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Exhibit 4.1
CSC HOLDINGS, INC.
7 5/8% Senior Notes due 2011
Registration Rights Agreement
Dated: March 22, 2001
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REGISTRATION RIGHTS AGREEMENT
REGISTRATION RIGHTS AGREEMENT dated March 22, 2001, between CSC
HOLDINGS, INC., a Delaware corporation (the "Company"), and BANC OF AMERICA
SECURITIES LLC, BEAR, XXXXXXX & CO. INC., XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX
INCORPORATED, CHASE SECURITIES INC., TD SECURITIES (USA) INC., BMO XXXXXXX XXXXX
CORP., BNY CAPITAL MARKETS, INC., BARCLAYS CAPITAL INC., CREDIT LYONNAIS
SECURITIES (USA) INC., FIRST UNION SECURITIES, INC., FLEET SECURITIES, INC., RBC
DOMINION SECURITIES CORPORATION and SCOTIA CAPITAL (USA) INC., as the initial
purchasers (the "Initial Purchasers") of the Securities referred to below
pursuant to the Purchase Agreement, dated March 15, 2001, between the Initial
Purchasers and the Company, in connection with the issuance of $1,000,000,000
aggregate principal amount of the Company's 7 5/8% Senior Notes due 2011 (the
"Securities") pursuant to the Indenture, dated as of March 22, 2001, between the
Company and The Bank of New York, trustee (the "Indenture").
In consideration of the foregoing, the parties hereto agree as
follows:
1. Certain Definitions.
As used in this Agreement, the following defined terms shall have
the following meanings:
"best efforts" with respect to the Company shall mean the Company's
best efforts except that such term shall mean reasonable best efforts in
the event and to the extent that the Company could satisfy the standard
for the issuance of a Suspension Notice pursuant to the third paragraph of
Section 5 hereof.
"Business Day" shall mean any day except (i) a Saturday, Sunday or
other day in The City of New York on which banks are required or
authorized to close or (ii) any other day on which the SEC is closed.
"Closing Time" shall mean the Closing Time as defined in the
Purchase Agreement.
"Company" shall have the meaning set forth in the preamble and shall
also include a company which succeeds to all or substantially all of the
Company's cable television business.
"Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time.
"Exchange Offer" shall mean the exchange offer by the Company of
Exchange Securities for Registrable Securities pursuant to Section 2(a)
hereof.
"Exchange Offer Registration" shall mean a registration under the
Securities Act effected pursuant to Section 2(a) hereof.
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"Exchange Offer Registration Statement" shall mean an exchange offer
registration statement of the Company pursuant to the provisions of
Section 2(a) hereof on Form S-4 (or, if applicable, on another appropriate
form), and all amendments and supplements to such registration statement,
in each case including the Prospectus contained therein, all exhibits
thereto and all material incorporated by reference therein.
"Exchange Securities" shall mean the 7 5/8% Series B Senior Notes
due 2011 issued by the Company under the Indenture as Exchange Securities
(as defined therein), to be offered to Holders of Securities pursuant to
the Exchange Offer.
"Holder" shall mean, individually, each of the Initial Purchasers,
for so long as they own any Registrable Securities, and any of the Initial
Purchasers' successors, assigns and direct and indirect transferees who
become registered owners of Registrable Securities.
"Indenture" shall have the meaning set forth in the preamble.
"Initial Purchasers" shall have the meaning set forth in the
preamble.
"Majority Holders" shall mean the Holders of a majority of the
aggregate principal amount of outstanding Registrable Securities.
"Person" shall mean an individual, partnership, corporation, trust
or unincorporated organization, or a government or agency or political
subdivision thereof.
"Prospectus" shall mean the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus
as amended or supplemented by any prospectus supplement, including a
prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Securities covered by a Shelf Registration
Statement, and by all other amendments and supplements to a prospectus,
including post-effective amendments, and in each case including all
material incorporated by reference therein.
"Purchase Agreement" shall mean the Purchase Agreement, dated March
15, 2001, between the Company and the Initial Purchasers, providing for
the initial purchase and sale of the Securities.
"Registrable Securities" shall mean the Securities; provided,
however, that any such Securities shall cease to be Registrable Securities
upon the earlier to occur of the date on which (i) the Exchange Offer has
been consummated, (ii) a Registration Statement with respect to such
Securities shall have been declared effective under the Securities Act and
such Securities shall have been disposed of pursuant to such Registration
Statement, provided, that Securities not disposed of pursuant to an
effective Shelf Registration Statement shall cease to be Registrable
Securities two years from the date such Shelf Registration Statement is
declared effective by the SEC, or such longer period as the Company's
obligation to keep such Shelf Registration Statement effective is extended
in accordance with Section 5 hereof, (iii) such Registrable Securities
have been sold to the public pursuant to Rule 144(k) (or any similar
provision then in force, but not
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Rule 144A) under the Securities Act, or (iv) such Registrable
Securities shall have ceased to be outstanding.
