EXHIBIT 10.2
UNITED AUTO GROUP, INC. (A DELAWARE CORPORATION), AS ISSUER,
THE GUARANTORS NAMED HEREIN, AS GUARANTORS,
AND
BANK ONE TRUST COMPANY, N.A., AS TRUSTEE
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INDENTURE
DATED AS OF MARCH 18, 2002
---------------
9 5/8% SENIOR SUBORDINATED NOTES DUE 2012
Reconciliation and tie between Trust Indenture Act of 1939, as amended, and
Indenture, dated as of March 18, 2002
Trust Indenture Indenture
Act Section Section
----------- -------
ss. 310 (a)(1)..................................................................... 609
(a)(2)..................................................................... 609
(b)........................................................................ 608, 610
ss. 311 (a)........................................................................ 613
ss. 312 (a)........................................................................ 701
(b)........................................................................ 702
(c)........................................................................ 702
ss. 313 (a)........................................................................ 703
(b)(2)..................................................................... 703
(c)........................................................................ 703, 704
ss. 314 (a)........................................................................ 704
(a)(4)..................................................................... 1020
(c)(1)..................................................................... 103
(c)(2)..................................................................... 103
(e)........................................................................ 103
ss. 315 (a)........................................................................ 601(b)
(b)........................................................................ 602
(c)........................................................................ 601(a)
(d)........................................................................ 601(c), 603
(e)........................................................................ 514
ss. 316 (a)(last sentence)......................................................... 101 ("Outstanding")
(a)(1)(A).................................................................. 512
(a)(1)(B).................................................................. 513
(b)........................................................................ 508
(c)........................................................................ 105(e)
ss. 317 (a)(1)..................................................................... 503(b)
(a)(2)..................................................................... 504
(b)........................................................................ 1003
ss. 318 (a)........................................................................ 108
-------------------------
Note: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of this Indenture.
TABLE OF CONTENTS
PAGE
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PARTIES...........................................................................................................1
RECITALS..........................................................................................................1
ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION..............................................2
Section 101. Definitions.................................................................................2
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"Acquired Indebtedness"..................................................................2
"Affiliate"..............................................................................2
"Applicable Procedures"..................................................................3
"Asset Sale".............................................................................3
"Average Life to Stated Maturity"........................................................3
"Bankruptcy Law".........................................................................3
"Board of Directors".....................................................................4
"Board Resolution".......................................................................4
"Book-Entry Security"....................................................................4
"Business Day"...........................................................................4
"Capital Lease Obligation"...............................................................4
"Capital Stock"..........................................................................4
"Cash Equivalents".......................................................................4
"Change of Control"......................................................................5
"Clearstream"............................................................................6
"Code"...................................................................................6
"Commission".............................................................................6
"Commodity Price Protection Agreement"...................................................6
"Common Stock"...........................................................................6
"Company"................................................................................6
"Company Request" or "Company Order".....................................................7
"Consolidated Fixed Charge Coverage Ratio"...............................................7
"Consolidated Income Tax Expense"........................................................8
"Consolidated Interest Expense"..........................................................8
"Consolidated Net Income (Loss)".........................................................8
"Consolidated Non-cash Charges"..........................................................9
"Consolidated Tangible Assets"...........................................................9
"Consolidation"..........................................................................9
"Corporate Trust Office".................................................................9
"Credit Agreement".......................................................................9
"Currency Hedging Agreements"...........................................................10
"Default"...............................................................................10
"Depositary"............................................................................10
"Designated Noncash Consideration"......................................................10
"Designated Senior Indebtedness"........................................................10
"Disinterested Director"................................................................10
- i -
"Euroclear".............................................................................10
"Event of Default"......................................................................10
"Exchange Act"..........................................................................10
"Exchange Offer"........................................................................11
"Exchange Offer Registration Statement".................................................11
"Exchange Securities"...................................................................11
"Fair Market Value".....................................................................11
"Floor Plan Facility"...................................................................11
"Foreign Subsidiary"....................................................................11
"Generally Accepted Accounting Principles" or "GAAP"....................................11
"Global Securities".....................................................................12
"Guarantee".............................................................................12
"Guaranteed Debt".......................................................................12
"Guarantor".............................................................................12
"Holder"................................................................................12
"Indebtedness"..........................................................................12
"Indenture".............................................................................13
"Indenture Obligations".................................................................13
"Initial Purchasers"....................................................................13
"Interest Payment Date".................................................................13
"Interest Rate Agreements"..............................................................13
"Inventory Facility"....................................................................14
"Investment"............................................................................14
"Issue Date"............................................................................14
"Lien"..................................................................................14
"Liquidated Damages"....................................................................14
"Manufacturer"..........................................................................15
"Maturity"..............................................................................15
"Xxxxx'x"...............................................................................15
"Net Cash Proceeds".....................................................................15
"Non-U.S. Person".......................................................................16
"Officers' Certificate".................................................................16
"Opinion of Counsel"....................................................................16
"Opinion of Independent Counsel"........................................................16
"Outstanding"...........................................................................16
"Pari Passu Indebtedness"...............................................................17
"Paying Agent"..........................................................................17
"Permitted Guarantor Junior Payment"....................................................17
"Permitted Holders".....................................................................17
"Permitted Investment"..................................................................18
"Permitted Junior Payment"..............................................................19
"Permitted Subsidiary Preferred Stock"..................................................19
"Person"................................................................................19
"Predecessor Security"..................................................................19
"Preferred Stock".......................................................................19
"Prospectus"............................................................................20
"Public Equity Offering"................................................................20
- ii -
"Purchase Money Obligation".............................................................20
"Qualified Capital Stock"...............................................................20
"Redeemable Capital Stock"..............................................................21
"Redemption Date".......................................................................21
"Redemption Price"......................................................................21
"Registration Rights Agreement".........................................................21
"Registration Statement"................................................................21
"Regular Record Date"...................................................................21
"Regulation S"..........................................................................21
"Regulation S Global Securities"........................................................21
"Responsible Officer"...................................................................21
"Replacement Assets"....................................................................22
"Restricted Subsidiary".................................................................22
"Rule 144A".............................................................................22
"Rule 144A Global Securities"...........................................................22
"S&P"...................................................................................22
"Securities Act"........................................................................22
"Senior Guarantor Indebtedness".........................................................22
"Senior Indebtedness"...................................................................23
"Senior Representative".................................................................24
"Series B Global Securities"............................................................24
"Shelf Registration Statement"..........................................................24
"Significant Restricted Subsidiary".....................................................24
"Special Record Date"...................................................................24
"Stated Maturity".......................................................................24
"Subordinated Indebtedness".............................................................25
"Subsidiary"............................................................................25
"Successor Security"....................................................................25
"Trustee"...............................................................................25
"Trust Indenture Act"...................................................................25
"Unrestricted Subsidiary"...............................................................25
"Unrestricted Subsidiary Indebtedness"..................................................25
"Voting Stock"..........................................................................26
"Wholly Owned Restricted Subsidiary"....................................................26
Section 102. Other Definitions..........................................................................26
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Section 103. Compliance Certificates and Opinions.......................................................27
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Section 104. Form of Documents Delivered to Trustee.....................................................28
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Section 105. Acts of Holders............................................................................29
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Section 106. Notices, etc., to the Trustee, the Company and any Guarantor...............................30
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Section 107. Notice to Holders; Waiver..................................................................31
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Section 108. Conflict with Trust Indenture Act..........................................................31
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Section 109. Effect of Headings and Table of Contents...................................................31
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Section 110. Successors and Assigns.....................................................................32
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Section 111. Separability Clause........................................................................32
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Section 112. Benefits of Indenture......................................................................32
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Section 113. Governing Law..............................................................................32
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Section 114. Legal Holidays.............................................................................32
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Section 115. Independence of Covenants..................................................................32
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Section 116. Schedules and Exhibits.....................................................................33
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Section 117. Counterparts...............................................................................33
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Section 118. No Personal Liability of Directors, Officers, Employees and Stockholders...................33
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ARTICLE TWO SECURITY FORMS......................................................................................33
Section 201. Forms Generally............................................................................33
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Section 202. Form of Face of Security...................................................................34
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Section 203. Form of Reverse of Securities..............................................................49
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Section 204. Form of Guarantee..........................................................................60
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ARTICLE THREE THE SECURITIES....................................................................................68
Section 301. Title and Terms............................................................................68
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Section 302. Denominations..............................................................................69
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Section 303. Execution, Authentication, Delivery and Dating.............................................69
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Section 304. Temporary Securities.......................................................................71
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Section 305. Registration, Registration of Transfer and Exchange........................................71
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Section 306. Book Entry Provisions for Global Securities................................................73
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Section 307. Special Transfer and Exchange Provisions...................................................75
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Section 308. Mutilated, Destroyed, Lost and Stolen Securities...........................................78
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Section 309. Payment of Interest; Interest Rights Preserved.............................................79
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Section 310. CUSIP Numbers..............................................................................80
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Section 311. Persons Deemed Owners......................................................................81
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Section 312. Cancellation...............................................................................81
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Section 313. Computation of Interest....................................................................81
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ARTICLE FOUR DEFEASANCE AND COVENANT DEFEASANCE.................................................................81
Section 401. Company's Option to Effect Defeasance or Covenant Defeasance...............................81
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Section 402. Defeasance and Discharge...................................................................82
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Section 403. Covenant Defeasance........................................................................82
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Section 404. Conditions to Defeasance or Covenant Defeasance............................................83
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Section 405. Deposited Money and U.S. Government Obligations to Be Held in Trust; Other
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Miscellaneous Provisions...................................................................85
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Section 406. Reinstatement..............................................................................86
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ARTICLE FIVE REMEDIES...........................................................................................86
Section 501. Events of Default..........................................................................86
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Section 502. Acceleration of Maturity; Rescission and Annulment.........................................88
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Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee............................89
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Section 504. Trustee May File Proofs of Claim...........................................................90
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Section 505. Trustee May Enforce Claims Without Possession of Securities................................91
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Section 506. Application of Money Collected.............................................................92
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Section 507. Limitation on Suits........................................................................92
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Section 508. Unconditional Right of Holders to Receive Principal, Premium and Interest..................93
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Section 509. Restoration of Rights and Remedies.........................................................93
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Section 510. Rights and Remedies Cumulative.............................................................93
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Section 511. Delay or Omission Not Waiver...............................................................94
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Section 512. Control by Holders.........................................................................94
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Section 513. Waiver of Past Defaults....................................................................94
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Section 514. Undertaking for Costs......................................................................95
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Section 515. Waiver of Stay, Extension or Usury Laws....................................................95
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Section 516. Remedies Subject to Applicable Law.........................................................95
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ARTICLE SIX THE TRUSTEE.........................................................................................96
Section 601. Duties of Trustee..........................................................................96
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Section 602. Notice of Defaults.........................................................................97
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Section 603. Certain Rights of Trustee..................................................................97
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Section 604. Trustee Not Responsible for Recitals, Dispositions of Securities or Application of
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Proceeds Thereof...........................................................................98
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Section 605. Trustee and Agents May Hold Securities; Collections; etc...................................99
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Section 606. Money Held in Trust........................................................................99
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Section 607. Compensation and Indemnification of Trustee and Its Prior Claim............................99
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Section 608. Conflicting Interests.....................................................................100
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Section 609. Trustee Eligibility.......................................................................100
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Section 610. Resignation and Removal; Appointment of Successor Trustee.................................100
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Section 611. Acceptance of Appointment by Successor....................................................102
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Section 612. Merger, Conversion, Consolidation or Succession to Business...............................103
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Section 613. Preferential Collection of Claims Against Company.........................................103
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ARTICLE SEVEN HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY................................................104
Section 701. Company to Furnish Trustee Names and Addresses of Holders.................................104
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Section 702. Disclosure of Names and Addresses of Holders..............................................104
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Section 703. Reports by Trustee........................................................................105
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Section 704. Reports by Company and Guarantors.........................................................105
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ARTICLE EIGHT CONSOLIDATION, MERGER, SALE OF ASSETS............................................................106
Section 801. Company and Guarantors May Consolidate, etc., Only on Certain Terms.......................106
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Section 802. Successor Substituted.....................................................................108
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ARTICLE NINE SUPPLEMENTAL INDENTURES...........................................................................109
Section 901. Supplemental Indentures and Agreements without Consent of Holders.........................109
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Section 902. Supplemental Indentures and Agreements with Consent of Holders............................110
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Section 903. Execution of Supplemental Indentures and Agreements.......................................112
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Section 904. Effect of Supplemental Indentures.........................................................112
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Section 905. Conformity with Trust Indenture Act.......................................................112
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Section 906. Reference in Securities to Supplemental Indentures........................................112
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Section 907. Notice of Supplemental Indentures.........................................................113
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Section 908. Rights of Holders of Senior Indebtedness..................................................113
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ARTICLE TEN COVENANTS..........................................................................................113
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Section 1001. Payment of Principal, Premium and Interest................................................113
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Section 1002. Maintenance of Office or Agency...........................................................113
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Section 1003. Money for Security Payments to Be Held in Trust...........................................114
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Section 1004. Corporate Existence.......................................................................115
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Section 1005. Payment of Taxes and Other Claims.........................................................116
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Section 1006. Maintenance of Properties.................................................................116
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Section 1007. Maintenance of Insurance..................................................................116
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Section 1008. Limitation on Indebtedness................................................................117
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Section 1009. Limitation on Restricted Payments.........................................................121
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Section 1010. Limitation on Transactions with Affiliates................................................126
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Section 1011. Limitation on Liens.......................................................................127
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Section 1012. Limitation on Sale of Assets..............................................................128
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Section 1013. Limitation on Issuances of Guarantees of and Pledges for Indebtedness.....................133
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Section 1014. Purchase of Securities upon a Change of Control...........................................134
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Section 1015. Limitation on Subsidiary Preferred Stock..................................................138
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Section 1016. Limitation on Dividends and Other Payment Restrictions Affecting Subsidiaries.............138
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Section 1017. Limitation on Senior Subordinated Indebtedness............................................140
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Section 1018. Limitations on Unrestricted Subsidiaries..................................................140
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Section 1019. Provision of Financial Statements.........................................................141
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Section 1020. Statement by Officers as to Default.......................................................142
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Section 1021. Waiver of Certain Covenants...............................................................143
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ARTICLE ELEVEN REDEMPTION OF SECURITIES........................................................................143
Section 1101. Rights of Redemption......................................................................143
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Section 1102. Applicability of Article..................................................................144
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Section 1103. Election to Redeem; Notice to Trustee.....................................................144
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Section 1104. Selection by Trustee of Securities to Be Redeemed.........................................144
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Section 1105. Notice of Redemption......................................................................145
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Section 1106. Deposit of Redemption Price...............................................................146
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Section 1107. Securities Payable on Redemption Date.....................................................146
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Section 1108. Securities Redeemed or Purchased in Part..................................................146
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ARTICLE TWELVE SATISFACTION AND DISCHARGE......................................................................147
Section 1201. Satisfaction and Discharge of Indenture...................................................147
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Section 1202. Application of Trust Money................................................................148
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ARTICLE THIRTEEN GUARANTEES....................................................................................148
Section 1301. Guarantors' Guarantee.....................................................................148
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Section 1302. Continuing Guarantee; No Right of Set-Off; Independent Obligation.........................149
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Section 1303. Guarantee Absolute........................................................................150
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Section 1304. Right to Demand Full Performance..........................................................152
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Section 1305. Waivers...................................................................................153
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Section 1306. The Guarantors Remain Obligated in Event the Company Is No Longer Obligated to Discharge
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Indenture Obligations.....................................................................154
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- vi -
Section 1307. Fraudulent Conveyance; Contribution; Subrogation..........................................154
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Section 1308. Guarantee Is in Addition to Other Security................................................155
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Section 1309. Release of Security Interests.............................................................155
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Section 1310. No Bar to Further Actions.................................................................155
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Section 1311. Failure to Exercise Rights Shall Not Operate as a Waiver; No Suspension of Remedies.......156
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Section 1312. Trustee's Duties; Notice to Trustee.......................................................156
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Section 1313. Successors and Assigns....................................................................156
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Section 1314. Release of Guarantee......................................................................156
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Section 1315. Execution of Guarantee....................................................................157
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Section 1316. Guarantee Subordinate to Senior Indebtedness..............................................158
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Section 1317. Payment Over of Proceeds Upon Dissolution of the Guarantor, etc...........................158
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Section 1318. Default on Senior Guarantor Indebtedness..................................................159
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Section 1319. Payment Permitted by Each of the Guarantors if No Default.................................160
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Section 1320. Subrogation to Rights of Holders of Senior Guarantor Indebtedness.........................160
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Section 1321. Provisions Solely to Define Relative Rights...............................................161
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Section 1322. Trustee to Effectuate Subordination.......................................................161
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Section 1323. No Waiver of Subordination Provisions.....................................................162
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Section 1324. Notice to Trustee by Each of the Guarantors...............................................162
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Section 1325. Reliance on Judicial Orders or Certificates...............................................163
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Section 1326. Rights of Trustee as a Holder of Senior Guarantor Indebtedness; Preservation of
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Trustee's Rights..........................................................................164
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Section 1327. Article Applicable to Paying Agents.......................................................164
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Section 1328. No Suspension of Remedies.................................................................164
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Section 1329. Trustee's Relation to Senior Guarantor Indebtedness.......................................164
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ARTICLE FOURTEEN SUBORDINATION OF SECURITIES...................................................................165
Section 1401. Securities Subordinate to Senior Indebtedness.............................................165
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Section 1402. Payment Over of Proceeds Upon Dissolution, etc............................................165
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Section 1403. Suspension of Payment When Designated Senior Indebtedness in Default......................166
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Section 1404. Payment Permitted if No Default...........................................................168
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Section 1405. Subrogation to Rights of Holders of Senior Indebtedness...................................168
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Section 1406. Provisions Solely to Define Relative Rights...............................................169
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Section 1407. Trustee to Effectuate Subordination.......................................................169
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Section 1408. No Waiver of Subordination Provisions.....................................................170
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Section 1409. Notice to Trustee.........................................................................170
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Section 1410. Reliance on Judicial Orders or Certificates...............................................171
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Section 1411. Rights of Trustee as a Holder of Senior Indebtedness; Preservation of Trustee's Rights....172
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Section 1412. Article Applicable to Paying Agents.......................................................172
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Section 1413. No Suspension of Remedies.................................................................172
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Section 1414. Trustee's Relation to Senior Indebtedness.................................................172
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- vii -
TESTIMONIUM
SIGNATURES AND SEALS
ACKNOWLEDGMENTS
ANNEX A Form of Intercompany Note
EXHIBIT A Regulation S Certificate
EXHIBIT B Restricted Security Certificate
EXHIBIT C Unrestricted Security Certificate
- viii -
INDENTURE, dated as of March 18, 2002, between United Auto
Group, Inc., a Delaware corporation (the "Company"), the guarantors set forth on
the signature pages hereto (each a "Guarantor" and collectively, the
"Guarantors") and Bank One Trust Company, N.A., as Trustee (the "Trustee").
RECITALS OF THE COMPANY AND THE GUARANTORS
The Company has duly authorized the creation of an issue of
(i) 9 5/8% Senior Subordinated Notes due 2012, Series A (the "Series A
Securities") and (ii) 9 5/8% Senior Subordinated Notes due 2012, Series B (the
"Series B Securities" and, together with the Series A Securities, the
"Securities") of substantially the tenor and amount hereinafter set forth, and
to provide therefor the Company has duly authorized the execution and delivery
of this Indenture and the Securities;
Each Guarantor has duly authorized the issuance of a Guarantee
of the Securities, of substantially the tenor hereinafter set forth, and to
provide therefor, each Guarantor has duly authorized the execution and delivery
of this Indenture and its Guarantee;
This Indenture is subject to, and shall be governed by, the
provisions of the Trust Indenture Act that are required to be part of and to
govern indentures qualified under the Trust Indenture Act;
All acts and things necessary have been done to make (i) the
Securities, when duly issued and executed by the Company and authenticated and
delivered hereunder, the valid obligations of the Company, (ii) the Guarantees,
when executed by each of the Guarantors and delivered hereunder, the valid
obligation of each of the Guarantors and (iii) this Indenture a valid agreement
of the Company and each of the Guarantors in accordance with the terms of this
Indenture;
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of
the Securities by the Holders thereof, it is mutually covenanted and agreed, for
the equal and proportionate benefit of all Holders of the Securities, as
follows:
- 1 -
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 101. Definitions.
For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:
(a) the terms defined in this Article have the meanings
assigned to them in this Article, and include the plural as well as the
singular;
(b) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;
(c) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with GAAP;
(d) the words "herein," "hereof" and "hereunder" and other
words of similar import refer to this Indenture as a whole and not to any
particular Article, Section or other subdivision;
(e) all references to $, US$, dollars or United States dollars
shall refer to the lawful currency of the United States of America; and
(f) all references herein to particular Sections or Articles
refer to this Indenture unless otherwise so indicated.
Certain terms used principally in Article Four are defined in
Article Four.
"Acquired Indebtedness" means Indebtedness of a Person (i)
existing at the time such Person becomes a Restricted Subsidiary or (ii) assumed
in connection with the acquisition of assets from such Person, in each case,
other than Indebtedness incurred in connection with, or in contemplation of,
such Person becoming a Restricted Subsidiary or such acquisition, as the case
may be and is not recourse to any Person or assets other than such Person or its
assets (including its Subsidiaries and their assets). Acquired Indebtedness
shall be deemed to be incurred on the date of the related acquisition of assets
from any Person or the date the acquired Person becomes a Restricted Subsidiary,
as the case may be.
"Affiliate" means, with respect to any specified Person: (i)
any other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person; (ii) any other
Person that owns, directly or indirectly, 10% or more of such specified Person's
Capital Stock or any officer or director of any such specified Person or other
Person or, with respect to any natural Person, any Person
- 2 -
having a relationship with such Person by blood, marriage or adoption not more
remote than first cousin; or (iii) any other Person 10% or more of the Voting
Stock of which is beneficially owned or held directly or indirectly by such
specified Person. For the purposes of this definition, "control" when used with
respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through ownership of
voting securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.
"Applicable Procedures" means, with respect to any transfer or
transaction involving a Global Security or beneficial interest therein, the
rules and procedures of the Depositary for such Security, Euroclear and
Clearstream, in each case to the extent applicable to such transaction and as in
effect at the time of such transfer or transaction.
"Asset Sale" means any sale, issuance, conveyance, transfer,
lease or other disposition (including, without limitation, by way of merger,
consolidation or sale and leaseback transaction) (collectively, a "transfer"),
directly or indirectly, in one or a series of related transactions, of: (i) any
Capital Stock of any Restricted Subsidiary (other than directors' qualifying
shares and transfers of Capital Stock required by a Manufacturer to the extent
the Company does not receive cash or Cash Equivalents for such Capital Stock);
(ii) all or substantially all of the properties and assets of any division or
line of business of the Company or any Restricted Subsidiary; or (iii) any other
properties or assets of the Company or any Restricted Subsidiary other than in
the ordinary course of business. For the purposes of this definition, the term
"Asset Sale" shall not include any transfer of properties and assets (A) that is
governed by the provisions described under Article Eight hereof, (B) that is by
the Company to any Restricted Subsidiary, or by any Restricted Subsidiary to the
Company or any Restricted Subsidiary in accordance with the terms of this
Indenture, (C) that is of obsolete equipment, (D) that consists of defaulted
receivables for collection or any sale, transfer or other disposition of
defaulted receivables for collection, (E) the Fair Market Value of which in the
aggregate does not exceed $2,500,000 in any transaction or series of related
transactions, (F) any Restricted Payment permitted under Section 1009 herein, or
(G) any disposition that constitutes a Change of Control.
"Average Life to Stated Maturity" means, as of the date of
determination with respect to any Indebtedness, the quotient obtained by
dividing (i) the sum of the products of (a) the number of years from the date of
determination to the date or dates of each successive scheduled principal
payment of such Indebtedness multiplied by (b) the amount of each such principal
payment by (ii) the sum of all such principal payments.
"Bankruptcy Law" means Xxxxx 00, Xxxxxx Xxxxxx Bankruptcy Code
of 1978, as amended, or any similar United States federal or state or foreign
law relating to bankruptcy, insolvency, receivership, winding up, liquidation,
reorganization or relief of debtors or any amendment to, succession to or change
in any such law.
- 3 -
"Board of Directors" means the board of directors of the
Company or any Guarantor, as the case may be, or any duly authorized committee
of such board, or any equivalent body in a limited partnership, limited
liability company or other entity serving substantially the same function as a
board of directors of a corporation.
"Board Resolution" means a copy of a resolution certified by
the Secretary or an Assistant Secretary of the Company or any Guarantor (or the
general partner of a Guarantor which is a limited partnership), as the case may
be, to have been duly adopted by the Board of Directors of such Person and to be
in full force and effect on the date of such certification, and delivered to the
Trustee.
"Book-Entry Security" means any Global Securities bearing the
legend specified in Section 202 evidencing all or part of a series of
Securities, authenticated and delivered to the Depositary for such series or its
nominee, and registered in the name of such Depositary or nominee.
"Business Day" means each Monday, Tuesday, Wednesday, Thursday
and Friday which is not a day on which banking institutions or trust companies
in The City of New York or the city in which the Corporate Trust Office of the
Trustee is located are authorized or obligated by law, regulation or executive
order to close.
"Capital Lease Obligation" of any Person means any obligation
of such Person and its Restricted Subsidiaries on a Consolidated basis under any
capital lease of real or personal property which, in accordance with GAAP, is
required to be recorded as a capitalized lease obligation on the books of the
lessee.
"Capital Stock" of any Person means any and all shares,
interests, participations, rights in or other equivalents, however designated,
of such Person's capital stock or other equity interests, partnership interests
(whether general or limited), any other interest or participation that confers
on a Person that right to receive a share of the profits and losses of, or
distributions of assets of (other than a distribution in respect of
Indebtedness), the issuing Person and any rights (other than debt securities
convertible into Capital Stock), warrants or options exchangeable for or
convertible into such Capital Stock.
"Cash Equivalents" means (i) any evidence of Indebtedness,
maturing not more than one year after the date of acquisition, issued by the
United States of America, or an instrumentality or agency thereof, and
guaranteed fully as to principal, premium, if any, and interest by the United
States of America, (ii) any certificate of deposit, maturing not more than one
year after the date of acquisition, issued by a commercial banking institution
that is a member of the Federal Reserve System and that has combined capital and
surplus and undivided profits of not less than $500,000,000, whose debt has a
rating, at the time as of which any investment therein is made, of "P-1" (or
higher) according to Xxxxx'x or "A-1" (or higher) according to S&P, (iii)
commercial paper, maturing not
- 4 -
more than one year after the date of acquisition, issued by a corporation (other
than an Affiliate or Subsidiary of the Company) organized and existing under the
laws of the United States of America with a rating, at the time as of which any
investment therein is made, of "P-1" (or higher) according to Xxxxx'x or "A-1"
(or higher) according to S&P, (iv) any money market deposit accounts issued or
offered by a domestic commercial bank having capital and surplus in excess of
$500,000,000; provided that the short term debt of such commercial bank has a
rating, at the time of Investment, of "P-1" (or higher) according to Xxxxx'x or
"A-1" (or higher) according to S&P, (v) any repurchase agreement entered into
with DaimlerChrysler Services North America LLC (or with a commercial banking
institution of the stature referred to in clause (ii) above) which (A) is
secured by a fully perfected security interest in any obligation of the type
described in any of clauses (i) through (iii) above and (B) has a market value
at the time such repurchase agreement is entered into of not less than 100% of
the repurchase obligation of DaimlerChrysler Services North America LLC (or such
commercial banking institution) thereunder and (vi) shares of money market
mutual funds within the definition of Rule 2a-7 promulgated by the Commission
under the Investment Company Act of 1940.
"Change of Control" means the occurrence of any of the
following events: (i) (A) any "person" or "group" (as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act), other than Permitted Holders, is
or becomes after the initial Issue Date the "beneficial owner" (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person shall be
deemed to have beneficial ownership of all shares that such Person has the right
to acquire, whether such right is exercisable immediately or only after the
passage of time), directly or indirectly, of more than 40% of the total
outstanding Voting Stock of the Company and (B) Permitted Holders, directly or
indirectly, no longer have voting control of more than 50% of the total
outstanding Voting Stock of the Company; (ii) during any period of two
consecutive years, individuals who at the beginning of such period constituted
the Board of Directors of the Company (together with any new directors whose
election to such board or whose nomination for election by the stockholders of
the Company was approved by a vote of 66 2/3% of the directors then still in
office who were either directors at the beginning of such period or whose
election or nomination for election was previously so approved), cease for any
reason to constitute a majority of such Board of Directors then in office; (iii)
the Company consolidates with or merges with or into any Person or sells,
assigns, conveys, transfers, leases or otherwise disposes of all or
substantially all of its assets to any Person, or any Person consolidates with
or merges into or with the Company, in any such event pursuant to a transaction
in which the outstanding Voting Stock of the Company is converted into or
exchanged for cash, securities or other property, other than any such
transaction where (A) the outstanding Voting Stock of the Company is changed
into or exchanged for (x) Voting Stock of the surviving corporation which is not
Redeemable Capital Stock or (y) cash, securities and other property (other than
Capital Stock of the surviving corporation) in an amount which could be paid by
the Company as
- 5 -
a Restricted Payment as described in Section 1009 herein (and such amount shall
be treated as a Restricted Payment subject to the provisions in this Indenture
described in Section 1009 herein) and (B) immediately after such transaction,
(I) no "person" or "group," other than Permitted Holders, is the beneficial
owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a
person shall be deemed to have beneficial ownership of all securities that such
person has the right to acquire, whether such right is exercisable immediately
or only after the passage of time), directly or indirectly, of more than 40% of
the total outstanding Voting Stock of the surviving corporation and (II)
Permitted Holders, directly or indirectly, no longer have voting control of more
than 50% of the total outstanding Voting Stock of the Company; or (iv) the
Company is liquidated or dissolved or adopts a plan of liquidation or
dissolution other than in a transaction which complies with the provisions
described under Article Eight herein. For purposes of this definition, any
transfer of an equity interest of an entity that was formed for the purpose of
acquiring voting stock of the Company will be deemed to be a transfer of such
portion of such voting stock as corresponds to the portion of the equity of such
entity that has been so transferred.
"Clearstream" means Clearstream Banking, societe anonyme (or
any successor securities clearing agency).
"Code" means the Internal Revenue Code of 1986, as amended.
"Commission" means the Securities and Exchange Commission, as
from time to time constituted, created under the Exchange Act, or if at any time
after the execution of this Indenture such Commission is not existing and
performing the duties now assigned to it under the Securities Act, Exchange Act
and Trust Indenture Act then the body performing such duties at such time.
"Commodity Price Protection Agreement" means any forward
contract, commodity swap, commodity option or other similar financial agreement
or arrangement relating to, or the value of which is dependent upon,
fluctuations in commodity prices.
"Common Stock" means the Company's Voting Common Stock, par
value $0.0001 per share, or any successor common stock thereto.
"Company" means United Auto Group, Inc., a corporation
incorporated under the laws of Delaware, until a successor Person shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter "Company" shall mean such successor Person. To the extent necessary
to comply with the requirements of the provisions of Sections 310 through 317 of
the Trust Indenture Act as they are applicable to the Company, the term
"Company" shall include any other obligor with respect to the Securities for
purposes of complying with such provisions.
- 6 -
"Company Request" or "Company Order" means a written request
or order signed in the name of the Company by any one of its Chairman of the
Board, its Chief Executive Officer, its President, its Chief Operating Officer,
its Chief Financial Officer or a Vice President (regardless of Vice Presidential
designation), and by any one of its Treasurer, an Assistant Treasurer, any other
Vice President (regardless of Vice Presidential designation), its Secretary or
an Assistant Secretary, and delivered to the Trustee.
"Consolidated Fixed Charge Coverage Ratio" of any Person
means, for any period, the ratio of (a) the sum of Consolidated Net Income
(Loss), and in each case to the extent deducted in computing Consolidated Net
Income (Loss) for such period, Consolidated Interest Expense, Consolidated
Income Tax Expense and Consolidated Non-cash Charges for such period, of such
Person and its Restricted Subsidiaries on a Consolidated basis, all determined
in accordance with GAAP, less all noncash items increasing Consolidated Net
Income for such period and less all cash payments during such period relating to
noncash charges that were added back to Consolidated Net Income in determining
the Consolidated Fixed Charge Coverage Ratio in any prior period to (b) the sum
of Consolidated Interest Expense for such period and cash and noncash dividends
paid on any Preferred Stock of such Person during such period, in each case
after giving pro forma effect to (i) the incurrence of the Indebtedness giving
rise to the need to make such calculation and (if applicable) the application of
the net proceeds therefrom, including to refinance other Indebtedness, as if
such Indebtedness was incurred, and the application of such proceeds occurred,
on the first day of such period; (ii) the incurrence, repayment or retirement of
any other Indebtedness by the Company and its Restricted Subsidiaries since the
first day of such period as if such Indebtedness was incurred, repaid or retired
at the beginning of such period (except that, in making such computation, the
amount of Indebtedness under any revolving credit facility shall be computed
based upon the average daily balance of such Indebtedness during such period);
(iii) in the case of Acquired Indebtedness or any acquisition occurring at the
time of the incurrence of such Indebtedness, the related acquisition, assuming
such acquisition had been consummated on the first day of such period; and (iv)
any acquisition or disposition by the Company and its Restricted Subsidiaries of
any company or any business or any assets out of the ordinary course of
business, whether by merger, stock purchase or sale or asset purchase or sale,
or any related repayment of Indebtedness, in each case since the first day of
such period, assuming such acquisition or disposition had been consummated on
the first day of such period; provided that (i) in making such computation, the
Consolidated Interest Expense attributable to interest on any Indebtedness
computed on a pro forma basis and (A) bearing a floating interest rate shall be
computed as if the rate in effect on the date of computation had been the
applicable rate for the entire period (subject to any applicable Interest Rate
Agreement) and (B) which was not outstanding during the period for which the
computation is being made but which bears, at the option of such Person, a fixed
or floating rate of interest, shall be computed by applying at the option of
such Person either the fixed or floating
- 7 -
rate and (ii) in making such computation, the Consolidated Interest Expense of
such Person attributable to interest on any Indebtedness under a revolving
credit facility computed on a pro forma basis shall be computed based upon the
average daily balance of such Indebtedness during the applicable period.
"Consolidated Income Tax Expense" of any Person means, for any
period, the provision for federal, state, local and foreign income taxes of such
Person and its Consolidated Restricted Subsidiaries for such period as
determined in accordance with GAAP.
"Consolidated Interest Expense" of any Person means, without
duplication, for any period, the sum of (a) the interest expense of such Person
and its Restricted Subsidiaries for such period, on a Consolidated basis (other
than interest expense under any Inventory Facility), including, without
limitation, (i) amortization of debt discount, (ii) the net costs associated
with Interest Rate Agreements, Currency Hedging Agreements and Commodity Price
Protection Agreements (including amortization of discounts), (iii) the interest
portion of any deferred payment obligation, (iv) all commissions, discounts and
other fees and charges owed with respect to letters of credit and bankers
acceptance financing, and (v) accrued interest, plus (b) (i) the interest
component of the Capital Lease Obligations paid, accrued and/or scheduled to be
paid or accrued by such Person and its Restricted Subsidiaries during such
period and (ii) all capitalized interest of such Person and its Restricted
Subsidiaries, plus (c) the interest expense under any Guaranteed Debt of such
Person and any Restricted Subsidiary to the extent not included under clause
(a)(iv) above, whether or not paid by such Person or its Restricted
Subsidiaries, but excluding, in the case of (a), (b) and (c), the amortization
of deferred financing costs, plus (d) dividend requirements of the Company and
the Restricted Subsidiaries with respect to Redeemable Capital Stock, and with
respect to Preferred Stock of Restricted Subsidiaries, in each case whether in
cash or otherwise (except dividends payable solely in shares of Capital Stock
(other than any Preferred Stock or Redeemable Capital Stock) of the Company or
any Restricted Subsidiary).
"Consolidated Net Income (Loss)" of any Person means, for any
period, the Consolidated net income (or loss) of such Person and its Restricted
Subsidiaries for such period on a Consolidated basis as determined in accordance
with GAAP, adjusted, to the extent included in calculating such net income (or
loss), by excluding, without duplication, (i) all extraordinary gains or losses
net of taxes (less all fees and expenses relating thereto), (ii) the portion of
net income (or loss) of such Person and its Restricted Subsidiaries on a
Consolidated basis allocable to minority interests in unconsolidated Persons or
Unrestricted Subsidiaries to the extent that cash dividends or distributions
have not actually been received by such Person or one of its Consolidated
Restricted Subsidiaries, (iii) net income (or loss) of any Person combined with
such Person or any of its Restricted Subsidiaries on a "pooling of interests"
basis attributable to any period prior to the date of combination, (iv) any gain
or loss, net of taxes, realized upon the
- 8 -
termination of any employee pension benefit plan, (v) gains or losses, net of
taxes (less all fees and expenses relating thereto), in respect of dispositions
of assets other than in the ordinary course of business, (vi) the net income of
any Restricted Subsidiary to the extent that the declaration of dividends or
similar distributions by that Restricted Subsidiary of that income is not at the
time permitted, directly or indirectly, by operation of the terms of its charter
or any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Restricted Subsidiary or its
stockholders, (vii) non-cash gains and losses due solely to fluctuations in
currency values, (viii) any restoration to net income of any contingency
reserve, except to the extent provision for such reserve was made out of income
accrued at any time following the initial Issue Date, or (ix) any net gain
arising from the acquisition of any securities or extinguishment, under GAAP, of
any Indebtedness of such Person.
"Consolidated Non-cash Charges" of any Person means, for any
period, the aggregate depreciation, amortization and other non-cash charges of
such Person and its subsidiaries on a Consolidated basis for such period, as
determined in accordance with GAAP, excluding any non-cash charge which requires
an accrual or reserve for cash charges for any future period.
"Consolidated Tangible Assets" of any Person means (a) all
amounts that would be shown as assets on a Consolidated balance sheet of such
Person and its Restricted Subsidiaries prepared in accordance with GAAP, less
(b) the amount thereof constituting goodwill and other intangible assets as
calculated in accordance with GAAP.
"Consolidation" means, with respect to any Person, the
consolidation of the accounts of such Person and each of its subsidiaries if and
to the extent the accounts of such Person and each of its subsidiaries would
normally be consolidated with those of such Person, all in accordance with GAAP.
The term "Consolidated" shall have a similar meaning.
"Corporate Trust Office" means the office of the Trustee or an
affiliate or agent thereof at which at any particular time the corporate trust
business for the purposes of this Indenture shall be principally administered,
which office at the date of execution of this Indenture is located at Bank Xxx
Xxxxx, Xxxxx 0000, Xxxxxxx, Xxxxxxxx 00000.
"Credit Agreement" means the Amended and Restated Credit
Agreement, dated as of December 22, 2000, among United Auto Group, Inc., various
financial institutions, and DaimlerChrysler Services North America LLC (formerly
Chrysler Financial Company L.L.C.) as agent for the lenders, as amended on
October 29, 2001, February 8, 2002 and March 12, 2002, as such agreement, in
whole or in part, may have been or may be amended, renewed, extended,
substituted, refinanced, restructured, replaced, supplemented or otherwise
modified from time to time, including, without limitation, any successive
renewals, extension, substitutions, refinancings, restructurings, replacements,
supplementations or other modifications of the foregoing.
- 9 -
"Currency Hedging Agreements" means one or more of the
following agreements which shall be entered into by one or more financial
institutions: foreign exchange contracts, currency swap agreements or other
similar agreements or arrangements designed to protect against the fluctuations
in currency values.
"Default" means any event which is, or after notice or passage
of time or both would be, an Event of Default.
"Depositary" means, with respect to the Securities issued in
the form of one or more Book-Entry Securities, The Depository Trust Company
("DTC"), its nominees and successors, or another Person designated as Depositary
by the Company, which must be a clearing agency registered under the Exchange
Act.
"Designated Noncash Consideration" means the Fair Market Value
of non-cash consideration received by the Company or any of its Restricted
Subsidiaries in connection with an Asset Sale that is so designated pursuant to
an Officer's Certificate, setting forth the basis of the valuation. The
aggregate Fair Market Value of the Designated Noncash Consideration, taken
together with the Fair Market Value at the time of receipt of all other
Designated Noncash Consideration received, may not exceed $25,000,000 in the
aggregate outstanding at any one time (with the Fair Market Value being measured
at the time received and without giving effect to subsequent changes in value).
"Designated Senior Indebtedness" means (i) all Senior
Indebtedness under the Credit Agreement or Floor Plan Facilities and (ii) any
other Senior Indebtedness which at the time of determination has an aggregate
principal amount outstanding of at least $25,000,000 and which is specifically
designated in the instrument evidencing such Senior Indebtedness or the
agreement under which such Senior Indebtedness arises as "Designated Senior
Indebtedness" by the Company.
"Disinterested Director" means, with respect to any
transaction or series of related transactions, a member of the Board of
Directors of the Company who does not have any material direct or indirect
financial interest in or with respect to such transaction or series of
transactions.
"Euroclear" means the Euroclear Clearance System (or any
successor securities clearing agency).
"Event of Default" has the meaning specified in Section 501.
"Exchange Act" means the Securities Exchange Act of 1934, as
amended, or any successor statute, and the rules and regulations promulgated by
the Commission thereunder.
- 10 -
"Exchange Offer" means the exchange offer by the Company and
the Guarantors of Series B Securities for Series A Securities to be effected
pursuant to Section 3 of the Registration Rights Agreement.
"Exchange Offer Registration Statement" means the registration
statement under the Securities Act contemplated by Section 3 of the Registration
Rights Agreement.
"Exchange Securities" means the 9 5/8% Senior Subordinated
Notes due 2012 to be issued in the Exchange Offer.
"Fair Market Value" means, with respect to any asset or
property, the sale value that would be obtained in an arm's-length free market
transaction between an informed and willing seller under no compulsion to sell
and an informed and willing buyer under no compulsion to buy. Fair Market Value
shall be determined by the Board of Directors of the Company acting in good
faith and shall be evidenced by a Board Resolution.
"Floor Plan Facility" means an agreement from Ford Motor
Credit Company, General Motors Acceptance Corporation, DaimlerChrysler Services
North America LLC, Toyota Motor Credit Corporation, World Omni Financial Corp.,
BMW Financial Services NA, LLC or any other bank or asset-based lender pursuant
to which the Company or any Restricted Subsidiary incurs Indebtedness all of the
net proceeds of which are used to purchase, finance or refinance vehicles and/or
vehicle parts and supplies to be sold in the ordinary course of business of the
Company and its Restricted Subsidiaries and which may not be secured except by a
Lien that does not extend to or cover any property other than the property of
the dealership(s) which use the proceeds of the Floor Plan Facilities or other
dealerships who have incurred Indebtedness from the same lender.
"Foreign Subsidiary" means any Restricted Subsidiary that is
not organized under the laws of the United States of America or any state
thereof or the District of Columbia.
"Generally Accepted Accounting Principles" or "GAAP" means
generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
have been approved by a significant segment of the accounting profession, which
are in effect (i) with respect to periodic reporting requirements, from time to
time, and (ii) otherwise on the date hereof.
- 11 -
"Global Securities" means the Rule 144A Global Securities, the
Regulation S Global Securities and the Series B Global Securities to be issued
as Book-Entry Securities issued to the Depositary in accordance with Section
306.
"Guarantee" means the guarantee by any Guarantor of the
Company's Indenture Obligations.
