REGISTRATION RIGHTS AGREEMENT by and among Psychiatric Solutions, Inc., the Guarantors from time to time party hereto and Banc of America Securities LLC Barclays Capital Inc. Citigroup Global Markets Inc. J.P. Morgan Securities Inc. RBC Capital...
Exhibit 4.4
by and among
Psychiatric Solutions, Inc.,
the Guarantors from time to time party hereto
and
Banc of America Securities LLC
Barclays Capital Inc.
Citigroup Global Markets Inc.
X.X. Xxxxxx Securities Inc.
RBC Capital Markets Corporation
Barclays Capital Inc.
Citigroup Global Markets Inc.
X.X. Xxxxxx Securities Inc.
RBC Capital Markets Corporation
Dated as of May 7, 2009
This Registration Rights Agreement (this “Agreement”) is made and entered into as of May 7,
2009, by and among Psychiatric Solutions, Inc., a Delaware corporation (the “Company”), the
Guarantors (as defined herein) and Banc of America Securities LLC, Barclays Capital Inc., Citigroup
Global Markets Inc., X.X. Xxxxxx Securities Inc. and RBC Capital Markets Corporation (collectively,
the “Initial Purchasers”), each of whom has severally agreed to purchase the respective amount of
the Company’s 73/4% Senior Subordinated Notes due 2015 (the “Notes”) as set forth in Schedule A to
the Purchase Agreement (as defined herein). The Notes will be fully and unconditionally guaranteed
(the “Guarantees”) by the Guarantors. The Notes and the Guarantees are herein collectively
referred to herein as the “Securities.”
This Agreement is made pursuant to the Purchase Agreement, dated May 4, 2009 (the “Purchase
Agreement”), among the Company, the Guarantors and the Initial Purchasers (i) for the benefit of
the Initial Purchasers and (ii) for the benefit of the holders from time to time of Transfer
Restricted Securities (as defined herein), including the Initial Purchasers. In order to induce
the Initial Purchasers to purchase the Securities, the Company and the Guarators have agreed to
provide the registration rights set forth in this Agreement. The execution and delivery of this
Agreement is a condition to the obligations of the Initial Purchasers set forth in Section 5(f) of
the Purchase Agreement.
The parties hereby agree as follows:
SECTION 1. Definitions. As used in this Agreement, the following capitalized terms shall have
the following meanings:
Additional Interest: As defined in Section 5 hereof.
Advice: As defined in Section 6(c) hereof.
Agreement: As defined in the preamble hereof.
Broker-Dealer: Any broker or dealer registered under the Exchange Act.
Business Day: Any day other than a Saturday, Sunday or U.S. federal holiday or a day on which
banking institutions or trust companies located in New York, New York are authorized or obligated
to be closed.
Closing Date: The date of this Agreement.
Commission: The Securities and Exchange Commission.
Consummate: A registered Exchange Offer shall be deemed “Consummated” for purposes of this
Agreement upon the occurrence of (i) the filing and effectiveness under the Securities Act of the
Exchange Offer Registration Statement relating to the Exchange Securities to be issued in the
Exchange Offer, (ii) the maintenance of such Registration Statement continuously effective and the
keeping of the Exchange Offer open for a period not less than the
minimum period required pursuant to Section 3(b) hereof, and (iii) the delivery by the Company to the
Registrar under the Indenture of Exchange Securities in the same aggregate principal amount as the
aggregate principal amount of Transfer Restricted Securities that were tendered by Holders thereof
pursuant to the Exchange Offer.
Exchange Act: The Securities Exchange Act of 1934, as amended.
Exchange Date: As defined in Section 3(a) hereto.
Exchange Offer: The registration by the Company under the Securities Act of the Exchange
Securities pursuant to a Registration Statement pursuant to which the Company offers the Holders of
all outstanding Transfer Restricted Securities the opportunity to exchange all such outstanding
Transfer Restricted Securities held by such Holders for Exchange Securities in an aggregate
principal amount equal to the aggregate principal amount of the Transfer Restricted Securities
tendered in such exchange offer by such Holders.
Exchange Offer Registration Statement: The Registration Statement relating to the Exchange
Offer, including the related Prospectus.
Exchange Securities: The 73/4% Senior Subordinated Notes due 2015, of the same series under the
Indenture as the Transfer Restricted Securities, to be issued to Holders in exchange for Transfer
Restricted Securities pursuant to this Agreement.
FINRA: Financial Industry Regulatory Authority, Inc.
Freely Tradable: Means, with respect to a Security, a Security that at any time of
determination (i) may be sold to the public in accordance with Rule 144 under the Securities Act
(“Rule 144”) by a person that is not an “affiliate” (as defined in Rule 144) of the Company where
no conditions of Rule 144 are then applicable, (ii) does not bear any restrictive legends relating
to the Securities Act and (iii) bears an unrestricted CUSIP number.
Guarantees: As defined in the preamble hereof.
Holders: As defined in Section 2(b) hereof.
Indemnified Holder: As defined in Section 8(a) hereof.
Indenture: The Indenture, dated as of May 7, 2009, by and among the Company, the Guarantors
and the Trustee, pursuant to which the Securities are to be issued, as such Indenture is amended or
supplemented from time to time in accordance with the terms thereof.
Initial Purchaser: As defined in the preamble hereto.
Initial Placement: The issuance and sale by the Company of the Securities to the Initial
Purchasers pursuant to the Purchase Agreement.
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Interest Payment Date: As defined in the Indenture and the Securities.
Initial Securities: The Securities issued and sold by the Company to the Initial Purchasers
pursuant to the Purchase Agreement on the Closing Date.
Person: An individual, partnership, corporation, limited liability company, unincorporated
organization, association, joint stock company, joint venture, trust, government or any agency or
political subdivision thereof or any other entity.
Prospectus: The prospectus included in a Registration Statement, as amended or supplemented
by any prospectus supplement and by all other amendments thereto, including post-effective
amendments, and all material incorporated by reference into such Prospectus.
Purchase Agreement: As defined in the preamble hereof.
Registration Default: As defined in Section 5 hereof.
Registration Statement: Any registration statement of the Company relating to (a) an offering
of Exchange Securities pursuant to an Exchange Offer or (b) the registration for resale of Transfer
Restricted Securities pursuant to the Shelf Registration Statement, which is filed pursuant to the
provisions of this Agreement, in each case, including the Prospectus included therein, all
amendments and supplements thereto (including post-effective amendments) and all exhibits and
material incorporated by reference therein.
Securities: As defined in the preamble hereto.
Securities Act: The Securities Act of 1933, as amended.
Shelf Filing Deadline: As defined in Section 4(a) hereof.
Shelf Registration Statement: As defined in Section 4(a) hereof.
Transfer Restricted Securities: The Securities; provided that the Securities shall cease to
be Transfer Restricted Securities on the earliest to occur of (i) the date on which a Registration
Statement with respect to such Securities has become effective under the Securities Act and such
Securities have been exchanged or disposed of pursuant to such Registration Statement, (ii) the
date on which such Securities cease to be outstanding or (iii) the date on which such Securities
are Freely Tradable.
Trustee: U.S. Bank National Association, as trustee.
Trust Indenture Act: The Trust Indenture Act of 1939, as amended.
Underwritten Registration or Underwritten Offering: A registration in which securities of the
Company are sold to an underwriter for reoffering to the public.
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SECTION 2. Securities Subject to this Agreement.
(a) Transfer Restricted Securities. The Securities entitled to the benefits of this Agreement
are the Transfer Restricted Securities.
(b) Holders of Transfer Restricted Securities. A Person is deemed to be a holder of Transfer
Restricted Securities (each, a “Holder”) whenever such Person owns Transfer Restricted Securities.
SECTION 3. Registered Exchange Offer.
(a) Unless the Exchange Offer shall not be permissible under applicable law or Commission
policy (after the procedures set forth in Section 6(a) hereof have been complied with), or there
are no Transfer Restricted Securities outstanding, each of the Company and the Guarantors shall (i)
use their reasonable best efforts to cause to be filed with the Commission a Registration Statement
under the Securities Act relating to the Exchange Securities and the Exchange Offer, (ii) use their
reasonable best efforts to cause such Registration Statement to become effective, (iii) in
connection with the foregoing, file (A) all pre-effective amendments to such Registration Statement
as may be necessary in order to cause such Registration Statement to become effective, (B) if
applicable, a post-effective amendment to such Registration Statement pursuant to Rule 430A under
the Securities Act and (C) cause all necessary filings in connection with the registration and
qualification of the Exchange Securities to be made under the state securities or blue sky laws of
such jurisdictions as are necessary to permit Consummation of the Exchange Offer, and (iv) upon the
effectiveness of such Registration Statement, promptly commence the Exchange Offer. Each of the
Company and the Guarantors shall use its reasonable best efforts to Consummate the Exchange Offer
not later than 366 days following the Closing Date (or if such 366th day is not a Business Day, the
next succeeding Business Day) (the “Exchange Date”); provided, however, that the Company shall not
be required to Consummate such Exchange Offer if all of the Securities are Freely Tradable on or
before the Exchange Date. The Exchange Offer, if required pursuant to this Section 3(a), shall be
on the appropriate form permitting registration of the Exchange Securities to be offered in
exchange for the Transfer Restricted Securities and to permit resales of Transfer Restricted
Securities held by Broker-Dealers as contemplated by Section 3(c) hereof.