"Registration Expenses" shall mean any and all expenses incident to
the performance of or compliance by the Company with this Agreement,
including without limitation: (i) all SEC or National Association of
Securities Dealers, Inc. registration and filing fees, (ii) all fees and
expenses incurred in connection with compliance with state securities or
blue sky laws, (iii) all expenses of any Persons acting on behalf of the
Company in preparing or assisting in preparing, word processing, printing
and distributing any Registration Statement, any Prospectus, any
amendments or supplements thereto and other documents reasonably relating
to the performance of and compliance with this Agreement by the Company,
(iv) all rating agency fees, (v) the fees and disbursements of counsel for
the Company and, in connection with a Shelf Registration Statement, the
fees and disbursements of one counsel for the Holders (which counsel shall
be selected by the Majority Holders and shall be reasonably acceptable to
the Company), and (vi) any fees and expenses of the independent public
accountants of the Company, including the expenses of any special audits
or "cold comfort" letters (in connection with a Shelf Registration)
required by or necessary to such performance and compliance, but excluding
underwriting discounts and commissions, fees and expenses and transfer
taxes, if any, relating to the sale or disposition of Registrable
Securities by a Holder.
"Registration Statement" shall mean any Exchange Offer Registration
Statement or Shelf Registration Statement.
"SEC" shall mean the Securities and Exchange Commission.
"Securities" shall have the meaning set forth in the preamble.
"Securities Act" shall mean the Securities Act of 1933, as amended
from time to time.
"Shelf Registration" shall mean a registration effected pursuant to
Section 2(b) hereof.
"Shelf Registration Statement" shall mean a "shelf" registration
statement of the Company pursuant to the provisions of Section 2(b) hereof
which covers all of the Registrable Securities on an appropriate form
under Rule 4l5 under the Securities Act, or any similar rule that may be
adopted by the SEC and all amendments and supplements to such registration
statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.
"Trustee" shall mean the trustee with respect to the Securities and
the Exchange Securities under the Indenture.
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"Underwritten Registration or Underwritten Offering" shall mean a
registration in which Registrable Securities are sold to one or more
Underwriters (as hereinafter defined) for reoffering to the public.
2. Registration Under the Securities Act.
(a) Exchange Offer Registration. The Company shall, for the benefit
of the Holders of the Securities, file an Exchange Offer Registration Statement
with respect to Exchange Securities within 60 days after the Closing Time and
use its best efforts to cause such Exchange Offer Registration Statement to be
declared effective under the Securities Act within 180 days after the Closing
Time. Upon such Exchange Offer Registration Statement becoming effective under
the Securities Act, the Company shall offer the Exchange Securities in return
for surrender of the Securities. The Exchange Offer shall remain open for not
less than 30 days (or longer if required by applicable law) after the date
notice of the Exchange Offer is mailed to Holders of the Securities. For the
Securities surrendered to the Company under the Exchange Offer, the Holder will
receive Exchange Securities having an aggregate principal amount equal to that
of the surrendered Securities. Interest on the Exchange Securities shall accrue
from the last maturity date of any interest installment on which interest was
paid on the Security so surrendered (or the Exchange Securities, as the case may
be or, if no interest has been paid on the Securities, from March 22, 2001). The
Company shall commence the Exchange Offer by mailing the related Exchange Offer
Prospectus and accompanying documents to each Holder stating, in addition to
such other disclosures as are required by applicable law:
(i) that the Exchange Offer is being made pursuant to this
Registration Rights Agreement and that all Registrable Securities validly
tendered will be accepted for exchange;
(ii) the date of acceptance for exchange (which shall be a Business
Day no earlier than 30 days nor later than 40 days (unless otherwise
required by applicable law) from the date such notice is mailed) (the
"Exchange Date");
(iii) that any Registrable Security not tendered will remain
outstanding and shall accrue interest at the initial rate borne by the
Securities and, other than Registrable Securities referred to in Section
2(b)(iii) below, will not retain any rights under this Registration Rights
Agreement;
(iv) that Holders electing to have a Registrable Security exchanged
pursuant to the Exchange Offer will be required to surrender such
Registrable Security, together with letters of transmittal, to the
institution and at the address (located in the Borough of Manhattan, City
of New York) specified in the notice prior to the close of business on the
Business Day immediately preceding the Exchange Date; and
(v) that Holders will be entitled to withdraw the election, not
later than the close of business on the Business Day immediately preceding
the Exchange Date, by sending to the institution and at the address
(located in the Borough of Manhattan, City of New York) specified in the
notice, a telegram, telex, facsimile transmission or letter setting forth
the name of such Holder, the number of shares of Registrable Securities
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delivered for exchange, and a statement that such Holder is withdrawing
its election to have such Registrable Securities exchanged.