"Guaranteed Debt" of any Person means, without duplication,
all Indebtedness of any other Person referred to in the definition of
Indebtedness guaranteed directly or indirectly in any manner by such Person, or
in effect guaranteed directly or indirectly by such Person through an agreement
(i) to pay or purchase such Indebtedness or to advance or supply funds for the
payment or purchase of such Indebtedness, (ii) to purchase, sell or lease (as
lessee or lessor) property, or to purchase or sell services, primarily for the
purpose of enabling the debtor to make payment of such Indebtedness or to assure
the holder of such Indebtedness against loss, (iii) to supply funds to, or in
any other manner invest in, the debtor (including any agreement to pay for
property or services without requiring that such property be received or such
services be rendered), (iv) to maintain working capital or equity capital of the
debtor, or otherwise to maintain the net worth, solvency or other financial
condition of the debtor or to cause such debtor to achieve certain levels of
financial performance or (v) otherwise to assure a creditor against loss;
provided that the term "guarantee" shall not include endorsements for collection
or deposit, in either case in the ordinary course of business.
"Guarantor" means any Subsidiary which is a guarantor of the
Securities, including any Person that is required after the initial Issue Date
to execute a guarantee of the Securities pursuant to Section 1011 or Section
1013 until a successor replaces such party pursuant to the applicable provisions
of this Indenture and, thereafter, shall mean such successor.
"Holder" means a Person in whose name a Security is registered
in the Security Register.
"Indebtedness" means, with respect to any Person, without
duplication, (i) all indebtedness of such Person for borrowed money or for the
deferred purchase price of property or services, excluding any trade payables
and other accrued current liabilities arising in the ordinary course of
business, but including, without limitation, all obligations, contingent or
otherwise, of such Person in connection with any letters of credit issued under
letter of credit facilities, acceptance facilities or other similar facilities,
(ii) all obligations of such Person evidenced by bonds, notes, debentures or
other similar instruments, (iii) all indebtedness created or arising under any
conditional sale or other title retention agreement with respect to property
acquired by such Person (even if the rights and remedies of the seller or lender
under such agreement in the event of default are limited to repossession or sale
of such property), but excluding trade payables arising in the ordinary course
of business, (iv) all net obligations of such Person
- 12 -
under Interest Rate Agreements, Currency Hedging Agreements or Commodity Price
Protection Agreements of such Person, (v) all Capital Lease Obligations of such
Person, (vi) all Indebtedness referred to in clauses (i) through (v) above of
other Persons and all dividends of other Persons, the payment of which is
secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien, upon or with respect to
property (including, without limitation, accounts and contract rights) owned by
such Person, even though such Person has not assumed or become liable for the
payment of such Indebtedness, (vii) all Guaranteed Debt of such Person, (viii)
all Redeemable Capital Stock issued by such Person valued at the greater of its
voluntary or involuntary maximum fixed repurchase price plus accrued and unpaid
dividends, (ix) Preferred Stock of any Restricted Subsidiary of the Company
which is not a Guarantor, and (x) any amendment, supplement, modification,
deferral, renewal, extension, refunding or refinancing of any liability of the
types referred to in clauses (i) through (ix) above. For purposes hereof, the
"maximum fixed repurchase price" of any Redeemable Capital Stock which does not
have a fixed repurchase price shall be calculated in accordance with the terms
of such Redeemable Capital Stock as if such Redeemable Capital Stock were
purchased on any date on which Indebtedness shall be required to be determined
pursuant to this Indenture, and if such price is based upon, or measured by, the
Fair Market Value of such Redeemable Capital Stock, such Fair Market Value to be
determined in good faith by the board of directors of the issuer of such
Redeemable Capital Stock.
"Indenture" means this instrument as originally executed
(including all exhibits and schedules thereto) and as it may from time to time
be supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof.
"Indenture Obligations" means the obligations of the Company
and any other obligor under this Indenture or under the Securities, including
any Guarantor, to pay principal of, premium, if any, and interest when due and
payable, and all other amounts due or to become due under or in connection with
this Indenture and the Securities (including Liquidated Damages) and the
performance of all other obligations to the Trustee and the Holders under this
Indenture and the Securities and the Registration Rights Agreement, according to
the respective terms hereof and thereof.
"Initial Purchasers" means Banc of America Securities LLC,
X.X. Xxxxxx Securities Inc., ABN AMRO Incorporated, Bear, Xxxxxxx & Co. Inc. and
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated.
"Interest Payment Date" means March 15 and September 15 of
each year.
"Interest Rate Agreements" means one or more of the following
agreements which shall be entered into by one or more financial institutions:
interest rate protection agreements (including, without limitation, interest
rate swaps, caps, floors, collars and
- 13 -
similar agreements) and/or other types of interest rate hedging agreements from
time to time.
"Inventory Facility" means any Floor Plan Facility or any
other agreement (including pursuant to a commercial paper program) pursuant to
which the Company or any Restricted Subsidiary incurs Indebtedness, the net
proceeds of which are used to purchase, finance or refinance vehicles and/or
vehicle parts and supplies to be sold in the ordinary course of business of the
Company and its Restricted Subsidiaries and which may not be secured except by a
Lien that does not extend to or cover any property other than the property of
the dealership(s) which use the proceeds of the Inventory Facility or other
dealerships who have incurred Indebtedness from the same lender.
"Investment" means, with respect to any Person, directly or
indirectly, any advance, loan, including guarantees, or other extension of
credit or capital contribution to (by means of any transfer of cash or other
property to others or any payment for property or services for the account or
use of others), or any purchase, acquisition or ownership by such Person of any
Capital Stock, bonds, notes, debentures or other securities issued or owned by
any other Person and all other items that would be classified as investments on
a balance sheet prepared in accordance with GAAP. If the Company or any
Restricted Subsidiary of the Company sells or otherwise disposes of any Capital
Stock of any direct or indirect Restricted Subsidiary of the Company such that,
after giving effect to any such sale or disposition, such Person is no longer a
Restricted Subsidiary of the Company (other than the sale of all of the
outstanding Capital Stock of such Restricted Subsidiary), the Company will be
deemed to have made an Investment on the date of such sale or disposition equal
to the Fair Market Value of the Company's Investments in such Subsidiary that
were not sold or disposed.
"Issue Date" means the original issue date of the Securities
under this Indenture.
"Lien" means any mortgage or deed of trust, charge, pledge,
lien (statutory or otherwise), privilege, security interest, assignment,
deposit, arrangement, easement, hypothecation, claim, preference, priority or
other encumbrance upon or with respect to any property of any kind (including
any conditional sale, capital lease or other title retention agreement, any
leases in the nature thereof, and any agreement to give any security interest),
real or personal, movable or immovable, now owned or hereafter acquired. A
Person will be deemed to own subject to a Lien any property which it has
acquired or holds subject to the interest of a vendor or lessor under any
conditional sale agreement, Capital Lease Obligation or other title retention
agreement.
"Liquidated Damages" is used herein as defined in the
Registration Rights Agreement.
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"Manufacturer" means a vehicle manufacturer which is a party
to a dealership franchise agreement with the Company or any Restricted
Subsidiary.
"Maturity" means, when used with respect to the Securities,
the date on which the principal of the Securities becomes due and payable as
provided in the Securities or as provided in this Indenture, whether at Stated
Maturity, the Offer Date or the Redemption Date and whether by declaration of
acceleration, Offer in respect of Excess Proceeds, Change of Control Offer in
respect of a Change of Control, call for redemption or otherwise.
"Moody's" means Xxxxx'x Investors Service, Inc. or any
successor rating agency.
"Net Cash Proceeds" means (a) with respect to any Asset Sale
by any Person, the proceeds from that sale (without duplication in respect of
all Asset Sales) in the form of cash or Cash Equivalents including by way of
sale or discounting of a note, installment receivable or other receivable (but
excluding any other consideration received (x) in the form of assumption by the
acquirer of Indebtedness or other obligations relating to such properties or
assets or (y) in any other cash form), including payments in respect of deferred
payment obligations when received in the form of, or stock or other assets when
disposed of for, cash or Cash Equivalents (except to the extent that such
obligations are financed or sold with recourse to the Company or any Restricted
Subsidiary) net of (i) brokerage commissions and other reasonable fees and
expenses (including fees and expenses of counsel and investment bankers) related
to such Asset Sale, (ii) provisions for all taxes payable as a result of such
Asset Sale, (iii) payments made to retire Indebtedness where payment of such
Indebtedness is secured by the assets or properties the subject of such Asset
Sale, (iv) amounts required to be paid to any Person (other than the Company or
any Restricted Subsidiary) owning a beneficial interest in the assets subject to
the Asset Sale and (v) appropriate amounts to be provided by the Company or any
Restricted Subsidiary, as the case may be, as a reserve, in accordance with
GAAP, against any liabilities associated with such Asset Sale and retained by
the Company or any Restricted Subsidiary, as the case may be, after such Asset
Sale, including, without limitation, pension and other post-employment benefit
liabilities, liabilities related to environmental matters and liabilities under
any indemnification obligations associated with such Asset Sale, all as
reflected in an Officers' Certificate delivered to the Trustee and (b) with
respect to any issuance or sale of Capital Stock or options, warrants or rights
to purchase Capital Stock, or debt securities or Capital Stock that have been
converted into or exchanged for Capital Stock as referred to in Section 1009,
the proceeds of such issuance or sale in the form of cash or Cash Equivalents
including payments in respect of deferred payment obligations when received in
the form of, or stock or other assets when disposed of for, cash or Cash
Equivalents (except to the extent that such obligations are financed or sold
with recourse to the Company or any Restricted Subsidiary), net of attorney's
fees, accountant's fees and brokerage, consultation, underwriting and other
- 15 -
fees and expenses actually incurred in connection with such issuance or sale and
net of taxes paid or payable as a result of such issuance or sale.
"Non-U.S. Person" means a Person that is not a "U.S. person"
as defined in Regulation S under the Securities Act.
"Officers' Certificate" means a certificate signed by the
Chairman of the Board, the Chief Executive Officer, the President, the Chief
Operating Officer, the Chief Financial Officer, the Executive Vice
President-Finance, the Vice President-Finance and Controller, any Vice
President, or the General Counsel, and by the Treasurer, an Assistant Treasurer,
the Secretary or an Assistant Secretary, of the Company or any Guarantor, as the
case may be, and in form and substance reasonably satisfactory to, and delivered
to, the Trustee. Notwithstanding the foregoing, with respect to any Guarantor,
the "Officer's Certificate" may be executed by any two of the Treasurer,
Assistant Treasurer, Secretary or Assistant Secretary of the Guarantor, the
Guarantor's general partner or the Guarantor's member.
"Opinion of Counsel" means a written opinion of counsel, who
may be counsel for the Company, any Guarantor or the Trustee, unless an Opinion
of Independent Counsel is required pursuant to the terms of this Indenture, and
who shall be acceptable to the Trustee, and which opinion shall be in form and
substance reasonably satisfactory to the Trustee.
"Opinion of Independent Counsel" means a written opinion of
counsel which is issued by a Person who is not an employee, director or
consultant (other than non-employee legal counsel) of the Company or any
Guarantor and who shall be acceptable to the Trustee, and which opinion shall be
in form and substance reasonably satisfactory to the Trustee.
"Outstanding" when used with respect to Securities means, as
of the date of determination, all Securities theretofore authenticated and
delivered under this Indenture, except:
(a) Securities theretofore canceled by the Trustee or
delivered to the Trustee for cancellation;
(b) Securities, or portions thereof, for whose payment or
redemption money in the necessary amount has been theretofore deposited with the
Trustee or any Paying Agent (other than the Company or an Affiliate thereof) in
trust or set aside and segregated in trust by the Company or an Affiliate
thereof (if the Company or an Affiliate thereof shall act as its own Paying
Agent) for the Holders of such Securities; provided that if such Securities are
to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor reasonably satisfactory to the Trustee has been
made;
- 16 -
(c) Securities, to the extent provided in Sections 402 and
403, with respect to which the Company has effected defeasance or covenant
defeasance as provided in Article Four; and
(d) Securities in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been
presented to the Trustee and the Company proof reasonably satisfactory to each
of them that such Securities are held by a bona fide purchaser in whose hands
the Securities are valid obligations of the Company;
provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Securities owned
by the Company, any Guarantor, or any other obligor upon the Securities or any
Affiliate of the Company, any Guarantor or such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Securities which the
Trustee knows to be so owned shall be so disregarded. Securities so owned which
have been pledged in good faith may be regarded as Outstanding if the pledge
establishes to the reasonable satisfaction of the Trustee the pledgee's right so
to act with respect to such Securities and that the pledgee is not the Company,
any Guarantor or any other obligor upon the Securities or any Affiliate of the
Company, any Guarantor or such other obligor.
"Pari Passu Indebtedness" means (a) any Indebtedness of the
Company that is pari passu in right of payment to the Securities, including,
without limitation, the Company's 11% Senior Subordinated Notes due 2007, and
(b) with respect to any Guarantee, Indebtedness which ranks pari passu in right
of payment to such Guarantee, including, without limitation, the guarantees with
respect to the Company's 11% Senior Subordinated Notes due 2007.
"Paying Agent" means any Person (including the Company)
authorized by the Company to pay the principal of, premium, if any, or interest
on, any Securities on behalf of the Company.
"Permitted Guarantor Junior Payment" means any payment or
other distribution to the holders of the Securities of securities of the Company
or any other corporation that are equity securities (other than Preferred Stock
or Redeemable Capital Stock) or are subordinated in right of payment to all
Senior Guarantor Indebtedness, to substantially the same extent as, or to a
greater extent than, the holders of the Indenture Obligations are so
subordinated.
"Permitted Holders" means (i) Xx. Xxxxx X. Penske and his
guardians, conservators or committees; (ii) any of Penske Capital Partners, LLC,
International
- 17 -
Motor Cars Group I, LLC, International Motor Cars Group II, LLC, Penske
Corporation, Penske Automotive Holdings Corp. and their respective subsidiaries,
in each case so long as Xxxxx X. Penske is the beneficial owner (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act) directly or indirectly of more
than 50% of the Voting Stock of such entities; (iii) lineal descendants of Xxxxx
X. Penske and their respective guardians, conservators or committees; and (iv)
entities which are Affiliates of Xxxxx X. Penske, in each case so long as Mr.
Penske is the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act) directly or indirectly of more than 50% of the Voting Stock of
such entities.
"Permitted Investment" means (i) Investments in any Restricted
Subsidiary or any Person which, as a result of such Investment, (a) becomes a
Restricted Subsidiary or (b) is merged or consolidated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated into,
the Company or any Restricted Subsidiary; (ii) Indebtedness of the Company or a
Restricted Subsidiary described under clauses (i), (ii), (v), (vi), (vii) and
(viii) of the definition of "Permitted Indebtedness"; (iii) Investments in any
of the Securities or the Exchange Securities; (iv) Investments in cash and Cash
Equivalents; (v) Investments acquired by the Company or any Restricted
Subsidiary in connection with an Asset Sale permitted under Section 1012 herein
to the extent such Investments are non-cash proceeds as permitted under such
covenant; (vi) any Investment to the extent the consideration therefor consists
of Qualified Capital Stock of the Company or any Restricted Subsidiary; (vii)
Investments representing Capital Stock or obligations issued to the Company or
any Restricted Subsidiary in the course of the good faith settlement of claims
against any other Person by reason of a composition or readjustment of debt or a
reorganization of any debtor or any Restricted Subsidiary; (viii) prepaid
expenses advanced to employees in the ordinary course of business or other loans
or advances to employees in the ordinary course of business not to exceed
$1,000,000 in the aggregate at any one time outstanding; (ix) Investments in
existence on the initial Issue Date; (x) Investments acquired as a result of the
acquisition of the Capital Stock of Sytner Group plc and its subsidiaries; (xi)
deposits, including interest-bearing deposits, maintained in the ordinary course
of business in banks or with floor plan lenders; trade receivables and prepaid
expenses, in each case arising in the ordinary course of business; provided,
however, that such receivables and prepaid expenses would be recorded as assets
of such Person in accordance with GAAP; endorsements for collection or deposit
in the ordinary course of business by such Person of bank drafts and similar
negotiable instruments of such other Person received as payment for ordinary
course of business trade receivables; (xii) Investments acquired in exchange for
the issuance of Capital Stock (other than Redeemable Stock or Preferred Stock)
of the Company or acquired with the Net Cash Proceeds received by the Company
after the date of the Indenture from the issuance and sale of Capital Stock
(other than Redeemable Stock or Preferred Stock); provided that such Net Cash
Proceeds are used to make such Investment within 10 days of the receipt thereof
and the amount of all such Net Cash Proceeds will be excluded from clause (3)(C)
of the first paragraph of Section 1009 herein; (xiii) Investments in
- 18 -
prepaid expenses, negotiable instruments held for collection and lease, utility
and worker's compensation, performance and other similar deposits provided to
third parties in the ordinary course of business; (xiv) consumer loans and
leases entered into, purchased or otherwise acquired by the Company or its
Subsidiaries, as lender, lessor or assignee, as applicable, in the ordinary
course of business; and (xv) in addition to the Investments described in clauses
(i) through (xiv) above, Investments in an amount not to exceed $10,000,000 in
the aggregate at any one time outstanding. In connection with any assets or
property contributed or transferred to any Person as an Investment, such
property and assets shall be equal to the Fair Market Value at the time of
Investment.
"Permitted Junior Payment" means any payment or other
distribution to the holders of the Securities of securities of the Company or
any other corporation that are equity securities (other than Preferred Stock or
Redeemable Capital Stock) or are subordinated in right of payment to all Senior
Indebtedness, to substantially the same extent as, or to a greater extent than,
the holders of the Indenture Obligations are so subordinated.
"Permitted Subsidiary Preferred Stock" means, with respect to
any Restricted Subsidiary, any Preferred Stock of such Restricted Subsidiary
that (a) is Redeemable Capital Stock and such Restricted Subsidiary would be
entitled to create, incur or assume Indebtedness in an aggregate principal
amount equal to the aggregate involuntary maximum fixed purchase price of such
Preferred Stock pursuant to Section 1008 herein (other than Inventory Facility
Indebtedness) or (b) is not Redeemable Capital Stock and no dividends or
distributions are paid to any Person (other than the Company or any Wholly Owned
Subsidiary of the Company) other than (x) in accordance with Section 1009 herein
and shall be included in determining the aggregate amount of all Restricted
Payments made pursuant to such covenant or (y) in shares of Qualified Capital
Stock of the Company or such Restricted Subsidiary or options, warrants or other
rights to purchase Qualified Capital Stock of the Company or such Restricted
Subsidiary.
"Person" means any individual, corporation, limited liability
company, partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.
"Predecessor Security" of any particular Security means every
previous Security, evidencing all or a portion of the same debt as that
evidenced by such particular Security; and, for the purposes of this definition,
any Security authenticated and delivered under Section 308 in exchange for a
mutilated Security or in lieu of a lost, destroyed or stolen Security shall be
deemed to evidence the same debt as the mutilated, lost, destroyed or stolen
Security.
"Preferred Stock" means, with respect to any Person, any
Capital Stock of any class or classes (however designated) which is preferred as
to the payment of dividends or distributions, or as to the distribution of
assets upon any voluntary or
- 19 -
involuntary liquidation or dissolution of such Person, over the Capital Stock of
any other class in such Person.
"Prospectus" means the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including any such
prospectus supplement with respect to the terms of the offering of any portion
of the Series A 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.
"Public Equity Offering" means an underwritten public offering
of Common Stock (other than Redeemable Capital Stock) of the Company with gross
proceeds to the Company of at least $50,000,000 pursuant to a registration
statement that has been declared effective by the Commission pursuant to the
Securities Act (other than a registration statement on Form X-0, Xxxx X-0 or
otherwise relating to equity securities issuable under any employee benefit plan
of the Company). For purposes of this definition, the Company's equity offering
pursuant to Form S-3 (File No. 333-82264) shall not constitute a "Public Equity
Offering."
"Purchase Money Obligation" means any Indebtedness secured by
a Lien on assets related to the business of the Company and any additions and
accessions thereto, which are purchased or constructed by the Company at any
time after the initial Issue Date of the Securities; provided that (i) the
security agreement or conditional sales or other title retention contract
pursuant to which the Lien on such assets is created (collectively a "Purchase
Money Security Agreement") shall be entered into within 90 days after the
purchase or substantial completion of the construction of such assets and shall
at all times be confined solely to the assets so purchased or acquired, any
additions and accessions thereto and any proceeds therefrom, (ii) at no time
shall the aggregate principal amount of the outstanding Indebtedness secured
thereby be increased, except in connection with the purchase of additions and
accessions thereto and except in respect of fees and other obligations in
respect of such Indebtedness and (iii) (A) the aggregate outstanding principal
amount of Indebtedness secured thereby (determined on a per asset basis in the
case of any additions and accessions) shall not at the time such Purchase Money
Security Agreement is entered into exceed 100% of the purchase price or cost of
construction to the Company of the assets subject to such purchase or
construction, or (B) the Indebtedness secured thereby shall be with recourse
solely to the assets so purchased, acquired or constructed, any additions and
accessions thereto and any proceeds therefrom.
"Qualified Capital Stock" of any Person means any and all
Capital Stock of such Person other than Redeemable Capital Stock.
- 20 -
"Redeemable Capital Stock" means any Capital Stock that,
either by its terms or by the terms of any security into which it is convertible
or exchangeable or otherwise, (1) is or upon the happening of an event or
passage of time would be, required to be redeemed prior to the final Stated
Maturity of the principal of the Securities, (2) is redeemable at the option of
the holder of such Capital Stock at any time prior to such final Stated Maturity
(other than upon a change of control of the Company in circumstances where the
Holders would have similar rights), or (3) is convertible into or exchangeable
for debt securities at any time prior to such final Stated Maturity at the
option of the holder of such Capital Stock.
"Redemption Date" when used with respect to any Security to be
redeemed pursuant to any provision in this Indenture means the date fixed for
such redemption by or pursuant to this Indenture.
"Redemption Price" when used with respect to any Security to
be redeemed pursuant to any provision in this Indenture means the price at which
it is to be redeemed pursuant to this Indenture.
"Registration Rights Agreement" means the Registration Rights
Agreement, dated as of March 18, 2002, among the Company, the Guarantors and the
Initial Purchasers.
"Registration Statement" means any registration statement of
the Company and the Guarantors which covers the sale or issuance of any of the
Series A Securities (and related guarantees) or Series B Securities (and related
guarantees) pursuant to the provisions of the Registration Rights Agreement, and
all amendments and supplements to any 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.
"Regular Record Date" for the interest payable on any Interest
Payment Date means the March 1 or September 1 (whether or not a Business Day)
next preceding such Interest Payment Date.
"Regulation S" means Regulation S under the Securities Act, as
amended from time to time.
"Regulation S Global Securities" means one or more permanent
global Securities in registered form representing the aggregate principal amount
of Securities sold in reliance on Regulation S.
"Responsible Officer" when used with respect to the Trustee
means any officer or employee assigned to the Corporate Trust Office or any
agent of the Trustee appointed hereunder, including any vice president,
assistant vice president, secretary,
- 21 -
assistant secretary, or any other officer or assistant officer of the Trustee or
any agent of the Trustee appointed hereunder to whom any corporate trust matter
is referred because of his or her knowledge of and familiarity with the
particular subject.
"Replacement Assets" means properties and assets (other than
cash or any Capital Stock or other security) that will be used in a business of
the Company or its Restricted Subsidiaries existing on the initial Issue Date or
in a business reasonably related thereto.
"Restricted Subsidiary" means any Subsidiary of the Company
that has not been designated by the Board of Directors of the Company by a Board
Resolution delivered to the Trustee as an Unrestricted Subsidiary pursuant to
and in compliance with Section 1018 herein.
"Rule 144A" means Rule 144A under the Securities Act, as
amended from time to time.
"Rule 144A Global Securities" means one or more permanent
global Securities in registered form representing the aggregate principal amount
of Securities sold in reliance on Rule 144A.
"S&P" means Standard & Poor's Rating Group, a division of
McGraw Hill, Inc. or any successor rating agency.
"Securities Act" means the Securities Act of 1933, as amended,
or any successor statute and the rules and regulations promulgated by the
Commission under that act.
"Senior Guarantor Indebtedness" means the principal of,
premium, if any, and interest (including interest accruing after the filing of a
petition initiating any proceeding under any state, federal or foreign
bankruptcy law, whether or not such interest is allowed or allowable under such
proceeding) on any Indebtedness of any Guarantor and all other monetary
obligations of every kind or nature (including but not limited to fees,
indemnities and expenses) due on or in connection with any such Indebtedness
(other than as otherwise provided in this definition), whether outstanding on
the initial Issue Date or thereafter created, incurred or assumed, and whether
at any time owing, actually or contingent, without giving effect to any
reduction in the amount of such Indebtedness necessary to render the obligation
of any Guarantor with respect thereto (as obligor, guarantor or otherwise) not
voidable or avoidable under applicable law, unless, in the case of any
particular Indebtedness, the instrument creating or evidencing the same or
pursuant to which the same is outstanding expressly provides that such
Indebtedness shall not be senior in right of payment to any Guarantee.
Notwithstanding the foregoing, "Senior Guarantor Indebtedness" shall (x) include
all borrowings of each Guarantor under, and all guarantees by each Guarantor of,
the Credit
- 22 -
Agreement and the Floor Plan Facilities and any Interest Rate Agreement,
Currency Hedging Agreement and Commodity Price Protection Agreement of such
Guarantor and (y) not include (i) Indebtedness evidenced by the Guarantees or
the Guarantees with respect to the Exchange Securities, (ii) Indebtedness that,
by its express terms or by the express terms of the agreement or instrument
creating or evidencing the same or pursuant to which the same is outstanding, is
subordinated or junior in right of payment to any Indebtedness of such
Guarantor, (iii) Indebtedness which when incurred and without respect to any
election under Section 1111(b) of Xxxxx 00 Xxxxxx Xxxxxx Code is without
recourse to such Guarantor, (iv) Indebtedness which is represented by Redeemable
Capital Stock, (v) any liability for foreign, federal, state, local or other
taxes owed or owing by such Guarantor to the extent such liability constitutes
Indebtedness, (vi) Indebtedness of such Guarantor to a Subsidiary or any other
Affiliate of the Company or any of such Affiliate's Subsidiaries, (vii) to the
extent it might constitute Indebtedness, amounts owing for goods, materials or
services purchased in the ordinary course of business (other than Floor Plan
Facilities) or consisting of trade accounts payable owed or owing by such
Guarantor, and amounts owed by such Guarantor for compensation to employees or
services rendered to such Guarantor, (viii) that portion of any Indebtedness
which at the time of issuance is issued in violation of this Indenture and (ix)
Indebtedness evidenced by any guarantee of any Subordinated Indebtedness or Pari
Passu Indebtedness.
"Senior Indebtedness" means the principal of, premium, if any,
and interest (including interest accruing after the filing of a petition
initiating any proceeding under any state, federal or foreign bankruptcy law,
whether or not such interest is allowed or allowable under such proceeding) on
any Indebtedness of the Company and all other monetary obligations of every kind
or nature (including but not limited to fees, indemnities and expenses) due on
or in connection with any such Indebtedness (other than as otherwise provided in
this definition), whether outstanding on the initial Issue Date or thereafter
created, incurred or assumed, and whether at any time owing, actually or
contingent, unless, in the case of any particular Indebtedness, the instrument
creating or evidencing the same or pursuant to which the same is outstanding
expressly provides that such Indebtedness shall not be senior in right of
payment to the Securities. Notwithstanding the foregoing, "Senior Indebtedness"
shall (x) include the Credit Agreement and the Floor Plan Facilities and any
Interest Rate Agreement, Currency Hedging Agreement and Commodity Price
Protection Agreement of the Company to the extent the Company is a party thereto
and (y) not include (i) Indebtedness evidenced by the Securities or the Exchange
Securities, (ii) Indebtedness that, by its express terms or by the express terms
of the agreement or instrument creating or evidencing the same or pursuant to
which the same is outstanding, is subordinate or junior in right of payment to
any Indebtedness of the Company, (iii) Indebtedness which when incurred and
without respect to any election under Section 1111(b) of Xxxxx 00 Xxxxxx Xxxxxx
Code, is without recourse to the Company, (iv) Indebtedness which is represented
by Redeemable Capital Stock, (v) any liability for foreign, federal, state,
local or other taxes owed or owing by
- 23 -
the Company to the extent such liability constitutes Indebtedness, (vi)
Indebtedness of the Company to a Subsidiary or any other Affiliate of the
Company or any of such Affiliate's Subsidiaries, (vii) to the extent it might
constitute Indebtedness, amounts owing for goods, materials or services
purchased in the ordinary course of business (other than Floor Plan Facilities)
or consisting of trade accounts payable owed or owing by the Company, and
amounts owed by the Company for compensation to employees or services rendered
to the Company, (viii) that portion of any Indebtedness which at the time of
issuance is issued in violation of this Indenture and (ix) Indebtedness
evidenced by any guarantee of any Subordinated Indebtedness or Pari Passu
Indebtedness.
"Senior Representative" means the agent, indenture trustee or
other trustee or representative of holders of any Designated Senior
Indebtedness.
"Series B Global Securities" means one or more permanent
Global Securities in registered form representing the aggregate principal amount
of Series B Securities exchanged for Series A Securities pursuant to the
Exchange Offer.
"Shelf Registration Statement" means a "shelf" registration
statement of the Company and the Guarantors pursuant to Section 4 of the
Registration Rights Agreement, which covers all of the Registrable Securities
(as defined in the Registration Rights Agreement) on an appropriate form under
Rule 415 under the Securities Act, or any similar rule that may be adopted by
the Commission, 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.
"Significant Restricted Subsidiary" means, at any particular
time, any Restricted Subsidiary that, together with the Restricted Subsidiaries
of such Restricted Subsidiary (i) accounted for more than 5% of the Consolidated
revenues of the Company and its Restricted Subsidiaries for their most recently
completed fiscal year or (ii) is or are the owner(s) of more than 5% of the
Consolidated assets of the Company and its Restricted Subsidiaries as at the end
of such fiscal year, all as calculated in accordance with GAAP and as shown on
the Consolidated financial statements of the Company and its Restricted
Subsidiaries for such fiscal year.
"Special Record Date" for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 309.
"Stated Maturity" means, when used with respect to any
Indebtedness or any installment of interest on such Indebtedness, the dates
specified in such Indebtedness as the fixed date on which the principal of such
Indebtedness or such installment of interest, as the case may be, is due and
payable.
- 24 -
"Subordinated Indebtedness" means Indebtedness of the Company
or a Guarantor subordinated in right of payment to the Securities or the
Guarantee of such Guarantor, as the case may be.
"Subsidiary" of a Person means (i) any corporation more than
50% of the outstanding voting power of the Voting Stock of which is owned or
controlled, directly or indirectly, by such Person or by one or more other
Subsidiaries of such Person, or by such Person and one or more other
Subsidiaries of such Person, or (ii) any limited partnership of which such
Person or any Subsidiary of such Person is a general partner, or (iii) any other
Person in which such Person, or one or more other Subsidiaries of such Person,
or such Person and one or more other Subsidiaries, directly or indirectly, has
more than 50% of the outstanding partnership or similar interests or has the
power, by contract or otherwise, to direct or cause the direction of the
policies, management and affairs of such Person.
"Successor Security" of any particular Security means every
Security issued after, and evidencing all or a portion of the same debt as that
evidenced by, such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 308 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall
be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen
Security.
"Trustee" means the Person named as the "Trustee" in the first
paragraph of this Indenture, until a successor trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean such successor trustee.
"Trust Indenture Act" means the Trust Indenture Act of 1939,
as amended, or any successor statute.
"Unrestricted Subsidiary" means any Subsidiary of the Company
(other than a Guarantor) designated as such pursuant to and in compliance with
Section 1018 herein.
"Unrestricted Subsidiary Indebtedness" of any Unrestricted
Subsidiary means Indebtedness of such Unrestricted Subsidiary (i) as to which
neither the Company nor any Restricted Subsidiary is directly or indirectly
liable (by virtue of the Company or any such Subsidiary being the primary
obligor on, guarantor of, or otherwise liable in any respect to, such
Indebtedness), except Guaranteed Debt of the Company or any Restricted
Subsidiary to any Affiliate, in which case (unless the incurrence of such
Guaranteed Debt resulted in a Restricted Payment at the time of incurrence) the
Company shall be deemed to have made a Restricted Payment equal to the principal
amount of any such Indebtedness to the extent guaranteed at the time such
Affiliate is designated an Unrestricted Subsidiary and (ii) which, upon the
occurrence of a default with respect to such Indebtedness, does not result in,
or permit any holder of any Indebtedness of the
- 25 -
Company or any Subsidiary to declare, a default on such Indebtedness of the
Company or any Subsidiary or cause the payment of such Indebtedness to be
accelerated or payable prior to its Stated Maturity; provided that
notwithstanding the foregoing any Unrestricted Subsidiary may guarantee the
Securities.
"Voting Stock" means Capital Stock of the class or classes
pursuant to which the holders of such Capital Stock have the general voting
power under ordinary circumstances to elect at least a majority of the board of
directors, managers or trustees of such Person (irrespective of whether or not
at the time Capital Stock of any other class or classes shall have or might have
voting power by reason of the happening of any contingency).
"Wholly Owned Restricted Subsidiary" means a Restricted
Subsidiary all the Capital Stock of which (other than directors' qualifying
shares and shares of Capital Stock of a Restricted Subsidiary which a
Manufacturer requires to be held by another Person and which Capital Stock,
together with any related contractual arrangements, has no significant economic
value with respect to distributions of profits and losses in ordinary
circumstances) is owned by the Company or another Wholly Owned Restricted
Subsidiary (other than directors' qualifying shares).
Section 102. Other Definitions.
Term Defined in
---- ----------
Section
-------
"Act" 105
"Agent Members" 306
"Change of Control Offer" 1014
"Change of Control Purchase Date" 1014
"Change of Control Purchase Notice" 1014
"Change of Control Purchase Price" 1014
"covenant defeasance" 403
"Defaulted Interest" 309
"defeasance" 402
"Defeasance Redemption Date" 404
"Defeased Securities" 401
"Excess Proceeds" 1012
"incur" 1008
"Joint Venture Partners" 1009
"Offer" 1012
"Offer Date" 1012
"Offered Price" 1012
"Pari Passu Debt Xxxxxx" 0000
"Pari Passu Offer" 1012
"Permitted Indebtedness" 1008
- 26 -
"Permitted Payment" 1009
"Private Placement Legend" 202
"Purchase Money Security Agreement" 101
"refinancing" 1008
"Required Filing Date" 1019
"Restricted Payments" 1009
"Restricted Period" 201
"Revocation" 1018
"Securities" Recitals
"Security Xxxxxx" 0000
"Security Register" 305
"Security Registrar" 305
"Series A Securities" Recitals
"Series B Securities" Recitals
"Special Payment Date" 309
"Surviving Entity" 801
"Surviving Guarantor Entity" 801
"U.S. Government Obligations" 404
Section 103. Compliance Certificates and Opinions.
Upon any application or request by the Company to the Trustee
to take any action under any provision of this Indenture and as may be requested
by the Trustee, the Company and any Guarantor (if applicable) and any other
obligor on the Securities (if applicable) shall furnish to the Trustee an
Officers' Certificate in a form and substance reasonably acceptable to the
Trustee stating that all conditions precedent, if any, provided for in this
Indenture (including any covenant compliance with which constitutes a condition
precedent) relating to the proposed action have been complied with, and an
Opinion of Counsel in a form and substance reasonably acceptable to the Trustee
stating that in the opinion of such counsel all such conditions precedent, if
any, have been complied with, except that, in the case of any such application
or request as to which the furnishing of such certificates or opinions is
specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.
Every certificate or Opinion of Counsel with respect to
compliance with a condition or covenant provided for in this Indenture shall
include:
(a) a statement that each individual signing such certificate
or individual or firm signing such opinion has read and understands such
covenant or condition and the definitions herein relating thereto;
- 27 -
(b) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;
(c) a statement that, in the opinion of each such individual
or such firm, he or it has made such examination or investigation as is
necessary to enable him or it to express an informed opinion as to whether or
not such covenant or condition has been complied with; and
(d) a statement as to whether, in the opinion of each such
individual or such firm, such condition or covenant has been complied with.
Section 104. Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified
by, or covered by an opinion of, any specified Person, it is not necessary that
all such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate of an officer of the Company, any Guarantor or
other obligor on the Securities may be based, insofar as it relates to legal
matters, upon a certificate or opinion of, or representations by, counsel,
unless such officer knows, or in the exercise of reasonable care should know
that the certificate or opinion or representations with respect to the matters
upon which his certificate or opinion is based are erroneous. Any such
certificate or opinion may be based, insofar as it relates to factual matters,
upon a certificate or opinion of, or representations by, an officer or officers
of the Company, any Guarantor or other obligor on the Securities stating that
the information with respect to such factual matters is in the possession of the
Company, any Guarantor or other obligor on the Securities, unless such officer
or counsel knows, or in the exercise of reasonable care should know that the
certificate or opinion or representations with respect to such matters are
erroneous. Opinions of Counsel required to be delivered to the Trustee may have
qualifications customary for opinions of the type required and counsel
delivering such Opinions of Counsel may rely on certificates of the Company or
government or other officials customary for opinions of the type required,
including certificates certifying as to matters of fact, including that various
financial covenants have been complied with.
Any certificate or opinion of an officer of the Company, any
Guarantor or other obligor on the Securities may be based, insofar as it relates
to accounting matters, upon a certificate or opinion of, or representations by,
an accountant or firm of accountants in the employ of the Company, unless such
officer knows, or in the exercise
- 28 -
of reasonable care should know, that the certificate or opinion or
representations with respect to the accounting matters upon which his
certificate or opinion may be based are erroneous. Any certificate or opinion of
any independent firm of public accountants filed with the Trustee shall contain
a statement that such firm is independent with respect to the Company.
Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions or
other instruments under this Indenture, they may, but need not, be consolidated
and form one instrument.
Section 105. Acts of Holders.
(a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and conclusive in favor of the Trustee and the Company, if made in the
manner provided in this Section 105.
(b) The ownership of Securities shall be proved by the
Security Register.
(c) Any request, demand, authorization, direction, notice,
consent, waiver or other Act by the Holder of any Security shall bind every
future Holder of the same Security and the Holder of every Security issued upon
the transfer thereof or in exchange therefor or in lieu thereof, in respect of
anything done, suffered or omitted to be done by the Trustee, any Paying Agent
or the Company, any Guarantor or any other obligor of the Securities in reliance
thereon, whether or not notation of such action is made upon such Security.
(d) The fact and date of the execution by any Person of any
such instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any
- 29 -
such instrument or writing, or the authority of the Person executing the same,
may also be proved in any other manner which the Trustee deems sufficient.
(e) If the Company shall solicit from the Holders any request,
demand, authorization, direction, notice, consent, waiver or other Act, the
Company may, at its option, by or pursuant to a Board Resolution, fix in advance
a record date for the determination of such Holders entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other Act,
but the Company shall have no obligation to do so. Notwithstanding Trust
Indenture Act Section 316(c), any such record date shall be the record date
specified in or pursuant to such Board Resolution, which shall be a date not
more than 30 days prior to the first solicitation of Holders generally in
connection therewith and no later than the date such first solicitation is
completed.
If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other Act may be given
before or after such record date, but only the Holders of record at the close of
business on such record date shall be deemed to be Holders for purposes of
determining whether Holders of the requisite proportion of Securities then
Outstanding have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other Act, and for this
purpose the Securities then Outstanding shall be computed as of such record
date; provided that no such request, demand, authorization, direction, notice,
consent, waiver or other Act by the Holders on such record date shall be deemed
effective unless it shall become effective pursuant to the provisions of this
Indenture not later than six months after such record date.
(f) For purposes of this Indenture, any action by the Holders
which may be taken in writing may be taken by electronic means or as otherwise
reasonably acceptable to the Trustee.
Section 106. Notices, etc., to the Trustee, the Company and any
Guarantor.
Any request, demand, authorization, direction, notice,
consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with:
(a) the Trustee by any Holder or by the Company or any
Guarantor or any other obligor on the Securities shall be sufficient for every
purpose (except as provided in Section 501(c)) hereunder if in writing and
mailed, first-class postage prepaid, or delivered by recognized overnight
courier, to or with the Trustee at its Corporate Trust Office, or at any other
address previously furnished in writing to the Holders or the Company, any
Guarantor or any other obligor on the Securities by the Trustee; or
- 30 -
(b) the Company or any Guarantor by the Trustee or any Holder
shall be sufficient for every purpose (except as provided in Section 501(c))
hereunder if in writing and mailed, first-class postage prepaid, or delivered by
recognized overnight courier, to the Company or such Guarantor addressed to it
c/o United Auto Group, Inc., 00000 Xxxxx Xxxxx Xxxx, Xxxxxxx, Xxxxxxxx, 00000,
Attention: General Counsel or at any other address previously furnished in
writing to the Trustee by the Company or such Guarantor.
Section 107. Notice to Holders; Waiver.
Where this Indenture provides for notice to Holders of any
event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, or
delivered by recognized overnight courier, to each Holder affected by such
event, at its address as it appears in the Security Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Holders is given by mail, neither
the failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Any notice when mailed to a Holder in the aforesaid manner shall
be conclusively deemed to have been received by such Holder whether or not
actually received by such Holder. Where this Indenture provides for notice in
any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.
In case by reason of the suspension of regular mail service or
by reason of any other cause, it shall be impracticable to mail notice of any
event as required by any provision of this Indenture, then any method of giving
such notice as shall be reasonably satisfactory to the Trustee shall be deemed
to be a sufficient giving of such notice.
Section 108. Conflict with Trust Indenture Act.
If any provision hereof limits, qualifies or conflicts with
any provision of the Trust Indenture Act or another provision which is required
or deemed to be included in this Indenture by any of the provisions of the Trust
Indenture Act, the provision or requirement of the Trust Indenture Act shall
control. If any provision of this Indenture modifies or excludes any provision
of the Trust Indenture Act that may be so modified or excluded, the latter
provision shall be deemed to apply to this Indenture as so modified or to be
excluded, as the case may be.
Section 109. Effect of Headings and Table of Contents.
The Article and Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof.
- 31 -
Section 110. Successors and Assigns.
All covenants and agreements in this Indenture by the Company
and the Guarantors shall bind their respective successors and assigns, whether
so expressed or not.
Section 111. Separability Clause.
In case any provision in this Indenture or in the Securities
or Guarantees shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.
Section 112. Benefits of Indenture.
Nothing in this Indenture or in the Securities or Guarantees,
express or implied, shall give to any Person (other than the parties hereto and
their successors hereunder, any Paying Agent and the Holders) any benefit or any
legal or equitable right, remedy or claim under this Indenture.
Section 113. Governing Law.
THIS INDENTURE, THE SECURITIES AND THE GUARANTEES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.
Section 114. Legal Holidays.
In any case where any Interest Payment Date, Redemption Date,
Maturity or Stated Maturity of any Security shall not be a Business Day, then
(notwithstanding any other provision of this Indenture or of the Securities)
payment of interest or principal or premium, if any, need not be made on such
date, but may be made on the next succeeding Business Day with the same force
and effect as if made on such Interest Payment Date or Redemption Date, or at
the Maturity or Stated Maturity and no interest shall accrue with respect to
such payment for the period from and after such Interest Payment Date,
Redemption Date, Maturity or Stated Maturity, as the case may be, to the next
succeeding Business Day.
Section 115. Independence of Covenants.
All covenants and agreements in this Indenture shall be given
independent effect so that if a particular action or condition is not permitted
by any such covenants, the fact that it would be permitted by an exception to,
or be otherwise within the limitations of, another covenant shall not avoid the
occurrence of a Default or an Event of Default if such action is taken or
condition exists.