(b) If an Exchange Offer Registration Statement is required to be filed and declared effective
pursuant to Section 3(a) above, the Company and the Guarantors shall use their reasonable best
efforts to cause the Exchange Offer Registration Statement to be effective continuously and shall
keep the Exchange Offer open for a period of not less than the minimum period required under
applicable federal and state securities laws to Consummate the Exchange Offer; provided, however,
that in no event shall such period be less than 20 Business Days. The Company and the Guarantors
shall cause the Exchange Offer to comply with all applicable federal and state securities laws. No
securities other than the Exchange Securities shall be included in the Exchange Offer Registration
Statement. The Company and the Guarantors shall use their reasonable best efforts to cause the
Exchange Offer to be Consummated by the
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Exchange Date;
provided, however, that the Company shall not be required to Consummate the Exchange Offer if
all of the Securities are Freely Tradable on or before the Exchange Date.
(c) The Company and the Guarantors shall indicate in a “Plan of Distribution” section
contained in the Prospectus forming a part of the Exchange Offer Registration Statement that any
Broker-Dealer who holds Transfer Restricted Securities that were acquired for its own account as a
result of market-making activities or other trading activities (other than Transfer Restricted
Securities acquired directly from the Company), may exchange such Transfer Restricted Securities
pursuant to the Exchange Offer; however, such Broker-Dealer may be deemed to be an “underwriter”
within the meaning of the Securities Act and must, therefore, deliver a prospectus meeting the
requirements of the Securities Act in connection with any resales of the Exchange Securities
received by such Broker-Dealer in the Exchange Offer, which prospectus delivery requirement 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 such resales by Broker-Dealers that the Commission may require in order
to permit such resales pursuant thereto, but such “Plan of Distribution” shall not name any such
Broker-Dealer or disclose the amount of Transfer Restricted Securities held by any such
Broker-Dealer except to the extent required by the Commission as a result of a change in policy
after the date of this Agreement.
Each of the Company and the Guarantors shall use its reasonable best efforts to keep the
Exchange Offer Registration Statement continuously effective, supplemented and amended as required
by the provisions of Section 6(c) hereof to the extent necessary to ensure that it is available for
resales of Transfer Restricted Securities acquired by Broker-Dealers for their own accounts as a
result of market-making activities or other trading activities, and to ensure that it conforms with
the requirements of this Agreement, the Securities Act and the policies, rules and regulations of
the Commission as announced from time to time, for a period ending on the earlier of (i) 90 days
from the Consummation of the Exchange Offer and (ii) the date on which a Broker-Dealer is no longer
required to deliver a prospectus in connection with market-making or other trading activities.
The Company and the Guarantors shall provide sufficient copies of the latest version of such
Prospectus to Broker-Dealers promptly upon request at any time during such 90-day (or shorter as
provided in the foregoing sentence) period in order to facilitate such resales.
Notwithstanding anything in this Section 3 to the contrary, the requirements to file and the
requirements to Consummate the Exchange Offer shall terminate at such time as all the Securities
are Freely Tradable.
SECTION 4. Shelf Registration.
(a) Shelf Registration. If (i) the Company is not required to file an Exchange Offer
Registration Statement or to consummate the Exchange Offer solely because the Exchange Offer is not
permitted by applicable law or Commission policy (after the procedures set forth in Section 6(a)
hereof have been complied with), (ii) for any reason the Exchange Offer is not
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Consummated by the Exchange Date and the Securities are not all Freely Tradable prior to such
time, or (iii) prior to the Exchange Date: (A) the Initial Purchasers request from the Company
with respect to Transfer Restricted Securities not eligible to be exchanged for Exchange Securities
in the Exchange Offer, (B) with respect to any Holder of Transfer Restricted Securities such Holder
notifies the Company that (i) such Holder is prohibited by applicable law or Commission policy from
participating in the Exchange Offer, (ii) such Holder may not resell the Exchange Securities
acquired by it in the Exchange Offer to the public without delivering a prospectus and that the
Prospectus contained in the Exchange Offer Registration Statement is not appropriate or available
for such resales by such Holder, or (iii) such Holder is a Broker-Dealer and holds Transfer
Restricted Securities acquired directly from the Company or one of its affiliates or (C) in the
case of any Initial Purchaser, such Initial Purchaser notifies the Company it will not receive
Freely Tradable Exchange Securities in exchange for Transfer Restricted Securities constituting any
portion of such Initial Purchaser’s unsold allotment, the Company and the Guarantors shall
(x) use their reasonable best efforts to cause to be filed a shelf registration
statement pursuant to Rule 415 under the Securities Act, which may be an amendment to the
Exchange Offer Registration Statement (in either event, the “Shelf Registration Statement”)
on or prior to the 30th day after the date such obligation arises but no earlier than the
366th day after the Closing Date (or if such day is not a Business Day, the next succeeding
Business Day) (such date being the “Shelf Filing Deadline”), which Shelf Registration
Statement shall provide for resales of all Transfer Restricted Securities by the Holders of
which shall have provided the information required pursuant to Section 4(b) hereof; and
(y) use their reasonable best efforts to cause such Shelf Registration Statement to be
declared effective by the Commission on or before the 90th day after the Shelf Filing
Deadline (or if such 90th day is not a Business Day, the next succeeding Business Day).
Each of the Company and the Guarantors shall use its reasonable best efforts to keep such
Shelf Registration Statement continuously effective, supplemented and amended as required by the
provisions of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is available
for resales of Transfer Restricted Securities by the Holders of such Securities entitled to the
benefit of this Section 4(a), and to ensure that it conforms with the requirements of this
Agreement, the Securities Act and the policies, rules and regulations of the Commission as
announced from time to time, from the date on which the Shelf Registration Statement is declared
effective by the Commission until the expiration of the one-year period referred to in Rule 144
applicable to securities held by non-affiliates under the Securities Act (or shorter period that
will terminate when all the Transfer Restricted Securities covered by such Shelf Registration
Statement have been sold pursuant to such Shelf Registration Statement or are Freely Tradable.
Notwithstanding anything to the contrary, the requirements to file a Shelf Registration Statement
and to have such Shelf Registration Statement become effective and remain effective shall terminate
at such time as all of the Securities are Freely Tradable.
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(b) Provision by Holders of Certain Information in Connection with the Shelf Registration
Statement. No Holder of Transfer Restricted Securities may include any of its Transfer Restricted
Securities in any Shelf Registration Statement pursuant to this Agreement unless and until such
Holder furnishes to the Company in writing, within 20 days after receipt of a request therefor,
such information as the Company may reasonably request for use in connection with any Shelf
Registration Statement or Prospectus or preliminary Prospectus included therein. Each Holder as to
which any Shelf Registration Statement 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 Holder not materially misleading.
SECTION 5. Additional Interest. If any of the Securities are not Freely Tradable Securities
by the Exchange Date and either (i) the Exchange Offer has not been Consummated, (ii) any Shelf
Registration Statement, if required hereby, has not been declared effective by the Commission or
(iii) any Registration Statement required by this Agreement has been declared effective but ceases
to be effective at any time at which it is required to be effective under this Agreement (each such
event referred to in clauses (i) through (iii), a “Registration Default”), the Company and the
Guarantors, jointly and severally, agree to pay additional interest (“Additional Interest”) to each
Holder of Transfer Restricted Securities adversely affected by such Registration Default, in an
amount equal to $0.05 per week per $1,000 principal amount of Transfer Restricted Securities held
by such Holder with respect to the first 90-day period immediately following the occurrence of such
Registration Default. The amount of Additional Interest shall increase by an additional $0.05 per
week per $1,000 principal amount of Transfer Restricted Securities with respect to each subsequent
90-day period (or portion thereof) until all Registration Defaults have been cured, up to a maximum
amount of Additional Interest of $0.50 per week per $1,000 principal amount of Transfer Restricted
Securities. All accrued Additional Interest shall be paid to Record Holders by the Company and the
Subsidiary Guarantors in the same manner as interest is paid under the Notes. At the earlier of
(i) the cure of all Registration Defaults relating to the particular Transfer Restricted Securities
or (ii) the particular Transfer Restricted Securities having become Freely Tradable, the interest
rate borne by the relevant Transfer Restricted Securities will be reduced to the original rate
borne by such Transfer Restricted Securities; provided, however, that, if after any such reduction
in interest rate, a different Registration Default occurs, the interest rate borne by the relevant
Transfer Restricted Securities shall again increase pursuant to the foregoing provisions.