On the Exchange Date, the Company shall:
(i) accept for exchange Registrable Securities tendered and not
validly withdrawn pursuant to the Exchange Offer; and
(ii) deliver, or cause to be delivered, to the Trustee for
cancellation all Registrable Securities so accepted for exchange by the
Company, and issue and mail to each Holder or such Holder's nominee, for
the Registrable Securities so surrendered, new Exchange Securities having
an aggregate liquidation preference equal to that of the Registrable
Securities surrendered by such Holder.
The Company shall use its best efforts to complete the Exchange Offer as
provided above, and in accordance with the applicable requirements of the
Securities Act, the Exchange Act and other applicable laws in connection with
the Exchange Offer. Consummation of the Exchange Offer shall not be subject to
any conditions, other than that the Exchange Offer does not, and consummation of
the Exchange Offer will not, violate applicable law or any applicable
interpretation of the staff of the SEC. The Company shall inform the Initial
Purchasers of the names and addresses of the Holders to whom the Exchange Offer
is made, and the Initial Purchasers shall have the right to contact such Holders
and otherwise facilitate the tender of Registrable Securities in the Exchange
Offer.
(b) Shelf Registration. In the event that (i) the Company determines
that the Exchange Offer Registration provided in Section 2(a) above is not
available or may not be consummated because it would violate applicable law or
the applicable interpretations of the SEC staff, (ii) the Exchange Offer is not
for any other reason consummated within 180 days after the Closing Time, or
(iii) following the consummation of the Exchange Offer a Registration Statement
must be filed and a Prospectus must be delivered by the Initial Purchasers in
connection with any offering or sale of Registrable Securities because such
Registrable Securities represent an unsold allotment of the Registrable
Securities purchased by the Initial Purchasers from the Company, unless the
Company has previously done so, the Company will (a) file as soon as practicable
after such determination or date, as the case may be, a Shelf Registration
Statement providing for the sale by the Holders of all of the Registrable
Securities, (b) use its best efforts to have such Shelf Registration Statement
declared effective by the SEC and (c) keep the Shelf Registration Statement
continuously effective until the second anniversary of the Closing Time or such
shorter period which will terminate when all of the Registrable Securities
covered by the Shelf Registration Statement have been sold pursuant to the Shelf
Registration Statement. In the event the Company is required to file a Shelf
Registration Statement solely as a result of the matters referred to in clause
(iii) of the preceding sentence, the Company shall file and have declared
effective by the SEC both an Exchange Offer Registration Statement pursuant to
Section 2(a) with respect to all Registrable Securities and a Shelf Registration
Statement (which may be a combined Registration Statement with the Exchange
Offer Registration Statement) with respect to offers and sales of Registrable
Securities held by the Initial Purchasers after completion of the Exchange
Offer. The Company further agrees, if necessary, to supplement or amend the
Shelf Registration Statement, if required by the rules,
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regulations or instructions applicable to the registration form used by the
Company for such Shelf Registration Statement or by the 1933 Act or by any other
rules and regulations thereunder for shelf registration, and the Company agrees
to furnish to the Holders of Registrable Securities copies of any such
supplement or amendment promptly after its being used or filed with the SEC.
(c) Expenses. The Company shall pay all Registration Expenses in
connection with any registration pursuant to Section 2(a) or 2(b) hereof.
(d) Effective Registration Statement. An Exchange Offer Registration
Statement pursuant to Section 2(a) hereof or a Shelf Registration Statement
pursuant to Section 2(b) hereof will not be deemed to have become effective
unless it has been declared effective by the SEC; provided, however, that if,
after it has been declared effective, the offering of Registrable Securities
pursuant to a Shelf Registration Statement is interfered with by any stop order,
injunction or other order or requirement of the SEC or any other governmental
agency or court, such Registration Statement will be deemed not to have been
effective during the period of such interference, until the offering of
Registrable Securities pursuant to such Registration Statement may legally
resume.
3. Participation of Broker-Dealers in Exchange Offer.
(a) The SEC staff has taken the position that any broker-dealer that
receives Exchange Securities for its own account in the Exchange Offer in
exchange for Securities that were acquired by such broker-dealer as a result of
market-making or other trading activities (a "Participating Broker-Dealer") may
be deemed to be an "underwriter" within the meaning of the Securities Act and
must deliver a prospectus meeting the requirements of the Securities Act in
connection with any resale of such Exchange Securities.