- 32 -
Section 116. Schedules and Exhibits.
All schedules and exhibits attached hereto are by this
reference made a part hereof with the same effect as if herein set forth in
full.
Section 117. Counterparts.
This Indenture may be executed in any number of counterparts,
each of which shall be deemed an original; but all such counterparts shall
together constitute but one and the same instrument.
Section 118. No Personal Liability of Directors, Officers, Employees
and Stockholders.
No director, officer, employee or stockholder of the Company
or any Guarantor, as such, will have any liability for any obligations of the
Company or the Guarantors under the Securities, the Indenture, the Guarantees,
or for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each holder of the Securities by accepting a Security waives and
releases all such liability.
ARTICLE TWO
SECURITY FORMS
Section 201. Forms Generally.
The Securities, the Guarantees and the Trustee's certificate
of authentication thereon shall be in substantially the forms set forth in this
Article Two, with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted hereby and may have such letters,
numbers or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with the rules of any securities exchange,
any organizational document or governing instrument or applicable law or as may,
consistently herewith, be determined by the officers executing such Securities
and Guarantees, as evidenced by their execution of the Securities and
Guarantees. Any portion of the text of any Security may be set forth on the
reverse thereof, with an appropriate reference thereto on the face of the
Security.
The definitive Securities shall be printed, lithographed or
engraved or produced by any combination of these methods or may be produced in
any other manner permitted by the rules of any securities exchange on which the
Securities may be listed, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities.
- 33 -
Initial Series A Securities offered and sold in reliance on
Rule 144A shall be issued initially in the form of one or more Rule 144A Global
Securities, substantially in the form set forth in Section 202, deposited upon
issuance with the Trustee, as custodian for the Depositary, registered in the
name of the Depositary, or its nominee, in each case for credit to an account of
a direct or indirect participant of the Depositary, duly executed by the Company
and authenticated by the Trustee as hereinafter provided. The aggregate
principal amount of the Rule 144A Global Securities may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for the Depositary or its nominee, as hereinafter provided.
Initial Series A Securities offered and sold in reliance on
Regulation S shall be issued in the form of one or more Regulation S Global
Securities, substantially in the form set forth in Section 202, deposited upon
issuance with the Trustee, as custodian for the Depositary, registered in the
name of the Depositary, or its nominee in each case for credit by the Depositary
to an account of a direct or indirect participant of the Depositary, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided; provided, however, that upon such deposit through and including the
40th day after the later of the commencement of the Offering and the original
issue date of the Securities (such period through and including such 40th day,
the "Restricted Period"), all such Securities shall be credited to or through
accounts maintained at the Depositary by or on behalf of Euroclear or
Clearstream unless exchanged for interests in the Rule 144A Global Securities in
accordance with the transfer and certification requirements described below. The
aggregate principal amount of the Regulation S Global Securities may from time
to time be increased or decreased by adjustments made on the records of the
Trustee, as custodian for the Depositary or its nominee, as hereinafter
provided.
Series B Securities exchanged for Series A Securities shall be
issued initially in the form of one or more Series B Global Securities,
substantially in the form set forth in Section 202, deposited upon issuance with
the Trustee, as custodian for the Depositary, registered in the name of the
Depositary or its nominee, in each case for credit to an account of a direct or
indirect participant of the Depositary, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The aggregate principal
amount of the Series B Global Securities may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
the Depositary or its nominee, as hereinafter provided.
Section 202. Form of Face of Security.
(a) The form of the face of any Series A Securities
authenticated and delivered hereunder shall be substantially as follows:
Unless and until (i) a Series A Security is sold under an
effective Registration Statement or (ii) a Series A Security is exchanged for a
Series B Security in connection with an effective Registration Statement, in
each case pursuant to the
- 34 -
Registration Rights Agreement, then such Security shall bear the legend set
forth below (the "Private Placement Legend") on the face thereof:
THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN
THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION AS SET FORTH
BELOW.
BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A)
IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT ("RULE 144A")) OR (B) IT IS NOT
A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE
TRANSACTION, (2) AGREES TO OFFER, SELL OR OTHERWISE TRANSFER
SUCH SECURITY PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON
WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE
OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY)
ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE
FOR RESALE PURSUANT TO RULE 000X XXXXXX XXX XXXXXX XXXXXX, TO
A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER
TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) OUTSIDE THE UNITED STATES PURSUANT
TO OFFERS AND SALES TO NON-U.S. PERSONS IN AN OFFSHORE
TRANSACTION WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION
- 35 -
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER (I) PURSUANT TO CLAUSES (D) OR
(E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM, AND (II) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT
A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER
SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE. AS USED HEREIN, THE TERMS "UNITED
STATES," "OFFSHORE TRANSACTION," AND "U.S. PERSON" HAVE THE
RESPECTIVE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE
SECURITIES ACT.
[Legend if Security is a Global Security]
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A
SUCCESSOR DEPOSITARY. TRANSFERS OF THIS GLOBAL SECURITY SHALL
BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES
OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY
SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN SECTIONS 306 AND 307 OF THE
INDENTURE.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION ("DTC"), TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT AND ANY SUCH
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS
- 36 -
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
[Legend for all Series A Securities, Whether or not a Global
Security]
THE OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER
AND TO THE EXTENT SET FORTH IN ARTICLE FOURTEEN OF THE
INDENTURE TO THE OBLIGATIONS (INCLUDING INTEREST) OWED BY THE
COMPANY AND CERTAIN OF ITS SUBSIDIARIES TO ALL SENIOR
INDEBTEDNESS; AND EACH HOLDER HEREOF, BY ITS ACCEPTANCE
HEREOF, SHALL BE BOUND BY THE PROVISIONS OF SUBORDINATION AS
SET FORTH IN SAID ARTICLE FOURTEEN OF THE INDENTURE.
- 37 -
UNITED AUTO GROUP, INC.
------------------
9 5/8% SENIOR SUBORDINATED NOTE DUE 2012, SERIES A
CUSIP XX. 000000 XX 0
Xx. 0 $_____________
United Auto Group, Inc., a Delaware corporation (herein called
the "Company," which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
___________ or registered assigns, the principal sum of $_____________ United
States dollars, or such other principal amount (which, when taken together with
the principal amounts of all other Outstanding Securities, initially shall not
exceed $300,000,000 less the principal amount of Securities redeemed by the
Company in accordance with the Indenture) as may be set forth on the Security
Register on Appendix A hereto in accordance with the Indenture, on March 18,
2012, at the office or agency of the Company referred to below, and to pay
interest thereon from March 18, 2002, or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semiannually on March
15 and September 15 in each year, commencing September 15, 2002, at the rate of
9 5/8% per annum, subject to adjustments as described in the second following
paragraph, in United States dollars, until the principal hereof is paid or duly
provided for. Interest shall be computed on the basis of a 360-day year
comprised of twelve 30-day months. The Company is allowed by the Indenture to
issue additional Securities which, when taken together with all Series A
Securities and all Series B Securities, may not exceed $500,000,000 in aggregate
principal amount.
The Holder of this Series A Security is entitled to the
benefits of the Registration Rights Agreement among the Company, the Guarantors
and the Initial Purchasers, dated March 18, 2002, pursuant to which, subject to
the terms and conditions thereof, the Company and the Guarantors are obligated
to consummate the Exchange Offer pursuant to which the Holder of this Security
(and related Guarantees) shall have the right to exchange this Security (and
related Guarantees) for 9 5/8% Senior Subordinated Notes due 2012, Series B and
related Guarantees (herein called the "Series B Securities") in like principal
amount as provided therein. The Series A Securities and the Series B Securities
are together (including related Guarantees) referred to as the "Securities." The
Series A Securities rank pari passu in right of payment with the Series B
Securities.
If (1) the Company and the Guarantors fail to file any of the
registration statements required by the Registration Rights Agreement on or
before the date specified
- 38 -
for such filing, or (2) any of such registration statements is not declared
effective by the Commission on or prior to the date specified for such
effectiveness (the "Effectiveness Target Date"), or (3) the Company and the
Guarantors fail to consummate the Exchange Offer within 30 Business Days of the
Effectiveness Target Date with respect to the Exchange Offer Registration
Statement, or (4) the Shelf Registration Statement or the Exchange Offer
Registration Statement is declared effective but thereafter ceases to be
effective or usable in connection with resales or exchanges of Securities during
the periods specified in the Registration Rights Agreement (each such event
referred to in clauses (1) through (4) above, a "Registration Default"), then
the Company and the Guarantors will pay Liquidated Damages to each Holder of
Securities, with respect to the first 90-day period immediately following the
occurrence of the first Registration Default in an amount equal to $0.05 per
week per $1,000 principal amount of Securities held by such Holder. The amount
of Liquidated Damages will increase by an additional $0.05 per week per $1,000
principal amount of Securities with respect to each subsequent 90-day period
until all Registration Defaults have been cured, up to a maximum amount of
Liquidated Damages for all Registration Defaults of $0.50 per week per $1,000
principal amount of Securities. Following the cure of all Registration Defaults,
the accrual of Liquidated Damages will cease. All references herein to
"interest" shall be deemed to include the payment of any Liquidated Damages owed
pursuant to the Registration Rights Agreement.
The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in such Indenture, be paid
to the Person in whose name this Security (or any Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the March 1 or September 1 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid, or duly provided for, and interest on such
defaulted interest at the interest rate borne by the Series A Securities, to the
extent lawful, shall forthwith cease to be payable to the Holder on such Regular
Record Date, and may either be paid to the Person in whose name this Security
(or any Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such defaulted interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities not less
than 10 days prior to such Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities may be listed, and upon such notice as may be
required by the Indenture not inconsistent with the requirements of such
exchange, all as more fully provided in the Indenture.
Payment of the principal of, premium, if any, and interest on,
this Security, and exchange or transfer of the Security, will be made at the
office or agency of the Company maintained for that purpose (which initially
will be a corporate trust office of the Trustee located at Bank Xxx Xxxxx, Xxxxx
0000, Xxxxxxx, Xxxxxxxx 60670), or at such other office or agency as may be
maintained for such purpose, in such coin or currency of
- 39 -
the United States of America as at the time of payment is legal tender for
payment of public and private debts; provided, however, that payment of interest
may be made at the option of the Company by check mailed to the address of the
Person entitled thereto as such address shall appear on the Security Register.
Reference is hereby made to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.
This Security is entitled to the benefits of the Guarantees by
the Guarantors of the punctual payment when due and performance of the Indenture
Obligations made in favor of the Trustee for the benefit of the Holders.
Reference is made to Article Thirteen of the Indenture for a statement of the
respective rights, limitations of rights, duties and obligations under the
Guarantees of the Guarantors.
Unless the certificate of authentication hereon has been duly
executed by the Trustee referred to on the reverse hereof or by the
authenticating agent appointed as provided in the Indenture by manual signature
of an authorized signer, this Security shall not be entitled to any benefit
under the Indenture, or be valid or obligatory for any purpose.
- 40 -
IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed by the manual or facsimile signature of its authorized
officers.
United Auto Group, Inc.
By:
--------------------------------------
Name:
Title:
Attest:
--------------------------------------
Name:
Title:
- 41 -
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the 9 5/8% Senior Subordinated Notes due 2012,
Series A referred to in the within-mentioned Indenture.
Bank One Trust Company, N.A.,
as Trustee
By: _________________________________
Authorized Signer
Dated:
OPTION OF HOLDER TO ELECT PURCHASE
If you wish to have this Security purchased by the Company
pursuant to Section 1012 or Section 1014, as applicable, of the Indenture, check
the Box: [ ].
If you wish to have a portion of this Security purchased by
the Company pursuant to Section 1012 or Section 1014, as applicable, of the
Indenture, state the amount (in original principal amount):
$ ____________
Date:__________________________________ Your Signature:________________________
(Sign exactly as your name appears on the other side of this Security)
Signature Guarantee: ___________________________________________________________
[Signature must be guaranteed by an eligible Guarantor Institution (banks, stock
brokers, savings and loan associations and credit unions) with membership in an
approved guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17Ad-15]
(b) The form of the face of any Series B Securities
authenticated and delivered hereunder shall be substantially as follows:
- 42 -
[Legend if Security is a Global Security]
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A
SUCCESSOR DEPOSITARY. TRANSFERS OF THIS GLOBAL SECURITY SHALL
BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES
OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY
SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN SECTIONS 306 AND 307 OF THE
INDENTURE.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION ("DTC"), TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT AND ANY SUCH
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.
[Legend for all Securities, Whether or not a Global Security]
THE OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER
AND TO THE EXTENT SET FORTH IN ARTICLE FOURTEEN OF THE
INDENTURE TO THE OBLIGATIONS (INCLUDING INTEREST) OWED BY THE
COMPANY AND CERTAIN OF ITS SUBSIDIARIES TO ALL SENIOR
INDEBTEDNESS; AND EACH HOLDER HEREOF BY ITS ACCEPTANCE HEREOF,
SHALL BE BOUND BY THE PROVISIONS OF
- 43 -
THE SUBORDINATION AS SET FORTH IN SAID ARTICLE FOURTEEN OF THE
INDENTURE."
- 44 -
United Auto Group, Inc.
------------------
9 5/8% SENIOR SUBORDINATED NOTE DUE 2012, SERIES B
CUSIP NO.
No. __________ $_____________
United Auto Group, Inc., a Delaware corporation (herein called
the "Company," which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to or
registered assigns, the principal sum of $_____________ United States dollars or
such other principal amount (which, when taken together with the principal
amounts of all other Outstanding Securities, initially shall not exceed
$300,000,000 less the principal amount of Securities redeemed by the Company in
accordance with the Indenture) as may be set forth on the Security Register on
Appendix A hereto in accordance with the Indenture on March 18, 2012, at the
office or agency of the Company referred to below, and to pay interest thereon
from March 18, 2002, or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semiannually on March 15 and
September 15 in each year, commencing September 15, 2002, at the rate of 9 5/8%
per annum, in United States dollars, until the principal hereof is paid or duly
provided for; provided that to the extent interest has not been paid or duly
provided for with respect to the Series A Security exchanged for this Series B
Security, interest on this Series B Security shall accrue from the most recent
Interest Payment Date to which interest on the Series A Security which was
exchanged for this Series B Security has been paid or duly provided for, or if
no interest has been paid on the Series A Security, it shall accrue interest
from March 18, 2002 with respect to Series A Securities exchanged for Series B
Securities. Interest shall be computed on the basis of a 360-day year comprised
of twelve 30-day months. The Company is allowed by the Indenture to issue
additional Securities which, when taken together with all Series A Securities
and all Series B Securities, may not exceed $500,000,000 in aggregate principal
amount.
This Series B Security was issued pursuant to the Exchange
Offer pursuant to which the 9 5/8% Senior Subordinated Notes due 2012, Series A
and related Guarantees (herein called the "Series A Securities") were exchanged
for the Series B Securities and related Guarantees. The Series A Securities and
the Series B Securities are together (included related Guarantees) referred to
as the "Securities." The Series B Securities rank pari passu in right of payment
with the Series A Securities.
In addition, for any period in which a Series A Security
exchanged for this Series B Security was outstanding, if (1) the Company and the
Guarantors fail to file any
- 45 -
of the registration statements required by the Registration Rights Agreement on
or before the date specified for such filing, or (2) any of such registration
statements is not declared effective by the Commission on or prior to the date
specified for such effectiveness (the "Effectiveness Target Date"), or (3) the
Company and the Guarantors fail to consummate the Exchange Offer within 30
Business Days of the Effectiveness Target Date with respect to the Exchange
Offer Registration Statement, or (4) the Shelf Registration Statement or the
Exchange Offer Registration Statement is declared effective but thereafter
ceases to be effective or usable in connection with resales or exchanges of
Securities during the periods specified in the Registration Rights Agreement
(each such event referred to in clauses (1) through (4) above, a "Registration
Default"), then the Company and the Guarantors will pay Liquidated Damages to
each Holder of Securities, with respect to the first 90-day period immediately
following the occurrence of the first Registration Default in an amount equal to
$0.05 per week per $1,000 principal amount of Securities held by such Holder.
The amount of Liquidated Damages will increase by an additional $0.05 per week
per $1,000 principal amount of Securities with respect to each subsequent 90-day
period until all Registration Defaults have been cured, up to a maximum amount
of Liquidated Damages for all Registration Defaults of $0.50 per week per $1,000
principal amount of Securities. Following the cure of all Registration Defaults,
the accrual of Liquidated Damages will cease. All references herein to
"interest" shall be deemed to include the payment of any Liquidated Damages owed
pursuant to the Registration Rights Agreement.
The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in such Indenture, be paid
to the Person in whose name this Security (or any Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the March 1 or September 1 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid, or duly provided for, and interest on such
defaulted interest at the interest rate borne by the Series B Securities, to the
extent lawful, shall forthwith cease to be payable to the Holder on such Regular
Record Date, and may either be paid to the Person in whose name this Security
(or any Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such defaulted interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities not less
than 10 days prior to such Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities may be listed, and upon such notice as may be
required by the Indenture not inconsistent with the requirements of such
exchange, all as more fully provided in the Indenture.
Payment of the principal of, premium, if any, and interest on,
this Security, and exchange or transfer of the Security, will be made at the
office or agency of the Company maintained for such purpose (which initially
will be a corporate trust office of the Trustee located at Bank Xxx Xxxxx, Xxxxx
0000, Xxxxxxx, Xxxxxxxx 60670), or at such
- 46 -
other office or agency as may be maintained for such purpose, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that payment
of interest may be made at the option of the Company by check mailed to the
address of the Person entitled thereto as such address shall appear on the
Security Register.
Reference is hereby made to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.
This Security is entitled to the benefits of the Guarantees by
the Guarantors of the punctual payment when due and performance of the Indenture
Obligations made in favor of the Trustee for the benefit of the Holders.
Reference is made to Article Thirteen of the Indenture for a statement of the
respective rights, limitations of rights, duties and obligations under the
Guarantees of the Guarantors.
Unless the certificate of authentication hereon has been duly
executed by the Trustee referred to on the reverse hereof or by the
authenticating agent appointed as provided in the Indenture by manual signature
of an authorized signer, this Security shall not be entitled to any benefit
under the Indenture, or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed by the manual or facsimile signature of its authorized
officers.
United Auto Group, Inc.
By:
____________________________________
Name:
Title:
Attest:
____________________________________
Authorized Officer
- 47 -
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the 9 5/8% Senior Subordinated Notes due 2012,
Series B referred to in the within-mentioned Indenture.
Bank One Trust Company, N.A.,
as Trustee
By: _________________________________
Authorized Signer
Dated:
OPTION OF HOLDER TO ELECT PURCHASE
If you wish to have this Security purchased by the Company
pursuant to Section 1012 or Section 1014 as applicable, of the Indenture, check
the Box: [ ].
If you wish to have a portion of this Security purchased by
the Company pursuant to Section 1012 or Section 1014 as applicable, of the
Indenture, state the amount (in original principal amount):
$_______________
Date:_____________________________ Your Signature:______________________________
(Sign exactly as your name appears on the other side of this Security)
Signature Guarantee: ___________________________________________________________
[Signature must be guaranteed by an eligible Guarantor Institution (banks, stock
brokers, savings and loan associations and credit unions) with membership in an
approved guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17Ad-15]
- 48 -
Section 203. Form of Reverse of Securities.
(a) The form of the reverse of the Series A Securities shall
be substantially as follows:
United Auto Group, Inc.
9 5/8% Senior Subordinated Note due 2012, Series A
This Security is one of a duly authorized issue of Securities
of the Company designated as its 9 5/8% Senior Subordinated Notes due 2012,
Series A (herein called the "Securities"), limited (except as otherwise provided
in the Indenture referred to below) in aggregate principal amount to
$300,000,000, issued under and subject to the terms of an indenture (herein
called the "Indenture") dated as of March 18, 2002, among the Company, the
Guarantors and Bank One Trust Company, N.A., as trustee (herein called the
"Trustee," which term includes any successor trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights, limitations of rights, duties,
obligations and immunities thereunder of the Company, the Guarantors, the
Trustee and the Holders of the Securities, and of the terms upon which the
Securities are, and are to be, authenticated and delivered.
The Company is allowed by the Indenture to create and issue
additional Securities ranking equally with this Security in all respects,
subject to limitations in Section 1008 of the Indenture. The total amount of
Securities, including this Security and any additional Securities which the
Company may issue, may not exceed $500,000,000. Any additional Securities may be
consolidated and form a single series with this Security, vote together with
this Security and have the same terms as to status, redemption or otherwise as
this Security. References herein to Securities include these additional
Securities, unless the context requires otherwise.
The Securities are subject to redemption at any time on or
after March 15, 2007, at the option of the Company, in whole or in part, on not
less than 30 nor more than 60 days' prior notice, in amounts of $1,000 or an
integral multiple thereof, at the following redemption prices (expressed as
percentages of the principal amount), if redeemed during the 12-month period
beginning March 15 of the years indicated below:
Redemption
Year Price
---- -----------
2007...................................... 104.813%
2008...................................... 103.208%
2009...................................... 101.604%
and thereafter at 100% of the principal amount, in each case, together with
accrued and unpaid interest, if any, to the Redemption Date (subject to the
rights of Holders of record on relevant Regular Record Dates to receive interest
due on an Interest Payment Date).
- 49 -
In addition, at any time prior to March 15, 2005, the Company,
at its option, may use the Net Cash Proceeds of one or more Public Equity
Offerings to redeem up to an aggregate of 35% of the aggregate principal amount
of the Securities issued under the Indenture at a redemption price equal to
109.625% of the aggregate principal amount of the Securities redeemed, plus
accrued and unpaid interest, if any, to the redemption date (subject to the
rights of holders of record on relevant Regular Record Dates to receive interest
due on an Interest Payment Date). At least 65% of the aggregate principal amount
of Securities issued under the Indenture must remain outstanding immediately
after the occurrence of such redemption. In order to effect this redemption, the
Company must mail a notice of redemption no later than 30 days after the closing
of the related Public Equity Offering and must complete such redemption within
60 days of the closing of the Public Equity Offering.
If less than all of the Securities are to be redeemed, the
Trustee shall select the Securities or portions thereof to be redeemed in
compliance with the requirements of the principal national securities exchange,
if any, on which the Securities are listed, or if the Securities are not so
listed, pro rata, by lot or by any other method the Trustee shall deem fair and
reasonable.
Upon the occurrence of a Change of Control, each Holder may
require the Company to purchase such Holder's Securities in whole or in part in
integral multiples of $1,000, at a purchase price in cash in an amount equal to
101% of the principal amount thereof, plus accrued and unpaid interest, if any,
to the date of purchase, pursuant to a Change of Control Offer in accordance
with the procedures set forth in the Indenture.
Under certain circumstances, in the event the Net Cash
Proceeds received by the Company from any Asset Sale exceeds a specified amount,
and such proceeds are not used to repay permanently any Senior Indebtedness or
Senior Guarantor Indebtedness or invested in Replacement Assets, the Company
will be required to apply such proceeds to the repayment of the Securities and
certain Indebtedness ranking pari passu in right of payment to the Securities.
In the case of any redemption or repurchase of Securities in
accordance with the Indenture, interest installments whose Stated Maturity is on
or prior to the Redemption Date will be payable to the Holders of such
Securities of record as of the close of business on the relevant Regular Record
Date or Special Record Date referred to on the face hereof. Securities (or
portions thereof) for whose redemption and payment provision is made in
accordance with the Indenture shall cease to bear interest from and after the
Redemption Date.
In the event of redemption or repurchase of this Security in
accordance with the Indenture in part only, a new Security or Securities for the
unredeemed portion hereof shall be issued in the name of the Holder hereof upon
the cancellation hereof.
- 50 -
If an Event of Default shall occur and be continuing, the
principal amount of all the Securities may be declared due and payable in the
manner and with the effect provided in the Indenture.
The Indenture contains provisions for defeasance at any time
of (a) the entire Indebtedness on the Securities and (b) certain restrictive
covenants and related Defaults and Events of Default, in each case upon
compliance with certain conditions set forth therein.
The Indenture permits, with certain exceptions (including
certain amendments permitted without the consent of any Holders, certain
amendments which require the consent of Holders of at least 75% of the
Outstanding Securities and certain amendments which require the consent of all
the Holders) as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the Guarantors and the rights of
the Holders under the Indenture and the Securities and the Guarantees at any
time by the Company and the Trustee with the consent of the Holders of at least
a majority in aggregate principal amount of the Securities at the time
Outstanding. The Indenture also contains provisions permitting the Holders of at
least a majority in aggregate principal amount of the Securities (Holders of at
least 75% in aggregate principal amount of the Securities or 100% of the Holders
in certain circumstances) at the time Outstanding, on behalf of the Holders of
all the Securities, to waive compliance by the Company and the Guarantors with
certain provisions of the Indenture and the Securities and the Guarantees and
certain past Defaults under the Indenture and the Securities and the Guarantees
and their consequences. Any such consent or waiver by or on behalf of the Holder
of this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent or waiver is made upon this Security.
The Securities are, to the extent and manner provided in
Article Fourteen of the Indenture, subordinated and subject in right of payment
to the prior payment in full (in cash or as otherwise agreed to by the holders
of Senior Indebtedness) of all Senior Indebtedness. Each Holder by its
acceptance hereof agrees to be bound by the provisions of such Article Fourteen
and authorizes and expressly directs the Trustee on its behalf to take such
action as may be necessary or appropriate to effect the subordination provided
for in the Indenture and appoints the Trustee its attorney-in-fact for such
purposes.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, any Guarantor or any other obligor on the Securities (in the event such
Guarantor or such other obligor is obligated to make payments in respect of the
Securities), which is absolute and unconditional, to pay the principal of,
premium, if any, and interest on, this Security at the times, place, and rate,
and in the coin or currency, herein prescribed, subject to the
- 51 -
rights of the holders of Senior Indebtedness and Senior Guarantor Indebtedness
as set forth in the Indenture.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company provided therefor, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to
the Company and the Security Registrar duly executed by, the Holder hereof or
its attorney duly authorized in writing, and thereupon one or more new
Securities, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.
Certificated Securities shall be transferred to all beneficial
holders in exchange for their beneficial interests in the Rule 144A Global
Securities or the Regulation S Global Securities, if any, if (x) the Depositary
notifies the Company that it is unwilling or unable to continue as Depositary
for such Global Security, or the Depositary ceases to be a clearing agency
registered under the Exchange Act, and in either case a successor Depositary is
not appointed by the Company within 90 days or (y) there shall have occurred and
be continuing a Default or an Event of Default or (z) the Company, at its
option, notifies the Trustee in writing that it elects to cause the issuance of
the Securities in certificated form. Upon any such issuance, the Trustee is
required to register such certificated Securities in the name of, and cause the
same to be delivered to, such Person or Persons (or the nominee of any thereof).
Securities in certificated form are issuable only in
registered form without coupons in denominations of $1,000 and any integral
multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, the Securities are exchangeable for a like
aggregate principal amount of Securities of a differing authorized denomination,
as requested by the Holder surrendering the same.
At any time when the Company is not subject to Sections 13 or
15(d) of the Exchange Act, upon the written request of a Holder of a Series A
Security, the Company will promptly furnish or cause to be furnished such
information as is specified pursuant to Rule 144A(d)(4) under the Securities Act
(or any successor provision thereto) to such Holder or to a prospective
purchaser of such Security who such Holder informs the Company is reasonably
believed to be a "Qualified Institutional Buyer" within the meaning of Rule 144A
under the Securities Act, as the case may be, in order to permit compliance by
such Holder with Rule 144A under the Securities Act.
No service charge shall be made for any registration of
transfer or exchange of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith.
- 52 -
Prior to due presentment of this Security for registration of
transfer, the Company, any Guarantor, the Trustee and any agent of the Company,
any Guarantor or the Trustee may treat the Person in whose name this Security is
registered as the owner hereof for all purposes, whether or not this Security is
overdue, and neither the Company, any Guarantor, the Trustee nor any such agent
shall be affected by notice to the contrary.
THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES THEREOF.
All terms used in this Security which are defined in the
Indenture and not otherwise defined herein shall have the meanings assigned to
them in the Indenture.
- 53 -
[FORM OF TRANSFER NOTICE]
FOR VALUE RECEIVED the undersigned registered holder hereby sell(s),
assign(s) and transfer(s) unto
Insert Taxpayer Identification No.
-----------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(Please print or typewrite name and address including zip code of assignee)
--------------------------------------------------------------------------------
the within Security and all rights thereunder, hereby irrevocably constituting
and appointing
--------------------------------------------------------------------------------
attorney to transfer such Security on the books of the Company with full power
of substitution in the premises.
In connection with any transfer of this Security occurring prior to the
date which is the earlier of the date of an effective Registration Statement or
March , 2004, the undersigned confirms that without utilizing any general
solicitation or general advertising that:
[Check One]
[ ] (a) this Security is being transferred in compliance with
the exemption from registration under the Securities Act of
1933, as amended, provided by Rule 144A thereunder.
or
--
[ ] (b) this Security is being transferred other than in
accordance with (a) above and documents are being furnished
which comply with the conditions of transfer set forth in this
Security and the Indenture.
If none of the foregoing boxes is checked, the Trustee or other Security
Registrar shall not be obligated to register this Security in the name of any
Person other than the Holder hereof unless and until the conditions to any such
transfer of registration set forth herein and in Section 307 of the Indenture
shall have been satisfied.
- 54 -
Date: _______________________
____________________________________________
NOTICE: The signature to this assignment
must correspond with the name as written
upon the face of the within-mentioned
instrument in every particular, without
alteration or any change whatsoever.
Signature Guarantee: _____________________________
[Signature must be guaranteed by an eligible Guarantor Institution (banks, stock
brokers, savings and loan associations and credit unions) with membership in an
approved guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17Ad-15]
TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.
The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, as amended, and is aware that the sale to it is being made in reliance on
Rule 144A and acknowledges that it has received such information regarding the
Company as the undersigned has requested pursuant to Rule 144A or has determined
not to request such information and that it is aware that the transferor is
relying upon the undersigned's foregoing representations in order to claim the
exemption from registration provided by Rule 144A.
Dated: ____________________________ ________________________________________
NOTICE: To be executed by an authorized
signatory
(b)______The form of the reverse of the Series B Securities shall be
substantially as follows:
United Auto Group, Inc.
9 5/8% Senior Subordinated Note due 2012, Series B
This Security is one of a duly authorized issue of Securities
of the Company designated as its 9 5/8% Senior Subordinated Notes due 2012,
Series B (herein called the "Securities"), limited (except as otherwise provided
in the Indenture referred to below) in aggregate principal amount to
$300,000,000 (less the principal amount of Series A Securities outstanding),
issued under and subject to the terms of an indenture (herein called the
"Indenture") dated as of March 18, 2002 among the Company, the Guarantors and
Bank One Trust Company, N.A., as trustee (herein called the "Trustee,"
- 55 -
which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties, obligations
and immunities thereunder of the Company, the Guarantors, the Trustee and the
Holders of the Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered.
The Company is allowed by the Indenture to create and issue
additional Securities ranking equally with this Security in all respects,
subject to limitations in Section 1008 of the Indenture. The total amount of
Securities, including this Security and any additional Securities which the
Company may issue, may not exceed $500,000,000. Any additional Securities may be
consolidated and form a single series with this Security, vote together with
this Security and have the same terms as to status, redemption or otherwise as
this Security. References herein to Securities include these additional
Securities, unless the context requires otherwise.
The Series B Securities are subject to redemption at any time
on or after March 15, 2007, at the option of the Company, in whole or in part,
on not less than 30 nor more than 60 days' prior notice, in amounts of $1,000 or
an integral multiple thereof, at the following redemption prices (expressed as
percentages of the principal amount), if redeemed during the 12-month period
beginning March 15 of the years indicated below:
Redemption
Year Price
---- ----------
2007...................................... 104.813%
2008...................................... 103.208%
2009...................................... 101.604%
and thereafter at 100% of the principal amount, in each case, together with
accrued and unpaid interest, if any, to the Redemption Date (subject to the
rights of Holders of record on relevant Regular Record Dates to receive interest
due on an Interest Payment Date).
In addition, at any time prior to March 15, 2005, the Company,
at its option, may use the Net Cash Proceeds of one or more Public Equity
Offerings to redeem up to an aggregate of 35% of the aggregate principal amount
of the Securities issued under the Indenture at a redemption price equal to
109.625% of the aggregate principal amount of the Securities redeemed, plus
accrued and unpaid interest, if any, to the redemption date (subject to the
rights of holders of record on relevant Regular Record Dates to receive interest
due on an Interest Payment Date). At least 65% of the aggregate principal amount
of Securities issued under the Indenture must remain outstanding immediately
after the occurrence of such redemption. In order to effect this redemption, the
Company must mail a notice of redemption no later than 30 days after the closing
of the related Public Equity Offering and must complete such redemption within
60 days of the closing of the Public Equity Offering.
- 56 -
If less than all of the Securities are to be redeemed, the
Trustee shall select the Securities or portions thereof to be redeemed in
compliance with the requirements of the principal national securities exchange,
if any, on which the Securities are listed or if the Securities are not so
listed, pro rata, by lot or by any other method the Trustee shall deem fair and
reasonable.
Upon the occurrence of a Change of Control, each Holder may
require the Company to purchase such Holder's Securities in whole or in part in
integral multiples of $1,000, at a purchase price in cash in an amount equal to
101% of the principal amount thereof, plus accrued and unpaid interest, if any,
to the date of purchase, pursuant to Change of Control Offer and in accordance
with the procedures set forth in the Indenture.
Under certain circumstances, in the event the Net Cash
Proceeds received by the Company from any Asset Sale exceeds a specified amount,
and such proceeds are not used to repay permanently any Senior Indebtedness or
Senior Guarantor Indebtedness or invested in Replacement Assets, the Company
will be required to apply such proceeds to the repayment of the Securities and
certain Indebtedness ranking pari passu in right of payment to the Securities.
In the case of any redemption or repurchase of Securities in
accordance with the Indenture, interest installments whose Stated Maturity is on
or prior to the Redemption Date will be payable to the Holders of such
Securities of record as of the close of business on the relevant Regular Record
Date or Special Record Date referred to on the face hereof. Securities (or
portions thereof) for whose redemption and payment provision is made in
accordance with the Indenture shall cease to bear interest from and after the
Redemption Date.
In the event of redemption or repurchase of this Security in
accordance with the Indenture in part only, a new Security or Securities for the
unredeemed portion hereof shall be issued in the name of the Holder hereof upon
the cancellation hereof.
If an Event of Default shall occur and be continuing, the
principal amount of all the Securities may be declared due and payable in the
manner and with the effect provided in the Indenture.
The Indenture contains provisions for defeasance at any time
of (a) the entire Indebtedness on the Securities and (b) certain restrictive
covenants and related Defaults and Events of Default, in each case upon
compliance with certain conditions set forth therein.
The Indenture permits, with certain exceptions (including
certain amendments permitted without the consent of any Holders, certain
amendments which require the consent of Holders of at least 75% of the
Outstanding Securities and certain amendments which require the consent of all
of the Holders) as therein provided, the
- 57 -
amendment thereof and the modification of the rights and obligations of the
Company and the Guarantors and the rights of the Holders under the Indenture and
the Securities and the Guarantees at any time by the Company and the Trustee
with the consent of the Holders of at least a majority in aggregate principal
amount of the Securities at the time Outstanding. The Indenture also contains
provisions permitting the Holders of at least a majority in aggregate principal
amount of the Securities (Holders of at least 75% in aggregate principal amount
of the Securities or 100% of the Holders in certain circumstances) at the time
Outstanding, on behalf of the Holders of all the Securities, to waive compliance
by the Company and the Guarantors with certain provisions of the Indenture and
the Securities and the Guarantees and certain past Defaults under the Indenture
and the Securities and the Guarantees and their consequences. Any such consent
or waiver by or on behalf of the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof whether or not notation of such consent or waiver is made upon
this Security.
The Securities are, to the extent and manner provided in
Article Fourteen of the Indenture, subordinated and subject in right of payment
to the prior payment in full (in cash or as otherwise agreed to by the holders
of Senior Indebtedness) of all Senior Indebtedness. Each Holder by its
acceptance hereof agrees to be bound by the provisions of such Article Fourteen
and authorizes and expressly directs the Trustee on its behalf to take such
action as may be necessary or appropriate to effect the subordination provided
for in the Indenture and appoints the Trustee its attorney-in-fact for such
purposes.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, any Guarantor or any other obligor on the Securities (in the event such
Guarantor or such other obligor is obligated to make payments in respect of the
Securities), which is absolute and unconditional, to pay the principal of,
premium, if any, and interest on, this Security at the times, place, and rate,
and in the coin or currency, herein prescribed, subject to the rights of the
holders of Senior Indebtedness and Senior Guarantor Indebtedness as set forth in
the Indenture.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company provided therefor, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to
the Company and the Security Registrar duly executed by, the Holder hereof or
its attorney duly authorized in writing, and thereupon one or more new
Securities, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.
Certificated Securities shall be transferred to all beneficial
holders in exchange for their beneficial interests in the Rule 144A Global
Securities or the
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Regulation S Global Securities if (x) the Depositary notifies the Company that
it is unwilling or unable to continue as Depositary for such Global Security, or
the Depositary ceases to be a clearing agency registered under the Exchange Act,
and in either case a successor Depositary is not appointed by the Company within
90 days or (y) there shall have occurred and be continuing a Default or an Event
of Default, or (z) the Company, at its option, notifies the Trustee in writing
that it elects to cause the issuance of the Securities in certificated form.
Upon any such issuance, the Trustee is required to register such certificated
Securities in the name of, and cause the same to be delivered to, such Person or
Persons (or the nominee of any thereof).
Securities in certificated form are issuable only in
registered form without coupons in denominations of $1,000 and any integral
multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, the Securities are exchangeable for a like
aggregate principal amount of Securities of a differing authorized denomination,
as requested by the Holder surrendering the same.
No service charge shall be made for any registration of
transfer or exchange of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith.
Prior to due presentment of this Security for registration of
transfer, the Company, any Guarantor, the Trustee and any agent of the Company,
any Guarantor or the Trustee may treat the Person in whose name this Security is
registered as the owner hereof for all purposes, whether or not this Security is
overdue, and neither the Company, any Guarantor, the Trustee nor any such agent
shall be affected by notice to the contrary.
THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES THEREOF.
All terms used in this Security which are defined in the
Indenture and not otherwise defined herein shall have the meanings assigned to
them in the Indenture.
FORM OF TRANSFEREE CERTIFICATE
I or we assign and transfer this Security to:
--------------------------------------------------------------------------------
Print or type name, address and zip code of assignee
--------------------------------------------------------------------------------
Please insert social security or other identifying number of assignee
- 59 -
I irrevocably appoint _____________________________, to transfer this Security
on the books of the Company. The Agent may substitute another to act for him.
Dated _________________________ Signed__________________________________
(Sign exactly as name appears on the other side of this Security)
[Signature must be guaranteed by an eligible Guarantor Institution (banks, stock
brokers, savings and loan associations and credit unions) with membership in an
approved guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17 Ad-15]
Section 204. Form of Guarantee.
The form of Guarantee shall be set forth on the Securities
substantially as follows:
GUARANTEE
For value received, each of the undersigned hereby absolutely, fully
and unconditionally and irrevocably guarantees, jointly and severally with each
other Guarantor, to the holder of this Security the payment of principal of,
premium, if any, and interest on this Security upon which these Guarantees are
endorsed in the amounts and at the time when due and payable whether by
declaration thereof, or otherwise, and interest on the overdue principal and
interest, if any, of this Security, if lawful, and the payment or performance of
all other obligations of the Company under the Indenture or the Securities, to
the holder of this Security and the Trustee, all in accordance with and subject
to the terms and limitations of this Security and Article Thirteen of the
Indenture. This Guarantee will not become effective until the Trustee duly
executes the certificate of authentication on this Security. These Guarantees
shall be governed by and construed in accordance with the laws of the State of
New York, without regard to conflict of law principles thereof. The Indebtedness
evidenced by these Guarantees is, to the extent and in the manner provided in
the Indenture, subordinate and subject in right of payment to the prior payment
in full of all Senior Guarantor Indebtedness, whether outstanding on the date of
the Indenture or thereafter, and the Guarantees are issued subject to such
provisions.
Dated:
UAG NORTHEAST BODY SHOP, INC.
XXXXXXX UNITED AUTO GROUP NO. 2, INC.
UAG SOUTHEAST, INC.
UAG DULUTH, INC.
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UNITED NISSAN, INC. (GA)
PEACHTREE NISSAN, INC.
UAG TEXAS, INC.
UAG TEXAS II, INC.
UAG EAST, INC.
PALM AUTO PLAZA, INC.
FLORIDA CHRYSLER PLYMOUTH, INC.
WEST PALM NISSAN, INC.
NORTHLAKE AUTO FINISH, INC.
JS IMPORTS, INC.
WEST PALM AUTO MALL, INC.
AUTO MALL PAYROLL SERVICES, INC.
UAG CAROLINA, INC.
XXXX-XXXXXXX CHEVROLET, INC.
XXXXXXX CHEVROLET-OLDSMOBILE, INC.
XXXX XXXX CHEVROLET, INC.
UAG PARAMOUNT MOTORS, INC.
UAG KISSIMMEE MOTORS, INC.
UNITED AUTOCARE, INC.
UNITED AUTOCARE PRODUCTS, INC.
UNITED AUTO FOURTH FUNDING, INC.
UNITED AUTO FIFTH FUNDING, INC.
UAG FINANCE COMPANY, INC.
ATLANTIC AUTO FUNDING CORPORATION
ATLANTIC AUTO SECOND FUNDING CORPORATION
ATLANTIC AUTO THIRD FUNDING CORPORATION
UAG HOUSTON ACQUISITION, LTD.
UAG INTERNATIONAL HOLDINGS, INC.
UAG REALTY, LLC
UNITED AUTO FINANCE, INC.
UAG CONNECTICUT I, LLC
UAG ATLANTA IV MOTORS, INC.
UAG TULSA HOLDINGS, LLC
By: __________________________
Name: Xxxxx X. Xxxxxxxx
Title: Treasurer
- 61 -
Attest: __________________________
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Secretary
UAG CHCC, INC.
LRP, LTD.
By: ____________________________
Name: Xxxxx X. Xxxxxxxx
Title: Assistant Treasurer
Attest: ______________________________
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
UAG NORTHEAST, INC.
DIFEO PARTNERSHIP, INC.
UAG XXXXXX, INC.
SOMERSET MOTORS INC.
XXXXXXX AUTO SALES, INC.
XXXXXXX UNITED AUTO GROUP NO. 6, INC.
XXXXXXX BUICK-PONTIAC, INC.
XXXXXXX FORD NORTH, INC.
UNITED NISSAN, INC. (NV)
UNITED NISSAN, INC (TN)
UAG WEST, INC.
SA AUTOMOTIVE, LTD.
SL AUTOMOTIVE, LTD.
SPA AUTOMOTIVE, LTD.
SUN MOTORS, LTD.
SCOTTSDALE MANAGEMENT GROUP, LTD.
SAU AUTOMOTIVE, LTD.
SK MOTORS, LTD.
KMT/UAG, INC.
RELENTLESS PURSUIT ENTERPRISES, INC.
TRI-CITY LEASING, INC.
HT AUTOMOTIVE, LTD.
WESTBURY SUPERSTORE, LTD.
- 62 -
UNITED AUTO DODGE OF SHREVEPORT, INC.
XXXXXXXXX XXXX DODGE, INC.
THE NEW GRACELAND DODGE, INC.