All obligations of the Company and the Guarantors set forth in the preceding paragraph that
are outstanding with respect to any Transfer Restricted Security at the time such security ceases
to be a Transfer Restricted Security shall survive until such time as all such obligations with
respect to such security shall have been satisfied in full.
SECTION 6. Registration Procedures.
(a) Exchange Offer Registration Statement. In connection with the Exchange Offer, if required
pursuant to Section 3(a) hereof, the Company and the Guarantors shall comply with all of the
provisions of Section 6(c) hereof, shall use their reasonable best efforts to effect such
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exchange
to permit the sale of Transfer Restricted Securities being sold in accordance with the
intended method or methods of distribution thereof, and shall comply with all of the following
provisions:
(i) If in the reasonable opinion of counsel to the Company there is a question as to
whether the Exchange Offer is permitted by applicable law, each of the Company and the
Guarantors hereby agrees to seek a no-action letter or other favorable decision from the
Commission allowing the Company and the Guarantors to Consummate an Exchange Offer for such
Transfer Restricted Securities. Each of the Company and the Guarantors hereby agrees to
pursue the issuance of such a decision to the Commission staff level but shall not be
required to take commercially unreasonable action to effect a change of Commission policy.
Each of the Company and the Guarantors hereby agrees, however, to (A) participate in
telephonic conferences with the Commission, (B) deliver to the Commission staff an analysis
prepared by counsel to the Company setting forth the legal bases, if any, upon which such
counsel has concluded that such an Exchange Offer should be permitted and (C) diligently
pursue a favorable resolution by the Commission staff of such submission.
(ii) As a condition to its participation in the Exchange Offer pursuant to the terms of
this Agreement, each Holder of Transfer Restricted Securities shall furnish, upon the
request of the Company, prior to the Consummation thereof, a written representation to the
Company (which may be contained in the letter of transmittal contemplated by the Exchange
Offer Registration Statement) to the effect that (A) it is not an affiliate of the Company,
(B) it is not engaged in, and does not intend to engage in, and has no arrangement or
understanding with any Person to participate in, a distribution of the Exchange Securities
to be issued in the Exchange Offer and (C) it is acquiring the Exchange Securities in its
ordinary course of business. In addition, all such Holders of Transfer Restricted
Securities shall otherwise cooperate in the Company’s and the Guarantors’ preparations for
the Exchange Offer. Each Holder hereby acknowledges and agrees that any Broker-Dealer and
any such Holder using the Exchange Offer to participate in a distribution of the securities
to be acquired in the Exchange Offer (1) could not under Commission policy as in effect on
the date of this Agreement rely on the position of the Commission enunciated in Xxxxxx
Xxxxxxx and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings
Corporation (available May 13, 1988), as interpreted in the Commission’s letter to
Shearman & Sterling dated July 2, 1993, and similar no-action letters (which may include any
no-action letter obtained pursuant to clause (i) above), and (2) must comply with the
registration and prospectus delivery requirements of the Securities Act in connection with a
secondary resale transaction and that such a secondary resale transaction should be covered
by an effective registration statement containing the selling security holder information
required by Item 507 or 508, as applicable, of Regulation S-K if the resales are of Exchange
Securities obtained by such Holder in exchange for Transfer Restricted Securities acquired
by such Holder directly from the Company.
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(b) Shelf Registration Statement. If required pursuant to Section 4, in connection with the
Shelf Registration Statement, each of the Company and the Guarantors shall comply with all the
provisions of Section 6(c) hereof and shall use its reasonable best efforts to effect
such registration to permit the sale of the Transfer Restricted Securities being sold in
accordance with the intended method or methods of distribution thereof, and pursuant thereto each
of the Company and the Guarantors will as expeditiously as possible prepare and file with the
Commission a Registration Statement relating to the registration on any appropriate form under the
Securities Act, which form shall be available for the sale of the Transfer Restricted Securities in
accordance with the intended method or methods of distribution thereof.
(c) General Provisions. In connection with any Registration Statement and any Prospectus
required by this Agreement to permit the sale or resale of Transfer Restricted Securities
(including, without limitation, any Registration Statement and the related Prospectus required to
permit resales of Transfer Restricted Securities by Broker-Dealers), each of the Company and the
Guarantors shall:
(i) use its reasonable best efforts to keep such Registration Statement continuously
effective and provide all requisite financial statements (including, if required by the
Securities Act or any regulation thereunder, financial statements of the Guarantors unless
such financial statements are publicly available for the period specified in Section 3 or 4
hereof, as applicable; upon the occurrence of any event that would cause any such
Registration Statement or the Prospectus contained therein (A) to contain a material
misstatement or omission or (B) not to be effective and usable for resale of Transfer
Restricted Securities during the period required by this Agreement, the Company shall file
promptly an appropriate amendment to such Registration Statement, in the case of clause (A),
correcting any such misstatement or omission, and, in the case of either clause (A) or (B),
use its reasonable best efforts to cause such amendment to be declared effective and such
Registration Statement and the related Prospectus to become usable for their intended
purpose(s) as soon as practicable thereafter. Notwithstanding the foregoing, th Company and
the Guarantors may allow the Shelf Registration Statement to cease to become effective and
usable if (x) the board of directors of the Company determines in good faith that it is in
the best interest of the Company not to disclose the existence of or facts surrounding any
proposed or material corporate transaction involving the Company or the Guarantors, and the
Company notifies the Holders within two (2) business days after such boards of directors
make such determination or (y) the Prospectus contained in the Shelf Registration Statement
contains an untrue statement of a material fact or omits to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided that the one-year period referred to in Section 4(a)
hereof during which the Shelf Registration Statement is required to be effective and usable
shall be extended by the number of days during which such Registration Statement was not
effective or usable pursuant to the foregoing provisions and provided further that
Additional Interest shall accrue on the Notes as provided in Section 5 hereof;
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(ii) prepare and file with the Commission such amendments and post-effective amendments
to the applicable Registration Statement as may be necessary to keep the Registration
Statement effective for the applicable period set forth in Section 3 or 4 hereof, as
applicable, or such shorter period as will terminate when all Transfer Restricted Securities covered by such Registration Statement have been sold or are Freely
Tradable; cause the Prospectus to be supplemented by any required Prospectus supplement, and
as so supplemented to be filed pursuant to Rule 424 under the Securities Act, and to comply
fully with the applicable provisions of Rules 424 and 430A under the Securities Act in a
timely manner; and comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by such Registration Statement during the applicable
period in accordance with the intended method or methods of distribution by the sellers
thereof set forth in such Registration Statement or supplement to the Prospectus;
(iii) advise the underwriter(s), if any, and selling Holders promptly and, if requested
by such Persons, to confirm such advice in writing, (A) when the Prospectus or any
Prospectus supplement or post-effective amendment has been filed, and, with respect to any
Registration Statement or any post-effective amendment thereto, when the same has become
effective, (B) of any request by the Commission for amendments to the Registration Statement
or amendments or supplements to the Prospectus or for additional information relating
thereto, (C) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement under the Securities Act or of the suspension by
any state securities commission of the qualification of the Transfer Restricted Securities
for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the
preceding purposes, (D) of the existence of any fact or the happening of any event that
makes any statement of a material fact made in the Registration Statement, the Prospectus,
any amendment or supplement thereto, or any document incorporated by reference therein
untrue, or that requires the making of any additions to or changes in the Registration
Statement or the Prospectus in order to make the statements therein not misleading. If at
any time the Commission shall issue any stop order suspending the effectiveness of the
Registration Statement, or any state securities commission or other regulatory authority
shall issue an order suspending the qualification or exemption from qualification of the
Transfer Restricted Securities under state securities or blue sky laws, each of the Company
and the Guarantors shall use its reasonable best efforts to obtain the withdrawal or lifting
of such order at the earliest possible time;
(iv) furnish without charge to each of the Initial Purchasers, each selling Holder
named in any Registration Statement, and each of the underwriter(s), if any, before filing
with the Commission, copies of any Registration Statement or any Prospectus included therein
or any amendments or supplements to any such Registration Statement or Prospectus (including