The Company understands that it is the SEC staff's position that if
the Prospectus contained in the Exchange Offer Registration Statement includes a
plan of distribution containing a statement to the above effect and the means by
which Participating Broker-Dealers may resell the Exchange Securities, without
naming the Participating Broker-Dealers or specifying the amount of Exchange
Securities owned by them, such Prospectus may be delivered by Participating
Broker-Dealers and other Persons, if any, subject to similar prospectus delivery
requirements to satisfy their prospectus delivery obligation under the
Securities Act in connection with resales of Exchange Securities for their own
accounts, so long as the Prospectus otherwise meets the requirements of the
Securities Act.
(b) In light of the above, notwithstanding the other provisions of
this Agreement, the Company agrees that the provisions of this Agreement as they
relate to a Shelf Registration shall also apply to an Exchange Offer
Registration to the extent, and with such reasonable modifications thereto as
may be, reasonably requested by the Initial Purchasers or by one or more
Participating Broker-Dealers, in each case as provided in clause (ii) below, in
order to expedite or facilitate the disposition of any Exchange Securities by
Participating Broker-Dealers consistent with the positions of the SEC staff
recited in Section 3(a) above; provided that:
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(i) the Company shall not be required to amend or supplement the
Prospectus contained in the Exchange Offer Registration Statement, as
would otherwise be contemplated by Section 5(i), for a period exceeding 90
days after the last Exchange Date (as such period may be extended pursuant
to the penultimate paragraph of Section 5 of this Agreement) and
Participating Broker-Dealers shall not be authorized by the Company to
deliver and shall not deliver such Prospectus after such period in
connection with the resales contemplated by this Section 3; and
(ii) the application of the Shelf Registration procedures set forth
in Section 5 of this Agreement to an Exchange Offer Registration, to the
extent not required by the positions of the SEC staff or the Securities
Act and the rules and regulations thereunder, will be in conformity with
the reasonable request to the Company by the Initial Purchasers or with
the reasonable request in writing to the Company by one or more
broker-dealers who certify to the Initial Purchasers and the Company in
writing that they anticipate that they will be Participating
Broker-Dealers; and provided further that, in connection with such
application of the Shelf Registration procedures set forth in Section 5 to
an Exchange Offer Registration, the Company shall be obligated (x) to deal
only with one entity representing the Participating Broker-Dealers, which
shall be one of the Initial Purchasers unless they collectively elect not
to act as such representative, (y) to pay the fees and expenses of only
one counsel representing the Participating Broker-Dealers, which shall be
counsel to the Initial Purchasers unless such counsel elects not to so act
and (z) to cause to be delivered only one, if any, "cold comfort" letter
with respect to the Prospectus in the form existing on the last Exchange
Date and with respect to each subsequent amendment or supplement, if any,
effected during the period specified in clause (i) above; provided, that
the provisions of clauses (y) and (z) of this Section 3(b)(ii) shall apply
only if one or more Participating Broker-Dealers holding at least
$10,000,000 principal amount of Registrable Securities shall request that
the provisions of this Agreement as they relate to a Shelf Registration
also apply to an Exchange Offer Registration Statement for the disposition
of Exchange Securities by Participating Broker-Dealers.
4. Liquidated Damages.
In the event that, for any reason, either (a) the Exchange Offer
Registration Statement is not filed with the SEC on or prior to the 60th
calendar day following the Closing Time or (b) the Exchange Offer is not
consummated or a Shelf Registration Statement is not declared effective on or
prior to the 180th calendar day following the Closing Time, the interest rate
borne by the Securities shall be increased by one-quarter of one percent per
annum for the first 30 days following such 60-day period in the case of (a)
above, or the first 90 days following such 180-day period in the case of (b)
above. Such interest rate will increase by an additional one-quarter of one
percent per annum at the beginning of each subsequent 30-day period in the case
of (a) above, or 90-day period in the case of (b) above, up to a maximum
aggregate increase of one percent per annum. Upon (i) the filing of the Exchange
Offer Registration Statement or (ii) the consummation of the Exchange Offer or
the effectiveness of a Shelf Registration Statement, as the case may be, the
interest rate borne by the Securities will be reduced to the original interest
rate.
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5. Registration Procedures.