UAG GRACELAND II, INC.
UAG MEMPHIS II, INC.
UAG MEMPHIS IV, INC.
UAG MEMPHIS V, INC.
UAG-CARIBBEAN, INC.
XXX XXXXX CHEVROLET, INC.
YOUNG MANAGEMENT GROUP, INC.
UAG YOUNG II, INC.
UAG CLASSIC, INC.
CLASSIC AUTO GROUP, INC.
CLASSIC MANAGEMENT COMPANY, INC.
CLASSIC IMPORTS, INC.
CLASSIC MOTOR SALES, LLC
X. XXXXX CHEVROLET LLC
XXX XXXXX MOTORS LLC
UAG YOUNG AUTOMOTIVE GROUP LLC
YOUNG AUTOMOTOVE HOLDINGS LLC
EUROPA AUTO IMPORTS, INC.
UAG LAKE XXXXXX, LLC
UAG INDIANAPOLIS, LLC
MOTORCARS ACQUISITION, LLC
MOTORCARS ACQUISITION II, LLC
MOTORCARS ACQUISITION III, LLC
SCOTTSDALE FERRARI, LLC
UAG OLDSMOBILE OF INDIANA, LLC
XXXXXXX NORTH, LLC
XXXXXXX PONTIAC GMC, LLC
XXXXXXX SPRING BRANCH, LLC
PIONEER FORD WEST, LLC
UAG CERRITOS, LLC
UAG CONNECTICUT, LLC
UAG FAIRFIELD CA, LLC
UAG FAIRFIELD CM, LLC
UAG FAIRFIELD CP, LLC
UAG XXXXXXX SPRINGDALE, LLC
UAG MENTOR ACQUISITION, LLC
UAG MICHIGAN CADILLAC, LLC
UAG MICHIGAN PONTIAC-GMC, LLC
UAG MICHIGAN T1, LLC
- 63 -
UAG MICHIGAN TMV, LLC
UAG PHOENIX VC, LLC
UAG SPRING, LLC
UNITED RANCH AUTOMOTIVE, LLC
UAG CHEVROLET, INC.
UAG FAIRFIELD CV, LLC
XXXXX XXXXXX CHEVROLET-GEO, INC.
HBL, LLC
MOTORCARS ACQUISITION IV, LLC
UAG NANUET I, LLC
UAG NANUET II, LLC
NISSAN OF NORTH OLMSTED, LLC
XXXXXXX NISSAN, LLC
UAG FAYETTEVILLE I, LLC
UAG FAYETTEVILLE II, LLC
UAG FAYETTEVILLE III, LLC
By: __________________________
Name: Xxxxx X. Xxxxxxxx
Title: Assistant Secretary
Attest: __________________________
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
DIFEO HYUNDAI PARTNERSHIP
DIFEO NISSAN PARTNERSHIP
DIFEO CHRYSLER PLYMOUTH JEEP
EAGLE PARTNERSHIP
DIFEO LEASING PARTNERSHIP
DANBURY AUTO PARTNERSHIP
DIFEO TENAFLY PARTNERSHIP
OCT PARTNERSHIP
XXXXXX MOTORS PARTNERSHIP
COUNTY AUTO GROUP PARTNERSHIP
SOMERSET MOTORS PARTNERSHIP
By:DIFEO PARTNERSHIP, INC.
A general partner
By: __________________________
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Name: Xxxxx X. Xxxxxxxx
Title: Assistant Secretary
Attest: __________________________
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
- 65 -
XXXXXXX AUTOMOTIVE, LTD.
By:UAG TEXAS, INC., a general partner
By: __________________________
Name: Xxxxx X. Xxxxxxxx
Title: Treasurer
Attest: __________________________
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
CLASSIC ENTERPRISES, LLC
CLASSIC NISSAN OF TURNERSVILLE, LLC
By:UAG CLASSIC, INC., Member
By: __________________________
Name: Xxxxx X. Xxxxxxxx
Title: Assistant Treasurer
Attest: __________________________
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
XXXXXXX FORD, INC.
NATIONAL CITY FORD, INC.
CENTRAL FORD CENTER, INC.
PIONEER FORD SALES, INC.
By: __________________________
Name: Xxxxx X. Xxxxxxxx
Title: Assistant Treasurer
Attest: __________________________
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
- 66 -
CLASSIC TURNERSVILLE
GMG MOTORS, INC.
KMPB, LLC
SCOTTSDALE JAGUAR, LTD.
UNITED AUTO LICENSING, LLC
CJNS, LLC
H.B.L. HOLDINGS, INC.
LANTZSCH-ANDREAS ENTERPRISES, INC.
LMNS, LLC
UAG VK, LLC
By: __________________________
Name: Xxxxx X. Xxxxxxxx
Title: Assistant Secretary
Attest: __________________________
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
UAG TURNERSVILLE REALTY, LLC
By: __________________________
Name: Xxxxx X. Xxxxxxxx
Title: Treasurer
Attest: __________________________
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Secretary
- 67 -
ARTICLE THREE
THE SECURITIES
Section 301. Title and Terms.
The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture and outstanding at any time is
initially limited to $300,000,000 in principal amount of Securities (subject to
the right of the Company to issue additional Securities as described in the
immediately succeeding paragraph), except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities pursuant to Section 303, 304, 305, 306, 307, 308, 906, 1012,
1015, 1108 or otherwise.
The Company may from time to time, without notice to or the
consent of the Holders, create and issue further Securities ranking equally with
the Securities in all respects, subject to the limitations described in Section
1008. The total amount of Securities initially issued, together with any
additional Securities which may be issued hereunder, shall not exceed
$500,000,000. Any further Securities may be consolidated and form a single
series with the Securities, vote together with the Securities and have the same
terms as to status, redemption or otherwise as the Securities.
The Securities shall be known and designated as the "9 5/8%
Senior Subordinated Notes due 2012" of the Company. A separate reference may be
made to each series. The Stated Maturity of the Securities shall be March 15,
2012, and the Securities shall each bear interest at the rate of 9 5/8% per
annum, as such interest rate may be adjusted as set forth in the Securities,
from March 18, 2002, or from the most recent Interest Payment Date to which
interest has been paid, payable semiannually on March 15 and September 15 in
each year, commencing as of September 15, 2002, until the principal thereof is
paid or duly provided for. Interest on any overdue principal, interest (to the
extent lawful) or premium, if any, shall be payable on demand.
The principal of, premium, if any, and interest on, the
Securities shall be payable and the Securities shall be exchangeable and
transferable at an office or agency of the Company maintained for such purposes
(which initially will be a corporate trust office of the Trustee located at Bank
Xxx Xxxxx, Xxxxx 0000, Xxxxxxx, Xxxxxxxx 60670); provided, however, that payment
of interest may be made at the option of the Company by check mailed to
addresses of the Persons entitled thereto as shown on the Security Register.
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For all purposes hereunder, the Series A Securities and the
Series B Securities will be treated as one class and are together referred to as
the "Securities." The Series A Securities rank pari passu in right of payment
with the Series B Securities.
The Securities shall be subject to repurchase by the Company
pursuant to an Offer as provided in Section 1012.
Holders shall have the right to require the Company to
purchase their Securities, in whole or in part, in the event of a Change of
Control pursuant to Section 1014.
The Securities shall be redeemable as provided in Article
Eleven and in the Securities.
The Indebtedness evidenced by these Securities shall be
subordinated in right of payment to Senior Indebtedness in accordance with the
terms of Article Fourteen hereof. The Securities shall be senior subordinated
Indebtedness of the Company ranking equal to all other existing and future
senior subordinated Indebtedness of the Company and senior to all Subordinated
Indebtedness of the Company.
At the election of the Company, the entire Indebtedness on the
Securities or certain of the Company's obligations and covenants and certain
Events of Default thereunder may be defeased as provided in Article Four.
Section 302. Denominations.
The Securities shall be issuable only in fully registered form
without coupons and only in denominations of $1,000 and any integral multiple
thereof.
Section 303. Execution, Authentication, Delivery and Dating.
The Securities shall be executed on behalf of the Company by
one of its Chairman of the Board, its Chief Executive Officer, its President,
its Chief Operating Officer, its Chief Financial Officer, its Executive Vice
President-Finance or one of its Vice Presidents, which signature shall be
attested by its Secretary or one of its Assistant Secretaries. The signatures of
any of these officers on the Securities may be manual or facsimile. The
execution of the Securities by the two officers need not be on the same page and
may be on counterpart pages.
Securities bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Securities or
did not hold such offices at the date of such Securities.
- 69 -
At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Securities executed by the
Company to the Trustee (with or without Guarantees endorsed thereon) for
authentication, together with a Company Order for the authentication and
delivery of such Securities; and the Trustee in accordance with such Company
Order shall authenticate and make available for delivery such Securities as
provided in this Indenture and not otherwise.
Each Security shall be dated the date of its authentication.
No Security or Guarantee endorsed thereon shall be entitled to
any benefit under this Indenture or be valid or obligatory for any purpose
unless there appears on such Security a certificate of authentication
substantially in the form provided for herein duly executed by the Trustee by
manual signature of an authorized officer, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder and is entitled to the
benefits of this Indenture.
In case the Company or any Guarantor, pursuant to Article
Eight, shall, in a single transaction or through a series of related
transactions, be consolidated or merged with or into any other Person or shall
sell, assign, convey, transfer, lease or otherwise dispose of all or
substantially all of its properties and assets to any Person, and the successor
Person resulting from such consolidation or surviving such merger, or into which
the Company or such Guarantor shall have been merged, or the successor Person
which shall have participated in the sale, assignment, conveyance, transfer,
lease or other disposition as aforesaid, shall have executed an indenture
supplemental hereto with the Trustee pursuant to Article Eight, any of the
Securities authenticated or delivered prior to such consolidation, merger, sale,
assignment, conveyance, transfer, lease or other disposition may, from time to
time, at the request of the successor Person, be exchanged for other Securities
executed in the name of the successor Person with such changes in phraseology
and form as may be appropriate, but otherwise in substance of like tenor as the
Securities surrendered for such exchange and of like principal amount; and the
Trustee, upon the request of the successor Person, shall authenticate and
deliver Securities as specified in such request for the purpose of such
exchange. If Securities shall at any time be authenticated and delivered in any
new name of a successor Person pursuant to this Section 303 in exchange or
substitution for or upon registration of transfer of any Securities, such
successor Person, at the option of the Holders but without expense to them,
shall provide for the exchange of all Securities at the time Outstanding for
Securities authenticated and delivered in such new name.
The Trustee may appoint an authenticating agent acceptable to
the Company to authenticate Securities on behalf of the Trustee. Unless limited
by the terms of such appointment, an authenticating agent may authenticate
Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee
- 70 -
includes authentication by such agent. An authenticating agent has the same
rights as any Security Registrar or Paying Agent to deal with the Company and
its Affiliates.
If an officer whose signature is on a Security no longer holds
that office at the time the Trustee authenticates such Security such Security
shall be valid nevertheless.
Section 304. Temporary Securities.
Pending the preparation of definitive Securities, the Company
may execute, and upon Company Order the Trustee shall authenticate and make
available for delivery, temporary Securities which are printed, lithographed,
typewritten or otherwise produced, in any authorized denomination, substantially
of the tenor of the definitive Securities in lieu of which they are issued and
with such appropriate insertions, omissions, substitutions and other variations
as the officers executing such Securities may determine, as conclusively
evidenced by their execution of such Securities.
If temporary Securities are issued, the Company will cause
definitive Securities to be prepared without unreasonable delay. After the
preparation of definitive Securities, the temporary Securities shall be
exchangeable for definitive Securities upon surrender of the temporary
Securities at the office or agency of the Company designated for such purpose
pursuant to Section 1002, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities, the Company shall execute
and the Trustee (in accordance with a Company Order for the authentication of
such Securities) shall authenticate and make available for delivery in exchange
therefor a like principal amount of definitive Securities of authorized
denominations. Until so exchanged the temporary Securities shall in all respects
be entitled to the same benefits under this Indenture as definitive Securities.
Section 305. Registration, Registration of Transfer and Exchange.
The Company shall cause the Trustee to keep, so long as it is
the Security Registrar, at the Corporate Trust Office of the Trustee, or such
other office as the Trustee may designate, a register (the register maintained
in such office or in any other office or agency designated pursuant to Section
1002 being herein sometimes referred to as the "Security Register") in which,
subject to such reasonable regulations as the Security Registrar may prescribe,
the Company shall provide for the registration of Securities and of transfers of
Securities. The Trustee shall initially be the "Security Registrar" for the
purpose of registering Securities and transfers of Securities as herein
provided. The Company may change the Security Registrar or appoint one or more
co-Security Registrars without notice.
Upon surrender for registration of transfer of any Security at
the office or agency of the Company designated pursuant to Section 1002, the
Company shall execute, and the Trustee shall (in accordance with a Company Order
for the authentication of such
- 71 -
Securities) authenticate and make available for delivery, in the name of the
designated transferee or transferees, one or more new Securities of the same
series of any authorized denomination or denominations, of a like aggregate
principal amount.
Furthermore, any Holder of the Global Security shall, by
acceptance of such Global Security, agree that transfers of beneficial interests
in such Global Security may be effected only through a book-entry system
maintained by the Holder of such Global Security (or its agent), and that
ownership of a beneficial interest in a Security shall be required to be
reflected in a book entry.
At the option of the Holder, Securities may be exchanged for
other Securities of any authorized denomination or denominations, of a like
aggregate principal amount, upon surrender of the Securities to be exchanged at
such office or agency. Whenever any Securities are so surrendered for exchange,
the Company shall execute, and the Trustee shall (in accordance with a Company
Order for the authentication of such Securities) authenticate and make available
for delivery, Securities of the same series which the Holder making the exchange
is entitled to receive; provided that no exchange of Series A Securities for
Series B Securities shall occur until an Exchange Offer Registration Statement
shall have been declared effective by the Commission and any Series A Securities
exchanged for the Series B Securities shall be canceled.
All Securities issued upon any registration of transfer or
exchange of Securities shall be the valid obligations of the Company, evidencing
the same Indebtedness, and entitled to the same benefits under this Indenture,
as the Securities surrendered upon such registration of transfer or exchange.
Every Security presented or surrendered for registration of
transfer, or for exchange, repurchase or redemption, shall (if so required by
the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar, duly executed by the Holder thereof or his attorney duly authorized
in writing.
No service charge shall be made to a Holder for any
registration of transfer, exchange or redemption of Securities, except for any
tax or other governmental charge that may be imposed in connection therewith,
other than exchanges pursuant to Sections 303, 304, 305, 308, 906, 1012, 1014 or
1108 not involving any transfer.
The Company shall not be required (a) to issue, register the
transfer of or exchange any Security during a period beginning at the opening of
business 15 days before the mailing of a notice of redemption of the Securities
selected for redemption under Section 1104 and ending at the close of business
on the day of such mailing or (b) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except the unredeemed
portion of Securities being redeemed in part.
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Except as otherwise provided herein, every Security shall be
subject to the restrictions on transfer provided in the legend required to be
set forth on the face of each Security pursuant to Section 202, and the
restrictions set forth in this Section 305, and the Holder of each Security, by
such Holder's acceptance thereof (or interest therein), agrees to be bound by
such restrictions on transfer.
Except as provided in the preceding paragraph, any Security
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, any Global Security, whether pursuant to this Section 305,
Section 304, 308, 906 or 1108 or otherwise, shall also be a Global Security and
bear the legend specified in Section 202.
Section 306. Book Entry Provisions for Global Securities.
(a) Each Global Security initially shall (i) be registered in
the name of the Depositary for such Global Security or the nominee of such
Depositary, (ii) be deposited with, or on behalf of, the Depositary or with the
Trustee as custodian for such Depositary and (iii) bear legends as set forth in
Section 202.
Members of, or participants in, the Depositary ("Agent
Members") shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depositary, or the Trustee as its
custodian, or under such Global Security, and the Depositary may be treated by
the Company, the Guarantors, the Trustee and any agent of the Company or the
Trustee as the absolute owner of such Global Security for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the
Company, the Guarantors, the Trustee or any agent of the Company or the Trustee
from giving effect to any written certification, proxy or other authorization
furnished by the Depositary or shall impair, as between the Depositary and its
Agent Members, the operation of customary practices governing the exercise of
the rights of a holder of any Security.
(b) Notwithstanding any other provision in this Indenture, no
Global Security may be exchanged in whole or in part for Securities registered,
and no transfer of a Global Security in whole or in part may be registered, in
the name of any Person other than the Depositary for such Global Security or a
nominee thereof unless (i) such Depositary (A) has notified the Company that it
is unwilling or unable to continue as Depositary for such Global Security or (B)
has ceased to be a clearing agency registered as such under the Exchange Act,
and in either case the Company fails to appoint a successor Depositary, (ii) the
Company, at its option, executes and delivers to the Trustee a Company Order
stating that it elects to cause the issuance of the Securities in certificated
form and that all Global Securities shall be exchanged in whole for Securities
that are not Global Securities (in which case such exchange shall be effected by
the Trustee) or (iii) there shall have occurred and be continuing an Event of
Default or any event which after notice or lapse of time or both would be an
Event of Default with respect to such Global Security.
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(c) If any Global Security is to be exchanged for other
Securities or canceled in whole, it shall be surrendered by or on behalf of the
Depositary or its nominee to the Trustee, as Security Registrar, for exchange or
cancellation as provided in this Article Three. If any Global Security is to be
exchanged for other Securities or canceled in part, or if another Security is to
be exchanged in whole or in part for a beneficial interest in any Global
Security, then either (i) such Global Security shall be so surrendered for
exchange or cancellation as provided in this Article Three or (ii) the principal
amount thereof shall be reduced or increased by an amount equal to the portion
thereof to be so exchanged or canceled, or equal to the principal amount of such
other Security to be so exchanged for a beneficial interest therein, as the case
may be, by means of an appropriate adjustment made on the records of the
Trustee, as Security Registrar, whereupon the Trustee, in accordance with the
Applicable Procedures, shall instruct the Depositary or its authorized
representative to make a corresponding adjustment to its records. Upon any such
surrender or adjustment of a Global Security, the Trustee shall, subject to this
Section 306(c) and as otherwise provided in this Article Three, authenticate and
deliver any Securities issuable in exchange for such Global Security (or any
portion thereof) to or upon the order of, and registered in such names as may be
directed by, the Depositary or its authorized representative. Upon the request
of the Trustee in connection with the occurrence of any of the events specified
in the preceding paragraph, the Company shall promptly make available to the
Trustee a reasonable supply of Securities that are not in the form of Global
Securities. The Trustee shall be entitled to rely upon any order, direction or
request of the Depositary or its authorized representative which is given or
made pursuant to this Article Three if such order, direction or request is given
or made in accordance with the Applicable Procedures.
(d) Every Security authenticated and delivered upon
registration of transfer of, or in exchange for or in lieu of, a Global Security
or any portion thereof, whether pursuant to this Article Three or otherwise,
shall be authenticated and delivered in the form of, and shall be, a Global
Security, unless such Security is registered in the name of a Person other than
the Depositary for such Global Security or a nominee thereof.
(e) The Depositary or its nominee, as registered owner of a
Global Security, shall be the Holder of such Global Security for all purposes
under this Indenture and the Securities, and owners of beneficial interests in a
Global Security shall hold such interests pursuant to the Applicable Procedures.
Accordingly, any such owner's beneficial interest in a Global Security will be
shown only on, and the transfer of such interest shall be effected only through,
records maintained by the Depositary or its nominee or its Agent Members.
(f) In connection with any transfer of a portion of the
beneficial interest in a Global Security to beneficial owners who are required
to or request to hold certificated securities, the Security Registrar shall
reflect on its books and records the
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date and a decrease in the principal amount of the beneficial interest in the
Global Security to be transferred, and the Company shall execute, and the
Trustee shall authenticate and deliver, one or more certificated Securities of
like tenor and amount, in all cases in accordance with the Applicable
Procedures.
(g) In connection with any transfer of a certificated Security
to a beneficial owner who wishes to hold the Security as a beneficial interest
in a Global Security, the Security Registrar shall cancel the certificated
Security and cause, in accordance with the standing instructions and procedures
existing between the Depository and the Security Registrar, the aggregate
principal amount of Securities represented by the Global Security to be
increased by the aggregate principal amount of the certificated Security to be
exchanged and shall credit to the account of the Person specified in the
instructions a beneficial interest in the Global Security equal to the principal
amount of the certificated Security so canceled, all in accordance with the
Applicable Procedures.
Section 307. Special Transfer and Exchange Provisions.
(a) Certain Transfers and Exchanges. Transfers and exchanges
of Securities and beneficial interests in a Global Security of the kinds
specified in this Section 307 shall be made only in accordance with this Section
307.
(i) Rule 144A Global Security to Regulation S Global
Security. If the owner of a beneficial interest in the Rule
144A Global Security wishes at any time to transfer such
interest to a Person who wishes to acquire the same in the
form of a beneficial interest in the Regulation S Global
Security, such transfer may be effected only in accordance
with the provisions of this paragraph and paragraph (iv) below
and subject to the Applicable Procedures. Upon receipt by the
Trustee, as Security Registrar, of (a) an order given by the
Depositary or its authorized representative directing that a
beneficial interest in the Regulation S Global Security in a
specified principal amount be credited to a specified Agent
Member's account and that a beneficial interest in the Rule
144A Global Security in an equal principal amount be debited
from another specified Agent Member's account and (b) a
Regulation S Certificate in the form of Exhibit A hereto,
satisfactory to the Trustee and duly executed by the owner of
such beneficial interest in the Rule 144A Global Security or
his attorney duly authorized in writing, then the Trustee, as
Security Registrar but subject to paragraph (iv) below, shall
reduce the principal amount of the Rule 144A Global Security
and increase the principal amount of the Regulation S Global
Security by such specified principal amount as provided in
Section 306(c).
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(ii) Regulation S Global Security to Rule 144A Global
Security. If the owner of a beneficial interest in the
Regulation S Global Security wishes at any time to transfer
such interest to a Person who wishes to acquire the same in
the form of a beneficial interest in the Rule 144A Global
Security, such transfer may be effected only in accordance
with this paragraph (ii) and subject to the Applicable
Procedures. Upon receipt by the Trustee, as Security
Registrar, of (a) an order given by the Depositary or its
authorized representative directing that a beneficial interest
in the Rule 144A Global Security in a specified principal
amount be credited to a specified Agent Member's account and
that a beneficial interest in the Regulation S Global Security
in an equal principal amount be debited from another specified
Agent Member's account and (b) if such transfer is to occur
during the Restricted Period, a Restricted Securities
Certificate in the form of Exhibit B hereto, satisfactory to
the Trustee and duly executed by the owner of such beneficial
interest in the Regulation S Global Security or his attorney
duly authorized in writing, then the Trustee, as Security
Registrar, shall reduce the principal amount of the Regulation
S Global Security and increase the principal amount of the
Rule 144A Global Security by such specified principal amount
as provided in Section 306(c).
(iii) Exchanges between Global Security and
Non-Global Security. A beneficial interest in a Global
Security may be exchanged for a Security that is not a Global
Security as provided in Section 307(b), provided that, if such
interest is a beneficial interest in the Rule 144A Global
Security, or if such interest is a beneficial interest in the
Regulation S Global Security and such exchange is to occur
during the Restricted Period, then such interest shall bear
the Private Placement Legend (subject in each case to Section
307(b)).
(iv) Regulation S Global Security to be Held Through
Euroclear or Clearstream during Restricted Period. The Company
shall use its best efforts to cause the Depositary to ensure
that, until the expiration of the Restricted Period,
beneficial interests in the Regulation S Global Security may
be held only in or through accounts maintained at the
Depositary by Euroclear or Clearstream (or by Agent Members
acting for the account thereof), and no Person shall be
entitled to effect any transfer or exchange that would result
in any such interest being held otherwise than in or through
such an account; provided that this paragraph (iv) shall not
prohibit any transfer or exchange of such an interest in
accordance with paragraph (ii) above.
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(b) Private Placement Legends. Rule 144A Securities and their
Successor Securities and Regulation S Securities and their Successor Securities
shall bear a Private Placement Legend, subject to the following:
(i) subject to the following clauses of this Section
307(b), a Security or any portion thereof which is exchanged,
upon transfer or otherwise, for a Global Security or any
portion thereof shall bear the Private Placement Legend borne
by such Global Security while represented thereby;
(ii) subject to the following clauses of this Section
307(b), a new Security which is not a Global Security and is
issued in exchange for another Security (including a Global
Security) or any portion thereof, upon transfer or otherwise,
shall bear the Private Placement Legend borne by such other
Security;
(iii) Exchange Securities, and all other Securities
sold or otherwise disposed of pursuant to an effective
registration statement under the Securities Act, together with
their respective Successor Securities, shall not bear a
Private Placement Legend;
(iv) at any time after the Securities may be freely
transferred without registration under the Securities Act or
without being subject to transfer restrictions pursuant to the
Securities Act, a new Security which does not bear a Private
Placement Legend may be issued in exchange for or in lieu of a
Security (other than a Global Security) or any portion thereof
which bears such a legend if the Trustee has received an
Unrestricted Securities Certificate substantially in the form
of Exhibit C hereto, satisfactory to the Trustee and duly
executed by the Holder of such legended Security or his
attorney duly authorized in writing, and after such date and
receipt of such certificate, the Trustee shall authenticate
and deliver such a new Security in exchange for or in lieu of
such other Security as provided in this Article Three;
(v) a new Security which does not bear a Private
Placement Legend may be issued in exchange for or in lieu of a
Security (other than a Global Security) or any portion thereof
which bears such a legend if, in the Company's judgment,
placing such a legend upon such new Security is not necessary
to ensure compliance with the registration requirements of the
Securities Act, and the Trustee, at the direction of the
Company, shall authenticate and deliver such a new Security as
provided in this Article Three; and
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(vi) notwithstanding the foregoing provisions of this
Section 307(b), a Successor Security of a Security that does
not bear a particular form of Private Placement Legend shall
not bear such form of legend unless the Company has reasonable
cause to believe that such Successor Security is a "restricted
security" within the meaning of Rule 144, in which case the
Trustee, at the direction of the Company, shall authenticate
and deliver a new Security bearing a Private Placement Legend
in exchange for such Successor Security as provided in this
Article Three.
By its acceptance of any Security bearing the Private
Placement Legend, each Holder of such a Security acknowledges the restrictions
on transfer of such Security set forth in this Indenture and in the Private
Placement Legend and agrees that it will transfer such Security only as provided
in this Indenture.
The Security Registrar shall retain copies of all letters,
notices and other written communications received pursuant to Section 306 or
this Section 307. The Company shall have the right to inspect and make copies of
all such letters, notices or other written communications at any reasonable time
upon the giving of reasonable written notice to the Security Registrar.
After the termination of the 40-day Restricted Period with
respect to the Regulation S Global Securities, interests in the Regulation S
Global Securities may be transferred without requiring any additional
certification, unless otherwise required by the Applicable Procedures. In the
event that Regulation S is amended during the term of this Indenture to alter
the applicable holding period, all reference in this Indenture to a holding
period for Non-U.S. Persons will be deemed to include such amendment.
Section 308. Mutilated, Destroyed, Lost and Stolen Securities.
If (a) any mutilated Security is surrendered to the Trustee,
or (b) the Company and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Security, and there is delivered to the
Company, any Guarantor and the Trustee, such security or indemnity, in each
case, as may be required by them to save each of them harmless, then, in the
absence of notice to the Company, any Guarantor or the Trustee that such
Security has been acquired by a bona fide purchaser, the Company shall execute
and upon a Company Request the Trustee shall authenticate and deliver, in
exchange for any such mutilated Security or in lieu of any such destroyed, lost
or stolen Security, a replacement Security of like tenor and principal amount,
bearing a number not contemporaneously outstanding and each Guarantor shall
execute a replacement Guarantee.
In case any such mutilated, destroyed, lost or stolen Security
has become or is about to become due and payable, the Company in its discretion
may, instead of issuing a replacement Security, pay such Security.
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Upon the issuance of any replacement Securities under this
Section, the Company may require the payment of a sum sufficient to pay all
documentary, stamp or similar issue or transfer taxes or other governmental
charges that may be imposed in relation thereto and any other expenses
(including the fees and expenses of the Trustee) connected therewith.
Every replacement Security and Guarantee issued pursuant to
this Section in lieu of any destroyed, lost or stolen Security shall constitute
an original additional contractual obligation of the Company and any Guarantor,
whether or not the destroyed, lost or stolen Security shall be at any time
enforceable by anyone, and shall be entitled to all benefits of this Indenture
equally and proportionately with any and all other Securities duly issued
hereunder.
The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities.
Section 309. Payment of Interest; Interest Rights Preserved.
Interest on any Security which is payable, and is punctually
paid or duly provided for, on the Stated Maturity of such interest shall be paid
to the Person in whose name the Security (or any Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest
payment.
Any interest on any Security which is payable, but is not
punctually paid or duly provided for, on the Stated Maturity of such interest,
and interest on such defaulted interest at the then applicable interest rate
borne by the Securities, to the extent lawful (such defaulted interest and
interest thereon herein collectively called "Defaulted Interest"), shall
forthwith cease to be payable to the Holder on the Regular Record Date; and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in Subsection (a) or (b) below:
(a) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities (or any
relevant Predecessor Securities) are registered at the close
of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each
Security and the date (not less than 30 days after such
notice) of the proposed payment (the "Special Payment Date"),
and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such
deposit prior to the Special Payment Date, such money when
deposited to be held in trust for
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the benefit of the Persons entitled to such Defaulted Interest
as in this Subsection provided. Thereupon the Trustee shall
fix a Special Record Date for the payment of such Defaulted
Interest which shall be not more than 15 days and not less
than 10 days prior to the date of the Special Payment Date and
not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment. The Trustee shall promptly
notify the Company in writing of such Special Record Date. In
the name and at the expense of the Company, the Trustee shall
cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to each Holder at its address as
it appears in the Security Register, not less than 10 days
prior to such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date
and Special Payment Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names
the Securities are registered on such Special Record Date and
shall no longer be payable pursuant to the following paragraph
(b).
(b) The Company may make payment of any Defaulted Interest in
any other lawful manner not inconsistent with the requirements
of any securities exchange on which the Securities may be
listed, and upon such notice as may be required by this
Indenture not inconsistent with the requirements of such
exchange, if, after written notice given by the Company to the
Trustee of the proposed payment pursuant to this Subsection,
such payment shall be deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section 309, each
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Security.
All references to "interest" in this Indenture include,
without limitation, all rights to the payment of Liquidated Damages in
accordance with the terms of the Registration Rights Agreement.
Section 310. CUSIP Numbers.
The Company in issuing the Securities may use "CUSIP"
numbers (if then generally in use), and the Company, or the Trustee on behalf of
the Company, shall use CUSIP numbers in notices of redemption or exchange as a
convenience to Holders; provided, however, that any such notice shall state that
no representation is made as to the correctness of such numbers either as
printed on the Securities or as contained in any notice of redemption or
exchange and that reliance may be placed only on the other identification
numbers printed on the Securities; and provided, further, however, that
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failure to use CUSIP numbers in any notice of redemption or exchange shall not
affect the validity or sufficiency of such notice.
Section 311. Persons Deemed Owners.
Prior to due presentment of a Security for registration of
transfer, the Company, any Guarantor, the Trustee and any agent of the Company,
any Guarantor or the Trustee may treat the Person in whose name any Security is
registered as the owner of such Security for the purpose of receiving payment of
principal of, premium, if any, and (subject to Section 309) interest on, such
Security and for all other purposes whatsoever, whether or not such Security is
overdue, and neither the Company, any Guarantor, the Trustee nor any agent of
the Company, any Guarantor or the Trustee shall be affected by notice to the
contrary.
Section 312. Cancellation.
All Securities surrendered for payment, purchase, redemption,
registration of transfer or exchange shall be delivered to the Trustee and, if
not already canceled, shall be promptly canceled by it. The Company and any
Guarantor may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company or such
Guarantor may have acquired in any manner whatsoever, and all Securities so
delivered shall be promptly canceled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities canceled as provided
in this Section 312, except as expressly permitted by this Indenture. All
canceled Securities held by the Trustee shall be returned to the Company. The
Trustee shall provide the Company a list of all Securities that have been
canceled from time to time as requested by the Company.
Section 313. Computation of Interest.
Interest on the Securities shall be computed on the basis of a
360-day year comprised of twelve 30-day months.
ARTICLE FOUR
DEFEASANCE AND COVENANT DEFEASANCE
Section 401. Company's Option to Effect Defeasance or Covenant
Defeasance.
The Company may, at its option by Board Resolution, at any
time, with respect to the Securities, elect to have either Section 402 or
Section 403 be applied to all of the Outstanding Securities (the "Defeased
Securities"), upon compliance with the conditions set forth below in this
Article Four.
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Section 402. Defeasance and Discharge.
Upon the Company's exercise under Section 401 of the option
applicable to this Section 402, the Company, each Guarantor and any other
obligor upon the Securities, if any, shall be deemed to have been discharged
from its obligations with respect to the Defeased Securities on the date the
conditions set forth in Section 404 below are satisfied (hereinafter,
"defeasance"). For this purpose, such defeasance means that the Company, each
Guarantor and any other obligor under this Indenture shall be deemed to have
paid and discharged the entire Indebtedness represented by the Defeased
Securities, which shall thereafter be deemed to be "Outstanding" only for the
purposes of Section 405 and the other Sections of this Indenture referred to in
clauses (a) and (b) below, and to have satisfied all its other obligations under
such Securities and this Indenture insofar as such Securities are concerned (and
the Trustee, at the expense of the Company and upon Company Request, shall
execute proper instruments acknowledging the same), except for the following
which shall survive until otherwise terminated or discharged hereunder: (a) the
rights of Holders of Defeased Securities to receive, solely from the trust fund
described in Section 404 and as more fully set forth in such Section, payments
in respect of the principal of, premium, if any, and interest on, such
Securities, when such payments are due, (b) the Company's obligations with
respect to such Defeased Securities under Sections 304, 305, 308, 1002 and 1003,
(c) the rights, powers, trusts, duties and immunities of the Trustee hereunder,
including, without limitation, the Trustee's rights under Section 607, and (d)
this Article Four. Subject to compliance with this Article Four, the Company may
exercise its option under this Section 402 notwithstanding the prior exercise of
its option under Section 403 with respect to the Securities.
Section 403. Covenant Defeasance.
Upon the Company's exercise under Section 401 of the option
applicable to this Section 403, the Company and each Guarantor shall be released
from its obligations under any covenant or provision contained or referred to in
Sections 1005 through 1020, inclusive, and the provisions of clause (iii) of
Section 801(a), with respect to the Defeased Securities, on and after the date
the conditions set forth in Section 404 below are satisfied (hereinafter,
"covenant defeasance"), and the Defeased Securities shall thereafter be deemed
to be not "Outstanding" for the purposes of any direction, waiver, consent or
declaration or Act of Holders (and the consequences of any thereof) in
connection with such covenants, but shall continue to be deemed "Outstanding"
for all other purposes hereunder. For this purpose, such covenant defeasance
means that, with respect to the Defeased Securities, the Company and each
Guarantor may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in any such Section, whether directly or
indirectly, by reason of any reference elsewhere herein to any such Section or
by reason of any reference in any such Section to any other provision herein or
in any other document and such omission to comply shall not constitute a Default
or an Event of Default under Section 501(c), (d) or (f) but, except as
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specified above, the remainder of this Indenture and such Defeased Securities
shall be unaffected thereby.
Section 404. Conditions to Defeasance or Covenant Defeasance.
The following shall be the conditions to application of either
Section 402 or Section 403 to the Defeased Securities:
(1) The Company shall irrevocably have deposited or caused to
be deposited with the Trustee as trust funds in trust for the purpose of making
the following payments, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of such Securities, (a) cash in United
States dollars in an amount, (b) U.S. Government Obligations which through the
scheduled payment of principal and interest in respect thereof in accordance
with their terms and with no further reinvestment will provide, not later than
one day before the due date of payment, money in an amount, or (c) a combination
of cash and U.S. Government Obligations, in such amounts as will be sufficient,
in the opinion of a nationally recognized firm of independent public accountants
or a nationally recognized investment banking firm expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee to pay and discharge, the principal of, premium,
if any, and interest on, the Defeased Securities, on the Stated Maturity of such
principal or interest (or on any date after March 15, 2007 (such date being
referred to as the "Defeasance Redemption Date") if at or prior to electing to
exercise either its option applicable to Section 402 or its option applicable to
Section 403, the Company has delivered to the Trustee an irrevocable notice to
redeem the Defeased Securities on the Defeasance Redemption Date). For this
purpose, "U.S. Government Obligations" means securities that are (i) direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States of America, which, in either
case, are not callable or redeemable at the option of the issuer thereof, and
shall also include a depository receipt issued by a bank (as defined in Section
3(a)(2) of the Securities Act), as custodian with respect to any such U.S.
Government Obligation or a specific payment of principal of or interest on any
such U.S. Government Obligation held by such custodian for the account of the
holder of such depository receipt, provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation or the specific payment
of principal of or interest on the U.S. Government Obligation evidenced by such
depository receipt;
(2) In the case of an election under Section 402, the Company
shall have delivered to the Trustee an Opinion of Independent Counsel in the
United States stating that (A) the Company has received from, or there has been
published by, the Internal
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Revenue Service a ruling or (B) since the Issue Date, there has been a change in
the applicable federal income tax law, in either case to the effect that, and
based thereon such Opinion of Independent Counsel in the United States shall
confirm that, the Holders of the Outstanding Securities will not recognize
income, gain or loss for federal income tax purposes as a result of such
defeasance and will be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such defeasance
had not occurred;
(3) In the case of an election under Section 403, the Company
shall have delivered to the Trustee an Opinion of Independent Counsel in the
United States to the effect that the Holders of the Outstanding Securities will
not recognize income, gain or loss for federal income tax purposes as a result
of such covenant defeasance and will be subject to federal income tax on the
same amounts, in the same manner and at the same times as would have been the
case if such covenant defeasance had not occurred;
(4) No Default or Event of Default shall have occurred and be
continuing on the date of such deposit or insofar as Section 501(g) or (h) is
concerned, at any time during the period ending on the 91st day after the date
of deposit (it being understood that this condition shall not be deemed
satisfied until the expiration of such period) (other than a Default which
results from the borrowing of amounts to finance the defeasance and which
borrowing does not result in a breach or violation of, or constitute a default
under, any other material agreement or instrument to which the Company or any
Restricted Subsidiary is a party or to which it is bound);
(5) Such defeasance or covenant defeasance shall not cause the
Trustee for the Securities to have a conflicting interest in violation of and
for purposes of the Trust Indenture Act with respect to any other securities of
the Company or any Guarantor;
(6) Such defeasance or covenant defeasance shall not result in
a breach or violation of, or constitute a Default under, this Indenture or any
other material agreement or instrument to which the Company, any Guarantor or
any Restricted Subsidiary is a party or by which it is bound;
(7) Such defeasance or covenant defeasance shall not result in
the trust arising from such deposit constituting an investment company within
the meaning of the Investment Company Act of 1940, as amended, unless such trust
shall be registered under such Act or exempt from registration thereunder;
(8) The Company shall have delivered to the Trustee an Opinion
of Independent Counsel in the United States to the effect that (assuming that no
Holder of any Securities would be considered an insider of the Company under any
applicable bankruptcy or insolvency law and assuming no intervening bankruptcy
or insolvency of the Company between the date of deposit and the 91st day
following the deposit) after the
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91st day following the deposit, the trust funds will not be subject to the
effect of any applicable bankruptcy, insolvency, reorganization or similar laws
affecting creditors' rights generally;
(9) The Company shall have delivered to the Trustee an
Officers' Certificate stating that the deposit was not made by the Company with
the intent of preferring the holders of the Securities or any Guarantee over the
other creditors of the Company or any Guarantor with the intent of defeating,
hindering, delaying or defrauding creditors of the Company, any Guarantor or
others;
(10) No event or condition shall exist that would prevent the
Company from making payments of the principal of, premium, if any, and interest
on the Securities on the date of such deposit or at any time ending on the 91st
day after the date of such deposit; and
(11) The Company shall have delivered to the Trustee an
Officers' Certificate and an Opinion of Independent Counsel, each stating that
all conditions precedent provided for relating to either the defeasance under
Section 402 or the covenant defeasance under Section 403 (as the case may be)
have been complied with.
Opinions of Counsel or Opinions of Independent Counsel
required to be delivered under this Section shall be in form and substance
reasonably satisfactory to the Trustee may have qualifications customary for
opinions of the type required and counsel delivering such opinions may rely on
certificates of the Company or government or other officials customary for
opinions of the type required, which certificates shall be limited as to matters
of fact, including that various financial covenants have been complied with.
Opinions delivered on the date of deposit may assume that no events specified in
clauses (4), (8) and (10) will occur in the 91 days following the date of
deposit.
Section 405. Deposited Money and U.S. Government Obligations to Be Held
in Trust; Other Miscellaneous Provisions.
Subject to the provisions of the last paragraph of Section
1003, all United States dollars and U.S. Government Obligations (including the
proceeds thereof) deposited with the Trustee pursuant to Section 404 in respect
of the Defeased Securities shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any Paying Agent (excluding the Company or
any of its Affiliates acting as Paying Agent), as the Trustee may determine, to
the Holders of such Securities of all sums due and to become due thereon in
respect of principal, premium, if any, and interest, but such money need not be
segregated from other funds except to the extent required by law.
The Company shall pay and indemnify the Trustee against any
tax, fee or other charge imposed on or assessed against the U.S. Government
Obligations deposited
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pursuant to Section 404 or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is imposed,
assessed or for the account of the Holders of the Defeased Securities.
Anything in this Article Four to the contrary notwithstanding,
the Trustee shall deliver or pay to the Company from time to time upon Company
Request any United States dollars or U.S. Government Obligations held by it as
provided in Section 404 which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect defeasance or covenant defeasance.
Section 406. Reinstatement.
If the Trustee or Paying Agent is unable to apply any United
States dollars or U.S. Government Obligations in accordance with Section 402 or
403, as the case may be, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company's obligations under this Indenture and the
Securities and any Guarantor's obligations under any Guarantee shall be revived
and reinstated, with present and prospective effect, as though no deposit had
occurred pursuant to Section 402 or 403, as the case may be, until such time as
the Trustee or Paying Agent is permitted to apply all such United States dollars
or U.S. Government Obligations in accordance with Section 402 or 403, as the
case may be; provided, however, that if the Company makes any payment to the
Trustee or Paying Agent of principal of, premium, if any, or interest on any
Security following the reinstatement of its obligations, the Trustee or Paying
Agent shall promptly pay any such amount to the Holders of the Securities and
the Company shall be subrogated to the rights of the Holders of such Securities
to receive such payment from the United States dollars and U.S. Government
Obligations held by the Trustee or Paying Agent.
ARTICLE FIVE
REMEDIES
Section 501. Events of Default.