all documents incorporated by reference after the initial filing of such Registration
Statement), which documents will be subject to the review and comment of such Holders and
underwriter(s) in connection with such sale, if any, for a period of at least five Business
Days, and the Company will not file any such Registration Statement or Prospectus or any
amendment or supplement to any such
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Registration Statement or Prospectus (including all such
documents incorporated by reference) to which an Initial Purchaser of Transfer Restricted
Securities covered by such Registration Statement or the underwriter(s), if any, shall
reasonably object in writing within five Business Days after the receipt thereof (such
objection to be deemed timely made upon
confirmation of telecopy transmission within such period). The objection of an Initial
Purchaser or underwriter, if any, shall be deemed to be reasonable if such Registration
Statement, amendment, Prospectus or supplement, as applicable, as proposed to be filed,
contains an untrue statement of a material fact or omits to state any material fact
necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading, or fails to comply with the applicable provisions of the
Securities Act;
(v) promptly prior to the filing of any document that is to be incorporated by
reference into a Registration Statement or Prospectus, provide copies of such document to
the Initial Purchasers, each selling Holder named in any Registration Statement, and to the
underwriter(s), if any, make the Company’s and the Guarantors representatives available for
discussion of such document and other customary due diligence matters, and include such
information in such document prior to the filing thereof as such selling Holders or
underwriter(s), if any, reasonably may request;
(vi) make available at reasonable times for inspection by the Initial Purchasers, the
managing underwriter(s), if any, participating in any disposition pursuant to such
Registration Statement and any attorney or accountant retained by such Initial Purchasers or
any of the underwriter(s), all financial and other records, pertinent corporate documents
and properties of each of the Company and the Guarantors as reasonably requested and cause
the Company’s and the Guarantors, officers, directors and employees to supply all
information reasonably requested by any such Holder, underwriter, attorney or accountant in
connection with such Registration Statement or any post-effective amendment thereto
subsequent to the filing thereof and prior to its effectiveness and to participate in
meetings with investors to the extent requested by the managing underwriter(s), if any;
(vii) if requested by any selling Holders or the underwriter(s), if any, promptly
incorporate in any Registration Statement or Prospectus, pursuant to a supplement or
post-effective amendment if necessary, such information as such selling Holders and
underwriter(s), if any, may reasonably request to have included therein, including, without
limitation, information relating to the “Plan of Distribution” of the Transfer Restricted
Securities, information with respect to the principal amount of Transfer Restricted
Securities being sold to such underwriter(s), the purchase price being paid therefor and any
other terms of the offering of the Transfer Restricted Securities to be sold in such
offering; and make all required filings of such Prospectus supplement or post-effective
amendment as soon as practicable after the Company is notified of the matters to be
incorporated in such Prospectus supplement or post-effective amendment; provided, however,
that the Company shall not be required to take any action pursuant to
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this Section
6(c)(vii)that would, in the opinion of counsel for the Company reasonably satisfactory to
the Initial Purchasers, violate applicable law;
(viii) cause the Transfer Restricted Securities covered by the Registration Statement
to be rated with the appropriate rating agencies, if so requested by the Holders
of a majority in aggregate principal amount of Securities covered thereby or the
underwriter(s), if any;
(ix) furnish to each Initial Purchaser, each selling Holder and each of the
underwriter(s), if any, without charge, at least one copy of the Registration Statement, as
first filed with the Commission, and of each amendment thereto, including financial
statements and schedules, all documents incorporated by reference therein and all exhibits
(including exhibits incorporated therein by reference);
(x) deliver to each selling Holder and each of the underwriter(s), if any, without
charge, as many copies of the Prospectus (including each preliminary prospectus) and any
amendment or supplement thereto as such Persons reasonably may request; each of the Company
and the Guarantors hereby consents to the use of the Prospectus and any amendment or
supplement thereto by each of the selling Holders and each of the underwriter(s), if any, in
connection with the offering and the sale of the Transfer Restricted Securities covered by
the Prospectus or any amendment or supplement thereto;
(xi) enter into such agreements (including an underwriting agreement), and make such
representations and warranties, and take all such other actions in connection therewith in
order to expedite or facilitate the disposition of the Transfer Restricted Securities
pursuant to any Registration Statement contemplated by this Agreement, all to such extent as
may be reasonably requested by any Initial Purchaser or by any Holder or Holders of Transfer
Restricted Securities who hold at least 25% in aggregate principal amount of such class of
Transfer Restricted Securities or underwriter in connection with any sale or resale pursuant
to any Registration Statement contemplated by this Agreement; provided that the Company and
the Guarantors shall not be required to enter into any such agreement more than once with
respect to all of the Transfer Restricted Securities; and whether or not an underwriting
agreement is entered into and whether or not the registration is an Underwritten
Registration, each of the Company and the Guarantors shall:
(A) furnish to the Initial Purchasers, the Holders of Transfer Restricted
Securities who hold at least 25% in aggregate principal amount of such class of
Transfer Restricted Securities and each underwriter, if any, in such substance and
scope as they may reasonably request and as are customarily made by issuers to
underwriters in primary underwritten offerings, upon the date of the Consummation of
the Exchange Offer or, if applicable, the effectiveness of the Shelf Registration
Statement:
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(1) a certificate, dated the date of Consummation of the Exchange Offer
or the date of effectiveness of the Shelf Registration Statement, as the
case may be, signed by (y) the respective chief executive officer, President
or any Vice President and (z) a principal financial or accounting officer of
each of the Company and the Guarantors, confirming, as of the date thereof,
the matters set forth in paragraphs (i), (ii) and (iii) of
Section 5(e) of the Purchase Agreement and such other matters as such
parties may reasonably request;
(2) an opinion, dated the date of Consummation of the Exchange Offer or
the date of effectiveness of the Shelf Registration Statement, as the case
may be, of counsel for the Company and the Guarantors, covering the matters
set forth in Section 5(c) of the Purchase Agreement and such other matters
as such parties may reasonably request, and in any event including a
statement to the effect that such counsel has participated in conferences
with officers and other representatives of the Company and the Guarantors,
representatives of the independent public accountants for the Company and
the Guarantors, representatives of the underwriter(s), if any, and counsel
to the underwriter(s), if any, in connection with the preparation of such
Registration Statement and the related Prospectus and have considered the
matters required to be stated therein and the statements contained therein,
although such counsel has not independently verified the accuracy,
completeness or fairness of such statements; and that such counsel advises
that, on the basis of the foregoing, no facts came to such counsel’s
attention that caused such counsel to believe that the applicable
Registration Statement, at the time such Registration Statement or any
post-effective amendment thereto became effective, and, in the case of the
Exchange Offer Registration Statement, as of the date of Consummation,
contained an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the
statements therein not misleading, or that the Prospectus contained in such
Registration Statement as of its date and, in the case of the opinion dated
the date of Consummation of the Exchange Offer, as of the date of
Consummation, contained an untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading.
Without limiting the foregoing, such counsel may state further that such
counsel assumes no responsibility for, and has not independently verified,
the accuracy, completeness or fairness of the financial statements, notes
and schedules and other financial and accounting data included in any
Registration Statement contemplated by this Agreement or the related
Prospectus; and
(3) a customary comfort letter, dated the date of effectiveness of the
Shelf Registration Statement, from the Company’s independent
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accountants, in
the customary form and covering matters of the type customarily requested to
be covered in comfort letters by underwriters in connection with primary
underwritten offerings, and covering or affirming the matters set forth in
the comfort letters delivered pursuant to Section 5(a) of the Purchase
Agreement, without exception;
(B) set forth in full or incorporate by reference in the underwriting
agreement, if any, the indemnification provisions and procedures of Section 8 hereof
with respect to all parties to be indemnified pursuant to said Section; and
(C) deliver such other documents and certificates as may be reasonably
requested by such parties to evidence compliance with Section 6(c)(xi)(A) hereof and
with any customary conditions contained in the underwriting agreement or other
agreement entered into by the Company or any of the Guarantors pursuant to this
Section 6(c)(xi), if any.