In connection with the obligations of the Company with respect to
the Registration Statement pursuant to Sections 2(a) and 2(b) hereof, the
Company shall:
(a) prepare and file with the SEC a Registration Statement on the
appropriate form under the Securities Act, which form (i) shall be
selected by the Company and (ii) shall, in the case of a Shelf
Registration, be available for the sale of the Registrable Securities in
accordance with the intended method or methods of distribution as the
Company is so advised of by the selling Holders thereof and (iii) shall
comply as to form in all material respects with the requirements of the
applicable form and include (including through incorporation by reference)
all financial statements required by the SEC to be filed therewith, and
the Company shall use its best efforts to cause such Registration
Statement to become effective and remain effective in accordance with
Section 2 hereof;
(b) prepare and file with the SEC such amendments and post-effective
amendments to such Registration Statement as may be necessary to keep such
Registration Statement in compliance with the Securities Act; and 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;
(c) in the case of a Shelf Registration, furnish to each Holder of
Registrable Securities and to each underwriter of Registrable Securities,
if any, without charge, as many copies of the Prospectus, including each
preliminary prospectus, and any amendment or supplement thereto and such
other documents as such Holder or Underwriter may reasonably request, in
order to facilitate the public sale or other disposition of the
Registrable Securities;
(d) in the case of a Shelf Registration, use its best efforts to
register or qualify the Registrable Securities under all applicable state
securities or "blue sky" laws of such jurisdictions as any Holder of
Registrable Securities covered by such Shelf Registration Statement and or
any Underwriter shall reasonably request in writing by the time the
applicable Shelf Registration Statement is declared effective by the SEC,
and do any and all other acts and things which may be reasonably necessary
or advisable to enable such Holder or Underwriter to consummate the
disposition in each such designated jurisdiction, provided, however, that
the Company shall not be required to (i) qualify generally to do business
as a foreign corporation or as a broker-dealer in any jurisdiction where
it would not otherwise be required to qualify but for this Section 5(d),
(ii) consent to general service of process in any such jurisdiction or
(iii) subject itself to taxation in any such jurisdiction;
(e) in the case of a Shelf Registration, promptly notify each Holder
and, if requested by such Holder, confirm such advice in writing (i) when
such Shelf Registration Statement has become effective and when any
post-effective amendments and supplements thereto become effective, (ii)
of the issuance by the SEC or any state securities authority of any stop
order suspending the effectiveness of such Shelf
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Registration Statement or the initiation of any proceedings for that
purpose, (iii) if, between the effective date of such Shelf Registration
Statement and the closing of any sale of Registrable Securities covered
thereby, the Company receives any notification with respect to the
suspension of the qualification of the Registrable Securities for sale in
any jurisdiction or the initiation of any proceeding for such purpose, and
(iv) of the happening of any event during the period such Shelf
Registration Statement is effective which makes any statement made in such
Shelf Registration Statement or the related Prospectus untrue in any
material respect or which requires the making of any changes in such Shelf
Registration Statement or Prospectus in order to make the statements
therein not misleading;
(f) make every reasonable effort to obtain the withdrawal of any
order suspending the effectiveness of a Registration Statement promptly
and shall provide notice to each Holder of the withdrawal of any such
order as promptly as practicable;
(g) in the case of a Shelf Registration, furnish to each Holder of
Registrable Securities, without charge, at least one conformed copy of
such Shelf Registration Statement and any post-effective amendment thereto
(without documents incorporated therein by reference or exhibits thereto,
unless requested);
(h) in the case of a Shelf Registration, cooperate with the selling
Holders of Registrable Securities to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be sold
and not bearing any restrictive legends; and enable such Registrable
Securities to be in such denominations and registered in such names as the
selling Holders may reasonably request at least two business days prior to
the closing of any sale of Registrable Securities;
(i) in the case of a Shelf Registration, upon the occurrence of any
event contemplated by Section 5(e)(iv) hereof, use its best efforts to
prepare a supplement or post-effective amendment to such Shelf
Registration Statement or 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, such Prospectus will not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they
were made, not misleading;
(j) in the case of a Shelf Registration Statement, enter into and
deliver all such customary agreements, documents and take such other
actions (including causing the delivery of opinions of counsel and
"comfort" letters of independent certified public accountants) as are
reasonably required to expedite or facilitate the disposition of
Registrable Securities;
(k) in the case of a Shelf Registration, upon reasonable notice make
available for inspection by a representative of the Holders of the
Registrable Securities, any Underwriter participating in any disposition
pursuant to such Shelf Registration Statement, and any attorney or
accountant designated by the Selling Holders, at reasonable times and in a
reasonable manner, all financial and other records, pertinent
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documents and properties of the Company, and cause the respective
officers, directors and employees of the Company to supply all information
reasonably requested by any such representative, Underwriter, attorney or
accountant in connection with a Shelf Registration Statement; provided,
however, that such representatives, attorneys or accountants shall be
acceptable to the Company in its judgment reasonably exercised and shall
agree to enter into a written confidentiality agreement mutually
acceptable to the Company and the Underwriters regarding any records,
information or documents that are designated by the Company as
confidential unless such records, information or documents are available
to the public or disclosure of such records, information or documents is
required by court or administrative order after the exhaustion of appeals