"Event of Default," wherever used herein, means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body):
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(a) there shall be a default in the payment of any interest on
any Security when it becomes due and payable, and such default shall continue
for a period of 30 days, whether or not prohibited by the subordination
provisions of this Indenture;
(b) there shall be a default in the payment of the principal
of (or premium, if any, on) any Security at its Maturity (upon acceleration,
optional or mandatory redemption, required repurchase or otherwise) whether or
not prohibited by the subordination provisions of this Indenture;
(c) (i) there shall be a default in the performance, or
breach, of any covenant or agreement of the Company or any Guarantor under this
Indenture or any Guarantee (other than a default in the performance, or breach,
of a covenant or agreement which is specifically dealt with in clause (a), (b)
or in clause (ii) of this clause (c)) and such default or breach shall continue
for a period of 60 days after written notice (30 days in the case of a default
under Section 1008, Section 1009, Section 1012 or Section 1014 herein) has been
given, by certified mail, (x) to the Company by the Trustee or (y) to the
Company and the Trustee by the Holders of at least 25% in aggregate principal
amount of the outstanding Securities; or (ii) there shall be a default in the
performance or breach of the provisions of Article Eight;
(d) one or more defaults, individually or in the aggregate,
shall have occurred under any of the agreements, indentures or instruments under
which the Company or any Restricted Subsidiary then has outstanding Indebtedness
in excess of $20,000,000 in principal amount, individually or in the aggregate,
and either (i) such default results from the failure to pay such Indebtedness at
its stated final maturity or (ii) such default or defaults resulted in the
acceleration of the final stated maturity of such Indebtedness;
(e) any Guarantee shall for any reason cease to be, or shall
for any reason be asserted in writing by any Guarantor or the Company not to be,
in full force and effect and enforceable in accordance with its terms, except to
the extent contemplated by this Indenture and any such Guarantee;
(f) one or more final judgments, orders or decrees (not
subject to appeal) of any court or regulatory or administrative agency for the
payment of money in excess of $20,000,000, either individually or in the
aggregate (exclusive of any portion of any such payment covered by insurance, if
and to the extent the insurer has acknowledged in writing its liability
therefor), shall be rendered against the Company, any Guarantor or any
Restricted Subsidiary or any of their respective properties and shall not be
discharged or fully bonded and there shall have been a period of 60 consecutive
days during which a stay of enforcement of such judgment or order, by reason of
an appeal or otherwise, shall not be in effect;
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(g) there shall have been the entry by a court of competent
jurisdiction of (i) a decree or order for relief in respect of the Company or
any Significant Restricted Subsidiary in an involuntary case or proceeding under
any applicable Bankruptcy Law or (ii) a decree or order adjudging the Company or
any Significant Restricted Subsidiary bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment or composition of or in respect of the
Company or any Significant Restricted Subsidiary under any applicable federal or
state law, or appointing a custodian, receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Company or any Significant
Restricted Subsidiary or of any substantial part of their respective properties,
or ordering the winding up or liquidation of their respective affairs, and any
such decree or order for relief shall continue to be in effect, or any such
other decree or order shall be unstayed and in effect, for a period of 60
consecutive days; or
(h) (i) the Company or any Significant Restricted Subsidiary
commences a voluntary case or proceeding under any applicable Bankruptcy Law or
any other case or proceeding to be adjudicated bankrupt or insolvent, (ii) the
Company or any Significant Restricted Subsidiary consents to the entry of a
decree or order for relief in respect of the Company or such Significant
Restricted Subsidiary in an involuntary case or proceeding under any applicable
Bankruptcy Law or to the commencement of any bankruptcy or insolvency case or
proceeding against it, (iii) the Company or any Significant Restricted
Subsidiary files a petition or answer or consent seeking reorganization or
relief under any applicable federal or state law, (iv) the Company or any
Significant Restricted Subsidiary (1) consents to the filing of such petition or
the appointment of, or taking possession by, a custodian, receiver, liquidator,
assignee, trustee, sequestrator or similar official of the Company or such
Significant Restricted Subsidiary or of any substantial part of their respective
properties, (2) makes an assignment for the benefit of creditors or (3) admits
in writing its inability to pay its debts generally as they become due or (v)
the Company or any Significant Restricted Subsidiary takes any corporate action
in furtherance of any such actions in this paragraph (h).
Section 502. Acceleration of Maturity; Rescission and Annulment.
If an Event of Default (other than an Event of Default
specified in Sections 501(g) and (h)) shall occur and be continuing with respect
to this Indenture, the Trustee or the Holders of not less than 25% in aggregate
principal amount of the Securities then Outstanding may, and the Trustee at the
request of such Holders shall, declare all unpaid principal of, premium, if any,
and accrued interest on all Securities to be due and payable, by a notice in
writing to the Company (and to the Trustee if given by the Holders of the
Securities). Upon any such declaration, such principal, premium, if any, and
interest (i) shall become due and payable immediately or (ii) if the Credit
Agreement is in effect, shall become due and payable upon the first to occur of
an acceleration under the Credit Agreement or five business days after receipt
of written notice of such declaration by the
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Company and the Senior Representative with respect to the Credit Agreement. If
an Event of Default specified in clause (g) or (h) of Section 501 occurs and is
continuing, then all the Securities shall ipso facto become and be due and
payable immediately in an amount equal to the principal amount of the
Securities, together with accrued and unpaid interest, if any, to the date the
Securities become due and payable, without any declaration or other act on the
part of the Trustee or any Holder. Thereupon, the Trustee may, at its
discretion, proceed to protect and enforce the rights of the Holders of the
Securities by appropriate judicial proceedings.
After a declaration of acceleration with respect to the
Securities, but before a judgment or decree for payment of the money due has
been obtained by the Trustee as hereinafter in this Article provided, the
Holders of a majority in aggregate principal amount of the Securities
Outstanding, by written notice to the Company and the Trustee, may rescind and
annul such declaration and its consequences if:
(a) the Company has paid or deposited with the Trustee a sum sufficient
to pay
(i) all sums paid or advanced by the Trustee under
this Indenture and the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and
counsel,
(ii) all overdue interest on all Outstanding
Securities,
(iii) the principal of and premium, if any, on any
Outstanding Securities which have become due otherwise than by
such declaration of acceleration and interest thereon at the
rate borne by the Securities, and
(iv) to the extent that payment of such interest is
lawful, interest upon overdue interest at the rate borne by
the Securities;
(b) the rescission would not conflict with any judgment or
decree of a court of competent jurisdiction; and
(c) all Events of Default, other than the non-payment of
principal of, premium, if any, and interest on the Securities which have become
due solely by such declaration of acceleration, have been cured or waived as
provided in Section 513. No such rescission shall affect any subsequent Default
or impair any right consequent thereon.
Section 503. Collection of Indebtedness and Suits for Enforcement by
Trustee.
The Company and each Guarantor covenant that if
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(a) default is made in the payment of any interest on any
Security when such interest becomes due and payable and such default continues
for a period of 30 days, or
(b) default is made in the payment of the principal of or
premium, if any, on any Security at the Stated Maturity thereof or otherwise,
the Company and such Guarantor will, subject to Articles Thirteen and Fourteen,
upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for
principal and premium, if any, and interest, with interest upon the overdue
principal and premium, if any, and, to the extent that payment of such interest
shall be legally enforceable, upon overdue installments of interest, at the rate
borne by the Securities; and, in addition thereto, such further amount as shall
be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.
If the Company or any Guarantor, as the case may be, fails to
pay such amounts forthwith upon such demand, the Trustee, in its own name and as
trustee of an express trust, may institute a judicial proceeding for the
collection of the sums so due and unpaid and may prosecute such proceeding to
judgment or final decree, and may enforce the same against the Company or any
Guarantor or any other obligor upon the Securities and collect the moneys
adjudged or decreed to be payable in the manner provided by law out of the
property of the Company, any Guarantor or any other obligor upon the Securities,
wherever situated.
If an Event of Default occurs and is continuing, the Trustee
may in its discretion proceed to protect and enforce its rights and the rights
of the Holders under this Indenture or any Guarantee by such appropriate private
or judicial proceedings as the Trustee shall deem most effectual to protect and
enforce such rights, including seeking recourse against any Guarantor pursuant
to the terms of any Guarantee, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein or therein, or to enforce any other proper remedy, including,
without limitation, seeking recourse against any Guarantor pursuant to the terms
of a Guarantee, or to enforce any other proper remedy, subject however to
Section 512. No recovery of any such judgment upon any property of the Company
or any Guarantor shall affect or impair any rights, powers or remedies of the
Trustee or the Holders.
Section 504. Trustee May File Proofs of Claim.
In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to the Company or any other obligor,
including any Guarantor, upon
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the Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal or interest) shall be entitled
and empowered, by intervention in such proceeding or otherwise,
(a) to file and prove a claim for the whole amount of
principal, and premium, if any, and interest owing and unpaid in respect of the
Securities and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders allowed in such judicial
proceeding, and
(b) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay the
Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 607.
Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof, or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding.
Section 505. Trustee May Enforce Claims Without Possession of
Securities.
All rights of action and claims under this Indenture, the
Securities or the Guarantees may be prosecuted and enforced by the Trustee
without the possession of any of the Securities or the production thereof in any
proceeding relating thereto, and any such proceeding instituted by the Trustee
shall be brought in its own name and as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, be for the ratable benefit of the Holders of the Securities in
respect of which such judgment has been recovered.
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Section 506. Application of Money Collected.
Any money collected by the Trustee pursuant to this Article or
otherwise on behalf of the Holders or the Trustee pursuant to this Article or
through any proceeding or any arrangement or restructuring in anticipation or in
lieu of any proceeding contemplated by this Article shall be applied, subject to
applicable law, in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal,
premium, if any, or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee under
Section 607;
SECOND: To the payment of the amounts then due and unpaid upon
the Securities for principal, premium, if any, and interest, in respect of which
or for the benefit of which such money has been collected, ratably, without
preference or priority of any kind, according to the amounts due and payable on
such Securities for principal, premium, if any, and interest; and
THIRD: The balance, if any, to the Person or Persons entitled
thereto, including the Company, provided that all sums due and owing to the
Holders and the Trustee have been paid in full as required by this Indenture.
Section 507. Limitation on Suits.
No Holder of any Securities shall have any right to institute
any proceeding, judicial or otherwise, with respect to this Indenture or the
Securities, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless
(a) such Holder has previously given written notice to the
Trustee of a continuing Event of Default;
(b) the Holders of not less than 25% in aggregate principal
amount of the Outstanding Securities shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default in its own
name as trustee hereunder;
(c) such Holder or Holders have offered to the Trustee a
reasonable indemnity against the costs, expenses and liabilities to be incurred
in compliance with such request;
(d) the Trustee for 15 days after its receipt of such notice,
request and offer (and if requested, provision) of indemnity has failed to
institute any such proceeding; and
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(e) no direction inconsistent with such written request has
been given to the Trustee during such 15-day period by the Holders of a majority
in principal amount of the Outstanding Securities;
it being understood and intended that no one or more Holders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture, any Security or any Guarantee to affect, disturb or prejudice
the rights of any other Holders, or to obtain or to seek to obtain priority or
preference over any other Holders or to enforce any right under this Indenture,
any Security or any Guarantee, except in the manner provided in this Indenture
and for the equal and ratable benefit of all the Holders.
Section 508. Unconditional Right of Holders to Receive Principal,
Premium and Interest.
Notwithstanding any other provision in this Indenture, the
Holder of any Security shall have the right based on the terms stated herein,
which is absolute and unconditional, to receive payment of the principal of,
premium, if any, and (subject to Section 309) interest on such Security on the
respective Stated Maturities expressed in such Security (or, in the case of
redemption or repurchase, on the Redemption Date or the repurchase date) and to
institute suit for the enforcement of any such payment, and such rights shall
not be impaired without the consent of such Holder.
Section 509. Restoration of Rights and Remedies.
If the Trustee or any Holder has instituted any proceeding to
enforce any right or remedy under this Indenture or any Guarantee and such
proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee or to such Holder, then and in every such
case the Company, any Guarantor, any other obligor on the Securities, the
Trustee and the Holders shall, subject to any determination in such proceeding,
be restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.
Section 510. Rights and Remedies Cumulative.
No right or remedy herein conferred upon or reserved to the
Trustee or to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.
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Section 511. Delay or Omission Not Waiver.
No delay or omission of the Trustee or of any Holder of any
Security to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. Every right and remedy given by this
Article or by law to the Trustee or to the Holders may be exercised from time to
time, and as often as may be deemed expedient, by the Trustee or by the Holders,
as the case may be.
Section 512. Control by Holders.
The Holders of not less than a majority in aggregate principal
amount of the Outstanding Securities shall have the right to direct the time,
method and place of conducting any proceeding for exercising any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee, provided that
(a) such direction shall not be in conflict with any rule of
law or with this Indenture (including, without limitation, Section 507) or any
Guarantee, expose the Trustee to personal liability, or be unduly prejudicial to
Holders not joining therein; and
(b) subject to the provisions of Section 315 of the Trust
Indenture Act, the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction.
Section 513. Waiver of Past Defaults.
The Holders of not less than a majority in aggregate principal
amount of the Outstanding Securities may on behalf of the Holders of all
outstanding Securities waive any past Default hereunder and its consequences,
except a Default
(a) in the payment of the principal of, premium, if any, or
interest on any Security (which may only be waived with the consent of each
Holder of the Securities affected); or
(b) in respect of a covenant or a provision hereof which under
this Indenture cannot be modified or amended without the consent of the Holders
of at least 75% in aggregate principal amount of the Outstanding Securities or
the Holder of each Security Outstanding affected by such modification or
amendment.
Upon any such waiver, such Default shall cease to exist, and
any Event of Default arising therefrom shall be deemed to have been cured, for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default or impair any right consequent thereon.
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Section 514. Undertaking for Costs.
All parties to this Indenture agree, and each Holder of any
Security by his acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant,
but the provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than 10% in principal amount of the Outstanding Securities,
or to any suit instituted by any Holder for the enforcement of the payment of
the principal of, premium, if any, or interest on, any Security on or after the
respective Stated Maturities expressed in such Security (or, in the case of
redemption, on or after the Redemption Date).
Section 515. Waiver of Stay, Extension or Usury Laws.
Each of the Company and the Guarantors covenants (to the
extent that it may lawfully do so) that it will not at any time insist upon, or
plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay or extension law or any usury or other law wherever enacted, now or at
any time hereafter in force, which would prohibit or forgive the Company or any
Guarantor from paying all or any portion of the principal of, premium, if any,
or interest on the Securities contemplated herein or in the Securities or which
may affect the covenants or the performance of this Indenture; and each of the
Company and the Guarantors (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.
Section 516. Remedies Subject to Applicable Law.
All rights, remedies and powers provided by this Article Five
may be exercised only to the extent that the exercise thereof does not violate
any applicable provision of law in the premises, and all the provisions of this
Indenture are intended to be subject to all applicable mandatory provisions of
law which may be controlling in the premises and to be limited to the extent
necessary so that they will not render this Indenture invalid, unenforceable or
not entitled to be recorded, registered or filed under the provisions of any
applicable law.
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ARTICLE SIX
THE TRUSTEE
Section 601. Duties of Trustee.
Subject to the provisions of Trust Indenture Act Sections
315(a) through 315(d):
(a) if a Default or an Event of Default has occurred and is
continuing, the Trustee shall exercise such of the rights and powers vested in
it by this Indenture and use the same degree of care and skill in its exercise
thereof as a prudent person would exercise or use under the circumstances in the
conduct of his own affairs;
(b) except during the continuance of a Default or an Event of
Default:
(1) the Trustee need perform only those duties as are
specifically set forth in this Indenture and no covenants or
obligations shall be implied in this Indenture that are
adverse to the Trustee; and
(2) in the absence of bad faith or willful misconduct
on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to
the Trustee and conforming to the requirements of this
Indenture. However, the Trustee shall examine the certificates
and opinions to determine whether or not they conform to the
requirements of this Indenture;
(c) the Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:
(1) this clause (c) does not limit the effect of
clause (b) of this Section 601;
(2) the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless
it is proved that the Trustee was negligent in ascertaining
the pertinent facts; and
(3) the Trustee shall not be liable with respect to
any action it takes or omits to take in good faith, in
accordance with a direction of the Holders of a majority in
principal amount of Outstanding Securities relating to the
time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or
power confirmed upon the Trustee under this Indenture;
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(d) no provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder or in the exercise of any of its
rights or powers if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it;
(e) whether or not therein expressly so provided, every
provision of this Indenture that in any way relates to the Trustee is subject to
clauses (a), (b), (c) and (d) and (f) of this Section 601; and
(f) the Trustee shall not be liable for interest on any money
or assets received by it except as the Trustee may agree with the Company.
Assets held in trust by the Trustee need not be segregated from other assets
except to the extent required by law.
Section 602. Notice of Defaults.
Within 30 days after a Responsible Officer of the Trustee
receives notice of the occurrence of any Default, the Trustee shall transmit by
mail to all Holders and any other Persons entitled to receive reports pursuant
to Section 313(c) of the Trust Indenture Act, as their names and addresses
appear in the Security Register, notice of such Default hereunder known to the
Trustee, unless such Default shall have been cured or waived; provided, however,
that, except in the case of a Default in the payment of the principal of,
premium, if any, or interest on any Security, the Trustee shall be protected in
withholding such notice if and so long as a trust committee of Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the interest of the Holders.
Section 603. Certain Rights of Trustee.
Subject to the provisions of Section 601 hereof and Trust
Indenture Act Sections 315(a) through 315(d):
(a) the Trustee may rely and shall be protected in acting or
refraining from acting upon receipt by it of any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of Indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;
(b) any request or direction of the Company mentioned herein
shall be sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors may be sufficiently evidenced by a Board
Resolution;
(c) the Trustee may consult with counsel of its selection and
any advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon in accordance with such
advice or Opinion of Counsel;
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(d) the Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders pursuant to this Indenture, unless such Holders
shall have offered to the Trustee security or indemnity satisfactory to the
Trustee against the costs, expenses and liabilities which might be incurred
therein;
(e) the Trustee shall not be liable for any action taken or
omitted by it in good faith and believed by it to be authorized or within the
discretion, rights or powers conferred upon it by this Indenture other than any
liabilities arising out of the negligence, bad faith or willful misconduct of
the Trustee;
(f) the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
approval, appraisal, bond, debenture, note, coupon, security or other paper or
document unless requested in writing to do so by the Holders of not less than a
majority in aggregate principal amount of the Securities then Outstanding;
provided that, if the payment within a reasonable time to the Trustee of the
costs, expenses or liabilities likely to be incurred by it in the making of such
investigation is, in the opinion of the Trustee, not reasonably assured to the
Trustee by the security afforded to it by the terms of this Indenture, the
Trustee may require reasonable indemnity against such expenses or liabilities as
a condition to proceeding; the reasonable expenses of every such investigation
so requested by the Holders of not less than 25% in aggregate principal amount
of the Securities Outstanding shall be paid by the Company or, if paid by the
Trustee or any predecessor Trustee, shall be repaid by the Company upon demand;
provided, further, the Trustee in its discretion may make such further inquiry
or investigation into such facts or matters as it may deem fit, and, if the
Trustee shall determine to make such further inquiry or investigation, it shall
be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney; and
(g) the Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys and the Trustee shall not be responsible for any misconduct
or negligence on the part of any agent or attorney appointed with due care by it
hereunder.
Section 604. Trustee Not Responsible for Recitals, Dispositions of
Securities or Application of Proceeds Thereof.
The recitals contained herein and in the Securities, except
the Trustee's certificates of authentication, shall be taken as the statements
of the Company and the Guarantors, and the Trustee assumes no responsibility for
their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities, except that the Trustee
represents that it is duly authorized to execute and deliver this Indenture,
authenticate the Securities and perform its obligations hereunder
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and that the statements made by it in any Statement of Eligibility and
Qualification on Form T-1 to be supplied to the Company will be true and
accurate subject to the qualifications set forth therein. The Trustee shall not
be accountable for the use or application by the Company of Securities or the
proceeds thereof.
Section 605. Trustee and Agents May Hold Securities; Collections; etc.
The Trustee, any Paying Agent, Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the
owner or pledgee of Securities, with the same rights it would have if it were
not the Trustee, Paying Agent, Security Registrar or such other agent and,
subject to Trust Indenture Act Sections 310 and 311, may otherwise deal with the
Company and receive, collect, hold and retain collections from the Company with
the same rights it would have if it were not the Trustee, Paying Agent, Security
Registrar or such other agent.
Section 606. Money Held in Trust.
All moneys received by the Trustee shall, until used or
applied as herein provided, be held in trust for the purposes for which they
were received, but need not be segregated from other funds except to the extent
required by mandatory provisions of law. Except for funds or securities
deposited with the Trustee pursuant to Article Four, the Trustee shall be
required to invest all moneys received by the Trustee, until used or applied as
herein provided, in Cash Equivalents in accordance with the directions of the
Company.
Section 607. Compensation and Indemnification of Trustee and Its Prior
Claim.
The Company covenants and agrees to pay to the Trustee from
time to time, and the Trustee shall be entitled to, such compensation as the
parties shall agree in writing from time to time for all services rendered by it
hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust) and the Company
covenants and agrees to pay or reimburse the Trustee and each predecessor
Trustee upon its request for all reasonable expenses, disbursements and advances
incurred or made by or on behalf of the Trustee in accordance with any of the
provisions of this Indenture (including the reasonable compensation and the
expenses and disbursements of its counsel and of all agents and other persons
not regularly in its employ) except any such expense, disbursement or advance as
may arise from its negligence, bad faith or willful misconduct. The Company also
covenants and agrees to indemnify the Trustee and each predecessor Trustee for,
and to hold it harmless against, any claim, loss, liability, tax, assessment or
other governmental charge (other than taxes applicable to the Trustee's
compensation hereunder) or expense incurred without negligence, bad faith or
willful misconduct on its part, arising out of or in connection with the
acceptance or administration of this Indenture or the trusts hereunder and its
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duties hereunder, including enforcement of this Section 607 and also including
any liability which the Trustee may incur as a result of failure to withhold,
pay or report any tax, assessment or other governmental charge, and the costs
and expenses of defending itself against or investigating any claim or liability
in connection with the exercise or performance of any of its powers or duties
hereunder. The obligations of the Company under this Section 607 to compensate
and indemnify the Trustee and each predecessor Trustee and to pay or reimburse
the Trustee and each predecessor Trustee for reasonable expenses, disbursements
and advances shall constitute an additional obligation hereunder and shall
survive the satisfaction and discharge of this Indenture and the resignation or
removal of the Trustee and each predecessor Trustee.
Section 608. Conflicting Interests.
The Trustee shall comply with the provisions of Section 310(b)
of the Trust Indenture Act.
Section 609. Trustee Eligibility.
There shall at all times be a Trustee hereunder which shall be
eligible to act as trustee under Trust Indenture Act Section 310(a) and which
shall have a combined capital and surplus of at least $100,000,000, to the
extent there is an institution eligible and willing to serve. If the Trustee
does not have a Corporate Trust Office in The City of New York, the Trustee may
appoint an agent in The City of New York reasonably acceptable to the Company to
conduct any activities which the Trustee may be required under this Indenture to
conduct in The City of New York. If such Trustee publishes reports of condition
at least annually, pursuant to law or to the requirements of federal, state,
territorial or District of Columbia supervising or examining authority, then for
the purposes of this Section 609, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section
609, the Trustee shall resign immediately in the manner and with the effect
hereinafter specified in this Article.
Section 610. Resignation and Removal; Appointment of Successor Trustee.
(a) No resignation or removal of the Trustee and no
appointment of a successor trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor trustee under
Section 611.
(b) The Trustee, or any trustee or trustees hereafter
appointed, may at any time resign by giving written notice thereof to the
Company no later than 20 Business Days prior to the proposed date of
resignation. Upon receiving such notice of resignation, the Company shall
promptly appoint a successor trustee by written instrument executed by authority
of the Board of Directors of the Company, a copy of
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which shall be delivered to the resigning Trustee and a copy to the successor
trustee. If an instrument of acceptance by a successor trustee shall not have
been delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may, or any Holder who has been a bona fide
Holder of a Security for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
appointment of a successor trustee. Such court may thereupon, after such notice,
if any, as it may deem proper, appoint and prescribe a successor trustee.
(c) The Trustee may be removed at any time for any cause or
for no cause by an Act of the Holders of not less than a majority in aggregate
principal amount of the Outstanding Securities, delivered to the Trustee and to
the Company.
(d) If at any time:
(1) the Trustee shall fail to comply with the
provisions of Trust Indenture Act Section 310(b) after written
request therefor by the Company or by any Holder who has been
a bona fide Holder of a Security for at least six months,
(2) the Trustee shall cease to be eligible under
Section 609 and shall fail to resign after written request
therefor by the Company or by any Holder who has been a bona
fide Holder of a Security for at least six months, or
(3) the Trustee shall become incapable of acting or
shall be adjudged a bankrupt or insolvent, or a receiver of
the Trustee or of its property shall be appointed or any
public officer shall take charge or control of the Trustee or
of its property or affairs for the purpose of rehabilitation,
conservation or liquidation,
then, in any case, (i) the Company by a Board Resolution may remove the Trustee,
or (ii) subject to Section 514, the Holder of any Security who has been a bona
fide Holder of a Security for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor trustee. Such
court may thereupon, after such notice, if any, as it may deem proper and
prescribe, remove the Trustee and appoint a successor trustee.
(e) If the Trustee shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of Trustee for
any cause, the Company, by a Board Resolution, shall promptly appoint a
successor trustee and shall comply with the applicable requirements of Section
611. If, within 60 days after such resignation, removal or incapability, or the
occurrence of such vacancy, the Company has not
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appointed a successor Trustee, a successor trustee shall be appointed by the Act
of the Holders of a majority in principal amount of the Outstanding Securities
delivered to the Company and the retiring Trustee. Such successor trustee so
appointed shall forthwith upon its acceptance of such appointment become the
successor trustee and supersede the successor trustee appointed by the Company.
If no successor trustee shall have been so appointed by the Company or the
Holders of the Securities and accepted appointment in the manner hereinafter
provided, the Trustee or the Holder of any Security who has been a bona fide
Holder for at least six months may, subject to Section 514, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction
for the appointment of a successor trustee.
(f) The Company shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor trustee by mailing
written notice of such event by first-class mail, postage prepaid, to the
Holders of Securities as their names and addresses appear in the Security
Register. Each notice shall include the name of the successor trustee and the
address of its Corporate Trust Office or agent hereunder.
Section 611. Acceptance of Appointment by Successor.
Every successor trustee appointed hereunder shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee as if originally named as
Trustee hereunder; but, nevertheless, on the written request of the Company or
the successor trustee, upon payment of its charges pursuant to Section 607 then
unpaid, such retiring Trustee shall pay over to the successor trustee all moneys
at the time held by it hereunder and shall execute and deliver an instrument
transferring to such successor trustee all such rights, powers, duties and
obligations. Upon request of any such successor trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor trustee all such rights and powers.
No successor trustee with respect to the Securities shall
accept appointment as provided in this Section 611 unless at the time of such
acceptance such successor trustee shall be eligible to act as trustee under the
provisions of Trust Indenture Act Section 310(a) and this Article Six and shall
have a combined capital and surplus of at least $250,000,000 and have a
Corporate Trust Office or an agent selected in accordance with Section 609.
Upon acceptance of appointment by any successor trustee as
provided in this Section 611, the Company shall give notice thereof to the
Holders of the Securities, by mailing such notice to such Holders at their
addresses as they shall appear on the Security Register. If the acceptance of
appointment is substantially contemporaneous
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with the appointment, then the notice called for by the preceding sentence may
be combined with the notice called for by Section 610. If the Company fails to
give such notice within 10 days after acceptance of appointment by the successor
trustee, the successor trustee shall cause such notice to be given at the
expense of the Company.
Section 612. Merger, Conversion, Consolidation or Succession to
Business.
Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee (including the trust created by this
Indenture) shall be the successor of the Trustee hereunder, provided that such
corporation shall be eligible under Trust Indenture Act Section 310(a) and this
Article Six and shall have a combined capital and surplus of at least
$250,000,000 and have a Corporate Trust Office or an agent selected in
accordance with Section 609, without the execution or filing of any paper or any
further act on the part of any of the parties hereto.
In case at the time such successor to the Trustee shall
succeed to the trusts created by this Indenture any of the Securities shall have
been authenticated but not delivered, any such successor to the Trustee may
adopt the certificate of authentication of any predecessor Trustee and deliver
such Securities so authenticated; and, in case at that time any of the
Securities shall not have been authenticated, any successor to the Trustee may
authenticate such Securities either in the name of any predecessor hereunder or
in the name of the successor trustee; and in all such cases such certificate
shall have the full force which it is anywhere in the Securities or in this
Indenture provided that the certificate of the Trustee shall have; provided that
the right to adopt the certificate of authentication of any predecessor Trustee
or to authenticate Securities in the name of any predecessor Trustee shall apply
only to its successor or successors by merger, conversion or consolidation.
Section 613. Preferential Collection of Claims Against Company.
If and when the Trustee shall be or become a creditor of the
Company (or other obligor under the Securities), the Trustee shall be subject to
the provisions of the Trust Indenture Act regarding the collection of claims
against the Company (or any such other obligor). A Trustee who has resigned or
been removed shall be subject to Trust Indenture Act Section 311(a) to the
extent indicated therein.
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ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 701. Company to Furnish Trustee Names and Addresses of Holders.
The Company will furnish or cause to be furnished to the
Trustee
(a) semiannually, not more than 10 days after each Regular
Record Date, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders as of such Regular Record Date; and
(b) at such other times as the Trustee may reasonably request
in writing, within 30 days after receipt by the Company of any such request, a
list of similar form and content to that in subsection (a) hereof as of a date
not more than 15 days prior to the time such list is furnished;
provided, however, that if and so long as the Trustee shall be the Security
Registrar, no such list need be furnished.
Section 702. Disclosure of Names and Addresses of Holders.
Holders may communicate pursuant to Trust Indenture Act
Section 312(b) with other Holders with respect to their rights under this
Indenture or the Securities, and the Trustee shall comply with Trust Indenture
Act Section 312(b). The Company, the Trustee, the Security Registrar and any
other Person shall have the protection of Trust Indenture Act Section 312(c).
Further, every Holder of Securities, by receiving and holding the same, agrees
with the Company and the Trustee that neither the Company nor the Trustee or any
agent of either of them shall be held accountable by reason of the disclosure of
any information as to the names and addresses of the Holders in accordance with
Trust Indenture Act Section 312, regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under Trust Indenture
Act Section 312.
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Xxxxxxx 000. Reports by Trustee.
(a) Within 60 days after May 15 of each year commencing with
the first May 15 after the issuance of Securities, the Trustee, if so required
under the Trust Indenture Act, shall transmit by mail to all Holders, in the
manner and to the extent provided in Trust Indenture Act Section 313(c), a brief
report dated as of such May 15 in accordance with and with respect to the
matters required by Trust Indenture Act Section 313(a). The Trustee shall also
transmit by mail to all Holders, in the manner and to the extent provided in
Trust Indenture Act Section 313(c), a brief report in accordance with and with
respect to the matters required by Trust Indenture Act Section 313(b)(2).
(b) A copy of each report transmitted to Holders pursuant to
this Section 703 shall, at the time of such transmission, be mailed to the
Company and filed with each stock exchange, if any, upon which the Securities
are listed and also with the Commission. The Company will notify the Trustee
promptly if the Securities are listed on any stock exchange.
Section 704. Reports by Company and Guarantors.
The Company and each Guarantor, as the case may be, shall:
(a) file with the Trustee, within 15 days after the Company or
any Guarantor, as the case may be, is required to file the same with the
Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which the
Company or any Guarantor may be required to file with the Commission pursuant to
Section 13 or Section 15(d) of the Exchange Act; or, if the Company or any
Guarantor, as the case may be, is not required to file information, documents or
reports pursuant to either of said Sections, then it shall (i) deliver to the
Trustee annual audited financial statements of the Company and its Subsidiaries,
prepared on a Consolidated basis in conformity with GAAP, within 120 days after
the end of each fiscal year of the Company, and (ii) file with the Trustee and,
to the extent permitted by law, the Commission, in accordance with the rules and
regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Exchange Act in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations;
(b) file with the Trustee and the Commission, in accordance
with the rules and regulations prescribed from time to time by the Commission,
such additional information, documents and reports with respect to compliance by
the Company or any Guarantor, as the case may be, with the conditions and
covenants of this Indenture as are required from time to time by such rules and
regulations (including such information, documents and reports referred to in
Trust Indenture Act Section 314(a)); and
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(c) within 15 days after the filing thereof with the Trustee,
transmit by mail to all Holders in the manner and to the extent provided in
Trust Indenture Act Section 313(c), such summaries of any information, documents
and reports required to be filed by the Company or any Guarantor, as the case
may be, pursuant to Section 1019 hereunder and clauses (a) and (b) of this
Section as are required by rules and regulations prescribed from time to time by
the Commission.
ARTICLE EIGHT
CONSOLIDATION, MERGER, SALE OF ASSETS
Section 801. Company and Guarantors May Consolidate, etc., Only on
Certain Terms.
(a) The Company will not, in a single transaction or through a
series of related transactions, (1) consolidate with or merge with or into any
other Person, (2) sell, assign, convey, transfer, lease or otherwise dispose of
all or substantially all of its properties and assets to any Person or group of
Persons, or (3) permit any of its Restricted Subsidiaries to enter into any such
transaction or series of related transactions if such transaction or series of
related transactions, in the aggregate, would result in a sale, assignment,
conveyance, transfer, lease or disposition of all or substantially all of the
properties and assets of the Company and its Restricted Subsidiaries on a
Consolidated basis to any other Person or group of Persons, unless at the time
and after giving effect thereto:
(i) either (a) the Company will be the continuing
corporation (in the case of a consolidation or merger
involving the Company) or (b) the Person (if other than the
Company) formed by such consolidation or into which the
Company is merged or the Person which acquires by sale,
assignment, conveyance, transfer, lease or disposition all or
substantially all of the properties and assets of the Company
and its Restricted Subsidiaries on a Consolidated basis (the
"Surviving Entity") will be a corporation duly organized and
validly existing under the laws of the United States of
America, any state of the United States of America or the
District of Columbia and such Person expressly assumes, by a
supplemental indenture, in a form reasonably satisfactory to
the Trustee, all the obligations of the Company under the
Securities and this Indenture and the Registration Rights
Agreement, as the case may be, and the Securities and this
Indenture and the Registration Rights Agreement will remain in
full force and effect as so supplemented;
(ii) immediately before and immediately after giving
effect to such transaction on a pro forma basis (and treating
any Indebtedness not
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previously an obligation of the Company or any of its
Restricted Subsidiaries which becomes the obligation of the
Company or any of its Restricted Subsidiaries as a result of
such transaction as having been incurred at the time of such
transaction), no Default or Event of Default will have
occurred and be continuing;
(iii) immediately before and immediately after giving
effect to such transaction on a pro forma basis (on the
assumption that the transaction occurred on the first day of
the four-quarter period for which financial statements are
available ending immediately prior to the consummation of such
transaction with the appropriate adjustments with respect to
the transaction being included in such pro forma calculation),
the Company (or the Surviving Entity if the Company is not the
continuing obligor hereunder) could incur $1.00 of additional
Indebtedness (other than Permitted Indebtedness) under Section
1008;
(iv) at the time of the transaction, each Guarantor,
if any, unless it is the other party to the transactions
described above, will have by supplemental indenture confirmed
that its Guarantee shall apply to such Person's obligations
under this Indenture and under the Securities;
(v) at the time of the transaction if any of the
property or assets of the Company or any of its Restricted
Subsidiaries would thereupon become subject to any Lien, the
provisions of Section 1011 are complied with; and
(vi) at the time of the transaction the Company or
the Surviving Entity will have delivered, or caused to be
delivered, to the Trustee, in form and substance reasonably
satisfactory to the Trustee, an Officers' Certificate and an
Opinion of Counsel, each to the effect that such
consolidation, merger, sale, assignment, conveyance, transfer,
lease or other transaction and the supplemental indenture in
respect of such transaction comply with this Indenture and
that all conditions precedent herein provided for relating to
such transaction have been complied with.
(b) Each Guarantor will not, and the Company will not permit a
Guarantor to, in a single transaction or through a series of related
transactions, (1) consolidate with or merge with or into any other Person (other
than the Company or any Guarantor), (2) sell, assign, convey, transfer, lease or
otherwise dispose of all or substantially all of its properties and assets on a
Consolidated basis to any Person or group of Persons (other than the Company or
any Guarantor), or (3) permit any of its Restricted Subsidiaries to enter into
any such transaction or series of transactions if such transaction or series of
transactions, in the aggregate, would result in a sale, assignment, conveyance,
transfer, lease or disposition of all or substantially all of the properties and
assets of the Guarantor and its Restricted Subsidiaries on a Consolidated basis
to any
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other Person or group of Persons (other than the Company or any Guarantor),
unless at the time and after giving effect thereto:
(i) either (a) the Guarantor will be the continuing
corporation (in the case of a consolidation or merger
involving the Guarantor) or (b) the Person (if other than the
Guarantor) formed by such consolidation or into which such
Guarantor is merged or the Person which acquires by sale,
assignment, conveyance, transfer, lease or disposition all or
substantially all of the properties and assets of the
Guarantor and its Restricted Subsidiaries on a Consolidated
basis (the "Surviving Guarantor Entity") is duly organized and
validly existing under the laws of the United States of
America, any state of the United States of America or the
District of Columbia and such Person expressly assumes, by a
supplemental indenture, in a form satisfactory to the Trustee,
all the obligations of such Guarantor under its Guarantee of
the Securities, this Indenture and the Registration Rights
Agreement and such Guarantee, Indenture and Registration
Rights Agreement will remain in full force and effect;
(ii) immediately before and immediately after giving
effect to such transaction, on a pro forma basis, no Default
or Event of Default will have occurred and be continuing; and
(iii) at the time of the transaction such Guarantor
or the Surviving Guarantor Entity will have delivered, or
caused to be delivered, to the Trustee, in form and substance
reasonably satisfactory to the Trustee, an Officers'
Certificate and an Opinion of Counsel, each to the effect that
such consolidation, merger, transfer, sale, assignment,
conveyance, lease or other transaction and the supplemental
indenture in respect thereof comply with this Indenture and
that all conditions precedent therein provided for relating to
such transaction have been complied with.
(c) Notwithstanding the foregoing, the provisions of Section
801(b) shall not apply to any Guarantor whose Guarantee of the Notes is
unconditionally released and discharged in accordance with paragraph (c) under
Section 1013.
Notwithstanding the foregoing, nothing herein shall prohibit a
merger or consolidation of the Company or any of the Guarantors into an
Affiliate incorporated in the United States solely for the purpose of changing
the entity's jurisdiction of incorporation.
Section 802. Successor Substituted.
Upon any consolidation or merger, or any sale, assignment,
conveyance, transfer, lease or disposition of all or substantially all of the
properties and assets of the
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Company or any Guarantor, if any, in accordance with Section 801, the successor
Person formed by such consolidation or into which the Company or such Guarantor,
as the case may be, is merged or the successor Person to which such sale,
assignment, conveyance, transfer, lease or disposition is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company
or such Guarantor, as the case may be, under this Indenture, the Securities
and/or the related Guarantee, as the case may be, with the same effect as if
such successor had been named as the Company or such Guarantor, as the case may
be, herein, in the Securities and/or in the Guarantee, as the case may be, and
the Company or such Guarantor, as the case may be, shall be discharged from all
obligations and covenants under this Indenture and the Securities or its
Guarantee, as the case may be; provided that in the case of a transfer by lease
or a sale of substantially all of the assets of the Company or a Guarantor that
results in the sale, assignment, conveyance, transfer or other disposition of
assets constituting or accounting for less than 95% of the consolidated assets,
revenues or Consolidated Net Income (Loss) of the Company or such Guarantor, as
the case may be, the predecessor shall not be released from the payment of
principal and interest on the Securities or its Guarantee, as the case may be.
ARTICLE NINE
SUPPLEMENTAL INDENTURES
Section 901. Supplemental Indentures and Agreements without Consent of
Holders.
Without the consent of any Holders, the Company, the
Guarantors, if any, and any other obligor under the Securities when authorized
by a Board Resolution, and the Trustee, at any time and from time to time, may
enter into one or more indentures supplemental hereto or agreements or other
instruments with respect to this Indenture, the Securities or any Guarantee, in
form and substance satisfactory to the Trustee, for any of the following
purposes:
(a) to evidence the succession of another Person to the
Company or a Guarantor or any other obligor upon the Securities, and the
assumption by any such successor of the covenants of the Company or such
Guarantor or obligor herein and in the Securities and in any Guarantee in
accordance with Article Eight;
(b) to add to the covenants of the Company, any Guarantor or
any other obligor upon the Securities for the benefit of the Holders, or to
surrender any right or power conferred upon the Company or any Guarantor or any
other obligor upon the Securities, as applicable, herein, in the Securities or
in any Guarantee;
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(c) to cure any ambiguity, or to correct or supplement any
provision herein or in any supplemental indenture, the Securities or any
Guarantee which may be defective or inconsistent with any other provision herein
or in the Securities or any Guarantee or to make any other provisions with
respect to matters or questions arising under this Indenture, the Securities or
the Guarantees; provided that, in each case, such provisions shall not adversely
affect the interest of the Holders in any material respect;
(d) to comply with the requirements of the Commission in order
to effect or maintain the qualification of this Indenture under the Trust
Indenture Act, as contemplated by Section 905 or otherwise;
(e) to add a Guarantor pursuant to the requirements of Section
1013 hereof or otherwise;
(f) to evidence and provide the acceptance of the appointment
of a successor Trustee hereunder; or
(g) to mortgage, pledge, hypothecate or grant a security
interest in favor of the Trustee for the benefit of the Holders as additional
security for the payment and performance of the Company's or any Guarantor's
Indenture Obligations, in any property, or assets, including any of which are
required to be mortgaged, pledged or hypothecated, or in which a security
interest is required to be granted to the Trustee pursuant to this Indenture or
otherwise.
Section 902. Supplemental Indentures and Agreements with Consent of
Holders.
Except as permitted by Section 901, with the consent of the
Holders of at least a majority in aggregate principal amount of the Outstanding
Securities (including consents obtained in connection with a tender offer or
exchange offer for Securities), by Act of said Holders delivered to the Company,
each Guarantor, if any, and the Trustee, the Company and each Guarantor (if a
party thereto) when authorized by Board Resolutions, and the Trustee may (i)
enter into an indenture or indentures supplemental hereto or agreements or other
instruments with respect to this Indenture, the Securities or any Guarantee in
form and substance satisfactory to the Trustee, for the purpose of adding any
provisions to or amending, modifying or changing in any manner or eliminating
any of the provisions of this Indenture, the Securities or any Guarantee
(including but not limited to, for the purpose of modifying in any manner the
rights of the Holders under this Indenture, the Securities or any Guarantee) or
(ii) waive compliance with any provision in this Indenture, the Securities or
any Guarantee (other than waivers of past Defaults covered by Section 513 and
waivers of covenants which are covered by Section 1021); provided, however, that
no such supplemental indenture, agreement or instrument shall, without the
consent of the Holder of each Outstanding Security affected thereby:
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(a) change the Stated Maturity of the principal of, or any
installment of interest on, or change to an earlier date any Redemption Date of,
or waive a default in the payment of the principal of, premium, if any, or
interest on, any such Security or reduce the principal amount thereof or the
rate of interest thereon or any premium payable upon the redemption thereof, or
change the coin or currency in which the principal of any Security or any
premium or the interest thereon is payable, or impair the right to institute
suit for the enforcement of any such payment on or after the Stated Maturity
thereof (or, in the case of redemption, on or after the Redemption Date);
(b) reduce the percentage in principal amount of the
Outstanding Securities, the consent of whose Holders is required for any such
supplemental indenture, or the consent of whose Holders is required for any
waiver or compliance with certain provisions of this Indenture;
(c) modify any of the provisions of this Section 902 or
Section 513 or 1021, except to increase the percentage of such Outstanding
Securities required for any such actions or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent of
the Holder of each such Security affected thereby;
(d) except as otherwise permitted under Article Eight, consent
to the assignment or transfer by the Company or any Guarantor of any of its
rights and obligations hereunder; or
(e) amend or modify any of the provisions of this Indenture
relating to the subordination of the Securities or any Guarantee in any manner
adverse to the Holders of the Securities or any Guarantee;
provided, further, however, that no such modification or amendment may, without
the consent of at least 75% in aggregate principal amount of the Outstanding
Securities amend, change or modify the obligation of the Company to make and
consummate an Offer with respect to any Asset Sale or Asset Sales in accordance
with Section 1012 or the obligation of the Company to make and consummate a
Change of Control Offer in the event of a Change of Control in accordance with
Section 1014, including, in each case, amending, changing or modifying any
definitions relating thereto but only to the extent such definitions relate
thereto.
