third-party beneficiaries of this Agreement, and this
Agreement may be enforced by such Persons.
(l) Entire Agreement. This Agreement, together with the Purchase Agreement and
the Indenture, is intended by the parties as a final and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein and therein
and any and all prior oral or written agreements, representations, or warranties, contracts,
understandings, correspondence, conversations and memoranda between the Holders on the one hand and
the Company and the Guarantors on the other, or between or among any agents, representatives,
parents, subsidiaries, affiliates, predecessors in interest or successors in interest with respect
to the subject matter hereof and thereof are merged herein and replaced hereby.
26
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.
SWIFT SERVICES HOLDINGS, INC. |
||||
By: | /s/ Jerry Moyes | |||
Jerry Moyes | ||||
Chief Executive Officer | ||||
SWIFT TRANSPORTATION COMPANY COMMON MARKET EQUIPMENT CO., LLC ESTRELLA DISTRIBUTING LLC INTERSTATE EQUIPMENT LEASING, LLC M.S. CARRIERS, LLC SPARKS FINANCE LLC SWIFT INTERMODAL, LLC SWIFT LEASING CO., LLC SWIFT TRANSPORTATION CO., LLC SWIFT TRANSPORTATION CO. OF ARIZONA, LLC SWIFT TRANSPORTATION CO. OF VIRGINIA, LLC SWIFT TRANSPORTATION SERVICES, LLC, as Guarantors |
||||
By: | /s/ Jerry Moyes | |||
Jerry Moyes | ||||
Chief Executive Officer |
Signature Page to Registration Rights Agreement
The foregoing Agreement is hereby
confirmed and accepted as of the date first above written. |
||||
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED | ||||
By:
|
/s/ [ILLEGIBLE]
|
|||
Title: | ||||
MORGAN STANLEY & CO. INCORPORATED | ||||
By:
|
/s/ Kenneth G. Pott | |||
Name: Kenneth G. Pott | ||||
Title: Managing Director | ||||
WELLS FARGO SECURITIES, LLC | ||||
By:
|
/s/ Eric H. Schless | |||
Name: Eric H. Schless | ||||
Title: Managing Director | ||||
Acting for themselves and the other several
Initial Purchasers listed in Schedule A to the Purchase Agreement |
Signature Page to Registration Rights Agreement
SCHEDULE A
Initial Guarantors
Swift Transportation Company
Common Market Equipment Co., LLC
Estrella Distributing LLC
Interstate Equipment Leasing, LLC
M.S. Carriers, LLC
Sparks Finance LLC
Swift Intermodal, LLC
Swift Leasing Co., LLC
Swift Transportation Co., LLC
Swift Transportation Co. of Arizona, LLC
Swift Transportation Co. of Virginia, LLC
Swift Transportation Services, LLC
Common Market Equipment Co., LLC
Estrella Distributing LLC
Interstate Equipment Leasing, LLC
M.S. Carriers, LLC
Sparks Finance LLC
Swift Intermodal, LLC
Swift Leasing Co., LLC
Swift Transportation Co., LLC
Swift Transportation Co. of Arizona, LLC
Swift Transportation Co. of Virginia, LLC
Swift Transportation Services, LLC
SCHEDULE B
Initial Purchasers
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Morgan Stanley & Co. Incorporated
Wells Fargo Securities, LLC
Citigroup Global Markets Inc.
Deutsche Bank Securities Inc.
UBS Securities, LLC
Morgan Stanley & Co. Incorporated
Wells Fargo Securities, LLC
Citigroup Global Markets Inc.
Deutsche Bank Securities Inc.
UBS Securities, LLC