therefrom and to use such information obtained pursuant to this provision
only in connection with the transaction for which such information was
obtained, and not for any other purpose;
(l) in the case of a Shelf Registration, provide copies of any
Prospectus, any amendment to any applicable Shelf Registration Statement
or amendment or supplement to any Prospectus or any document which is to
be incorporated by reference into such Shelf Registration Statement or any
Prospectus after initial filing of such Shelf Registration Statement, a
reasonable time prior to the filing of any such Prospectus, amendment,
supplement or document, to the Initial Purchasers on behalf of the Holders
and Underwriters, if any, and except with respect to a Shelf Registration
filed pursuant to Section 2(b)(iii) not file any such document in a form
to which the Initial Purchasers on behalf of the Holders or Underwriters,
if any, shall reasonably object; and make the representatives of the
Company as shall be reasonably requested by the Holders or the Initial
Purchasers on behalf of such Holders available for discussion of such
document; provided that the requirements of this paragraph shall not apply
to the Company's annual report on Form 10-K, its Quarterly Reports on Form
10-Q, its current reports on Form 8-K or any other documents filed
pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act (the
"Exchange Act Documents"); and further provided that the Company shall
promptly notify Holders of the filing of any Exchange Act Documents except
for such Exchange Act Documents specifically related to the offering of
other securities and not to the Registrable Securities;
(m) obtain a CUSIP number for all Exchange Securities or Registrable
Securities, as the case may be, not later than the effective date of any
Registration Statement; and
(n) cause the Indenture to be qualified under the Trust Indenture
Act of 1939, as amended (the "TIA"), in connection with the registration
of the Exchange Securities, cooperate with the Trustee and the Holders to
effect such changes to the Indenture as may be required for the Indenture
to be so qualified in accordance with the terms of the TIA and execute,
and use its best efforts to cause the 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 the Indenture to be so
qualified in a timely manner.
In the case of a Shelf Registration Statement, the Company may (as a
condition to such Holder's participation in a Shelf Registration) require each
Holder to furnish to the
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Company information regarding the Holder and the proposed distribution by such
Holder of any Registrable Securities as the Company may from time to time
reasonably request in writing.
In the case of a Shelf Registration Statement, each Holder agrees
that, upon receipt of any (i) notice from the Company of the happening of any
event of the kind described in Section 5(e)(ii) or (iv) hereof, (ii) notice from
the Company that it is in possession of material information that has not been
disclosed to the public and the Company reasonably deems it to be advisable not
to disclose such information in a registration statement or (iii) notice from
the Company that it is in the process of a registered offering of securities and
the Company reasonably deems it to be advisable to temporarily discontinue
disposition of Registrable Securities pursuant to the Shelf Registration
Statement (in each case, such notice being hereinafter referred to as a
"Suspension Notice"), such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to any Shelf Registration Statement and shall
not be entitled to the benefits provided under Section 6 hereof with respect to
any sales made by it in contravention of this paragraph, until such Holder's
receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 5(i) or a notice in accordance with Section 5(f) hereof that any order
suspending the effectiveness of the Shelf Registration Statement has been
withdrawn, or, in the case of (ii) or (iii) above, until further notice from the
Company that disposition of Registrable Securities may resume, provided that
(except with respect to a Shelf Registration filed pursuant to Section
2(b)(iii)) such further notice will be given within 90 days of the Suspension
Notice in the case of (ii) above and within 120 days of the Suspension Notice in
the case of (iii) above, and provided further that in the case of (ii) and (iii)
above that any Suspension Notice must be based upon a good faith determination
of the Board of Directors of the Company or the Executive Committee thereof that
such Notice is necessary; and, if so directed by the Company, such Holder will
deliver to the Company (at the expense of the Company) all copies in its
possession, other than permanent file copies then in such Holder's possession,
of the Prospectus covering such Registrable Securities current at the time of
receipt of such notice. If the Company shall give any such notice to suspend the
disposition of Registrable Securities pursuant to any Shelf Registration
Statement, the Company shall extend the period during which such Shelf
Registration Statement shall be maintained effective pursuant to this Agreement
by the number of days during the period from and including the date of the
giving of such notice to and including the date when the Holders shall have
received copies of the supplemented or amended Prospectus necessary to resume
such dispositions or received notice that any order suspending dispositions of
the Securities has been withdrawn.
Each Holder will furnish to the Company such information regarding
such Holder and the distribution of such Registrable 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 or any
relevant state securities or Blue Sky law or obligation. Each Holder of
Registrable Securities as to which any registration is being effected agrees to
notify the Company as promptly as practicable of any inaccuracy or change in
information previously furnished by such Holder to the Company or of the
happening of any event, in either case as a result of which any Prospectus
relating to such registration contains an untrue statement of a material fact
regarding such Holder or the distribution of such Registrable Securities or
omits to state any material fact regarding such Holder or the distribution of
such Registrable Securities 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 to furnish to the Company
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promptly any additional information required to correct and update any
previously furnished information or required such that such prospectus shall not
contain, with respect to such holder or the distribution of such Registrable
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,
in the light of the circumstances under which they were made, not misleading.