Upon the written request of the Company and each Guarantor, if
any, accompanied by a copy of Board Resolutions authorizing the execution of any
such supplemental indenture or Guarantee, and upon the filing with the Trustee
of evidence of the consent of Holders as aforesaid, the Trustee shall join with
the Company and each Guarantor in the execution of such supplemental indenture
or Guarantee.
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It shall not be necessary for any Act of Holders under this
Section 902 to approve the particular form of any proposed supplemental
indenture or Guarantee or agreement or instrument relating to any Guarantee, but
it shall be sufficient if such Act shall approve the substance thereof.
Section 903. Execution of Supplemental Indentures and Agreements.
In executing, or accepting the additional trusts created by,
any supplemental indenture, agreement, instrument or waiver permitted by this
Article Nine or the modifications thereby of the trusts created by this
Indenture, the Trustee shall be entitled to receive, and (subject to Trust
Indenture Act Sections 315(a) through 315(d) and Section 603(a) hereof) shall be
fully protected in relying upon, an Opinion of Counsel and an Officers'
Certificate stating that the execution of such supplemental indenture, agreement
or instrument (a) is authorized or permitted by this Indenture and (b) does not
violate the provisions of any agreement or instrument evidencing any other
Indebtedness of the Company, any Guarantor or any other Restricted Subsidiary.
The Trustee may, but shall not be obligated to, enter into any such supplemental
indenture, agreement or instrument which affects the Trustee's own rights,
duties or immunities under this Indenture, any Guarantee or otherwise.
Section 904. Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture under this
Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and
every Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.
Section 905. Conformity with Trust Indenture Act.
Every supplemental indenture executed pursuant to this Article
Nine shall conform to the requirements of the Trust Indenture Act as then in
effect.
Section 906. Reference in Securities to Supplemental Indentures.
Securities authenticated and delivered after the execution of
any supplemental indenture pursuant to this Article Nine may, and shall if
required by the Trustee, bear a notation in form approved by the Trustee as to
any matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities so modified as to conform, in the opinion of the
Trustee and the Board of Directors, to any such supplemental indenture may be
prepared and executed by the Company and each Guarantor and authenticated and
delivered by the Trustee in exchange for Outstanding Securities.
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Section 907. Notice of Supplemental Indentures.
Promptly after the execution by the Company, any Guarantor and
the Trustee of any supplemental indenture pursuant to the provisions of Section
902, the Company shall give notice thereof to the Holders of each Outstanding
Security affected, in the manner provided for in Section 106, setting forth in
general terms the substance of such supplemental indenture. Any failure of the
Company to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental indenture.
Section 908. Rights of Holders of Senior Indebtedness.
No amendment, modification or waiver of this Indenture or the
Securities shall adversely affect the rights of any holder of Senior
Indebtedness or Senior Guarantor Indebtedness under the subordination provisions
included in Article Fourteen of this Indenture without the consent of such
holder.
ARTICLE TEN
COVENANTS
Section 1001. Payment of Principal, Premium and Interest.
The Company shall duly and punctually pay the principal of,
premium, if any, and interest on the Securities in accordance with the terms of
the Securities and this Indenture.
Section 1002. Maintenance of Office or Agency.
The Company shall maintain an office or agency where
Securities may be presented or surrendered for payment. The Company also will
maintain an office or agency where Securities may be surrendered for
registration of transfer, redemption or exchange and where notices and demands
to or upon the Company in respect of the Securities and this Indenture may be
served. The office of the Trustee, at its Corporate Trust Office initially
located at Bank Xxx Xxxxx, Xxxxx 0000, Xxxxxxx, Xxxxxxxx 00000, will be such
office or agency of the Company, unless the Company shall designate and maintain
some other office or agency for one or more of such purposes. The Company will
give prompt written notice to the Trustee of the location and any change in the
location of any such offices or agencies. If at any time the Company shall fail
to maintain any such required offices or agencies or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the office of the Trustee and the Company
hereby appoints the Trustee such agent as its agent to receive all such
presentations, surrenders, notices and demands.
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The Company may from time to time designate one or more other
offices or agencies (in or outside of The City of New York) where the Securities
may be presented or surrendered for any or all such purposes, and may from time
to time rescind such designation. The Company will give prompt written notice to
the Trustee of any such designation or rescission and any change in the location
of any such office or agency.
The Trustee shall initially act as Paying Agent for the
Securities.
Section 1003. Money for Security Payments to Be Held in Trust.
If the Company or any of its Affiliates shall at any time act
as Paying Agent, it will, on or before each due date of the principal of,
premium, if any, or interest on any of the Securities, segregate and hold in
trust for the benefit of the Holders entitled thereto a sum sufficient to pay
the principal, premium, if any, or interest so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided, and
will promptly notify the Trustee of its action or failure so to act.
If the Company or any of its Affiliates is not acting as
Paying Agent, the Company will, on or before each due date of the principal of,
premium, if any, or interest on any of the Securities, deposit with a Paying
Agent a sum in same day funds sufficient to pay the principal, premium, if any,
or interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or interest, and (unless such Paying
Agent is the Trustee) the Company will promptly notify the Trustee of such
action or any failure so to act.
If the Company is not acting as Paying Agent, the Company will
cause each Paying Agent other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee,
subject to the provisions of this Section, that such Paying Agent will:
(a) hold all sums held by it for the payment of the principal
of, premium, if any, or interest on the Securities in trust for the benefit of
the Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided;
(b) give the Trustee notice of any Default by the Company or
any Guarantor (or any other obligor upon the Securities) in the making of any
payment of principal, premium, if any, or interest on the Securities;
(c) at any time during the continuance of any such Default,
upon the written request of the Trustee, forthwith pay to the Trustee all sums
so held in trust by such Paying Agent; and
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(d) acknowledge, accept and agree to comply in all aspects
with the provisions of this Indenture relating to the duties, rights and
liabilities of such Paying Agent.
The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such money.
Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of, premium,
if any, or interest on any Security and remaining unclaimed for two years after
such principal and premium, if any, or interest has become due and payable shall
promptly be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in the New York Times and The
Wall Street Journal (national edition), and mail to each such Holder, notice
that such money remains unclaimed and that, after a date specified therein,
which shall not be less than 30 days from the date of such notification,
publication and mailing, any unclaimed balance of such money then remaining will
promptly be repaid to the Company.
Section 1004. Corporate Existence.
Subject to Article Eight, the Company shall do or cause to be
done all things necessary to preserve and keep in full force and effect the
corporate existence and related rights and franchises (charter and statutory) of
the Company and each Restricted Subsidiary; provided, however, that the Company
shall not be required to preserve any such right or franchise or the corporate
existence of any such Restricted Subsidiary if the Board of Directors of the
Company shall determine that the preservation thereof is no longer necessary or
desirable in the conduct of the business of the Company and its Restricted
Subsidiaries as a whole; and provided, further, however, that the foregoing
shall not prohibit a sale, transfer or conveyance of a Restricted Subsidiary or
any of its assets in compliance with the terms of this Indenture.
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Section 1005. Payment of Taxes and Other Claims.
The Company shall pay or discharge or cause to be paid or
discharged, on or before the date the same shall become due and payable, (a) all
taxes, assessments and governmental charges levied or imposed upon the Company
or any of its Restricted Subsidiaries shown to be due on any return of the
Company or any of its Restricted Subsidiaries or otherwise assessed or upon the
income, profits or property of the Company or any of its Restricted Subsidiaries
if failure to pay or discharge the same could reasonably be expected to have a
material adverse effect on the ability of the Company or any Guarantor to
perform its obligations hereunder and (b) all lawful claims for labor, materials
and supplies, which, if unpaid, would by law become a Lien upon the property of
the Company or any of its Restricted Subsidiaries, except for any Lien permitted
to be incurred under Section 1011, if failure to pay or discharge the same could
reasonably be expected to have a material adverse effect on the ability of the
Company or any Guarantor to perform its obligations hereunder; provided,
however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings properly instituted and diligently conducted and in respect of which
appropriate reserves (in the good faith judgment of management of the Company)
are being maintained in accordance with GAAP.
Section 1006. Maintenance of Properties.
The Company shall cause all material properties owned by the
Company or any of its Restricted Subsidiaries or used or held for use in the
conduct of its business or the business of any of its Restricted Subsidiaries to
be maintained and kept in good condition, repair and working order (ordinary
wear and tear excepted) and supplied with all necessary equipment and will cause
to be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the reasonable judgment of the Company may be
consistent with sound business practice and necessary so that the business
carried on in connection therewith may be properly conducted at all times;
provided, however, that nothing in this Section shall prevent the Company from
discontinuing the maintenance of any of such properties if such discontinuance
is, in the reasonable judgment of the Company, desirable in the conduct of its
business or the business of any of its Restricted Subsidiaries; and provided,
further, however, that the foregoing shall not prohibit a sale, transfer or
conveyance of a Restricted Subsidiary or any of its properties or assets in
compliance with the terms of this Indenture.
Section 1007. Maintenance of Insurance.
The Company shall at all times keep all of its and its
Restricted Subsidiaries' properties which are of an insurable nature insured
with insurers, believed by the Company in good faith to be financially sound and
responsible, against loss or damage to the extent that property of similar
character is usually so insured by
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corporations similarly situated and owning like properties in the same general
geographic areas in which the Company and its Restricted Subsidiaries operate,
except where the failure to do so could not reasonably be expected to have a
material adverse effect on the condition (financial or otherwise), earnings,
business affairs or prospects of the Company and its Restricted Subsidiaries,
taken as a whole.
Section 1008. Limitation on Indebtedness.
(a) The Company will not, and will not cause or permit any of
its Restricted Subsidiaries to, create, issue, incur, assume, guarantee or
otherwise in any manner become directly or indirectly liable for the payment of
or otherwise incur, contingently or otherwise (collectively, "incur"), any
Indebtedness (including any Acquired Indebtedness), unless such Indebtedness is
incurred by the Company or any Guarantor or constitutes Acquired Indebtedness of
a Restricted Subsidiary and, in each case, the Company's Consolidated Fixed
Charge Coverage Ratio for the most recent four full fiscal quarters for which
financial statements are available immediately preceding the incurrence of such
Indebtedness taken as one period is at least equal to or greater than 2.00:1.
(b) Notwithstanding the foregoing, the Company and, to the
extent specifically set forth below, the Restricted Subsidiaries may incur each
and all of the following (collectively, the "Permitted Indebtedness"):
(i) Indebtedness of the Company under the Company's Credit
Agreement (including any refinancing (as defined below) of such Indebtedness) in
an aggregate principal amount at any one time outstanding not to exceed
$920,000,000 in any case under the Credit Agreement or in respect of letters of
credit under the Credit Agreement, and guarantees by Guarantors in respect
thereof; provided, however, that the foregoing amount shall be reduced by (a)
the U.S. dollar equivalent of any loan notes referred to in clause (xi) of this
Section 1008(b) not collateralized by cash in excess of $40,000,000 and (b) the
aggregate amount of Indebtedness incurred pursuant to clause (xii) of this
Section 1008(b) in excess of $20,000,000;
(ii) Indebtedness of the Company or any Restricted Subsidiary
under any Inventory Facility;
(iii) Indebtedness of the Company pursuant to the Securities
or the Exchange Securities and Indebtedness of any Guarantor pursuant to a
guarantee of the Securities or the Exchange Securities;
(iv) Indebtedness of the Company or any Restricted Subsidiary
outstanding on the initial Issue Date and not otherwise referred to in this
definition of "Permitted Indebtedness";
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(v) Indebtedness of the Company owing to a Restricted
Subsidiary; provided that any Indebtedness of the Company owing to a Restricted
Subsidiary that is not a Guarantor is made pursuant to an intercompany note in
the form attached as Annex A to this Indenture and is unsecured and subordinated
in right of payment from and after such time as the Securities shall become due
and payable (whether at Stated Maturity, acceleration or otherwise) to the
payment and performance of the Company's obligations under the Securities and to
all Senior Indebtedness; provided, further, that any disposition, pledge or
transfer of any such Indebtedness to a Person (other than a disposition, pledge
or transfer to a Restricted Subsidiary) shall be deemed to be an incurrence of
such Indebtedness by the Company or other obligor not permitted by this clause
(v);
(vi) Indebtedness of a Restricted Subsidiary owing to the
Company or another Restricted Subsidiary; provided that any such Indebtedness is
made pursuant to an intercompany note in the form attached as Annex A to this
Indenture; provided, further, that any disposition, pledge or transfer of any
such Indebtedness to a Person (other than a disposition, pledge or transfer to
the Company or a Restricted Subsidiary) shall be deemed to be an incurrence of
such Indebtedness by the obligor not permitted by this clause (vi);
(vii) guarantees of any Restricted Subsidiary made in
accordance with the provisions of Section 1013;
(viii) obligations of the Company or any Guarantor entered
into in the ordinary course of business (a) pursuant to Interest Rate Agreements
designed to protect the Company or any Restricted Subsidiary against
fluctuations in interest rates in respect of Indebtedness of the Company or any
Restricted Subsidiary as long as such obligations do not exceed the aggregate
principal amount of such Indebtedness then outstanding, (b) under any Currency
Hedging Agreements, relating to (i) Indebtedness of the Company or any
Restricted Subsidiary and/or (ii) obligations to purchase or sell assets or
properties, in each case, incurred in the ordinary course of business of the
Company or any Restricted Subsidiary; provided, however, that such Currency
Hedging Agreements do not increase the Indebtedness or other obligations of the
Company or any Restricted Subsidiary outstanding other than as a result of
fluctuations in foreign currency exchange rates or by reason of fees,
indemnities and compensation payable under such Currency Hedging Agreements or
(c) under any Commodity Price Protection Agreements which do not increase the
amount of Indebtedness or other obligations of the Company or any Restricted
Subsidiary outstanding other than as a result of fluctuations in commodity
prices or by reason of fees, indemnities and compensation payable under such
Commodity Price Protection Agreements, and guarantees by Guarantors in respect
thereof;
(ix) Indebtedness of the Company or any Restricted Subsidiary
represented by Capital Lease Obligations or Purchase Money Obligations or other
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Indebtedness incurred or assumed in connection with the acquisition or
development of real or personal, movable or immovable, property in each case
incurred for the purpose of financing or refinancing all or any part of the
purchase price or cost of construction or improvement of property used in the
business of the Company, in an aggregate principal amount pursuant to this
clause (ix) not to exceed $35,000,000 outstanding at any time; provided that the
principal amount of any Indebtedness permitted under this clause (ix) did not in
each case at the time of incurrence exceed the Fair Market Value, as determined
by the Company in good faith, of the acquired or constructed asset or
improvement so financed;
(x) obligations arising from agreements by the Company or a
Restricted Subsidiary to provide for indemnification, customary purchase price
closing adjustments, earn-outs or other similar obligations, in each case,
incurred in connection with the acquisition or disposition of any business or
assets of a Restricted Subsidiary;
(xi) loan notes, if any, issued to a holder of the shares of
Capital Stock of Sytner Group plc in connection with the tender offer for all of
such Capital Stock;
(xii) Indebtedness of the Sytner Group plc and any of its
Subsidiaries in an aggregate principal amount not to exceed $90,000,000 at any
one time;
(xiii) obligations in respect of letters of credit or other
credit support provided by the Company and its Restricted Subsidiaries in the
ordinary course of business provided that the obligations under such letters of
credit are supported by letters of credit or other credit support issued or
provided under the Credit Agreement;
(xiv) Indebtedness of Foreign Subsidiaries in the aggregate
amount outstanding at any time not to exceed 10% of the Consolidated Tangible
Assets of the Company, provided that the Company can incur $1.00 of additional
Indebtedness (other than Permitted Indebtedness) under clause (a) above after
giving effect to such incurrence;
(xv) guarantees by the Company or a Restricted Subsidiary of
Indebtedness of a Restricted Subsidiary that was permitted to be incurred under
this Section 1008;
(xvi) any renewals, extensions, substitutions, refundings,
refinancings or replacements (collectively, a "refinancing") of any Indebtedness
incurred pursuant to paragraph (a) above or clauses (iii), (iv), (xi) and (xii)
of this Section 1008(b), including any successive refinancings so long as the
borrower under such refinancing is the Company or, if not the Company, the same
as the borrower of the Indebtedness being refinanced and the aggregate principal
amount of Indebtedness represented thereby (or if such Indebtedness provides for
an amount less than the principal amount thereof to be due and payable upon a
declaration of acceleration of the maturity of such Indebtedness,
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the original issue price of such Indebtedness plus any accreted value
attributable thereto since the original issuance of such Indebtedness) does not
exceed the initial principal amount of such Indebtedness plus the lesser of (I)
the stated amount of any premium or other payment required to be paid in
connection with such a refinancing pursuant to the terms of the Indebtedness
being refinanced or (II) the amount of premium or other payment actually paid at
such time to refinance the Indebtedness, plus, in either case, the amount of
expenses of the Company incurred in connection with such refinancing and (A) in
the case of any refinancing of Indebtedness that is Subordinated Indebtedness,
such new Indebtedness is made subordinated to the Securities at least to the
same extent as the Indebtedness being refinanced and (B) in the case of Pari
Passu Indebtedness or Subordinated Indebtedness, as the case may be, such
refinancing does not reduce the Average Life to Stated Maturity or the Stated
Maturity of such Indebtedness;
(xvii) Indebtedness of the Company or any of its Restricted
Subsidiaries arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument inadvertently (except in the case of
daylight overdrafts) drawn against insufficient funds in the ordinary course of
business; provided, however, that such Indebtedness is extinguished within three
Business Days of incurrence;
(xviii) Indebtedness of the Company to the extent the net
proceeds thereof are promptly deposited to defease the Securities as described
in Article Four hereof;
(xix) shares of Preferred Stock of a Restricted Subsidiary
issued to the Company or a Wholly-Owned Restricted Subsidiary of the Company;
provided that any subsequent transfer of any such shares of Preferred Stock
(except to the Company or a Wholly Owned Restricted Subsidiary of the Company)
shall be deemed to be an issuance of Preferred Stock that was not permitted by
this clause (xix); and
(xx) Indebtedness of the Company and its Restricted
Subsidiaries, in addition to that described in clauses (i) through (xix) above,
and any renewals, extensions, substitutions, refinancings or replacements of
such Indebtedness, so long as the aggregate principal amount of all such
Indebtedness shall not exceed $20,000,000 outstanding at any one time in the
aggregate.
For purposes of determining compliance with this Section 1008,
in the event that an item of Indebtedness meets the criteria of more than one of
the types of Indebtedness permitted by this Section 1008, the Company in its
sole discretion shall classify or reclassify such item of Indebtedness and only
be required to include the amount of such Indebtedness as one of such types.
Accrual of interest, accretion or amortization of original issue discount and
the payment of interest on any Indebtedness in the form of additional
Indebtedness with the same terms, and the payment of dividends on any Redeemable
Capital Stock or Preferred Stock in the form of additional shares of the same
class of Redeemable Capital Stock or Preferred Stock will not be deemed to be an
incurrence of Indebtedness for purposes of this Section 1008 provided, in each
such
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case, that the amount thereof as accrued over time is included in the
Consolidated Fixed Charge Coverage Ratio of the Company.
For purposes of determining compliance with any
dollar-denominated restriction on the incurrence of Indebtedness denominated in
a foreign currency, the dollar-equivalent principal amount of such Indebtedness
incurred pursuant thereto shall be calculated based on the relevant currency
exchange rate in effect on the date that such Indebtedness was incurred.
Section 1009. Limitation on Restricted Payments.
(a) The Company will not, and will not cause or permit any Restricted
Subsidiary to, directly or indirectly:
(i) declare or pay any dividend on, or make any
distribution to holders of, any shares of the
Company's Capital Stock (other than dividends or
distributions payable solely in shares of its
Qualified Capital Stock or in options, warrants or
other rights to acquire shares of such Qualified
Capital Stock);
(ii) purchase, redeem, defease or otherwise acquire or
retire for value, directly or indirectly, the
Company's Capital Stock or any Capital Stock of any
Affiliate of the Company, including any Subsidiary of
the Company (other than Capital Stock of any
Restricted Subsidiary of the Company), or options,
warrants or other rights to acquire such Capital
Stock;
(iii) make any principal payment on, or repurchase, redeem,
defease, retire or otherwise acquire for value, prior
to any scheduled principal payment, sinking fund
payment or maturity, any Subordinated Indebtedness;
(iv) declare or pay any dividend or distribution on any
Capital Stock of any Restricted Subsidiary to any
Person (other than (a) to the Company or any of its
Wholly Owned Restricted Subsidiaries or (b) dividends
or distributions made by a Restricted Subsidiary (1)
organized as a partnership, limited liability company
or similar pass-through entity to the holders of its
Capital Stock in amounts sufficient to satisfy the
tax liabilities arising from their ownership of such
Capital Stock or (2) on a pro rata basis to all
stockholders of such Restricted Subsidiary); or
(v) make any Investment in any Person (other than any
Permitted Investments)
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(any of the foregoing actions described in clauses (i) through (v), other than
any such action that is a Permitted Payment (as defined below), collectively,
"Restricted Payments") (the amount of any such Restricted Payment, if other than
cash, shall be the Fair Market Value of the assets proposed to be transferred,
as determined by the Board of Directors of the Company, whose determination
shall be conclusive and evidenced by a Board Resolution), unless (1) immediately
before and immediately after giving effect to such proposed Restricted Payment
on a pro forma basis, no Default or Event of Default shall have occurred and be
continuing; (2) immediately before and immediately after giving effect to such
Restricted Payment on a pro forma basis, the Company could incur $1.00 of
additional Indebtedness (other than Permitted Indebtedness) under Section 1008
herein; and (3) after giving effect to the proposed Restricted Payment, the
aggregate amount of all such Restricted Payments declared or made after the
initial Issue Date and all Designation Amounts does not exceed the sum of:
(A) $10,000,000;
(B) 50% of the aggregate Consolidated Net Income of the Company
accrued on a cumulative basis during the period beginning on
the first day of the Company's fiscal quarter in which the
Securities are initially issued and ending on the last day of
the Company's last fiscal quarter ending prior to the date of
the Restricted Payment, or, if such aggregate cumulative
Consolidated Net Income shall be a loss, minus 100% of such
loss;
(C) the aggregate Net Cash Proceeds received after the initial
Issue Date by the Company either (x) as capital contributions
in the form of common equity to the Company or (y) from the
issuance or sale (other than to any of its Subsidiaries) of
Qualified Capital Stock of the Company or any options,
warrants or rights to purchase such Qualified Capital Stock of
the Company (except, in each case, to the extent such proceeds
are used to purchase, redeem or otherwise retire Capital Stock
or Subordinated Indebtedness as set forth below in clause (ii)
or (iii) of paragraph (b) below) (and excluding the Net Cash
Proceeds from (1) the issuance of Qualified Capital Stock
financed, directly or indirectly, using funds borrowed from
the Company or any Subsidiary until and to the extent such
borrowing is repaid and (2) the issuance of Common Stock of
the Company pursuant to the Form S-3 (File No. 333-82264));
(D) the aggregate Net Cash Proceeds received after the initial
Issue Date by the Company (other than from any of its
Subsidiaries) upon the exercise of any options, warrants or
rights to purchase Qualified Capital Stock of the Company (and
excluding the Net Cash Proceeds from the exercise of any
options, warrants or rights to purchase Qualified Capital
Stock financed, directly or indirectly, using funds borrowed
from the Company or any Subsidiary until and to the extent
such borrowing is repaid);
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(E) the aggregate Net Cash Proceeds received after the initial
Issue Date by the Company from the conversion or exchange, if
any, of debt securities or Redeemable Capital Stock of the
Company or its Restricted Subsidiaries into or for Qualified
Capital Stock of the Company plus, to the extent such debt
securities or Redeemable Capital Stock were issued after the
initial Issue Date, upon the conversion or exchange of such
debt securities or Redeemable Capital Stock, the aggregate of
Net Cash Proceeds from their original issuance (and excluding
the Net Cash Proceeds from the conversion or exchange of debt
securities or Redeemable Capital Stock financed, directly or
indirectly, using funds borrowed from the Company or any
Subsidiary until and to the extent such borrowing is repaid);
(F) (a) in the case of the disposition or repayment of any
Investment constituting a Restricted Payment made after the
initial Issue Date, an amount (to the extent not included in
Consolidated Net Income) equal to the lesser of the return of
capital with respect to such Investment and the initial amount
of such Investment, in either case, less the cost of the
disposition of such Investment and net of taxes, and (b) in
the case of the designation of an Unrestricted Subsidiary as a
Restricted Subsidiary (as long as the designation of such
Subsidiary as an Unrestricted Subsidiary was deemed a
Restricted Payment), the Fair Market Value of the Company's
interest in such Subsidiary provided that such amount shall
not in any case exceed the amount of the Restricted Payment
deemed made at the time the Subsidiary was designated as an
Unrestricted Subsidiary; and
(G) any amount which previously qualified as a Restricted Payment
on account of any Guarantee entered into by the Company or any
Restricted Subsidiary; provided that such Guarantee has not
been called upon and the obligation arising under such
Guarantee no longer exists.
(b) Notwithstanding the foregoing, and in the case of clauses (ii)
through (xii) below, so long as no Default or Event of Default is continuing or
would arise therefrom, the foregoing provisions shall not prohibit the following
actions (each of clauses (i) through (iv) being referred to as a "Permitted
Payment"):
(i) the payment of any dividend within 60 days
after the date of declaration thereof, if at
such date of declaration such payment was
permitted by the provisions of paragraph (a)
of this Section 1009 and such payment shall
have been deemed to have been paid on such
date of declaration and shall not have been
deemed a "Permitted Payment" for purposes of
the calculation required by paragraph (a) of
this Section 1009;
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(ii) the repurchase, redemption, or other
acquisition or retirement for value of any
shares of any class of Capital Stock of the
Company in exchange for, including any such
exchange pursuant to the exercise of a
conversion right or privilege in connection
with which cash is paid in lieu of the
issuance of fractional shares or scrip, or
out of the Net Cash Proceeds of a
substantially concurrent issuance and sale
for cash (other than to a Subsidiary) of,
other shares of Qualified Capital Stock of
the Company; provided that the Net Cash
Proceeds from the issuance of such shares of
Qualified Capital Stock are excluded from
clause (3)(C) of paragraph (a) of this
Section 1009;
(iii) the repurchase, redemption, defeasance,
retirement or acquisition for value or
payment of principal of any Subordinated
Indebtedness or Redeemable Capital Stock in
exchange for, or in an amount not in excess
of the Net Cash Proceeds of, a substantially
concurrent issuance and sale for cash (other
than to any Subsidiary of the Company) of
any Qualified Capital Stock of the Company,
provided that the Net Cash Proceeds from the
issuance of such shares of Qualified Capital
Stock are excluded from clause (3)(C) of
paragraph (a) of this Section 1009;
(iv) the repurchase, redemption, defeasance,
retirement, refinancing, acquisition for
value or payment of principal of any
Subordinated Indebtedness (other than
Redeemable Capital Stock) (a "refinancing")
through the substantially concurrent
issuance of new Subordinated Indebtedness of
the Company, provided that any such new
Subordinated Indebtedness (1) shall be in a
principal amount that does not exceed the
principal amount so refinanced (or, if such
Subordinated Indebtedness provides for an
amount less than the principal amount
thereof to be due and payable upon a
declaration of acceleration thereof, then
such lesser amount as of the date of
determination), plus the lesser of (I) the
stated amount of any premium or other
payment required to be paid in connection
with such a refinancing pursuant to the
terms of the Indebtedness being refinanced
or (II) the amount of premium or other
payment actually paid at such time to
refinance the Indebtedness, plus, in either
case, the amount of expenses of the Company
incurred in connection with such
refinancing; (2) has an Average Life to
Stated Maturity
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greater than the remaining Average Life to
Stated Maturity of the Securities; (3) has a
Stated Maturity for its final scheduled
principal payment later than the Stated
Maturity for the final scheduled principal
payment of the Securities; and (4) is
expressly subordinated in right of payment
to the Securities at least to the same
extent as the Subordinated Indebtedness to
be refinanced;
(v) the purchase, redemption, or other
acquisition or retirement for value of any
class of Capital Stock of the Company from
employees, former employees, directors or
former directors of the Company or any
Restricted Subsidiary in an amount not to
exceed $2,000,000 in the aggregate in any
calendar year;
(vi) the repurchase, redemption or other
acquisition or retirement for value of
Capital Stock of the Company issued pursuant
to acquisitions by the Company to the extent
required by or needed to comply with the
requirements of any of the Manufacturers
with which the Company or a Restricted
Subsidiary is a party to a franchise
agreement;
(vii) the payment of the contingent purchase price
of an acquisition to the extent such payment
would be deemed a Restricted Payment;
(viii) the payment of the deferred purchase price,
including holdbacks (and the receipt of any
corresponding consideration therefor), of an
acquisition to the extent such payment would
have been permitted by this Indenture at the
time of such acquisition;
(ix) the repurchase of Capital Stock of the
Company issued to sellers of businesses
acquired by the Company or its Restricted
Subsidiaries, in an amount not to exceed
$5,000,000 during the term of this
Indenture;
(x) the payment of dividends payable on the
Company's Preferred Stock outstanding on the
date of this Indenture in accordance with
the terms of such Preferred Stock in effect
on the date of this Indenture, in an amount
not to exceed $6,200,000 in any calendar
year;
(xi) the repurchase of Capital Stock deemed to
occur upon exercise of stock options to the
extent that shares of such
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Capital Stock represent a portion of the
exercise price of such options; and
(xii) the payment of dividends or distributions by
a Restricted Subsidiary of the Company
pursuant to the Joint Venture Formation
Agreement, dated January 31, 1998, among the
Company, UAG Young, Inc. and the other
parties named therein (the "Joint Venture
Partners") based on the percentage ownership
interest of such Joint Venture Partners in
such Restricted Subsidiary (which cannot
exceed 25%) plus one fifth of such ownership
interest.
Section 1010. Limitation on Transactions with Affiliates.
The Company will not, and will not cause or permit any of its
Restricted Subsidiaries to, directly or indirectly, enter into any transaction
or series of related transactions (including, without limitation, the sale,
purchase, exchange or lease of assets, property or services) with or for the
benefit of any Affiliate of the Company (other than the Company or a Wholly
Owned Restricted Subsidiary) unless such transaction or series of related
transactions is entered into in good faith and in writing and (a) such
transaction or series of related transactions is on terms that are no less
favorable to the Company or such Restricted Subsidiary, as the case may be, than
those that would be available in a comparable transaction in arm's-length
dealings with an unrelated third party, (b) with respect to any transaction or
series of related transactions involving aggregate value in excess of
$2,000,000, either the Company delivers an Officers' Certificate to the Trustee
certifying that such transaction or series of related transactions complies with
clause (a) above or such transaction or series of related transactions is
approved by a majority of the Disinterested Directors of the Board of Directors
of the Company, or in the event there is only one Disinterested Director, by
such Disinterested Director, (c) with respect to any transaction or series of
related transactions involving aggregate value in excess of $5,000,000, either
(i) such transaction or series of related transactions has been approved by a
majority of the Disinterested Directors of the Board of Directors of the
Company, or in the event there is only one Disinterested Director, by such
Disinterested Director, or (ii) the Company delivers to the Trustee a written
opinion of an investment banking firm of national standing or other recognized
independent expert with experience appraising the terms and conditions of the
type of transaction or series of related transactions for which an opinion is
required stating that the transaction or series of related transactions is fair
to the Company or such Restricted Subsidiary from a financial point of view and
(d) with respect to any transaction or series of related transactions involving
aggregate value in excess of $25,000,000, the Company delivers to the Trustee a
written opinion of an investment banking firm of national standing or other
recognized independent expert with experience appraising the terms and
conditions of the type of transaction or series of related transactions for
which an opinion is required stating that
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the transaction or series of related transactions is fair to the Company or such
Restricted Subsidiary from a financial point of view; provided, however, that
this provision shall not apply to (i) compensation and employee benefit
arrangements with any officer or director of the Company, including under any
stock option or stock incentive plans, entered into in the ordinary course of
business; (ii) any transaction permitted as a Restricted Payment or Permitted
Investment pursuant to Section 1009; (iii) the payment of customary fees to
directors of the Company and its Restricted Subsidiaries; (iv) any transaction
with any officer or member of the Board of Directors of the Company involving
indemnification arrangements; (v) loans or advances to officers of the Company
in the ordinary course of business not to exceed $1,000,000 in any calendar
year; and (vi) any transactions undertaken pursuant to any contractual
obligations in existence on the Issue Date (as in effect on the Issue Date) or
otherwise disclosed in the offering memorandum relating to the offer and sale of
the Securities and any renewals, replacements or modifications of such
obligations (pursuant to new transactions or otherwise) on terms no less
favorable than could be received from an unaffiliated third party.
Section 1011. Limitation on Liens.
The Company will not, and will not cause or permit any
Restricted Subsidiary to, directly or indirectly, create, incur or affirm any
Lien of any kind securing any Pari Passu Indebtedness or Subordinated
Indebtedness (including any assumption, guarantee or other liability with
respect thereto by any Restricted Subsidiary) upon any property or assets
(including any intercompany notes) of the Company or any Restricted Subsidiary
owned on the initial Issue Date or acquired after the initial Issue Date, or
assign or convey any right to receive any income or profits from such Liens,
unless the Securities or a Guarantee in the case of Liens of a Guarantor are
directly secured equally and ratably with (or, in the case of Subordinated
Indebtedness, prior or senior thereto, with the same relative priority as the
Securities shall have with respect to such Subordinated Indebtedness) the
obligation or liability secured by such Lien except for Liens (A) securing any
Indebtedness which became Indebtedness pursuant to a transaction permitted under
Article Eight or securing Acquired Indebtedness which was created prior to (and
not created in connection with, or in contemplation of) the incurrence of such
Pari Passu Indebtedness or Subordinated Indebtedness (including any assumption,
guarantee or other liability with respect thereto by any Restricted Subsidiary)
and which Indebtedness is permitted under the provisions of Section 1008 or (B)
securing any Indebtedness incurred in connection with any refinancing, renewal,
substitutions or replacements of any such Indebtedness described in clause (A),
so long as the aggregate principal amount of Indebtedness represented by such
refinancing (or if such Indebtedness provides for an amount less than the
principal amount of such refinancing to be due and payable upon a declaration of
acceleration of the maturity of such Indebtedness, the original issue price of
such Indebtedness plus any accreted value attributable to such Indebtedness
since the original issuance of such Indebtedness) is not increased by such
refinancing by an amount greater than the lesser of (i) the stated
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amount of any premium or other payment required to be paid in connection with
such a refinancing pursuant to the terms of the Indebtedness being refinanced or
(ii) the amount of premium or other payment actually paid at such time to
refinance the Indebtedness, plus, in either case, the amount of expenses of the
Company incurred in connection with such refinancing; provided, however, that in
the case of clauses (A) and (B), any such Lien only extends to the assets that
were subject to such Lien securing such Indebtedness prior to the related
acquisition by the Company or its Restricted Subsidiaries. Notwithstanding the
foregoing, any Lien securing the Securities granted pursuant to this Section
1011 shall be automatically and unconditionally released and discharged upon the
release by the holders of the Pari Passu Indebtedness or Subordinated
Indebtedness described above of their Lien on the property or assets of the
Company or any Restricted Subsidiary (including any deemed release upon payment
in full of all obligations under such Indebtedness), at such time as the holders
of all such Pari Passu Indebtedness or Subordinated Indebtedness also release
their Lien on the property or assets of the Company or such Restricted
Subsidiary, or upon any sale, exchange or transfer to any Person not an
Affiliate of the Company of the property or assets secured by such Lien, or of
all of the Capital Stock held by the Company or any Restricted Subsidiary in, or
all or substantially all the assets of, any Restricted Subsidiary creating such
Lien.
Section 1012. Limitation on Sale of Assets.
(a) The Company will not, and will not cause or permit any of
its Restricted Subsidiaries to, directly or indirectly, consummate an Asset Sale
unless (i) at least 80% of the consideration from such Asset Sale consists of
(A) cash or Cash Equivalents, (B) the assumption of Senior Indebtedness or
Senior Guarantor Indebtedness or other liabilities (other than Pari Passu
Indebtedness or Subordinated Indebtedness) by the party acquiring the assets
from the Company of any Restricted Subsidiary, (C) Replacement Assets, (D)
Designated Noncash Consideration, or (E) a combination of any of the foregoing;
and (ii) the Company or such Restricted Subsidiary receives consideration at the
time of such Asset Sale at least equal to the Fair Market Value of the shares or
assets subject to such Asset Sale; provided that any notes or other obligations
received by the Company or any such Restricted Subsidiary from any transferee of
assets from the Company or such Restricted Subsidiary that are converted by the
Company or such Restricted Subsidiary into cash at Fair Market Value within 10
days after receipt shall be deemed to be cash for purposes of this provision.
(b) If: (A) all or a portion of the Net Cash Proceeds of any
Asset Sale are not required to be applied to repay permanently any Senior
Indebtedness or Senior Guarantor Indebtedness then outstanding as required by
the terms thereof, (B) the Company determines not to apply such Net Cash
Proceeds to the permanent prepayment of such Senior Indebtedness or Senior
Guarantor Indebtedness, or (C) if no such Senior Indebtedness or Senior
Guarantor Indebtedness which requires prepayment is then outstanding (or such
prepayment is waived), then the Company or a Restricted Subsidiary
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may within 365 days of the Asset Sale invest the Net Cash Proceeds in
Replacement Assets. The amount of such Net Cash Proceeds not used to prepay
Senior Indebtedness or Senior Guarantor Indebtedness or invested within 365 days
of the Asset Sale as set forth in this paragraph constitutes "Excess Proceeds."
(c) When the aggregate amount of Excess Proceeds exceeds
$10,000,000 or more, the Company will apply the Excess Proceeds to the repayment
of the Securities and any other Pari Passu Indebtedness outstanding with similar
provisions requiring the Company to make an offer to purchase such Indebtedness
with the proceeds from any Asset Sale as follows: (A) the Company will make an
offer to purchase (an "Offer") from all holders of the Securities in accordance
with the procedures set forth in this Indenture in the maximum principal amount
(expressed as a multiple of $1,000) of Securities that may be purchased out of
an amount (the "Security Amount") equal to the product of such Excess Proceeds
multiplied by a fraction, the numerator of which is the outstanding principal
amount of the Securities, and the denominator of which is the sum of the
outstanding principal amount of the Securities and such Pari Passu Indebtedness
(subject to proration in the event such amount is less than the aggregate
Offered Price (as defined herein) of all Securities tendered); and (B) to the
extent required by such Pari Passu Indebtedness to permanently reduce the
principal amount of such Pari Passu Indebtedness, the Company will make an offer
to purchase or otherwise repurchase or redeem Pari Passu Indebtedness (a "Pari
Passu Offer") in an amount (the "Pari Passu Debt Amount") equal to the excess of
the Excess Proceeds over the Security Amount; provided that in no event will the
Company be required to make a Pari Passu Offer in a Pari Passu Debt Amount
exceeding the principal amount of such Pari Passu Indebtedness plus the amount
of any premium required to be paid to repurchase such Pari Passu Indebtedness.
The offer price for the Securities will be payable in cash in an amount equal to
100% of the principal amount of the Securities plus accrued and unpaid interest,
if any, to the date (the "Offer Date") such Offer is consummated (the "Offered
Price"), in accordance with the procedures set forth herein. To the extent that
the aggregate Offered Price of the Securities tendered pursuant to the Offer is
less than the Security Amount relating to the tendered Securities or the
aggregate amount of Pari Passu Indebtedness that is purchased in a Pari Passu
Offer is less than the Pari Passu Debt Amount, the Company may use any remaining
Excess Proceeds for general corporate purposes. If the aggregate principal
amount of Securities and Pari Passu Indebtedness surrendered by holders thereof
exceeds the amount of Excess Proceeds, the Trustee shall select the Securities
to be purchased on a pro rata basis. Upon the completion of the purchase of all
the Securities tendered pursuant to an Offer and the completion of a Pari Passu
Offer, the amount of Excess Proceeds, if any, shall be reset at zero.
(d) If the Company becomes obligated to make an Offer pursuant
to paragraph (c) above, the Securities and the Pari Passu Indebtedness shall be
purchased by the Company, at the option of the holders thereof, in whole or in
part in integral multiples of $1,000, on a date that is not earlier than 30 days
and not later than 60 days from the
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date the notice of the Offer is given to holders, or such later date as may be
necessary for the Company to comply with the requirements under the Exchange
Act.
(e) The Company will comply with the applicable tender offer
rules, including Rule 14e-1 under the Exchange Act, and any other applicable
securities laws or regulations in connection with an Offer.
(f) Subject to paragraph (e) above, within 30 days after the
date on which the amount of Excess Proceeds equals or exceeds $10,000,000, the
Company shall send or cause to be sent by first-class mail, postage prepaid, to
the Trustee and to each Holder, at his address appearing in the Security
Register, a notice stating or including:
(1) that the Holder has the right to require the
Company to repurchase, subject to proration, such Holder's
Securities at the Offered Price;
(2) the Offer Date;
(3) the instructions a Holder must follow in order to
have his Securities purchased in accordance with paragraph (c)
of this Section;
(4) (i) the most recently filed Annual Report on Form
10-K (including audited consolidated financial statements) of
the Company, the most recent subsequently filed Quarterly
Report on Form 10-Q, as applicable, and any Current Report on
Form 8-K of the Company filed subsequent to such Quarterly
Report, other than Current Reports describing Asset Sales
otherwise described in the offering materials (or
corresponding successor reports) (or in the event the Company
is not required to prepare any of the foregoing Forms, the
comparable information required pursuant to Section 1019),
(ii) a description of material developments, if any, in the
Company's business subsequent to the date of the latest of
such reports, (iii) if material, appropriate pro forma
financial information, and (iv) such other information, if
any, concerning the business of the Company which the Company
in good faith believes will enable such Holders to make an
informed investment decision regarding the Offer;
(5) the Offered Price;
(6) the names and addresses of the Paying Agent and
the offices or agencies referred to in Section 1002;
(7) that Securities must be surrendered prior to the
Offer Date to the Paying Agent at the office of the Paying
Agent or to an office or agency referred to in Section 1002 to
collect payment;
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(8) that any Securities not tendered will continue to
accrue interest and that unless the Company defaults in the
payment of the Offered Price, any Security accepted for
payment pursuant to the Offer shall cease to accrue interest
on and after the Offer Date;
(9) the procedures for withdrawing a tender; and
(10) that the Offered Price for any Security which
has been properly tendered and not withdrawn and which has
been accepted for payment pursuant to the Offer will be paid
promptly following the Offered Date.