If at any time the representations and warranties of the Company and the Guarantors
contemplated in Section 6(c)(xi)(A)(1) hereof cease to be true and correct, the Company or
the Guarantors shall so advise the Initial Purchasers and the underwriter(s), if any, and
each selling Holder promptly and, if requested by such Persons, shall confirm such advice in
writing;
(xii) prior to any public offering of Transfer Restricted Securities, cooperate with
the selling Holders, the underwriter(s), if any, and their respective counsel in connection
with the registration and qualification of the Transfer Restricted Securities under the
state securities or blue sky laws of such jurisdictions as the selling Holders or
underwriter(s), if any, may reasonably request and do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the Transfer
Restricted Securities covered by the Shelf Registration Statement; provided, however, that
none of the Company or the Guarantors shall be required to register or qualify as a foreign
corporation where it is not then so qualified or to take any action that would subject it to
the service of process in suits or to taxation, other than as to matters and transactions
relating to the Registration Statement, in any jurisdiction where it is not then so subject;
(xiii) shall issue, upon the request of any Holder of Transfer Restricted Securities
covered by the Shelf Registration Statement, Exchange Securities having an aggregate
principal amount equal to the aggregate principal amount of Transfer Restricted Securities
surrendered to the
Company by such Holder in exchange therefor or being sold by such Holder;
such Exchange Securities to be registered in the name of such Holder or in the name of the
purchaser(s) of such Securities, as the case may be; in return, the Transfer Restricted
Securities held by such Holder shall be surrendered to the Company for cancellation;
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(xiv) cooperate with the selling Holders and the underwriter(s), if any, to facilitate
the timely preparation and delivery of certificates representing Transfer Restricted
Securities to be sold and not bearing any restrictive legends; and enable such Transfer
Restricted Securities to be in such denominations and registered in such names as the
Holders or the underwriter(s), if any, may request at least two (2) Business Days prior to
any sale of Transfer Restricted Securities made by such Holders or underwriter(s);
(xv) use its reasonable best efforts to cause the Transfer Restricted Securities
covered by the Registration Statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the seller or sellers
thereof or the underwriter(s), if any, to consummate the disposition of such Transfer
Restricted Securities, subject to the proviso contained in Section 6(c)(xii) hereof;
(xvi) if any fact or event contemplated by Section 6(c)(iii)(D) hereof shall exist or
have occurred, prepare a supplement or post-effective amendment to the Registration
Statement or related Prospectus or any document incorporated therein by reference or file
any other required document so that, as thereafter delivered to the purchasers of Transfer
Restricted Securities, the Prospectus will not contain an untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein
not misleading;
(xvii) provide a CUSIP number for all Securities not later than the effective date of
the Registration Statement covering such Securities and provide the Trustee under the
Indenture with printed certificates for such Securities which are in a form eligible for
deposit with the Depository Trust Company and take all other action necessary to ensure that
all such Securities are eligible for deposit with the Depository Trust Company;
(xviii) cooperate and assist in any filings required to be made with the FINRA and in
the performance of any due diligence investigation by any underwriter (including any
“qualified independent underwriter”) that is required to be retained in accordance with the
rules and regulations of the FINRA;
(xix) otherwise use its reasonable best efforts to comply with all applicable rules and
regulations of the Commission, and make generally available to its security holders, as soon
as practicable, a consolidated earnings statement meeting the requirements of Rule 158 under
the Securities Act (which need not be audited) for the twelve-month period (A) commencing at
the end of any fiscal quarter in which Transfer Restricted Securities are sold to
underwriters in a firm commitment or best efforts Underwritten Offering or (B) if not sold
to underwriters in such an offering, beginning with the first month of the Company’s first
fiscal quarter commencing after the effective date of the Registration Statement;
(xx) cause the Indenture to be qualified under the Trust Indenture Act not later than
the effective date of the first Registration Statement required by this Agreement,
-15-
and, in
connection therewith, cooperate with the Trustee and the Holders of Securities to effect
such changes to the Indenture as may be required for such Indenture to be so qualified in
accordance with the terms of the Trust Indenture Act; and to execute and use its reasonable
best efforts to cause the Trustee to execute, all documents that may be required to effect
such changes and all other forms and documents required to be filed with the Commission to
enable such Indenture to be so qualified in a timely manner; and
(xxi) cause all Securities covered by the Registration Statement to be listed on each
securities exchange or automated quotation system on which similar securities issued by the
Company are then listed if requested by the Holders of a majority in aggregate principal
amount of Securities or the managing underwriter(s), if any.
Each Holder agrees by acquisition of a Transfer Restricted Security that, upon receipt of any
notice from the Company of the existence of any fact of the kind described in Section 6(c)(iii)(D)
hereof, such Holder will forthwith discontinue disposition of Transfer Restricted Securities
pursuant to the applicable Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 6(c)(xvi) hereof, or until it is advised
in writing (the “Advice”) by the Company that the use of the Prospectus may be resumed, and has
received copies of any additional or supplemental filings that are incorporated by reference in the
Prospectus. If so directed by the Company, each Holder will deliver to the Company (at the
Company’s expense) all copies, other than permanent file copies then in such Holder’s possession,
of the Prospectus covering such Transfer Restricted Securities that was current at the time of
receipt of such notice. In the event the Company shall give any such notice, the time period
regarding the effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as
applicable, shall be extended by the number of days during the period from and including the date
of the giving of such notice pursuant to Section 6(c)(iii)(D) hereof to and including the date when
each selling Holder covered by such Registration Statement shall have received the copies of the
supplemented or amended Prospectus contemplated by Section 6(c)(xvi) hereof or shall have received
the Advice; provided, however, that no such extension shall be taken into account in determining
whether Additional Interest is due pursuant to Section 5 hereof or the amount of such Additional
Interest, it being agreed that the Company’s option to suspend use of a Registration Statement
pursuant to this paragraph shall be treated as a Registration Default for purposes of Section 5
hereof.
The Company and the Guarantors may require each Holder of Transfer Restricted Securities as to
which any registration is being effected to furnish to the Company such information regarding such
Holder and such Holder’s intended method of distribution of the applicable Transfer Restricted
Securities as the Company may from time to time reasonably request in writing, but only to the
extent that such information is required in order to comply with the Securities Act. Each such
Holder agrees to notify the Company as promptly as practicable of (i) any inaccuracy or change in
information previously furnished by such Holder to the Company or (ii) the occurrence of any event,
in either case, as a result of which any Prospectus relating to such registration contains or would
contain an untrue statement of a material fact regarding such
-16-
Holder or such Holder’s intended
method of distribution of the applicable Transfer Restricted Securities or omits to state any
material fact regarding such Holder or such Holder’s intended method of distribution of the
applicable Transfer Restricted Securities required to be stated therein or necessary to make the
statements made therein, in the light of the circumstances under which they were made, not
misleading and promptly to furnish to the Company any additional information required to correct
and update any previously furnished information or required so that such Prospectus shall not
contain, with respect to such Holder or the distribution of the applicable Transfer Restricted
Securities 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.
SECTION 7. Registration Expenses.
(a) All expenses incident to the Company’s and the Guarantor’s performance of or compliance
with this Agreement will be borne by the Company and the Guarantors, jointly and severally,
regardless of whether a Registration Statement becomes effective, including, without limitation:
(i) all registration and filing fees and expenses (including filings made by any Initial Purchaser
or Holder with the FINRA (and, if applicable, the fees and expenses of any “qualified independent
underwriter” and its counsel that may be required by the rules and regulations of the FINRA)); (ii)
all fees and expenses of compliance with federal securities and state securities or blue sky laws;
(iii) all expenses of printing (including printing certificates for the Exchange Securities to be
issued in the Exchange Offer and printing of Prospectuses), messenger and delivery services and
telephone; (iv) all fees and disbursements of counsel for the Company, the Guarantors and, subject
to Section 7(b) hereof, the Holders of Transfer Restricted Securities; (v) all application and
filing fees in connection with listing the Exchange Securities on a securities exchange or
automated quotation system pursuant to the requirements thereof; and (vi) all fees and
disbursements of independent certified public accountants of the Company and the Guarantors
(including the expenses of any special audit and comfort letters required by or incident to such
performance).
Each of the Company and the Guarantors will, in any event, bear its internal expenses
(including, without limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), the expenses of any annual audit and the fees and expenses of any
Person, including special experts, retained by the Company or the Guarantors.
(b) In connection with any Registration Statement required by this Agreement (including,
without limitation, the Exchange Offer Registration Statement and the Shelf Registration
Statement), the Company and the Guarantors, jointly and severally, will reimburse the Initial
Purchasers and the Holders of Transfer Restricted Securities being tendered in the Exchange Offer
and/or resold pursuant to the “Plan of Distribution” contained in the Exchange Offer Registration
Statement or registered pursuant to the Shelf Registration Statement, as applicable, for the
reasonable fees and disbursements of not more than one counsel, who shall be Xxxxxx Xxxxxx &
Xxxxxxx llp or such other counsel as may be chosen by the Holders of a majority in
principal amount of the Transfer Restricted Securities for whose benefit such Registration
Statement is being prepared.
SECTION 8. Indemnification.