6. Indemnification; Contribution.
(a) The Company agrees to indemnify and hold harmless each Holder and
each Person, if any, who controls any Holder within the meaning of Section 15 of
the Securities Act as follows:
(i) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, arising out of any untrue statement or alleged
untrue statement of a material fact contained in any Shelf Registration
Statement (or any amendment thereto) pursuant to which Registrable
Securities were registered under the Securities Act, including all
documents incorporated therein by reference, or the omission or alleged
omission therefrom of a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading or arising out of any untrue statement or alleged untrue
statement of a material fact contained in any preliminary prospectus or
any Prospectus (or any amendment or supplement thereto) or the omission or
alleged omission therefrom of a material fact necessary in order to make
the statements therein, in light of the circumstances under which they
were made, not misleading;
(ii) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement of any litigation, or investigation or proceeding by any
governmental agency or body, commenced or threatened, or of any claim
whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, if such settlement is effected with
the written consent of the Company; and
(iii) against any and all expense whatsoever, as incurred (including
fees and disbursements of counsel chosen by any Holder), reasonably
incurred in investigating, preparing or defending against any litigation,
or investigation or proceeding by any governmental agency or body,
commenced or threatened, or any claim whatsoever based upon any such
untrue statement or omission, or any such alleged untrue statement or
omission, to the extent that any such expense is not paid under
subparagraph (i) or (ii) above;
provided, however, that this indemnity does not apply to any loss, claim,
damage, liability or expense to the extent it arises out of an untrue statement
or omission or alleged untrue statement or omission made in reliance upon and in
conformity with written information furnished to the Company by any Holder
expressly for use in a Registration Statement (or any amendment thereto) or any
Prospectus (or any amendment or supplement thereto).
The foregoing indemnity with respect to any untrue statement
contained in or any omission from a preliminary prospectus shall not inure to
the benefit of any Holder (or any
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Person controlling such Holder) from whom the Person asserting any such loss,
liability, claim, damage or expense purchased any of the Securities that are the
subject thereof if the Company shall sustain the burden of proving that such
Person was not sent or given a copy of the Prospectus (or the Prospectus as
amended or supplemented) (in each case exclusive of the documents from which
information is incorporated by reference) at or prior to the written
confirmation of the sale of such Securities to such Person and the untrue
statement contained in or the omission from such preliminary prospectus was
corrected in the Prospectus (or the Prospectus as amended or supplemented).
(b) Each Holder severally agrees to indemnify and hold harmless the
Company, its directors, officers and each Person, if any, who controls the
Company within the meaning of Section 15 of the Securities Act, against any and
all loss, liability, claim, damage and expense described in the indemnity
contained in Section 6(a) hereof, as incurred, but only with respect to untrue
statements or omissions, or alleged untrue statements or omissions, made in the
Registration Statement (or any amendment thereto) or any Prospectus (or any
amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to the Company by such Holder expressly for use in the
Registration Statement (or any amendment thereto) or such Prospectus (or any
amendment or supplement thereto).
(c) Each indemnified party shall give prompt notice to each
indemnifying party of any action commenced against it in respect of which
indemnity may be sought hereunder, but failure to so notify an indemnifying
party shall not relieve it from any liability which it may have otherwise than
under this indemnity agreement. An indemnifying party may participate at its own
expense in the defense of such action; provided, however, that counsel to the
indemnifying party shall not (except with the consent of the indemnified party)
also be counsel to the indemnified party. In no event shall the indemnifying
party or parties be liable for the fees and expenses of more than one counsel
for all indemnified parties in connection with any one action or separate but
similar or related actions in the same jurisdiction, arising out of the same
general allegations or circumstances.