(g) Holders electing to have Securities purchased hereunder
will be required to surrender such Securities at the address specified in the
notice prior to the Offer Date. Holders will be entitled to withdraw their
election to have their Securities purchased pursuant to this Section 1012 if the
Company receives, not later than one Business Day prior to the Offer Date, a
telegram, telex, facsimile transmission or letter setting forth (1) the name of
the Holder, (2) the certificate number of the Security in respect of which such
notice of withdrawal is being submitted, (3) the principal amount of the
Security (which shall be $1,000 or an integral multiple thereof) delivered for
purchase by the Holder as to which his election is to be withdrawn, (4) a
statement that such Holder is withdrawing his election to have such principal
amount of such Security purchased, and (5) the principal amount, if any, of such
Security (which shall be $1,000 or an integral multiple thereof) that remains
subject to the original notice of the Offer and that has been or will be
delivered for purchase by the Company.
(h) The Company shall (i) not later than the Offer Date,
accept for payment Securities or portions thereof tendered pursuant to the
Offer, (ii) not later than 10:00 a.m. (New York time) on the Offer Date, deposit
with the Trustee or with a Paying Agent an amount of money in same day funds (or
New York Clearing House funds if such deposit is made prior to the Offer Date)
sufficient to pay the aggregate Offered Price of all the Securities or portions
thereof which are to be purchased on that date and (iii) not later than 10:00
a.m. (New York time) on the Offer Date, deliver to the Paying Agent an Officers'
Certificate stating the Securities or portions thereof accepted for payment by
the Company. The Paying Agent shall promptly mail or deliver to Holders of
Securities so accepted payment in an amount equal to the Offered Price of the
Securities purchased from each such Holder, and the Company shall execute and
the Trustee shall promptly authenticate and mail or deliver to such Holders a
new Security equal in principal amount to any unpurchased portion of the
Security surrendered. Any Securities not so accepted shall be promptly mailed or
delivered by the Paying Agent at the Company's expense to the Holder thereof.
For purposes of this Section 1012, the Company shall choose a Paying Agent which
shall not be the Company.
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Subject to applicable escheat laws, the Trustee and the Paying
Agent shall return to the Company any cash that remains unclaimed, together with
interest, if any, thereon, held by them for the payment of the Offered Price;
provided, however, that (x) to the extent that the aggregate amount of cash
deposited by the Company with the Trustee in respect of an Offer exceeds the
aggregate Offered Price of the Securities or portions thereof to be purchased,
then the Trustee shall hold such excess for the Company and (y) unless otherwise
directed by the Company in writing, promptly after the Business Day following
the Offer Date the Trustee shall return any such excess to the Company together
with interest or dividends, if any, thereon.
(i) Securities to be purchased shall, on the Offer Date,
become due and payable at the Offered Price and from and after such date (unless
the Company shall default in the payment of the Offered Price) such Securities
shall cease to bear interest. Such Offered Price shall be paid to such Holder
promptly following the later of the Offer Date and the time of delivery of such
Security to the relevant Paying Agent at the office of such Paying Agent by the
Holder thereof in the manner required. Upon surrender of any such Security for
purchase in accordance with the foregoing provisions, such Security shall be
paid by the Company at the Offered Price; provided, however, that installments
of interest whose Stated Maturity is on or prior to the Offer Date shall be
payable to the Person in whose name the Securities (or any Predecessor
Securities) is registered as such on the relevant Regular Record Dates according
to the terms and the provisions of Section 309; provided, further, that
Securities to be purchased are subject to proration in the event the Excess
Proceeds are less than the aggregate Offered Price of all Securities tendered
for purchase, with such adjustments as may be appropriate by the Trustee so that
only Securities in denominations of $1,000 or integral multiples thereof, shall
be purchased. If any Security tendered for purchase shall not be so paid upon
surrender thereof by deposit of funds with the Trustee or a Paying Agent in
accordance with paragraph (h) above, the principal thereof (and premium, if any,
thereon) shall, until paid, bear interest from the Offer Date at the rate borne
by such Security. Any Security that is to be purchased only in part shall be
surrendered to a Paying Agent at the office of such Paying Agent (with, if the
Company, the Security Registrar or the Trustee so requires, due endorsement by,
or a written instrument of transfer in form satisfactory to the Company and the
Security Registrar or the Trustee duly executed by, the Holder thereof or such
Holder's attorney duly authorized in writing), and the Company shall execute and
the Trustee shall authenticate and deliver to the Holder of such Security,
without service charge, one or more new Securities of any authorized
denomination as requested by such Holder in an aggregate principal amount equal
to, and in exchange for, the portion of the principal amount of the Security so
surrendered that is not purchased. The Company shall publicly announce the
results of the Offer on or as soon as practicable after the Offer Date.
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Section 1013. Limitation on Issuances of Guarantees of and Pledges for
Indebtedness.
(a) The Company will not cause or permit any Restricted
Subsidiary, other than a Guarantor (or a Foreign Subsidiary securing
Indebtedness of another Foreign Subsidiary of the Company), directly or
indirectly, to xxxxx x xxxx on any of its assets as security for the payment of
any Senior Indebtedness of the Company and the Company will not, and will not
permit any Restricted Subsidiary to, pledge any intercompany notes representing
obligations of any Restricted Subsidiary (other than a Guarantor) as security
for the payment of any Senior Indebtedness unless in each case such Restricted
Subsidiary simultaneously executes and delivers a supplemental indenture to this
Indenture providing for a guarantee of payment of the Securities by such
Restricted Subsidiary. The guarantee shall be on the same terms as the guarantee
of the Senior Indebtedness (if a guarantee of Senior Indebtedness is granted by
any such Restricted Subsidiary) except that the guarantee of the Securities need
not be secured and shall be subordinated to the claims against such Restricted
Subsidiary in respect of Senior Guarantor Indebtedness to the same extent as the
Securities are subordinated to Senior Indebtedness of the Company under this
Indenture.
(b) The Company will not cause or permit any Restricted
Subsidiary, other than a Guarantor (or a Foreign Subsidiary guaranteeing
Indebtedness of another Foreign Subsidiary of the Company) (or UAG Citrus
Motors, LLC until such time as it becomes a Wholly Owned Restricted Subsidiary),
directly or indirectly, to guarantee, assume or in any other manner become
liable with respect to any Indebtedness of the Company or any Restricted
Subsidiary unless such Restricted Subsidiary simultaneously executes and
delivers a supplemental indenture to this Indenture providing for a Guarantee of
the Securities on the same terms as the guarantee of such Indebtedness except
that (A) such guarantee need not be secured unless required pursuant to Section
1011; (B) if such Indebtedness is by its terms Senior Indebtedness, any such
assumption, guarantee or other liability of such Restricted Subsidiary with
respect to such Indebtedness shall be senior to such Restricted Subsidiary's
Guarantee of the Securities to the same extent as such Senior Indebtedness is
senior to the Securities; and (C) if such Indebtedness is by its terms expressly
subordinated to the Securities, any such assumption, guarantee or other
liability of such Restricted Subsidiary with respect to such Indebtedness shall
be subordinated to such Restricted Subsidiary's Guarantee of the Securities at
least to the same extent as such Indebtedness is subordinated to the Securities.
(c) Notwithstanding the foregoing, any Guarantee by a
Restricted Subsidiary of the Securities shall provide by its terms that it (and
all Liens securing the same) shall be automatically and unconditionally released
and discharged upon (i) any sale, exchange or transfer, to any Person not an
Affiliate of the Company, of all of the Company's Capital Stock in, or all or
substantially all the assets of, such Restricted
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Subsidiary, which transaction is in compliance with the terms of this Indenture
and pursuant to which transaction such Subsidiary is released from all
guarantees, if any, by it of other Indebtedness of the Company or any Restricted
Subsidiaries or (ii) the release by the holders of the Indebtedness of the
Company of their security interest or their guarantee by such Restricted
Subsidiary (including any deemed release upon payment in full of all obligations
under such Indebtedness), at such time as (A) no other Indebtedness of the
Company has been secured or guaranteed by such Restricted Subsidiary, as the
case may be, or (B) the holders of all such other Indebtedness which is secured
or guaranteed by such Restricted Subsidiary also release their security interest
in or guarantee by such Restricted Subsidiary (including any deemed release upon
payment in full of all obligations under such Indebtedness).
Section 1014. Purchase of Securities upon a Change of Control.
(a) If a Change of Control shall occur at any time, then each
Holder shall have the right to require that the Company purchase such Holder's
Securities in whole or in part in integral multiples of $1,000, at a purchase
price (the "Change of Control Purchase Price") in cash in an amount equal to
101% of the principal amount of such Securities, plus accrued and unpaid
interest, if any, to the date of purchase (the "Change of Control Purchase
Date"), pursuant to the offer described below in this Section 1014 (the "Change
of Control Offer") and in accordance with the other procedures set forth in this
Section 1014.
(b) Within 30 days of any Change of Control or, at the
Company's option, prior to such Change of Control but after it is publicly
announced the Company shall notify the Trustee and give written notice (a
"Change of Control Purchase Notice") of such Change of Control to each Holder,
by first-class mail, postage prepaid, at his address appearing in the Security
Register, stating among other things:
(1) that a Change of Control has occurred or will
occur, the date of such event, and that such Holder has the
right to require the Company to repurchase such Holder's
Securities at the Change of Control Purchase Price;
(2) the circumstances and relevant facts regarding
such Change of Control (including, but not limited to,
information with respect to pro forma historical income, cash
flow and capitalization after giving effect to such Change of
Control);
(3) (i) the most recently filed Annual Report on Form
10-K (including audited consolidated financial statements) of
the Company, the most recent subsequently filed Quarterly
Report on Form 10-Q, as applicable, and any Current Report on
Form 8-K of the Company filed subsequent to such Quarterly
Report (or in the event the Company is not
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required to prepare any of the foregoing Forms, the comparable
information required to be prepared by the Company and any
Guarantor pursuant to Section 1019), (ii) a description of
material developments, if any, in the Company's business
subsequent to the date of the latest of such reports and (iii)
such other information, if any, concerning the business of the
Company which the Company in good faith believes will enable
such Holders to make an informed investment decision regarding
the Change of Control Offer;
(4) that the Change of Control Offer is being made
pursuant to this Section 1014 and that all Securities properly
tendered pursuant to the Change of Control Offer will be
accepted for payment at the Change of Control Purchase Price;
(5) the Change of Control Purchase Date, which shall
be a Business Day no earlier than 30 days nor later than 60
days from the date such notice is mailed, or such later date
as is necessary to comply with requirements under the Exchange
Act; provided that the Change of Control Purchase Date may not
occur prior to the Change of Control;
(6) the Change of Control Purchase Price;
(7) the names and addresses of the Paying Agent and
the offices or agencies referred to in Section 1002;
(8) that Securities must be surrendered on or prior
to the Change of Control Purchase Date to the Paying Agent at
the office of the Paying Agent or to an office or agency
referred to in Section 1002 to collect payment;
(9) that the Change of Control Purchase Price for any
Security which has been properly tendered and not withdrawn
will be paid promptly following the Change of Control Offer
Purchase Date;
(10) the procedures that a Holder must follow to
accept a Change of Control Offer or to withdraw such
acceptance;
(11) that any Security not tendered will continue to
accrue interest; and
(12) that, unless the Company defaults in the payment
of the Change of Control Purchase Price, any Securities
accepted for payment pursuant to the Change of Control Offer
shall cease to accrue interest after the Change of Control
Purchase Date.
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(c) Upon receipt by the Company of the proper tender of
Securities, the Holder of the Security in respect of which such proper tender
was made shall (unless the tender of such Security is properly withdrawn)
thereafter be entitled to receive solely the Change of Control Purchase Price
with respect to such Security. Upon surrender of any such Security for purchase
in accordance with the foregoing provisions, such Security shall be paid by the
Company at the Change of Control Purchase Price; provided, however, that
installments of interest whose Stated Maturity is on or prior to the Change of
Control Purchase Date shall be payable to the Holders of such Securities, or one
or more Predecessor Securities, registered as such on the relevant Regular
Record Dates according to the terms and the provisions of Section 309. If any
Security tendered for purchase in accordance with the provisions of this Section
1014 shall not be so paid upon surrender thereof, the principal thereof (and
premium, if any, thereon) shall, until paid, bear interest from the Change of
Control Purchase Date at the rate borne by such Security. Holders electing to
have Securities purchased will be required to surrender such Securities to the
Paying Agent at the address specified in the Change of Control Purchase Notice
at least one Business Day prior to the Change of Control Purchase Date. Any
Security that is to be purchased only in part shall be surrendered to a Paying
Agent at the office of such Paying Agent (with, if the Company, the Security
Registrar or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar or the Trustee, as the case may be, duly executed by, the Holder
thereof or such Holder's attorney duly authorized in writing), and the Company
shall execute and the Trustee shall authenticate and deliver to the Holder of
such Security, without service charge, one or more new Securities of any
authorized denomination as requested by such Holder in an aggregate principal
amount equal to, and in exchange for, the portion of the principal amount of the
Security so surrendered that is not purchased.
(d) The Company shall (i) not later than the Change of Control
Purchase Date, accept for payment Securities or portions thereof tendered
pursuant to the Change of Control Offer, (ii) not later than 10:00 a.m. (New
York time) on the Change of Control Purchase Date, deposit with the Trustee or
with a Paying Agent an amount of money in same day funds sufficient to pay the
aggregate Change of Control Purchase Price of all the Securities or portions
thereof which are to be purchased as of the Change of Control Purchase Date and
(iii) not later than 10:00 a.m. (New York time) on the Change of Control
Purchase Date, deliver to the Paying Agent an Officers' Certificate stating the
Securities or portions thereof accepted for payment by the Company. The Paying
Agent shall promptly mail or deliver to Holders of Securities so accepted
payment in an amount equal to the Change of Control Purchase Price of the
Securities purchased from each such Holder, and the Company shall execute and
the Trustee shall promptly authenticate and mail or deliver to such Holders a
new Security equal in principal amount to any unpurchased portion of the
Security surrendered. Any Securities not so accepted shall be promptly mailed or
delivered by the Paying Agent at the Company's expense to the Holder thereof.
The Company will publicly announce the results of the Change of
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Control Offer on the Change of Control Purchase Date. For purposes of this
Section 1014, the Company shall choose a Paying Agent which shall not be the
Company.
(e) A tender made in response to a Change of Control Purchase
Notice may be withdrawn if the Company receives, not later than one Business Day
prior to the Change of Control Purchase Date, a telegram, telex, facsimile
transmission or letter, specifying, as applicable:
(1) the name of the Holder;
(2) the certificate number of the Security in respect
of which such notice of withdrawal is being submitted;
(3) the principal amount of the Security (which shall
be $1,000 or an integral multiple thereof) delivered for
purchase by the Holder as to which such notice of withdrawal
is being submitted;
(4) a statement that such Holder is withdrawing his
election to have such principal amount of such Security
purchased; and
(5) the principal amount, if any, of such Security
(which shall be $1,000 or an integral multiple thereof) that
remains subject to the original Change of Control Purchase
Notice and that has been or will be delivered for purchase by
the Company.
(f) Subject to applicable escheat laws, the Trustee and the
Paying Agent shall return to the Company any cash that remains unclaimed,
together with interest or dividends, if any, thereon, held by them for the
payment of the Change of Control Purchase Price; provided, however, that, (x) to
the extent that the aggregate amount of cash deposited by the Company pursuant
to clause (ii) of paragraph (d) above exceeds the aggregate Change of Control
Purchase Price of the Securities or portions thereof to be purchased, then the
Trustee shall hold such excess for the Company and (y) unless otherwise directed
by the Company in writing, promptly after the Business Day following the Change
of Control Purchase Date the Trustee shall return any such excess to the Company
together with interest, if any, thereon.
(g) The Company shall comply, to the extent applicable, with
the applicable tender offer rules, including Rule 14e-1 under the Exchange Act,
and any other applicable securities laws or regulations in connection with a
Change of Control Offer.
(h) Notwithstanding the foregoing, the Company will not be
required to make a Change of Control Offer upon a Change of Control if a third
party makes the Change of Control Offer, in the manner, at the times and
otherwise in compliance with the requirements set forth in this Indenture
applicable to a Change of Control Offer made
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by the Company and purchases all the Securities validly tendered and not
withdrawn under such Change of Control Offer.
Section 1015. Limitation on Subsidiary Preferred Stock.
The Company will not permit (a) any Restricted Subsidiary of
the Company to issue, sell or transfer any Preferred Stock, except for (i)
Preferred Stock issued, sold or transferred to the Company or a Wholly Owned
Restricted Subsidiary, (ii) Permitted Subsidiary Preferred Stock, and (iii)
Preferred Stock issued by a Person prior to the time (A) such Person becomes a
Restricted Subsidiary; (B) such Person merges with or into a Restricted
Subsidiary; or (C) a Restricted Subsidiary merges with or into such Person;
provided that such Preferred Stock was not issued or incurred by such Person in
anticipation of the type of transaction contemplated by subclause (A), (B) or
(C) or (b) any Person (other than the Company or a Wholly Owned Restricted
Subsidiary) to acquire Preferred Stock (other than Permitted Subsidiary
Preferred Stock) of any Restricted Subsidiary from the Company or any Restricted
Subsidiary, except, in the case of clause (a) or (b), upon the acquisition of
all the outstanding Capital Stock of such Restricted Subsidiary in accordance
with the terms of this Indenture.
Section 1016. Limitation on Dividends and Other Payment Restrictions
Affecting Subsidiaries.
The Company will not, and will not cause or permit any of its
Restricted Subsidiaries to, directly or indirectly, create or otherwise cause to
exist or become effective any consensual encumbrance or restriction on the
ability of any Restricted Subsidiary to (i) pay dividends or make any other
distribution on its Capital Stock, or any other interest or participation in or
measured by its profits, (ii) pay any Indebtedness owed to the Company or any
other Restricted Subsidiary, (iii) make any Investment in the Company or any
other Restricted Subsidiary, or (iv) transfer any of its properties or assets to
the Company or any other Restricted Subsidiary; except: (a) any encumbrance or
restriction pursuant to an agreement in effect on the initial Issue Date
(including without limitation the Credit Agreement in effect on the initial
Issue Date); (b) any encumbrance or restriction, with respect to a Restricted
Subsidiary that is not a Restricted Subsidiary of the Company on the initial
Issue Date, in existence at the time such Person becomes a Restricted Subsidiary
of the Company and not incurred in connection with, or in contemplation of, such
Person becoming a Restricted Subsidiary, provided that such encumbrances and
restrictions are not applicable to the Company or any Restricted Subsidiary or
the properties or assets of the Company or any Restricted Subsidiary other than
such Subsidiary which is becoming a Restricted Subsidiary; (c) customary
provisions contained in an agreement that has been entered into for the sale or
other disposition of all or substantially all of the Capital Stock or assets of
a Restricted Subsidiary; provided, however, that the restrictions are applicable
only to such Restricted Subsidiary or assets; (d) any encumbrance or restriction
existing under or by reason of applicable law or any requirement of any
regulatory body; (e) customary provisions
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restricting subletting or assignment of any lease governing any leasehold
interest of any Restricted Subsidiary; (f) covenants in franchise agreements
with Manufacturers customary for franchise agreements in the automobile
retailing industry; (g) any encumbrance or restriction contained in any Purchase
Money Obligations for property to the extent such restriction or encumbrance
restricts the transfer of such property; (h) any encumbrances or restrictions in
security agreements securing Indebtedness (other than Subordinated Indebtedness)
of a Guarantor (including any Inventory Facility) (to the extent that such Liens
are otherwise incurred in accordance with Section 1011) that restrict the
transfer of property subject to such agreements, provided that any such
encumbrance or restriction is released to the extent the underlying Lien is
released or the related Indebtedness is repaid; (i) covenants in Inventory
Facilities customary for inventory and floor plan financing in the automobile
retailing industry; (j) any encumbrance related to assets acquired by or merged
into or consolidated with the Company or any Restricted Subsidiary so long as
such encumbrance was not entered into in contemplation of the acquisition,
merger or consolidation transaction; (k) customary non-assignment provisions
contained in any lease governing a leasehold interest or any supply, license or
other agreement entered into in the ordinary course of business of the Company
or any of its Restricted Subsidiaries; (l) Liens securing Indebtedness otherwise
permitted to be incurred under the provisions of Section 1011 herein that limit
the right of the debtor to dispose of the assets subject to such Liens; (m)
restrictions on cash or other deposits or net worth imposed by customers under
contracts entered into in the ordinary course of business; (n) restrictions
contained in any other indenture or instrument governing debt or preferred
securities that are not materially more restrictive, taken as a whole, than
those contained in this Indenture; (o) any encumbrance or restriction existing
under any agreement that extends, renews, refinances or replaces the agreements
containing the encumbrances or restrictions in the foregoing clauses (a), (b),
(j) and (p) or in this clause (o), provided that the terms and conditions of any
such encumbrances or restrictions are no more restrictive in any material
respect than those under or pursuant to the agreement evidencing the
Indebtedness so extended, renewed, refinanced or replaced; (p) restrictions
related solely to Foreign Subsidiaries and created in connection with
Indebtedness of such Foreign Subsidiaries incurred pursuant to clauses (xii),
(xiv) and (xx) of paragraph (b) of Section 1008 herein; and (q) encumbrances or
restrictions that are pursuant to any agreements or arrangements in effect on
the date that Sytner Group plc and its subsidiaries are acquired by the Company
or its Restricted Subsidiaries or in connection with any transaction which
Sytner Group plc has agreed to enter into as of such date, which restrictions
are customary for transactions of similar type, and any amendment, modification
or replacement of any agreement, arrangement or transaction described above that
are not materially more restrictive than those contained in such agreements or
arrangements.
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Section 1017. Limitation on Senior Subordinated Indebtedness.
The Company will not, and will not permit or cause any
Guarantor to, directly or indirectly, create, incur, issue, assume, guarantee or
otherwise in any manner become directly or indirectly liable for or with respect
to or otherwise permit to exist any Indebtedness that is subordinate in right of
payment to any Indebtedness of the Company or such Guarantor, as the case may
be, unless such Indebtedness is also pari passu with the Securities or the
Guarantee of such Guarantor or subordinated in right of payment to the
Securities or such Guarantee at least to the same extent as the Securities or
such Guarantee are subordinated in right of payment to Senior Indebtedness or
such Guarantor's Senior Guarantor Indebtedness, as the case may be, as set forth
in this Indenture.
Section 1018. Limitations on Unrestricted Subsidiaries.
The Company may designate after the initial Issue Date any
Subsidiary as an "Unrestricted Subsidiary" under this Indenture (a
"Designation") only if:
(a) no Default shall have occurred and be continuing at the
time of or after giving effect to such Designation;
(b) the Company would be permitted to make an Investment
(other than a Permitted Investment) at the time of Designation (assuming the
effectiveness of such Designation) pursuant to paragraph (a) of Section 1009
herein in an amount (the "Designation Amount") equal to the greater of (1) the
net book value of the Company's interest in such Subsidiary calculated in
accordance with GAAP or (2) the Fair Market Value of the Company's interest in
such Subsidiary as determined in good faith by the Company's Board of Directors;
(c) the Company would be permitted under this Indenture to
incur $1.00 of additional Indebtedness (other than Permitted Indebtedness)
pursuant to Section 1008 at the time of such Designation (assuming the
effectiveness of such Designation);
(d) such Unrestricted Subsidiary does not own any Capital
Stock in any Restricted Subsidiary of the Company which is not simultaneously
being designated an Unrestricted Subsidiary;
(e) such Unrestricted Subsidiary is not liable, directly or
indirectly, with respect to any Indebtedness other than Unrestricted Subsidiary
Indebtedness, provided that an Unrestricted Subsidiary may provide a Guarantee
for the Securities; and
(f) such Unrestricted Subsidiary is not a party to any
agreement, contract, arrangement or understanding at such time with the Company
or any Restricted Subsidiary unless the terms of any such agreement, contract,
arrangement or understanding are no less favorable to the Company or such
Restricted Subsidiary than
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those that might be obtained at the time from Persons who are not Affiliates of
the Company or, in the event such condition is not satisfied, the value of such
agreement, contract, arrangement or understanding to such Unrestricted
Subsidiary shall be deemed a Restricted Payment.
In the event of any such Designation, the Company shall be
deemed to have made an Investment constituting a Restricted Payment pursuant to
Section 1009 for all purposes of this Indenture in the Designation Amount.
The Company shall not and shall not cause or permit any
Restricted Subsidiary to at any time (x) provide credit support for, or subject
any of its property or assets (other than the Capital Stock of any Unrestricted
Subsidiary) to the satisfaction of, any Indebtedness of any Unrestricted
Subsidiary (including any undertaking, agreement or instrument evidencing such
Indebtedness) (other than Permitted Investments in Unrestricted Subsidiaries) or
(y) be directly or indirectly liable for any Indebtedness of any Unrestricted
Subsidiary. For purposes of the foregoing, the Designation of a Subsidiary of
the Company as an Unrestricted Subsidiary shall be deemed to be the Designation
of all of the Subsidiaries of such Subsidiary.
The Company may revoke any Designation of a Subsidiary as an
Unrestricted Subsidiary (a "Revocation") if:
(a) no Default shall have occurred and be continuing at the
time of and after giving effect to such Revocation;
(b) all Liens and Indebtedness of such Unrestricted Subsidiary
outstanding immediately following such Revocation would, if incurred at such
time, have been permitted to be incurred for all purposes of this Indenture; and
(c) unless such redesignated Subsidiary shall not have any
Indebtedness outstanding (other than Indebtedness that would be Permitted
Indebtedness), immediately after giving effect to such proposed Revocation, and
after giving pro forma effect to the incurrence of any such Indebtedness of such
redesignated Subsidiary as if such Indebtedness was incurred on the date of the
Revocation, the Company could incur $1.00 of additional Indebtedness (other than
Permitted Indebtedness) pursuant to Section 1008 herein.
All Designations and Revocations must be evidenced by a
resolution of the Board of Directors of the Company delivered to the Trustee
certifying compliance with the foregoing provisions.
Section 1019. Provision of Financial Statements.
Whether or not the Company is subject to Section 13(a) or
15(d) of the Exchange Act, the Company and each Guarantor (only to the extent
such Guarantor is
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required under Section 13(a) or 15(d) of the Exchange Act) will, to the extent
permitted under the Exchange Act, file with the Commission the annual reports,
quarterly reports and other documents which the Company and such Guarantor would
have been required to file with the Commission pursuant to Sections 13(a) or
15(d) if the Company or such Guarantor were so subject, such documents to be
filed with the Commission on or prior to the date (the "Required Filing Date")
by which the Company and such Guarantor would have been required so to file such
documents if the Company and such Guarantor were so subject. The Company and any
Guarantor (only to the extent such Guarantor is required under Section 13(a) or
15(d) of the Exchange Act) will also in any event (x) within 15 days of each
Required Filing Date (i) transmit by mail to all Holders, as their names and
addresses appear in the Security Register, without cost to such Holders and (ii)
file with the Trustee copies of the annual reports, quarterly reports and other
documents which the Company and such Guarantor would have been required to file
with the Commission pursuant to Sections 13(a) or 15(d) of the Exchange Act if
the Company and such Guarantor were subject to either of such Sections and (y)
if filing such documents by the Company and such Guarantor with the Commission
is not permitted under the Exchange Act, promptly upon written request and
payment of the reasonable cost of duplication and delivery, supply copies of
such documents to any prospective Holder at the Company's cost. If any
Guarantor's financial statements would be required to be included in the
financial statements filed or delivered pursuant to this Indenture if the
Company were subject to Section 13(a) or 15(d) of the Exchange Act, the Company
shall include such Guarantor's financial statements in any filing or delivery
pursuant to this Indenture. In addition, so long as any of the Securities remain
outstanding, the Company will make available to any prospective purchaser of
Securities or beneficial owner of Securities in connection with any sale thereof
the information required by Rule 144A(d)(4) under the Securities Act, until such
time as the Company has either exchanged the Securities for securities identical
in all material respects which have been registered under the Securities Act or
until such time as the Holders of the Securities have disposed of such
Securities pursuant to an effective registration statement under the Securities
Act.
Section 1020. Statement by Officers as to Default.
(a) The Company will deliver to the Trustee, on or before a
date not more than 120 days after the end of each fiscal year of the Company
ending after the date hereof, and 60 days after the end of each fiscal quarter
ending after the date hereof, a written statement signed by two executive
officers of the Company and the Guarantors, one of whom shall be the principal
executive officer, principal financial officer or principal accounting officer
of the Company and the Guarantors, as to compliance herewith, including whether
or not, after a review of the activities of the Company during such year and of
the Company's and each Guarantor's performance under this Indenture, to the best
knowledge, based on such review, of the signers thereof, the Company and each
Guarantor have fulfilled all of their respective obligations and are in
compliance
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with all conditions and covenants under this Indenture throughout such year and,
if there has been a Default specifying each Default and the nature and status
thereof and any actions being taken by the Company with respect thereto.
(b) When any Default or Event of Default has occurred and is
continuing, or if the Trustee or any Holder or the trustee for or the holder of
any other evidence of Indebtedness of the Company or any Subsidiary gives any
notice or takes any other action with respect to a claimed default the Company
shall deliver to the Trustee by registered or certified mail or facsimile
transmission followed by an originally executed copy of an Officers' Certificate
specifying such Default, Event of Default, notice or other action, the status
thereof and what actions the Company is taking or proposes to take with respect
thereto, within five Business Days after the occurrence of such Default or Event
of Default.
Section 1021. Waiver of Certain Covenants.
The Company may omit in any particular instance to comply with
any covenant or condition set forth in Sections 1006 through 1011, 1013 and 1015
through 1020, if, before or after the time for such compliance, the Holders of
not less than a majority in aggregate principal amount of the Securities at the
time Outstanding shall, by Act of such Holders, waive such compliance in such
instance with such covenant or provision, but no such waiver shall extend to or
affect such covenant or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such covenant or condition shall remain
in full force and effect.
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
Section 1101. Rights of Redemption.
The Securities are subject to redemption at any time on or
after March 15, 2007 at the option of the Company, in whole or in part, subject
to the conditions, and at the Redemption Prices, specified in the form of
Security, together with accrued and unpaid interest, if any, to the Redemption
Date (subject to the right of Holders of record on relevant Regular Record Dates
and Special Record Dates to receive interest due on relevant Interest Payment
Dates and Special Payment Dates).
In addition, at any time prior to March 15, 2005, the Company,
at its option, may use the Net Cash Proceeds of one or more Public Equity
Offerings to redeem up to an aggregate of 35% of the aggregate principal amount
of the Securities issued under the Indenture at a redemption price equal to
109.625% of the aggregate principal
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amount of the Securities redeemed, plus accrued and unpaid interest, if any, to
the Redemption Date (subject to the rights of holders of record on relevant
Regular Record Dates to receive interest due on an Interest Payment Date). At
least 65% of the aggregate principal amount of Securities issued under the
Indenture must remain outstanding immediately after the occurrence of such
redemption. In order to effect this redemption, the Company must mail a notice
of redemption no later than 30 days after the closing of the related Public
Equity Offering and must complete such redemption within 60 days of the closing
of the Public Equity Offering.
Section 1102. Applicability of Article.
Redemption of Securities at the election of the Company or
otherwise, as permitted or required by any provision of this Indenture, shall be
made in accordance with such provision and this Article Eleven.
Section 1103. Election to Redeem; Notice to Trustee.
The election of the Company to redeem any Securities pursuant
to Section 1101 shall be evidenced by a Company Order and an Officers'
Certificate. In case of any redemption at the election of the Company, the
Company shall, not less than 45 nor more than 60 days prior to the Redemption
Date fixed by the Company (unless a shorter notice period shall be satisfactory
to the Trustee), notify the Trustee in writing of such Redemption Date and of
the principal amount of Securities to be redeemed.
Section 1104. Selection by Trustee of Securities to Be Redeemed.
If less than all the Securities are to be redeemed, the
particular Securities or portions thereof to be redeemed shall be determined in
compliance with the requirements of the national security exchange, if any, on
which the Securities are listed, or if the Securities are not so listed, on a
pro rata basis, by lot or by any other method the Trustee shall deem fair and
reasonable.
The Trustee shall promptly notify the Company and the Security
Registrar in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed.
For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to redemption of Securities shall
relate, in the case of any Security redeemed or to be redeemed only in part, to
the portion of the principal amount of such Security which has been or is to be
redeemed.
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Section 1105. Notice of Redemption.
Notice of redemption shall be given by first-class mail,
postage prepaid, mailed not less than 30 days nor more than 60 days prior to the
Redemption Date, to each Holder of Securities to be redeemed, at its address
appearing in the Security Register.
All notices of redemption shall state:
(a) the Redemption Date;
(b) the Redemption Price;
(c) if less than all Outstanding Securities are to be
redeemed, the identification of the particular Securities to be redeemed;
(d) in the case of a Security to be redeemed in part, the
principal amount of such Security to be redeemed and that after the Redemption
Date upon surrender of such Security, new Security or Securities in the
aggregate principal amount equal to the unredeemed portion thereof will be
issued;
(e) that Securities called for redemption must be surrendered
to the Paying Agent to collect the Redemption Price;
(f) that on the Redemption Date the Redemption Price will
become due and payable upon each such Security or portion thereof to be
redeemed, and that (unless the Company shall default in payment of the
Redemption Price) interest thereon shall cease to accrue on and after said date;
(g) the names and addresses of the Paying Agent and the
offices or agencies referred to in Section 1002 where such Securities are to be
surrendered for payment of the Redemption Price;
(h) the CUSIP number, if any, relating to such Securities; and
(i) the procedures that a Holder must follow to surrender the
Securities to be redeemed.
Notice of redemption of Securities to be redeemed at the
election of the Company shall be given by the Company or, at the Company's
written request, by the Trustee in the name and at the expense of the Company.
If the Company elects to give notice of redemption, it shall provide the Trustee
with a certificate stating that such notice has been given in compliance with
the requirements of this Section 1105.
The notice if mailed in the manner herein provided shall be
conclusively presumed to have been given, whether or not the Holder receives
such notice. In any
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case, failure to give such notice by mail or any defect in the notice to the
Holder of any Security designated for redemption as a whole or in part shall not
affect the validity of the proceedings for the redemption of any other Security.
Section 1106. Deposit of Redemption Price.
On or prior to any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company or any of its
Affiliates is acting as Paying Agent, segregate and hold in trust as provided in
Section 1003) an amount of money in same day funds sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date or Special Payment Date) accrued interest on, all the Securities or
portions thereof which are to be redeemed on that date. The Paying Agent shall
promptly mail or deliver to Holders of Securities so redeemed payment in an
amount equal to the Redemption Price of the Securities purchased from each such
Holder. All money, if any, earned on funds held in trust by the Trustee or any
Paying Agent shall be remitted to the Company. For purposes of this Section
1106, the Company shall choose a Paying Agent which shall not be the Company.
Section 1107. Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid, the
Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price therein specified and from and after such date
(unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Holders will be
required to surrender the Securities to be redeemed to the Paying Agent at the
address specified in the notice of redemption at least one Business Day prior to
the Redemption Date. Upon surrender of any such Security for redemption in
accordance with said notice, such Security shall be paid by the Company at the
Redemption Price together with accrued interest to the Redemption Date;
provided, however, that installments of interest whose Stated Maturity is on or
prior to the Redemption Date shall be payable to the Holders of such Securities,
or one or more Predecessor Securities, registered as such on the relevant
Regular Record Dates and Special Record Dates according to the terms and the
provisions of Section 309.
If any Security called for redemption shall not be so paid
upon surrender thereof for redemption, the principal and premium, if any, shall,
until paid, bear interest from the Redemption Date at the rate borne by such
Security.
Section 1108. Securities Redeemed or Purchased in Part.
Any Security which is to be redeemed or purchased only in part
shall be surrendered to the Paying Agent at the office or agency maintained for
such purpose pursuant to Section 1002 (with, if the Company, the Security
Registrar or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to
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the Company, the Security Registrar or the Trustee, as the case may be, duly
executed by, the Holder thereof or such Holder's attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge, a new Security or
Securities, of any authorized denomination as requested by such Holder in
aggregate principal amount equal to, and in exchange for, the unredeemed portion
of the principal of the Security so surrendered that is not redeemed or
purchased.
ARTICLE TWELVE
SATISFACTION AND DISCHARGE
Section 1201. Satisfaction and Discharge of Indenture.
This Indenture shall be discharged and shall cease to be of
further effect (except as to surviving rights of registration of transfer or
exchange of Securities as expressly provided for herein) as to all Outstanding
Securities hereunder, and the Trustee, upon Company Request and at the expense
of the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when
(a) either
(1) all such Securities previously authenticated and
delivered (except (i) lost, stolen or destroyed Securities
which have been replaced or paid as provided in Section 308 or
(ii) all Securities whose payment has theretofore been
deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged
from such trust as provided in Section 1003) have been
delivered to the Trustee for cancellation; or
(2) all Securities not previously delivered to the
Trustee for cancellation (i) have become due and payable, (ii)
will become due and payable at their Stated Maturity within
one year or (iii) are to be called for redemption within one
year under arrangements satisfactory to the Trustee for the
giving of notice of redemption by the Trustee in the name, and
at the expense, of the Company; and the Company or any
Guarantor has irrevocably deposited or caused to be deposited
with the Trustee as trust funds in trust an amount in United
States dollars sufficient to pay and discharge the entire
Indebtedness on the Securities not theretofore delivered to
the Trustee for cancellation, including the principal of,
premium, if any, and accrued interest on, such Securities at
such Maturity, Stated Maturity or Redemption Date;
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(b) the Company or any Guarantor has paid or caused to be paid
all other sums payable hereunder by the Company and any Guarantor; and
(c) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Independent Counsel in form and substance
reasonably satisfactory to the Trustee each stating that (i) all conditions
precedent herein relating to the satisfaction and discharge hereof have been
complied with and (ii) such satisfaction and discharge will not result in a
breach or violation of, or constitute a default under, this Indenture or any
other material agreement or instrument to which the Company, any Guarantor or
any Restricted Subsidiary is a party or by which the Company, any Guarantor or
any Restricted Subsidiary is bound.
Notwithstanding the satisfaction and discharge hereof, the
obligations of the Company to the Trustee under Section 607 and, if United
States dollars shall have been deposited with the Trustee pursuant to subclause
(2) of clause (a) of this Section 1201, the obligations of the Trustee under
Section 1202 and the last paragraph of Section 1003 shall survive.
Section 1202. Application of Trust Money.
Subject to the provisions of the last paragraph of Section
1003, all United States dollars deposited with the Trustee pursuant to Section
1201 shall be held in trust and applied by it, in accordance with the provisions
of the Securities and this Indenture, to the payment, either directly or through
any Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal of,
premium, if any, and interest on, the Securities for whose payment such United
States dollars have been deposited with the Trustee.
ARTICLE THIRTEEN
GUARANTEES
Section 1301. Guarantors' Guarantee.
For value received, each of the Guarantors, in accordance with
this Article Thirteen, hereby absolutely, fully, unconditionally and irrevocably
guarantees, jointly and severally with each other and with each other Person
which may become a Guarantor hereunder, to the Trustee and the Holders, as if
the Guarantors were the principal debtor, the punctual payment and performance
when due of all Indenture Obligations (which for purposes of this Guarantee
shall also be deemed to include all commissions, fees, charges, costs and other
expenses (including reasonable legal fees and disbursements of one counsel)
arising out of or incurred by the Trustee or the Holders in connection with the
enforcement of this Guarantee).
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Section 1302. Continuing Guarantee; No Right of Set-Off; Independent
Obligation.
(a) This Guarantee shall be a continuing guarantee of the
payment and performance of all Indenture Obligations and shall remain in full
force and effect until the payment in full of all of the Indenture Obligations
and shall apply to and secure any ultimate balance due or remaining unpaid to
the Trustee or the Holders in respect of the Indenture Obligations; and this
Guarantee shall not be considered as wholly or partially satisfied by the
payment or liquidation at any time or from time to time of any sum of money for
the time being due or remaining unpaid to the Trustee or the Holders. Without
limiting the generality of the foregoing, each Guarantor's liability shall
extend to all amounts which constitute part of the Indenture Obligations and
would be owed by the Company under this Indenture and the Securities but for the
fact that they are unenforceable, reduced, limited, impaired, suspended or not
allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving the Company.
(b) Each Guarantor, jointly and severally, hereby guarantees
that the Indenture Obligations will be paid to the Trustee without set-off or
counterclaim or other reduction whatsoever (whether for taxes, withholding or
otherwise) in lawful currency of the United States of America.
(c) Each Guarantor, jointly and severally, guarantees that the
Indenture Obligations shall be paid strictly in accordance with their terms
regardless of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights of the holders of the
Securities.
(d) Each Guarantor's liability to pay or perform or cause the
performance of the Indenture Obligations under this Guarantee shall arise
forthwith after demand for payment or performance by the Trustee has been given
to the Guarantors in the manner prescribed in Section 106 hereof.
(e) Except as provided herein, the provisions of this Article
Thirteen cover all agreements between the parties hereto relative to this
Guarantee and none of the parties shall be bound by any representation, warranty
or promise made by any Person relative thereto which is not embodied herein; and
it is specifically acknowledged and agreed that this Guarantee has been
delivered by each Guarantor free of any conditions whatsoever and that no
representations, warranties or promises have been made to any Guarantor
affecting its liabilities hereunder, and that the Trustee shall not be bound by
any representations, warranties or promises now or at any time hereafter made by
the Company to any Guarantor.
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(f) This Guarantee is a guarantee of payment, performance and
compliance and not of collectibility and is in no way conditioned or contingent
upon any attempt to collect from or enforce performance or compliance by the
Company or upon any event or condition whatsoever.
(g) The obligations of the Guarantors set forth herein
constitute the full recourse obligations of the Guarantors enforceable against
them to the full extent of all their assets and properties.
Section 1303. Guarantee Absolute.