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(a) The Company and the Guarantors, jointly and severally, agree to indemnify and hold
harmless (i) each Holder and (ii) each Person, if any, who controls (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act) any Holder (any of the Persons referred
to in this clause (ii) being hereinafter referred to as a “controlling person”) and (iii) the
respective officers, directors, partners, employees, representatives and agents of any Holder or
any controlling person (any Person referred to in clause (i), (ii) or (iii) may hereinafter be
referred to as an “Indemnified Holder”), to the fullest extent lawful, from and against any and all
losses, claims, damages, liabilities, judgments, actions and expenses (including, without limitation, and as incurred, reimbursement of all reasonable costs of investigating, preparing,
pursuing, settling, compromising, paying or defending any claim or action, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, including the reasonable
fees and expenses of counsel to any Indemnified Holder), joint or several, directly or indirectly
caused by, related to, based upon, arising out of or in connection with any untrue statement or
alleged untrue statement of a material fact contained in any Registration Statement or Prospectus
(or any amendment or supplement thereto), or any omission or alleged omission to state therein 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, except insofar as such
losses, claims, damages, liabilities or expenses are caused by an untrue statement or omission or
alleged untrue statement or omission that is made in reliance upon and in conformity with
information relating to any of the Holders furnished in writing to the Company by any of the
Holders expressly for use therein. This indemnity agreement shall be in addition to any liability
which the Company or any of the Guarantors may otherwise have.
In case any action or proceeding (including any governmental or regulatory investigation or
proceeding) shall be brought or asserted against any of the Indemnified Holders with respect to
which indemnity may be sought against the Company or the Guarantors, such Indemnified Holder (or
the Indemnified Holder controlled by such controlling person) shall promptly notify the Company and
the Guarantors in writing; provided, however, that the failure to give such notice shall not
relieve any of the Company or the Guarantors of its obligations pursuant to this Agreement unless
such failure would result in undue prejudice to the Company or the Guarantors. Such Indemnified
Holder shall have the right to employ its own counsel in any such action and the fees and expenses
of such counsel shall be paid, as incurred, by the Company and the Guarantors (regardless of
whether it is ultimately determined that an Indemnified Holder is not entitled to indemnification
hereunder). The Company and the Guarantors shall not, in connection with any one such action or
proceeding or separate but substantially similar or related actions or 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 of attorneys (in addition to any local
counsel) at any time for such Indemnified Holders, which firm shall be designated by the Holders.
The Company and the Guarantors shall be liable for any settlement of any such action or proceeding
effected with the Company’s and the Guarantors’ prior written consent, which consent shall not be
withheld unreasonably, and each of the Company and the Guarantors agrees to indemnify and hold
harmless any Indemnified Holder from and against any loss, claim, damage, liability or expense by
reason of any settlement of any action effected with the written consent of the Company and the
Guarantors. The Company and
-18-
the Guarantors shall not, without the prior written consent of each
Indemnified Holder, settle or compromise or consent to the entry of judgment in or otherwise seek
to terminate any pending or threatened action, claim, litigation or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not any Indemnified Holder is a
party thereto), unless such settlement, compromise, consent or termination includes an
unconditional release of each Indemnified Holder from all liability arising out of such action,
claim, litigation or proceeding.
(b) Each Holder of Transfer Restricted Securities agrees, severally and not jointly, to
indemnify and hold harmless the Company, the Guarantors and their respective directors and officers of the Company and the Guarantors who sign a Registration Statement, and any Person
controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act) the Company or any of the Guarantors, and the respective officers, directors, partners,
employees, representatives and agents of each such Person, to the same extent as the foregoing
indemnity from the Company and the Guarantors to each of the Indemnified Holders, but only with
respect to claims and actions based on information relating to such Holder furnished in writing by
such Holder expressly for use in any Registration Statement. In case any action or proceeding
shall be brought against the Company, the Guarantors or their respective directors or officers or
any such controlling person in respect of which indemnity may be sought against a Holder of
Transfer Restricted Securities, such Holder shall have the rights and duties given the Company and
the Guarantors, and the Company, the Guarantors, their respective directors and officers and such
controlling person shall have the rights and duties given to each Holder by the preceding
paragraph.
(c) If the indemnification provided for in this Section 8 is unavailable to an indemnified
party under Section 8(a) or (b) hereof (other than by reason of exceptions provided in those
Sections) in respect of any losses, claims, damages, liabilities, judgments, actions or expenses
referred to therein, then each applicable indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages, liabilities or expenses in such proportion as is
appropriate to reflect the relative benefits received by the Company and the Guarantors, on the one
hand, and the Holders, on the other hand, from the Initial Placement (which in the case of the
Company and the Guarantors shall be deemed to be equal to the total gross proceeds to the Company
and the Guarantors from the Initial Placement), the amount of Additional Interest which did not
become payable as a result of the filing of the Registration Statement resulting in such losses,
claims, damages, liabilities, judgments actions or expenses, and such Registration Statement, or if
such allocation is not permitted by applicable law, the relative fault of the Company and the
Guarantors, on the one hand, and the Holders, on the other hand, in connection with the statements
or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as
any other relevant equitable considerations. The relative fault of the Company, on the one hand,
and of the Indemnified Holder, on the other, 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 or any of
the Guarantors, on the one hand, or the Indemnified Holders, on the other hand, and the parties’
relative intent, knowledge, access to information and opportunity to correct
-19-
or prevent such
statement or omission. The amount paid or payable by a party as a result of the losses, claims,
damages, liabilities and expenses referred to above shall be deemed to include, subject to the
limitations set forth in the second paragraph of Section 8(a) hereof, any legal or other fees or
expenses reasonably incurred by such party in connection with investigating or defending any action
or claim.
The Company, the Guarantors and each Holder of Transfer Restricted Securities agree that it
would not be just and equitable if contribution pursuant to this Section 8(c) were determined by
pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any
other method of allocation which does not take account of the equitable considerations referred to
in the immediately preceding paragraph. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities or expenses referred to in
the immediately preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this Xxxxxxx 0, xxxx of the Holders (and its related Indemnified Holders) shall be
required to contribute, in the aggregate, any amount in excess of the amount by which the total
discount received by such Holder with respect to the Initial Securities exceeds the amount of any
damages which such Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to
contribute pursuant to this Section 8(c) are several in proportion to the respective principal
amount of Initial Securities held by each of the Holders hereunder and not joint.
SECTION 9. Rule 144A. Each of the Company and the Guarantors hereby agrees with each Holder,
for so long as any Transfer Restricted Securities remain outstanding, to make available to any
Holder or beneficial owner of Transfer Restricted Securities in connection with any sale thereof
and any prospective purchaser of such Transfer Restricted Securities from such Holder or beneficial
owner, the information required by Rule 144A(d)(4) under the Securities Act in order to permit
resales of such Transfer Restricted Securities pursuant to Rule 144A under the Securities Act.
SECTION 10. Participation in Underwritten Registrations. No Holder may participate in any
Underwritten Registration hereunder unless such Holder (a) agrees to sell such Holder’s Transfer
Restricted 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
reasonable questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up
letters and other documents required under the terms of such underwriting arrangements.
SECTION 11. Selection of Underwriters. The Holders of Transfer Restricted Securities covered
by the Shelf Registration Statement who desire to do so may sell such Transfer Restricted
Securities in an Underwritten Offering; provided that such Holders shall be
-20-
responsible for
underwriting commissions and discounts associated with any such sales. In any such Underwritten
Offering, the investment banker(s) and managing underwriter(s) that will administer such offering
will be selected by the Holders of a majority in aggregate principal amount of the Transfer
Restricted Securities included in such offering; provided, however, that such investment banker(s)
and managing underwriter(s) must be reasonably satisfactory to the Company.
SECTION 12. Miscellaneous.
(a) Remedies. Each of the Company and the Guarantors hereby agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach by it
of the provisions of this Agreement and hereby agree to waive the defense in any action for
specific performance that a remedy at law would be adequate.
(b) No Inconsistent Agreements. Each of the Company and the Guarantors will not on or after
the date of this Agreement enter into any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with
the provisions hereof. Except as disclosed in the Pricing Disclosure Package and the Final
Offering Memorandum (each as defined in the Purchase Agreement), neither the Company nor any of the
Guarantors has previously entered into any agreement granting any registration rights with respect
to its securities to any Person. 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 Company’s or
any of the Guarantors’ securities under any agreement in effect on the date hereof.
(c) Adjustments Affecting the Securities. The Company will not take any action, or permit any
change to occur, with respect to the Securities that would materially and adversely affect the
ability of the Holders to Consummate any Exchange Offer.