(d) In order to provide for just and equitable contribution in
circumstances in which the indemnity agreement provided for in this Section 6 is
for any reason held to be unenforceable by the indemnified parties although
applicable in accordance with its terms, the Company and the Holders shall
contribute to the aggregate losses, liabilities, claims, damages and expenses of
the nature contemplated by such indemnity agreement incurred by the Company and
one or more of the Holders; provided, however, that 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. As between the Company and the
Holders, such parties shall contribute to the aggregate losses, liabilities,
claims, damages and expenses of the nature contemplated by such indemnity
agreement in such proportion as shall be appropriate to reflect (i) the relative
benefits received by the Company on the one hand and the Holders on the other
hand, from the offering of the Exchange Securities or Registrable Securities
included in such offering, and (ii) the relative fault of the Company on the one
hand and the Holders on the other, with respect to the statements or omissions
which resulted in such loss, liability, claim, damage or expense, or action in
respect thereof, as well as any other relevant equitable considerations. The
Company and the Holders of the Registrable Securities agree that it would not be
just and equitable if contribution pursuant to
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this Section 6 were to be determined by pro rata allocation or by any other
method of allocation which does not take into account the relevant equitable
considerations. For purposes of this Section 6, each Person, if any, who
controls a Holder within the meaning of Section 15 of the Securities Act shall
have the same rights to contribution as such Holder, and each director of the
Company, each officer of the Company who signed the Registration Statement, and
each Person, if any, who controls the Company within the meaning of Section 15
of the Securities Act shall have the same rights to contribution as the Company.
7. Selection of Underwriters. The Holders of Registrable Securities
covered by the Shelf Registration Statement who desire to do so may sell such
Registrable Securities in an Underwritten Offering. In any such Underwritten
Offering, the investment banker or investment bankers and manager or managers
(the "Underwriters") that will administer the offering will be selected by the
Majority Holders of the Registrable Securities included in such offering;
provided that such Underwriters must be reasonably acceptable to the Company.
8. Miscellaneous.
(a) No Inconsistent Agreements. The Company has not entered into nor
will the Company on or after the date of this Agreement enter into any agreement
which is inconsistent with the rights granted to the Holders 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 Company's other issued and outstanding
securities under any such agreements.
(b) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given unless the Company has obtained the written consent of Holders
of at least a majority of the issued and outstanding Registrable Securities
affected by such amendment, modification, supplement, waiver or departure;
provided, however, no amendment, modification or supplement, waiver or consent
with respect to the provisions of Section 6 hereof shall be effective as against
any Holder of Registrable Securities unless consented to in writing by such
Holder.
(c) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, registered
first-class mail, telex, telecopier, or any courier guaranteeing overnight
delivery (i) if to a Holder, at the most current address given by such Holder to
the Company by means of a notice given in accordance with the provisions of this
Section 8(c); (ii) if to the Company, initially at 0000 Xxxxxxx Xxxxxx,
Xxxxxxxx, Xxx Xxxx 00000, Attention: General Counsel, and thereafter at such
other address, notice of which is given in accordance with the provisions of
this Section 8(c).
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 is acknowledged, if telecopied; and
on the next business day if timely delivered to any courier guaranteeing
overnight delivery.
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Copies of all such notices, demands, or other communications shall
be concurrently delivered by the Person giving the same to the Trustee at The
Bank of New York, 000 Xxxxxxx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Corporate Trust Department.
(d) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors, assigns and transferees of each
of the parties, including, without limitation and without the need for an
express assignment, subsequent Holders; provided 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. If any
transferee of any Holder shall acquire Registrable Securities, in any manner,
whether by operation of law or otherwise, such Registrable Securities shall be
held subject to all of the terms of this Agreement, and by taking and holding
such Registrable Securities such Person shall be conclusively deemed to have
agreed to be bound by and to perform all of the terms and provisions of this
Agreement and such Person shall be entitled to receive the benefits hereof.
(e) Enforcement by Initial Purchasers. The Initial Purchasers shall
have the right to directly enforce the agreements made hereunder between the
Company, on the one hand, and the Holders, on the other hand, to the extent they
deem such enforcement necessary or advisable to protect their rights or the
rights of Holders hereunder, provided, however, that such right of direct
enforcement shall terminate upon consummation of an Exchange Offer.
(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 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.
(i) 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.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date first written above.
CSC HOLDINGS, INC.
By: /s/ Xxxxxx Xxxxxxxxx
---------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: Executive Vice President,
Finance & Controller
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Confirmed and accepted as of the date first above written:
BANC OF AMERICA SECURITIES LLC
BEAR, XXXXXXX & CO. INC.
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX
INCORPORATED
CHASE SECURITIES INC.
TD SECURITIES (USA) INC.
BMO XXXXXXX XXXXX CORP.
BNY CAPITAL MARKETS, INC.
BARCLAYS CAPITAL INC.
CREDIT LYONNAIS SECURITIES (USA) INC.
FIRST UNION SECURITIES, INC.
FLEET SECURITIES, INC.
RBC DOMINION SECURITIES CORPORATION
SCOTIA CAPITAL (USA) INC.
c/o Merrill Lynch, Pierce, Xxxxxx & Xxxxx Incorporated
By: Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated
By: /s/ Xxxxxxxxxxx Xxxxxx
-----------------------------
Name: Xxxxxxxxxxx Xxxxxx
Title: Vice President
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