(d) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to or departures from the provisions hereof may not be given
unless the Company has (i) in the case of Section 5 hereof and this Section 12(d)(i), obtained the
written consent of Holders of all outstanding Transfer Restricted Securities and (ii) in the case
of all other provisions hereof, obtained the written consent of Holders of a majority of the
outstanding principal amount of Transfer Restricted Securities (excluding any Transfer Restricted
Securities held by the Company or its Affiliates). Notwithstanding the foregoing, a waiver or
consent to departure from the provisions hereof that relates exclusively to the rights of Holders
whose securities are being tendered pursuant to the Exchange Offer and that does not affect
directly or indirectly the rights of other Holders whose securities are not being tendered pursuant
to such Exchange Offer may be given by the Holders of a majority of the outstanding principal
amount of Transfer Restricted Securities being tendered or registered; provided, however, that,
with respect to any matter that directly or indirectly affects the rights of any Initial Purchaser
hereunder, the Company shall obtain the written consent of each such Initial Purchaser with respect
to which such amendment, qualification, supplement, waiver, consent or departure is to be
effective.
-21-
(e) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, first-class mail (registered or certified, return receipt
requested), telex, telecopier, or air courier guaranteeing overnight delivery:
(i) if to a Holder, at the address set forth on the records of the Registrar under the
Indenture, with a copy to the Registrar under the Indenture; and
(ii) if to the Company:
Psychiatric Solutions, Inc.
0000 Xxxxxxxxx Xxxxxxx
Xxxxx 000
Xxxxxxxx, Xxxxxxxxx 00000
Facsimile No.: (000) 000-0000
Attention: Xxxxxxxxxxx X. Xxxxxx, Esq.
0000 Xxxxxxxxx Xxxxxxx
Xxxxx 000
Xxxxxxxx, Xxxxxxxxx 00000
Facsimile No.: (000) 000-0000
Attention: Xxxxxxxxxxx X. Xxxxxx, Esq.
With a copy to:
Xxxxxx Xxxxxxx Xxxxxx & Xxxxx, LLP
000 Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxxxxx, Xxxxxxxxx 00000
Telecopier No.: (000) 000-0000
Attention: Xxxxx X. Xxxxx III, Esq.
000 Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxxxxx, Xxxxxxxxx 00000
Telecopier No.: (000) 000-0000
Attention: Xxxxx X. Xxxxx III, Esq.
All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if
telecopied; and on the next Business Day, if timely delivered to an air courier guaranteeing
overnight delivery.
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 specified in the Indenture.
(f) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of each of the parties, including, without limitation, and without the
need for an express assignment, subsequent Holders of Transfer Restricted Securities; provided,
however, that this Agreement shall not inure to the benefit of or be binding upon a successor or
assign of a Holder unless and to the extent such successor or assign acquired Transfer Restricted
Securities from such Holder.
(g) 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.
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(h) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.
(i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW RULES THEREOF.
(j) Severability. In the event that any one or more of the provisions contained herein, or
the application thereof in any circumstance, is held invalid, illegal or unenforceable, the
validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.
(k) Entire Agreement. This Agreement is intended by the parties as a final expression of
their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. There are
no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company with respect to the Transfer
Restricted Securities. This Agreement supersedes all prior agreements and understandings between
the parties with respect to such subject matter.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.
PSYCHIATRIC SOLUTIONS, INC. |
||||
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Executive Vice President | |||
ABS LINCS DC, LLC | ||
ABS LINCS KY, INC. | ||
ABS LINCS NJ, INC. | ||
ABS LINCS PA, INC. | ||
ABS LINCS SC, INC. | ||
ABS LINCS TN, INC. | ||
ABS LINCS TX, INC. | ||
ABS LINCS VA, INC. | ||
ABS LINCS, LLC | ||
ABS-FIRST STEP, INC. | ||
ALLIANCE CROSSINGS, LLC | ||
ALLIANCE HEALTH CENTER, INC. | ||
ALTERNATIVE BEHAVIORAL SERVICES, INC. | ||
ATLANTIC SHORES HOSPITAL, LLC | ||
BEHAVIORAL EDUCATIONAL SERVICES, INC. | ||
BEHAVIORAL HEALTHCARE LLC | ||
BENCHMARK BEHAVIORAL HEALTH SYSTEM, INC. | ||
BHC ALHAMBRA HOSPITAL, INC. | ||
BHC BELMONT PINES HOSPITAL, INC. | ||
BHC CEDAR VISTA HOSPITAL, INC. | ||
BHC FAIRFAX HOSPITAL, INC. | ||
BHC FORT LAUDERDALE HOSPITAL, INC. | ||
BHC FOX RUN HOSPITAL, INC. | ||
BHC FREMONT HOSPITAL, INC. | ||
BHC HEALTH SERVICES OF NEVADA, INC. | ||
BHC HERITAGE OAKS HOSPITAL, INC. | ||
BHC HOLDINGS, INC. | ||
BHC INTERMOUNTAIN HOSPITAL, INC. | ||
BHC MANAGEMENT SERVICES OF |
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LOUISIANA, LLC | ||
BHC MANAGEMENT SERVICES OF NEW MEXICO, LLC | ||
BHC MANAGEMENT SERVICES OF STREAMWOOD,LLC | ||
BHC MESILLA VALLEY HOSPITAL, LLC | ||
BHC MONTEVISTA HOSPITAL, INC. | ||
BHC NORTHWEST PSYCHIATRIC HOSPITAL, LLC | ||
BHC PINNACLE POINTE HOSPITAL, INC. | ||
BHC PROPERTIES, LLC | ||
BHC SIERRA VISTA HOSPITAL, INC. | ||
BHC SPIRIT OF ST. LOUIS HOSPITAL, INC. | ||
BHC STREAMWOOD HOSPITAL, INC. | ||
XXXXXX CENTER, LLC. | ||
BRENTWOOD ACQUISITION, INC. | ||
BRENTWOOD ACQUISITION-SHREVEPORT, INC. | ||
XXXXX XXXX HOSPITAL, INC. | ||
BY THE SEA PHYSICIAN PRACTICE, LLC | ||
CALVARY CENTER, INC. | ||
CANYON RIDGE HOSPITAL, INC. | ||
CEDAR SPRINGS HOSPITAL, INC. | ||
CENTENNIAL PEAKS HOSPITAL, LLC | ||
CHILDREN’S TREATMENT SOLUTIONS, LLC | ||
COLLABORATIVE CARE LLC | ||
COLUMBUS HOSPITAL PARTNERS, LLC | ||
COLUMBUS HOSPITAL, LLC | ||
COMMUNITY CORNERSTONES, INC. | ||
COMPASS HOSPITAL, INC. | ||
XXXXXXXX FIRST EDUCATION, INC. | ||
CUMBERLAND HOSPITAL, LLC | ||
CUMBERLAND HOSPITAL PARTNERS, LLC | ||
DIAMOND GROVE CENTER, LLC | ||
EMPLOYEE ASSISTANCE SERVICES, INC. | ||
FHCHS OF PUERTO RICO, INC. | ||
FIRST CORRECTIONS — PUERTO-RICO, INC. | ||
FIRST HOSPITAL CORPORATION OF NASHVILLE | ||
FIRST HOSPITAL CORPORATION OF | ||
VIRGINIA BEACH | ||
FIRST HOSPITAL PANAMERICANO, INC. | ||
FORT LAUDERDALE HOSPITAL, INC. | ||
GREAT PLAINS HOSPITAL, INC. |
-25-
GULF COAST TREATMENT CENTER, INC. | ||
H.C. CORPORATION | ||
HAVENWYCK HOSPITAL INC. | ||
HHC AUGUSTA, INC. | ||
HHC BERKELEY, INC. | ||
HHC XXXXXX INVESTMENT, INC. | ||
HHC XXXXXX CITY, INC. | ||
HHC DELAWARE, INC. | ||
HHC FOCUS FLORIDA, INC. | ||
HHC INDIANA, INC. | ||
HHC KINGWOOD INVESTMENT, LLC | ||
HHC OCONEE, INC. | ||
HHC OHIO, INC. | ||
HHC POPLAR SPRINGS, INC. | ||
HHC RIVER PARK, INC. | ||
HHC SERVICES, LLC | ||
HHC SOUTH CAROLINA, INC. | ||
HHC ST. XXXXXX, INC. | ||
HHC TOLEDO, INC. | ||
HMHM OF TENNESSEE, LLC | ||
XXXXX HILL HOSPITAL, LLC | ||
HORIZON BEHAVIORAL SERVICES, LLC | ||
HORIZON HEALTH AUSTIN, INC. | ||
HORIZON HEALTH CORPORATION | ||
HORIZON HEALTH HOSPITAL SERVICES, LLC | ||
HORIZON HEALTH PHYSICAL REHABILITATION SERVICES, LLC | ||
HORIZON MENTAL HEALTH MANAGEMENT, LLC | ||
HSA HILL CREST CORPORATION | ||
HSA OF OKLAHOMA, INC. | ||
INDIANA PSYCHIATRIC INSTITUTES, LLC | ||
INFOSCRIBER CORPORATION | ||
KIDS BEHAVIORAL HEALTH OF UTAH, INC. | ||
KINGWOOD PINES HOSPITAL, LLC | ||
KMI ACQUISITION, LLC | ||
KOLBURN SCHOOL, LLC | ||
LAKELAND BEHAVIORAL, LLC | ||
XXXXXX XXXX BEHAVIORAL HEALTH CENTER, INC. | ||
LAURELWOOD ASSOCIATES, INC. | ||
LEBANON HOSPITAL PARTNERS, LLC | ||
LIBERTY POINT BEHAVIORAL |
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HEALTHCARE, LLC | ||
MENTAL HEALTH OUTCOMES, LLC | ||
MESILLA VALLEY HOSPITAL, INC. | ||
MESILLA VALLEY MENTAL HEALTH ASSOCIATES, INC. | ||
MICHIGAN PSYCHIATRIC SERVICES, INC. | ||
MISSION VISTA BEHAVIORAL HEALTH SERVICES, INC. | ||
NASHVILLE REHAB, LLC | ||
NORTH SPRING BEHAVIORAL | ||
HEALTHCARE, INC. | ||
NORTHERN INDIANA PARTNERS, LLC | ||
OCALA BEHAVIORAL HEALTH, LLC | ||
PALMETTO BEHAVIORAL HEALTH HOLDINGS, LLC | ||
PALMETTO BEHAVIORAL HEALTH SOLUTIONS, LLC | ||
PALMETTO BEHAVIORAL HEALTH SYSTEM, L.L.C. | ||
PALMETTO LOWCOUNTRY BEHAVIORAL HEALTH, L.L.C. | ||
PALMETTO PEE DEE BEHAVIORAL HEALTH, L.L.C. | ||
PEAK BEHAVIORAL HEALTH SERVICES, LLC | ||
PREMIER BEHAVIORAL SOLUTIONS OF FLORIDA, INC. | ||
PREMIER BEHAVIORAL SOLUTIONS, INC. | ||
PRIDE INSTITUTE, INC. | ||
PSYCHIATRIC MANAGEMENT RESOURCES, INC. | ||
PSYCHIATRIC SOLUTIONS HOSPITALS, LLC | ||
PSYCHIATRIC SOLUTIONS OF VIRGINIA, INC. | ||
PSYCHMANAGEMENT GROUP, INC. | ||
RAMSAY MANAGED CARE, LLC | ||
RAMSAY YOUTH SERVICES OF GEORGIA, INC. | ||
RAMSAY YOUTH SERVICES PUERTO RICO, INC. | ||
RED ROCK BEHAVIORAL HEALTH LLC | ||
RED ROCK SOLUTIONS, LLC | ||
RESOURCES FOR LIVING, LLC |
-27-
RIVEREDGE HOSPITAL HOLDINGS, INC. | ||
RIVEREDGE HOSPITAL, INC. | ||
ROCKFORD ACQUISITION SUB, INC. | ||
ROLLING HILLS HOSPITAL, LLC | ||
SAMSON PROPERTIES, LLC | ||
SERVICIOS CONDUCTUALES DEL CARIBE, INC. | ||
SHADOW MOUNTAIN BEHAVIORAL HEALTH SYSTEM, LLC | ||
SOMERSET, INCORPORATED | ||
SP BEHAVIORAL, LLC | ||
SPRINGFIELD HOSPITAL, INC. | ||
SUMMIT OAKS HOSPITAL, INC. | ||
SUNSTONE BEHAVIORAL HEALTH, LLC | ||
TBD ACQUISITION, LLC | ||
TBJ BEHAVIORAL CENTER, LLC | ||
TEXAS HOSPITAL HOLDINGS, INC. | ||
TEXAS HOSPITAL HOLDINGS, LLC | ||
THE COUNSELING CENTER OF MIDDLE TENNESSEE, INC. | ||
THE NATIONAL DEAF ACADEMY, LLC | ||
THE PINES RESIDENTIAL TREATMENT | ||
CENTER, INC. | ||
THE XXXXXXX GROUP, INC. | ||
THERAPEUTIC SCHOOL SERVICES, L.L.C. | ||
THREE RIVERS BEHAVIORAL HEALTH, LLC | ||
THREE RIVERS HEALTHCARE GROUP, LLC | ||
THREE RIVERS RESIDENTIAL TREATMENT | MIDLANDS CAMPUS, INC. |
||
THREE RIVERS SPE HOLDING, LLC | ||
THREE RIVERS SPE MANAGER, INC. | ||
THREE RIVERS SPE, LLC | ||
TRANSITIONAL CARE VENTURES, INC. | ||
TUCSON HEALTH SYSTEMS, INC. | ||
UNIVERSITY BEHAVIORAL, LLC | ||
XXXXX VISTA HOSPITAL PARTNERS, LLC | ||
XXXXX VISTA, LLC | ||
VIRGIN ISLANDS BEHAVIORAL SERVICES, INC. | ||
WEKIVA SPRINGS CENTER, LLC | ||
XXXXXXXXX HOLDINGS, INC. | ||
XXXXXXXXX REGIONAL HOSPITAL | ||
ACQUISITION, LLC | ||
WILLOW SPRINGS, LLC |
-28-
WINDMOOR HEALTHCARE, INC. | ||
WINDMOOR HEALTHCARE OF PINELLAS PARK, INC. | ||
WORK & FAMILY BENEFITS, INC. | ||
ZEUS ENDEAVORS, LLC |
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Vice President | |||
H.C. PARTNERSHIP BY: H.C. CORPORATION HSA HILL CREST CORPORATION |
||||
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Vice President |
SHC-KPH, LP BY: HHC KINGWOOD INVESTMENT, LLC |
||||
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Vice President | |||
BY: KINGWOOD PINES HOSPITAL, LLC | ||||
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Vice President |
-29-
BHC OF INDIANA, GENERAL PARTNERSHIP | ||||
BY: | COLUMBUS HOSPITAL PARTNERS, LLC LEBANON HOSPITAL PARTNERS, LLC NORTHERN INDIANA PARTNERS, LLC |
XXXXX VISTA HOSPITAL PARTNERS, LLC |
||||
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Vice President |
BLOOMINGTON XXXXXXX, GENERAL PARTNERSHIP | ||||
BY: | BHC OF INDIANA, GENERAL PARTNERSHIP | |||
BY: | COLUMBUS HOSPITAL PARTNERS, LLC | |||
LEBANON HOSPITAL PARTNERS, LLC | ||||
NORTHERN INDIANA PARTNERS, LLC | ||||
XXXXX VISTA HOSPITAL PARTNERS, LLC |
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Vice President |
BY: | INDIANA PSYCHIATRIC INSTITUTES, LLC |
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Vice President |
-00-
XXXXXXX XXXXX HOSPITAL, L.P. | ||
HIGH PLAINS BEHAVIORAL HEALTH, X.X. | ||
XXXXXXXX HOSPITAL, L.P. | ||
TEXAS CYPRESS CREEK HOSPITAL, L.P. | ||
TEXAS WEST OAKS HOSPITAL, L.P. | ||
NEURO INSTITUTE OF AUSTIN, L.P. | ||
TEXAS XXXXXX XXXXX HOSPITAL, L.P. | ||
TEXAS OAKS PSYCHIATRIC HOSPITAL, L.P. | ||
TEXAS SAN MARCOS TREATMENT CENTER, L.P. | ||
BY: TEXAS HOSPITAL HOLDINGS, LLC, | ||
as General Partner |
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Vice President | |||
The foregoing Registration Rights Agreement is hereby confirmed and accepted as of the date
first above written:
BANC OF AMERICA SECURITIES LLC
BARCLAYS CAPITAL INC.
CITIGROUP GLOBAL MARKETS INC.
X.X. XXXXXX SECURITIES INC.
RBC CAPITAL MARKETS CORPORATION
BARCLAYS CAPITAL INC.
CITIGROUP GLOBAL MARKETS INC.
X.X. XXXXXX SECURITIES INC.
RBC CAPITAL MARKETS CORPORATION
By:
|
Banc of America Securities LLC | |||
By:
|
/s/ Xxxxxxxxxxx Xxxxx Wall | |||
-31-