The obligations of the Guarantors hereunder are independent of
the obligations of the Company under the Securities and this Indenture and a
separate action or actions may be brought and prosecuted against any Guarantor
whether or not an action or proceeding is brought against the Company and
whether or not the Company is joined in any such action or proceeding. The
liability of the Guarantors hereunder is irrevocable, absolute and unconditional
and (to the extent permitted by law) the liability and obligations of the
Guarantors hereunder shall not be released, discharged, mitigated, waived,
impaired or affected in whole or in part by:
(a) any defect or lack of validity or enforceability in
respect of any Indebtedness or other obligation of
the Company or any other Person under this Indenture
or the Securities, or any agreement or instrument
relating to any of the foregoing;
(b) any grants of time, renewals, extensions,
indulgences, releases, discharges or modifications
which the Trustee or the Holders may extend to, or
make with, the Company, any Guarantor or any other
Person, or any change in the time, manner or place of
payment of, or in any other term of, all or any of
the Indenture Obligations, or any other amendment or
waiver of, or any consent to or departure from, this
Indenture or the Securities, including any increase
or decrease in the Indenture Obligations;
(c) the taking of security from the Company, any
Guarantor or any other Person, and the release,
discharge or alteration of, or other dealing with,
such security;
(d) the occurrence of any change in the laws, rules,
regulations or ordinances of any jurisdiction by any
present or future action of any governmental
authority or court amending, varying, reducing or
otherwise affecting, or purporting to amend, vary,
reduce or
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otherwise affect, any of the Indenture Obligations
and the obligations of any Guarantor hereunder;
(e) the abstention from taking security from the Company,
any Guarantor or any other Person or from perfecting,
continuing to keep perfected or taking advantage of
any security;
(f) any loss, diminution of value or lack of
enforceability of any security received from the
Company, any Guarantor or any other Person, and
including any other guarantees received by the
Trustee;
(g) any other dealings with the Company, any Guarantor or
any other Person, or with any security;
(h) the Trustee's or the Holders' acceptance of
compositions from the Company or any Guarantor;
(i) the application by the Holders or the Trustee of all
monies at any time and from time to time received
from the Company, any Guarantor or any other Person
on account of any indebtedness and liabilities owing
by the Company or any Guarantor to the Trustee or the
Holders, in such manner as the Trustee or the Holders
deems best and the changing of such application in
whole or in part and at any time or from time to
time, or any manner of application of collateral, or
proceeds thereof, to all or any of the Indenture
Obligations, or the manner of sale of any collateral;
(j) the release or discharge of the Company or any
Guarantor of the Securities or of any Person liable
directly as surety or otherwise by operation of law
or otherwise for the Securities, other than an
express release in writing given by the Trustee, on
behalf of the Holders, of the liability and
obligations of any Guarantor hereunder;
(k) any change in the name, business, capital structure
or governing instrument of the Company or any
Guarantor or any refinancing or restructuring of any
of the Indenture Obligations;
(l) the sale of the Company's or any Guarantor's business
or any part thereof;
(m) subject to Section 1314, any merger or consolidation,
arrangement or reorganization of the Company, any
Guarantor, any Person resulting from the merger or
consolidation of the Company or any Guarantor
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with any other Person or any other successor to such
Person or merged or consolidated Person or any other
change in the corporate existence, structure or
ownership of the Company or any Guarantor or any
change in the corporate relationship between the
Company and any Guarantor, or any termination of such
relationship;
(n) the insolvency, bankruptcy, liquidation, winding-up,
dissolution, receivership, arrangement, readjustment,
assignment for the benefit of creditors or
distribution of the assets of the Company or its
assets or any resulting discharge of any obligations
of the Company (whether voluntary or involuntary) or
of any Guarantor (whether voluntary or involuntary)
or the loss of corporate existence;
(o) subject to Section 1314, any arrangement or plan of
reorganization affecting the Company or any
Guarantor;
(p) any failure, omission or delay on the part of the
Company to conform or comply with any term of this
Indenture;
(q) any limitation on the liability or obligations of the
Company or any other Person under this Indenture, or
any discharge, termination, cancellation,
distribution, irregularity, invalidity or
unenforceability in whole or in part of this
Indenture;
(r) any other circumstance (including any statute of
limitations) that might otherwise constitute a
defense available to, or discharge of, the Company or
any Guarantor; or
(s) any modification, compromise, settlement or release
by the Trustee, or by operation of law or otherwise,
of the Indenture Obligations or the liability of the
Company or any other obligor under the Securities, in
whole or in part, and any refusal of payment by the
Trustee, in whole or in part, from any other obligor
or other guarantor in connection with any of the
Indenture Obligations, whether or not with notice to,
or further assent by, or any reservation of rights
against, each of the Guarantors.
Section 1304. Right to Demand Full Performance.
In the event of any demand for payment or performance by the
Trustee from any Guarantor hereunder, subject to the subordination provisions of
this Article Thirteen, the Trustee or the Holders shall have the right to demand
its full claim and to
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receive all dividends or other payments in respect thereof until the Indenture
Obligations have been paid in full, and the Guarantors shall continue to be
jointly and severally liable hereunder for any balance which may be owing to the
Trustee or the Holders by the Company under this Indenture and the Securities.
The retention by the Trustee or the Holders of any security, prior to the
realization by the Trustee or the Holders of its rights to such security upon
foreclosure thereon, shall not, as between the Trustee and any Guarantor, be
considered as a purchase of such security, or as payment, satisfaction or
reduction of the Indenture Obligations due to the Trustee or the Holders by the
Company or any part thereof. Each Guarantor, promptly after demand, subject to
the subordination provisions of this Article Thirteen, will reimburse the
Trustee and the Holders for all costs and expenses of collecting such amount
under, or enforcing this Guarantee, including, without limitation, the
reasonable fees and expenses of counsel.
Section 1305. Waivers.
(a) Each Guarantor hereby expressly waives (to the extent
permitted by law) notice of the acceptance of this Guarantee and notice of the
existence, renewal, extension or the non-performance, non-payment, or
non-observance on the part of the Company of any of the terms, covenants,
conditions and provisions of this Indenture or the Securities or any other
notice whatsoever to or upon the Company or such Guarantor with respect to the
Indenture Obligations, whether by statute, rule of law or otherwise. Each
Guarantor hereby acknowledges communication to it of the terms of this Indenture
and the Securities and all of the provisions therein contained and consents to
and approves the same. Each Guarantor hereby expressly waives (to the extent
permitted by law) diligence, presentment, protest and demand for payment with
respect to (i) any notice of sale, transfer or other disposition of any right,
title to or interest in the Securities by the Holders or in this Indenture, (ii)
any release of any Guarantor from its obligations hereunder resulting from any
loss by it of its rights of subrogation hereunder and (iii) any other
circumstances whatsoever that might otherwise constitute a legal or equitable
discharge, release or defense of a guarantor or surety or that might otherwise
limit recourse against such Guarantor.
(b) Without prejudice to any of the rights or recourses which
the Trustee or the Holders may have against the Company, each Guarantor hereby
expressly waives (to the extent permitted by law) any right to require the
Trustee or the Holders to:
(i) enforce, assert, exercise, initiate or
exhaust any rights, remedies or recourse
against the Company, any Guarantor or any
other Person under this Indenture or
otherwise;
(ii) value, realize upon, or dispose of any
security of the Company or any other Person
held by the Trustee or the Holders;
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(iii) initiate or exhaust any other remedy which
the Trustee or the Holders may have in law
or equity; or
(iv) mitigate the damages resulting from any
default under this Indenture;
before requiring or becoming entitled to demand payment from such Guarantor
under this Guarantee.
Section 1306. The Guarantors Remain Obligated in Event the Company Is
No Longer Obligated to Discharge Indenture Obligations.
It is the express intention of the Trustee and the Guarantors
that if for any reason the Company has no legal existence, is or becomes under
no legal obligation to discharge the Indenture Obligations owing to the Trustee
or the Holders by the Company or if any of the Indenture Obligations owing by
the Company to the Trustee or the Holders becomes irrecoverable from the Company
by operation of law or for any reason whatsoever, this Guarantee and the
covenants, agreements and obligations of the Guarantors contained in this
Article Thirteen shall nevertheless be binding upon the Guarantors, as principal
debtor, until such time as all such Indenture Obligations have been paid in full
to the Trustee and all Indenture Obligations owing to the Trustee or the Holders
by the Company have been discharged, or such earlier time as Section 402 shall
apply to the Securities and the Guarantors shall be responsible for the payment
thereof to the Trustee or the Holders upon demand.
Section 1307. Fraudulent Conveyance; Contribution; Subrogation.
(a) Each Guarantor that is a Subsidiary of the Company, and by
its acceptance hereof each Holder, hereby confirms that it is the intention of
all such parties that the Guarantee by such Guarantor pursuant to its Guarantee
not constitute a fraudulent transfer or conveyance for purposes of the
Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal or state law. To effectuate the foregoing
intention, the Holders and such Guarantor hereby irrevocably agree that the
obligations of such Guarantor under its Guarantee shall be limited to the
maximum amount which, after giving effect to all other contingent and fixed
liabilities of such Guarantor, and after giving effect to any collections from
or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under its Guarantee or pursuant to its
contribution obligations under this Indenture, will result in the obligations of
such Guarantor under its Guarantee not constituting such fraudulent transfer or
conveyance.
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(b) Each Guarantor that makes a payment or distribution under
its Guarantee shall be entitled to a contribution from each other Guarantor, if
any, in a pro rata amount based on the net assets of each Guarantor, determined
in accordance with GAAP.
(c) Each Guarantor hereby waives all rights of subrogation or
contribution, whether arising by contract or operation of law (including,
without limitation, any such right arising under federal bankruptcy law) or
otherwise by reason of any payment by it pursuant to the provisions of this
Article Thirteen until payment in full of all Indenture Obligations.
Section 1308. Guarantee Is in Addition to Other Security.
This Guarantee shall be in addition to and not in substitution
for any other guarantees or other security which the Trustee may now or
hereafter hold in respect of the Indenture Obligations owing to the Trustee or
the Holders by the Company and (except as may be required by law) the Trustee
shall be under no obligation to marshal in favor of each of the Guarantors any
other guarantees or other security or any moneys or other assets which the
Trustee may be entitled to receive or upon which the Trustee or the Holders may
have a claim.
Section 1309. Release of Security Interests.
Without limiting the generality of the foregoing and except as
otherwise provided in this Indenture, each Guarantor hereby consents and agrees,
to the fullest extent permitted by applicable law, that the rights of the
Trustee hereunder, and the liability of the Guarantors hereunder, shall not be
affected by any and all releases for any purpose of any collateral, if any, from
the Liens and security interests created by any collateral document and that
this Guarantee shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Indenture Obligations is rescinded
or must otherwise be returned by the Trustee upon the insolvency, bankruptcy or
reorganization of the Company or otherwise, all as though such payment had not
been made.
Section 1310. No Bar to Further Actions.
Except as provided by law, no action or proceeding brought or
instituted under Article Thirteen and this Guarantee and no recovery or judgment
in pursuance thereof shall be a bar or defense to any further action or
proceeding which may be brought under Article Thirteen and this Guarantee by
reason of any further default or defaults under Article Thirteen and this
Guarantee or in the payment of any of the Indenture Obligations owing by the
Company.
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Section 1311. Failure to Exercise Rights Shall Not Operate as a Waiver;
No Suspension of Remedies.
(a) No failure to exercise and no delay in exercising, on the
part of the Trustee or the Holders, any right, power, privilege or remedy under
this Article Thirteen and this Guarantee shall operate as a waiver thereof, nor
shall any single or partial exercise of any rights, power, privilege or remedy
preclude any other or further exercise thereof, or the exercise of any other
rights, powers, privileges or remedies. The rights and remedies herein provided
for are cumulative and not exclusive of any rights or remedies provided in law
or equity.
(b) Nothing contained in this Article Thirteen shall limit the
right of the Trustee or the Holders to take any action to accelerate the
maturity of the Securities pursuant to Article Five or to pursue any rights or
remedies hereunder or under applicable law.
Section 1312. Trustee's Duties; Notice to Trustee.
(a) Any provision in this Article Thirteen or elsewhere in
this Indenture allowing the Trustee to request any information or to take any
action authorized by, or on behalf of any Guarantor, shall be permissive and
shall not be obligatory on the Trustee except as the Holders may direct in
accordance with the provisions of this Indenture or where the failure of the
Trustee to request any such information or to take any such action arises from
the Trustee's negligence, bad faith or willful misconduct.
(b) The Trustee shall not be required to inquire into the
existence, powers or capacities of the Company, any Guarantor or the officers,
directors or agents acting or purporting to act on their respective behalf.
Section 1313. Successors and Assigns.
All terms, agreements and conditions of this Article Thirteen
shall extend to and be binding upon each Guarantor and its successors and
permitted assigns and shall enure to the benefit of and may be enforced by the
Trustee and its successors and assigns; provided, however, that the Guarantors
may not assign any of their rights or obligations hereunder other than in
accordance with Article Eight.
Section 1314. Release of Guarantee.
Concurrently with the payment in full of all of the Indenture
Obligations, the Guarantors shall be released from and relieved of their
obligations under this Article Thirteen. Upon the delivery by the Company to the
Trustee of an Officers' Certificate and, if requested by the Trustee, an Opinion
of Counsel to the effect that the transaction
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giving rise to the release of this Guarantee was made by the Company in
accordance with the provisions of this Indenture and the Securities, the Trustee
shall execute any documents reasonably required in order to evidence the release
of the Guarantors from their obligations under this Guarantee. If any of the
Indenture Obligations are revived and reinstated after the termination of this
Guarantee, then all of the obligations of the Guarantors under this Guarantee
shall be revived and reinstated as if this Guarantee had not been terminated
until such time as the Indenture Obligations are paid in full, and each
Guarantor shall enter into an amendment to this Guarantee, reasonably
satisfactory to the Trustee, evidencing such revival and reinstatement.
This Guarantee shall terminate with respect to each Guarantor
and shall be automatically and unconditionally released and discharged as
provided in Section 1013(c).
Section 1315. Execution of Guarantee.
(a) To evidence the Guarantee, each Guarantor hereby agrees to
execute the guarantee substantially in the form set forth in Section 204, to be
endorsed on each Security authenticated and delivered by the Trustee and that
this Indenture shall be executed on behalf of each Guarantor by its Chairman of
the Board, its President, its Chief Executive Officer, its President, its Chief
Operating Officer, one of its Vice Presidents, its Treasurer, its Assistant
Treasurer, its Secretary or its Assistant Secretary. The signature of any of
these officers on the Securities may be manual or facsimile.
(b) Any Person that was not a Guarantor on the initial Issue
Date may become a Guarantor by executing and delivering to the Trustee (i) a
supplemental indenture in form and substance satisfactory to the Trustee, which
subjects such Person to the provisions (including the representations and
warranties) of this Indenture as a Guarantor, (ii) in the event that as of the
date of such supplemental indenture any Registrable Securities are outstanding,
an instrument in form and substance satisfactory to the Trustee which subjects
such Person to the provisions of the Registration Rights Agreement with respect
to such outstanding Registrable Securities, and (iii) an Opinion of Counsel to
the effect that such supplemental indenture has been duly authorized and
executed by such Person and constitutes the legal, valid and binding obligation
of such Person (subject to such customary assumptions and exceptions as may be
acceptable to the Trustee in its reasonable discretion).
(c) If an officer whose signature is on this Indenture no
longer holds that office at the time the Trustee authenticates a Security on
which this Guarantee is endorsed, such Guarantee shall be valid nevertheless.
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Section 1316. Guarantee Subordinate to Senior Indebtedness.
Each Guarantor covenants and agrees, and each Holder of a
Guarantee, by its acceptance thereof, likewise covenants and agrees, that, to
the extent and in the manner hereinafter set forth in this Article, the payment
of the Indenture Obligations are hereby expressly made subordinate and subject
in right of payment as provided in this Article to the prior payment in full in
cash (or otherwise agreed to by the holders of Senior Guarantor Indebtedness) of
all Senior Guarantor Indebtedness; provided, however, that the Indebtedness
represented by this Guarantee in all respects shall rank equally with, or prior
to, all existing and future Indebtedness of such Guarantor that is expressly
subordinated to such Guarantor's Senior Guarantor Indebtedness.
This Article Thirteen shall constitute a continuing offer to
all Persons who, in reliance upon such provisions, become holders of, or
continue to hold Senior Guarantor Indebtedness; and such provisions are made for
the benefit of the holders of Senior Guarantor Indebtedness; and such holders
are made obligees hereunder and they or each of them may enforce directly such
provisions.
Section 1317. Payment Over of Proceeds Upon Dissolution of the
Guarantor, etc.
In the event of (a) any insolvency or bankruptcy case or
proceeding, or any receivership, liquidation, reorganization or other similar
case or proceeding, relative to any Guarantor or its assets, or (b) any
liquidation, dissolution or other winding up of any Guarantor, whether voluntary
or involuntary, or (c) any assignment for the benefit of creditors or any other
marshaling of assets or liabilities of any Guarantor, then and in any such event
(1) all amounts due or to become due on or in respect of the
Senior Guarantor Indebtedness shall first be paid in full in cash (or as
otherwise agreed to by the holders of Senior Guarantor Indebtedness) before the
Holders of the Securities are entitled to receive any payment or distribution of
any kind or character (excluding Permitted Guarantor Junior Payments) on account
of the Guarantee of such Guarantor (other than amounts previously set aside with
the Trustee, or payments previously made, in either case, pursuant to the
provisions of Sections 402 and 403 of this Indenture); and
(2) any payment or distribution of assets of any Guarantor of
any kind or character, whether in cash, property or securities (excluding
Permitted Guarantor Junior Payments), set-off or otherwise, to which the Holders
or the Trustee would be entitled but for the subordination provisions of this
Article shall be paid by the liquidating trustee or agent or other Person making
such payment or distribution, whether a trustee in bankruptcy, a receiver or
liquidating trustee or otherwise, directly to the holders of Senior Guarantor
Indebtedness or their representative or representatives or to the trustee or
trustees under any indenture under which any instruments evidencing any of such
Senior
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Guarantor Indebtedness may have been issued, ratably according to the aggregate
amounts remaining unpaid on account of the Senior Guarantor Indebtedness held or
represented by each, to the extent necessary to make payment in full in cash (or
as otherwise agreed to by the holders of Senior Guarantor Indebtedness) of all
Senior Guarantor Indebtedness remaining unpaid, after giving effect to any
concurrent payment or distribution to the holders of such Senior Guarantor
Indebtedness; and
(3) in the event that, notwithstanding the foregoing
provisions of this Section, the Trustee or the Holder of any Security shall have
received any payment or distribution of assets of any Guarantor of any kind or
character, whether in cash, property or securities (excluding Permitted
Guarantor Junior Payments), in respect of any of the obligations of such
Guarantor under the Guarantee of such Guarantor before all Senior Guarantor
Indebtedness is paid in full in cash (or as otherwise agreed to by holders of
Senior Guarantor Indebtedness), then and in such event such payment or
distribution (excluding Permitted Guarantor Junior Payments) shall be held in
trust for the benefit of, and shall be paid over or delivered forthwith to, the
holders of Senior Guarantor Indebtedness for application to the payment of all
Senior Guarantor Indebtedness remaining unpaid, to the extent necessary to pay
all Senior Guarantor Indebtedness in full in cash (or as otherwise agreed to by
the holders of Senior Guarantor Indebtedness) after giving effect to any
concurrent payment or distribution to or for the holders of Senior Guarantor
Indebtedness.
The consolidation of any Guarantor with, or the merger of any
Guarantor with or into, another Person or the liquidation or dissolution of any
Guarantor following the sale, assignment, conveyance, transfer, lease or other
disposal of its properties and assets substantially as an entirety to another
Person upon the terms and conditions set forth in Article Eight shall not be
deemed a dissolution, winding up, liquidation, reorganization, assignment for
the benefit of creditors or marshaling of assets and liabilities of such
Guarantor for the purposes of this Section if the Person formed by such
consolidation or the surviving entity of such merger or the Person which
acquires by sale, assignment, conveyance, transfer, lease or other disposal of
such properties and assets substantially as an entirety, as the case may be,
shall, as a part of such consolidation, merger, sale, assignment, conveyance,
transfer, lease or other disposal, comply with the conditions set forth in
Article Eight.
Section 1318. Default on Senior Guarantor Indebtedness.
(a) Upon the maturity of any Senior Guarantor Indebtedness by
lapse of time, acceleration or otherwise, all principal thereof and interest
thereon and other amounts due in connection therewith shall first be paid in
full in cash (or as otherwise agreed to by the holders of Senior Guarantor
Indebtedness) before any payment is made by any of the Guarantors or any Person
acting on behalf of any of the Guarantors in respect of the Guarantee of such
Guarantor.
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(b) No payment (excluding payments in the form of Permitted
Guarantor Junior Payments) shall be made by any Guarantor in respect of its
Guarantee during any period in which Section 1317 shall be applicable, while any
Payment Default (as defined in Section 1403(a) of this Indenture) exists or
during any Payment Blockage Period in effect under Sections 1403(b) and (c) of
this Indenture.
(c) In the event that, notwithstanding the foregoing, any
Guarantor shall make any payment to the Trustee or the Holder of its Guarantee
prohibited by the foregoing provisions of this Section, then and in such event
such payment shall be held in trust for the benefit of, and shall be paid over
and delivered forthwith to, the holders of the Senior Guarantor Indebtedness
(pro rata to such holders) or their respective Senior Representatives, as their
interests may appear, for application to the Senior Guarantor Indebtedness until
the Senior Guarantor Indebtedness has been paid in full in cash (or as otherwise
agreed by the holders of Senior Guarantor Indebtedness).
Section 1319. Payment Permitted by Each of the Guarantors if No
Default.
Nothing contained in this Article, elsewhere in this Indenture
or in any of the Securities shall prevent any Guarantor, at any time except
during the pendency of any case, proceeding, dissolution, liquidation or other
winding-up, assignment for the benefit of creditors or other marshaling of
assets and liabilities of such Guarantor referred to in Section 1317 or under
the conditions described in Section 1318, from making payments at any time on
its Guarantee.
Section 1320. Subrogation to Rights of Holders of Senior Guarantor
Indebtedness.
After the payment in full of all Senior Guarantor Indebtedness
in cash (or as otherwise agreed by holders of Senior Guarantor Indebtedness),
the Holders of the Securities shall be subrogated to the rights of the holders
of such Senior Guarantor Indebtedness to receive payments and distributions of
cash, property and securities applicable to the Senior Guarantor Indebtedness
until the principal of, premium, if any, and interest on, the Securities shall
be paid in full. For purposes of such subrogation, no payments or distributions
to the holders of Senior Guarantor Indebtedness of any cash, property or
securities to which the Holders of the Securities or the Trustee would be
entitled except for the provisions of this Article, and no payments over
pursuant to the provisions of this Article to the holders of Senior Guarantor
Indebtedness by Holders of the Securities or the Trustee, shall, as among any
Guarantor, its creditors other than holders of Senior Guarantor Indebtedness,
and the Holders of the Securities, be deemed to be a payment or distribution by
such Guarantor to or on account of the Senior Guarantor Indebtedness.
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Section 1321. Provisions Solely to Define Relative Rights.
The provisions of Sections 1316 through 1329 of this Indenture
are intended solely for the purpose of defining the relative rights of the
Holders of the Securities on the one hand and the holders of Senior Guarantor
Indebtedness on the other hand. Nothing contained in this Article or elsewhere
in this Indenture or in the Securities is intended to or shall (a) impair, as
among any Guarantor, its creditors other than holders of Senior Guarantor
Indebtedness and the Holders of the Securities, the obligation of such
Guarantor, which is absolute and unconditional, to make payments to the Holders
of the Securities in respect of its obligations under the Guarantee as and when
the same shall become due and payable in accordance with their terms; or (b)
affect the relative rights against each of the Guarantors of the Holders of the
Securities and creditors of each of the Guarantors other than the holders of
Senior Guarantor Indebtedness; or (c) prevent the Trustee or the Holder of any
Security from exercising all remedies otherwise permitted by applicable law upon
default under this Indenture, subject to the rights, if any, under this Article
of the holders of Senior Guarantor Indebtedness (1) in any case, proceeding,
dissolution, liquidation or other winding up, assignment for the benefit of
creditors or other marshaling of assets and liabilities of the Guarantors
referred to in Section 1317, to receive, pursuant to and in accordance with such
Section, cash, property and securities otherwise payable or deliverable to the
Trustee or such Holder, or (2) under the conditions specified in Section 1318,
to prevent any payment prohibited by such Section or enforce their rights
pursuant to Section 1318(c).
Section 1322. Trustee to Effectuate Subordination.
Each Holder of a Security by such Holder's acceptance thereof
authorizes and directs the Trustee on such Holder's behalf to take such action
as may be necessary or appropriate to effectuate the subordination provided in
this Article and appoints the Trustee such Holder's attorney-in-fact for any and
all such purposes, including, in the event of any dissolution, winding-up,
liquidation or reorganization of any Guarantor whether in bankruptcy,
insolvency, receivership proceedings, or otherwise, the timely filing of a claim
for the unpaid balance of the Indebtedness of any Guarantor owing to such Holder
in the form required in such proceedings and the causing of such claim to be
approved.
If the Trustee does not file a proper claim or proof of debt
in the form required in such proceeding prior to 30 days before the expiration
of the time to file such claim or claims, then the holders of the Senior
Guarantor Indebtedness or their Senior Representatives are hereby authorized to
have the right to file and are hereby authorized to file an appropriate claim
for and on behalf of Holders of said Securities. Nothing herein contained shall
be deemed to authorize the Trustee or the holders of Senior Guarantor
Indebtedness or their Senior Representatives to authorize or consent to or
accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder
thereof, or
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to authorize the Trustee or the holders of Senior Guarantor Indebtedness or
their Senior Representatives to vote in respect of the claim of any Holder in
any such proceeding.
Section 1323. No Waiver of Subordination Provisions.
(a) No right of any present or future holder of any Senior
Guarantor Indebtedness to enforce subordination as herein provided shall at any
time in any way be prejudiced or impaired by any act or failure to act on the
part of any Guarantor or by any act or failure to act, in good faith, by any
such holder, or by any non-compliance by any Guarantor with the terms,
provisions and covenants of this Indenture, regardless of any knowledge thereof
any such holder may have or be otherwise charged with.
(b) Without limiting the generality of subsection (a) of this
Section, the holders of Senior Guarantor Indebtedness may, at any time and from
time to time, without the consent of or notice to the Trustee or the Holders of
the Securities, without incurring responsibility to the Holders of the
Securities and without impairing or releasing the subordination provided in this
Article or the obligations hereunder of the Holders of the Securities to the
holders of Senior Guarantor Indebtedness, do any one or more of the following:
(1) change the manner, place or terms of payment or extend the time of payment
of, or renew or alter, Senior Guarantor Indebtedness or any instrument
evidencing the same or any agreement under which Senior Guarantor Indebtedness
is or may be outstanding; (2) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing Senior Guarantor Indebtedness;
(3) release any Person liable in any manner from the collection or payment of
Senior Guarantor Indebtedness; and (4) exercise or refrain from exercising any
rights against any of the Guarantors and any other Person; provided, however,
that in no event shall any such actions limit the right of the Holders of the
Securities to take any action to accelerate the maturity of the Securities
pursuant to Article Five of this Indenture or to pursue any rights or remedies
hereunder or under applicable laws if the taking of such action does not
otherwise violate the terms of this Article.
Section 1324. Notice to Trustee by Each of the Guarantors.
(a) Each Guarantor shall give prompt written notice to the
Trustee of any fact known to such Guarantor which would prohibit the making of
any payment to or by the Trustee in respect of its Guarantee. Notwithstanding
the provisions of this Article or any other provision of this Indenture, the
Trustee shall not be charged with knowledge of the existence of any facts which
would prohibit the making of any payment to or by the Trustee in respect of the
Securities, unless and until the Trustee shall have received written notice
thereof from any Guarantor or a holder of Senior Guarantor Indebtedness or any
trustee, fiduciary or agent therefor; and, prior to the receipt of any such
written notice, the Trustee shall be entitled in all respects to assume that no
such facts exist; provided, however, that if the Trustee shall not have received
the notice provided for in this Section by Noon, Eastern Time, on the Business
Day prior to the date upon which by
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the terms hereof any money may be payable for any purpose (including, without
limitation, the payment of the principal of, premium, if any, or interest on any
Security), then, anything herein contained to the contrary notwithstanding but
without limiting the rights and remedies of the holders of Senior Guarantor
Indebtedness or any trustee, fiduciary or agent thereof, the Trustee shall have
full power and authority to receive such money and to apply the same to the
purpose for which such money was received and shall not be affected by any
notice to the contrary which may be received by it after such date; nor shall
the Trustee be charged with knowledge of the curing of any such default or the
elimination of the act or condition preventing any such payment unless and until
the Trustee shall have received an Officers' Certificate to such effect.
(b) Subject to Section 601, the Trustee shall be entitled to
rely on the delivery to it of a written notice to the Trustee and each Guarantor
by a Person which represents itself as a representative of one or more holders
of Senior Guarantor Indebtedness or a holder of Senior Guarantor Indebtedness
(or a trustee, fiduciary or agent therefor) to establish that such notice has
been given by a representative of or a holder of Senior Guarantor Indebtedness
(or a trustee, fiduciary or agent therefor); provided, however, that failure to
give such notice to the Company or any Guarantor shall not affect in any way the
ability of the Trustee to rely on such notice. In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any Person as a holder of Senior Guarantor Indebtedness to participate
in any payment or distribution pursuant to this Article, the Trustee may request
such Person to furnish evidence to the reasonable satisfaction of the Trustee as
to the amount of Senior Guarantor Indebtedness held by such Person, the extent
to which such Person is entitled to participate in such payment or distribution
and any other facts pertinent to the rights of such Person under this Article,
and if such evidence is not furnished, the Trustee may defer any payment to such
Person pending judicial determination as to the right of such Person to receive
such payment.
Section 1325. Reliance on Judicial Orders or Certificates.
Upon any payment or distribution of assets of any Guarantor
referred to in this Article, the Trustee and the Holders of the Securities shall
be entitled to rely upon any order or decree entered by any court of competent
jurisdiction in which such insolvency, bankruptcy, receivership, liquidation,
reorganization, dissolution, winding up or similar case or proceeding is
pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors, agent or other Person
making such payment or distribution, delivered to the Trustee or to the Holders
of Securities for the purpose of ascertaining the Persons entitled to
participate in such payment or distribution, the holders of Senior Guarantor
Indebtedness and other Indebtedness of such Guarantor, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article,
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provided that the foregoing shall apply only if such court has been fully
apprised of the provisions of this Article.
Section 1326. Rights of Trustee as a Holder of Senior Guarantor
Indebtedness; Preservation of Trustee's Rights.
The Trustee in its individual capacity shall be entitled to
all the rights set forth in this Article with respect to any Senior Guarantor
Indebtedness which may at any time be held by it, to the same extent as any
other holder of Senior Guarantor Indebtedness, and nothing in this Indenture
shall deprive the Trustee of any of its rights as such holder. Nothing in this
Article shall apply to claims of, or payments to, the Trustee under or pursuant
to Section 607.
Section 1327. Article Applicable to Paying Agents.
In case at any time any Paying Agent other than the Trustee
shall have been appointed by the Company and be then acting under this
Indenture, the term "Trustee" as used in this Article shall in such case (unless
the context otherwise requires) be construed as extending to and including such
Paying Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this Article in addition to or in place of the
Trustee; provided, however, that Section 1326 shall not apply to the Company or
any Affiliate of the Company if it or such Affiliate acts as Paying Agent.
Section 1328. No Suspension of Remedies.
Nothing contained in this Article shall limit the right of the
Trustee or the Holders of Securities to take any action to accelerate the
maturity of the Securities pursuant to Article Five of this Indenture or to
pursue any rights or remedies hereunder or under applicable law, subject to the
rights, if any, under this Article of the holders, from time to time, of Senior
Guarantor Indebtedness to receive the cash, property or securities receivable
upon the exercise of such rights or remedies.
Section 1329. Trustee's Relation to Senior Guarantor Indebtedness.
With respect to the holders of Senior Guarantor Indebtedness,
the Trustee undertakes to perform or to observe only such of its covenants and
obligations as are specifically set forth in this Article, and no implied
covenants or obligations with respect to the holders of the Senior Guarantor
Indebtedness shall be read into this Article against the Trustee. The Trustee
shall not be deemed to owe any fiduciary duty to the holders of Senior Guarantor
Indebtedness.
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ARTICLE FOURTEEN
SUBORDINATION OF SECURITIES
Section 1401. Securities Subordinate to Senior Indebtedness.
The Company covenants and agrees, and each Holder of a
Security, by its acceptance thereof, likewise covenants and agrees, that, to the
extent and in the manner hereinafter set forth in this Article, the payment of
the Indenture Obligations are hereby expressly made subordinate and subject in
right of payment as provided in this Article to the prior payment in full in
cash (or as otherwise agreed to by the holders of Senior Indebtedness) of all
Senior Indebtedness.
This Article Fourteen shall constitute a continuing offer to
all Persons who, in reliance upon such provisions, become holders of, or
continue to hold Senior Indebtedness; and such provisions are made for the
benefit of the holders of Senior Indebtedness; and such holders are made
obligees hereunder and they or each of them may enforce directly such
provisions.
Section 1402. Payment Over of Proceeds Upon Dissolution, etc.
(1) In the event of (a) any insolvency or bankruptcy case or
proceeding, or any receivership, liquidation, reorganization or other similar
case or proceeding in connection therewith, relative to the Company or its
assets, or (b) any liquidation, dissolution or other winding up of the Company,
whether voluntary or involuntary, or whether or not involving insolvency or
bankruptcy, or (c) any assignment for the benefit of creditors or any other
marshaling of assets or liabilities of the Company, then and in any such event
all amounts due or to become due on or in respect of the Senior Indebtedness
shall first be paid in full in cash (or as otherwise agreed to by the holders of
Senior Indebtedness) before the Holders of the Securities are entitled to
receive any payment or distribution of any kind or character (excluding
Permitted Junior Payments) on account of the Indenture Obligations or on account
of the purchase, redemption, defeasance or other acquisition of, or in respect
of, the Indenture Obligations (other than amounts previously set aside with the
Trustee, or payments previously made, in either case, pursuant to the provisions
of Sections 402 and 403 of this Indenture);
(2) any payment or distribution of assets of the Company of
any kind or character, whether in cash, property or securities (other than
Permitted Junior Payments), by set-off or otherwise, to which the Holders or the
Trustee would be entitled but for the provisions of this Article shall be paid
by the liquidating trustee or agent or other Person making such payment or
distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee
or otherwise, directly to the holders of Senior Indebtedness or their
representative or representatives or to the trustee or trustees under any
indenture under which any instruments evidencing any of such Senior Indebtedness
may have been
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issued, ratably according to the aggregate amounts remaining unpaid on account
of the Senior Indebtedness held or represented by each, to the extent necessary
to make payment in full in cash (or as otherwise agreed to by the holders of
Senior Indebtedness), of all Senior Indebtedness remaining unpaid, after giving
effect to any concurrent payment or distribution to the holders of such Senior
Indebtedness; and
(3) in the event that, notwithstanding the foregoing
provisions of this Section, the Trustee or the Holder of any Security shall have
received any payment or distribution of assets of the Company of any kind or
character, whether in cash, property or securities (excluding Permitted Junior
Payments), in respect of the Indenture Obligations before all Senior
Indebtedness is paid in full in cash (or as otherwise agreed to by the holders
of Senior Indebtedness), then and in such event such payment or distribution
(excluding Permitted Junior Payments) shall be held in Trust for the benefit of,
and shall be paid over or delivered forthwith to, the holders of Senior
Indebtedness for application to the payment of all Senior Indebtedness remaining
unpaid, to the extent necessary to pay all Senior Indebtedness in full in cash
(or as otherwise agreed to by the holders of Senior Indebtedness), after giving
effect to any concurrent payment or distribution to or for the holders of Senior
Indebtedness.
The consolidation of the Company with, or the merger of the
Company with or into, another Person or the liquidation or dissolution of the
Company following the sale, assignment, conveyance, transfer, lease or other
disposal of its properties and assets substantially as an entirety to another
Person upon the terms and conditions set forth in Article Eight shall not be
deemed a dissolution, winding up, liquidation, reorganization, assignment for
the benefit of creditors or marshaling of assets and liabilities of the Company
for the purposes of this Section if the Person formed by such consolidation or
the surviving entity of such merger or the Person which acquires by sale,
assignment, conveyance, transfer, lease or other disposal of such properties and
assets substantially as an entirety, as the case may be, shall, as a part of
such consolidation, merger, sale, assignment, conveyance, transfer, lease or
other disposal, comply with the conditions set forth in Article Eight.
Section 1403. Suspension of Payment When Designated Senior Indebtedness
in Default.
(a) Unless Section 1402 shall be applicable, upon the
occurrence and during the continuance of any default in the payment of any
Designated Senior Indebtedness (whether upon maturity, mandatory prepayment,
acceleration or otherwise) beyond any applicable grace period (a "Payment
Default"), no payment (other than amounts previously set aside with the Trustee
or payments previously made, in either case, pursuant to Section 402 or 403 of
this Indenture) or distribution of any assets of the Company or any Subsidiary
of any kind or character (excluding Permitted Junior Payments) may be made by
the Company on account of the Indenture Obligations, or on account of the
purchase, redemption, defeasance or other acquisition of or in respect of,
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the Indenture Obligations unless and until such Payment Default shall have been
cured or waived or shall have ceased to exist or such Designated Senior
Indebtedness shall have been discharged or paid in full in cash or as otherwise
agreed to by the holders of Designated Senior Indebtedness, after which the
Company shall (subject to the other provisions of this Article Fourteen) resume
making any and all required payments in respect of the Indenture Obligations,
including any missed payments.
(b) Unless Section 1402 shall be applicable, (1) upon the
occurrence and during the continuance of any non-payment default or non-payment
event of default with respect to any Designated Senior Indebtedness pursuant to
which the maturity thereof may then be accelerated (a "Non-payment Default") and
(2) after the receipt by the Trustee (i) if Indebtedness is outstanding under
the Credit Agreement, from the agent thereunder and (ii) if no Indebtedness is
outstanding under the Credit Agreement, from a Senior Representative, of written
notice of such Non-payment Default, no payment (other than any amounts
previously set aside with the Trustee, or payments previously made, in either
case, pursuant to the provisions of Section 402 or 403 of this Indenture) or
distribution of any assets of the Company of any kind or character (excluding
any Permitted Junior Securities) may be made by the Company or any Subsidiary on
account of the Indenture Obligations, or on account of the purchase, redemption,
defeasance or other acquisition of, or in respect of, the Indenture Obligations
for the period specified below ("Payment Blockage Period").
(c) The Payment Blockage Period shall commence upon the
receipt of notice of the Non-payment Default by the Trustee and the Company from
a Senior Representative and shall end on the earliest of (i) the 179th day after
such commencement, (ii) the date on which such Non-payment Default (and all
other Non-payment Defaults as to which notice is given after such Payment
Blockage Period is initiated) is cured, waived or ceases to exist or on which
such Designated Senior Indebtedness is discharged or paid in full in cash or as
otherwise agreed to by the holders of Designated Senior Indebtedness, or (iii)
the date on which such Payment Blockage Period (and all Non-payment Defaults as
to which notice is given after such Payment Blockage Period is initiated) shall
have been terminated by written notice to the Company or the Trustee from the
Senior Representative initiating such Payment Blockage Period, after which, in
the case of clauses (i), (ii) and (iii), the Company shall promptly resume
making any and all required payments in respect of the Securities, including any
missed payments. In no event will a Payment Blockage Period extend beyond 179
days from the date of the receipt by the Company and the Trustee of the notice
initiating such Payment Blockage Period (such 179-day period referred to as the
"Initial Period"). Any number of notices of Non-payment Defaults may be given
during the Initial Period; provided that during any period of 360 consecutive
days only one Payment Blockage Period, during which payment of principal of,
premium, if any, or interest on, the Securities may not be made, may commence
and the duration of such period may not exceed 179 days. No Non-payment Default
with respect to any
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Designated Senior Indebtedness that existed or was continuing on the date of the
commencement of any Payment Blockage Period will be, or can be, made the basis
for the commencement of a second Payment Blockage Period, whether or not within
a period of 360 consecutive days, unless such default has been cured or waived
for a period of not less than 90 consecutive days (it being acknowledged that
any subsequent action or any breach of a financial covenant for a period ending
after the date of commencement of such Payment Blockage Period that, in either
case, would give rise to an event of default pursuant to any provision under
which an event of default previously existed or was continuing shall constitute
a new event of default for this purpose). The Company shall deliver a notice to
the Trustee promptly after the date on which any Non-payment Default is cured or
waived or ceases to exist or on which the Designated Senior Indebtedness related
thereto is discharged or paid in full, and the Trustee is authorized to act in
reliance on such notice.
(d) In the event that, notwithstanding the foregoing, the
Company shall make any payment to the Trustee or the Holder of any Security
prohibited by the foregoing provisions of this Section, then and in such event
such payment shall be held in trust for the benefit of, and shall be paid over
and delivered forthwith to, the holders of the Senior Indebtedness (pro rata to
such holders) or their respective Senior Representatives, as their interests may
appear, for application to Senior Indebtedness until the Senior Indebtedness has
been paid in full in cash (or as otherwise agreed to by the holders of Senior
Indebtedness).
Section 1404. Payment Permitted if No Default.
Nothing contained in this Article, elsewhere in this Indenture
or in any of the Securities shall prevent the Company, at any time except during
the pendency of any case, proceeding, dissolution, liquidation or other
winding-up, assignment for the benefit of creditors or other marshaling of
assets and liabilities of the Company referred to in Section 1402 or under the
conditions described in Section 1403, from making payments at any time of
principal of, premium, if any, or interest on the Securities.
Section 1405. Subrogation to Rights of Holders of Senior Indebtedness.
After the payment in full in cash (or as otherwise agreed by
the holders of Senior Indebtedness) of all Senior Indebtedness, the Holders of
the Securities shall be subrogated to the rights of the holders of such Senior
Indebtedness to receive payments and distributions of cash, property and
securities applicable to the Senior Indebtedness until the principal of,
premium, if any, and interest on, the Securities shall be paid in full. For
purposes of such subrogation, no payments or distributions to the holders of
Senior Indebtedness of any cash, property or securities to which the Holders of
the Securities or the Trustee would be entitled except for the provisions of
this Article, and no payments over pursuant to the provisions of this Article to
the holders of Senior Indebtedness by
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Holders of the Securities or the Trustee, shall, as among the Company, its
creditors other than holders of Senior Indebtedness, and the Holders of the
Securities, be deemed to be a payment or distribution by the Company to or on
account of the Senior Indebtedness.
Section 1406. Provisions Solely to Define Relative Rights.
The provisions of this Article are intended solely for the
purpose of defining the relative rights of the Holders of the Securities on the
one hand and the holders of Senior Indebtedness on the other hand. Nothing
contained in this Article or elsewhere in this Indenture or in the Securities is
intended to or shall (a) impair, as among the Company, its creditors other than
holders of Senior Indebtedness and the Holders of the Securities, the obligation
of the Company, which is absolute and unconditional, to pay to the Holders of
the Securities the principal of, premium, if any, and interest on, the
Securities as and when the same shall become due and payable in accordance with
their terms; or (b) affect the relative rights against the Company of the
Holders of the Securities and creditors of the Company other than the holders of
Senior Indebtedness; or (c) prevent the Trustee or the Holder of any Security
from exercising all remedies otherwise permitted by applicable law upon default
under this Indenture, subject to the rights, if any, under this Article of the
holders of Senior Indebtedness (1) in any case, proceeding, dissolution,
liquidation or other winding up, assignment for the benefit of creditors or
other marshaling of assets and liabilities of the Company referred to in Section
1402, to receive, pursuant to and in accordance with such Section, cash,
property and securities otherwise payable or deliverable to the Trustee or such
Holder, or (2) under the conditions specified in Section 1403, to prevent any
payment prohibited by such Section or enforce their rights pursuant to Section
1403(d).
Section 1407. Trustee to Effectuate Subordination.
Each Holder of a Security by such Holder's acceptance thereof
authorizes and directs the Trustee on such Holder's behalf to take such action
as may be necessary or appropriate to effectuate the subordination provided in
this Article and appoints the Trustee such Holder's attorney-in-fact for any and
all such purposes, including, in the event of any dissolution, winding-up,
liquidation or reorganization of the Company whether in bankruptcy, insolvency,
receivership proceedings, or otherwise, the timely filing of a claim for the
unpaid balance of the Indebtedness of the Company owing to such Holder in the
form required in such proceedings and the causing of such claim to be approved.
If the Trustee does not file a proper claim or proof of debt
in the form required in such proceeding prior to 30 days before the expiration
of the time to file such claim or claims, then the holders of the Senior
Indebtedness or their Senior Representatives are hereby authorized to have the
right to file and are hereby authorized to file an appropriate claim for and on
behalf of the Holders of said Securities. Nothing herein contained shall be
deemed to authorize the Trustee or the holders of Senior
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Indebtedness or their Senior Representatives to authorize or consent to or
accept or adopt on behalf of any Holder any plan or reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder
thereof, or to authorize the Trustee or the holders of Senior Indebtedness or
their Senior Representatives to vote in respect of the claim of any Holder in
any such proceeding.
Section 1408. No Waiver of Subordination Provisions.
(a) No right of any present or future holder of any Senior
Indebtedness to enforce subordination as herein provided shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of
the Company or by any act or failure to act, in good faith, by any such holder,
or by any non-compliance by the Company with the terms, provisions and covenants
of this Indenture, regardless of any knowledge thereof any such holder may have
or be otherwise charged with.
(b) Without limiting the generality of paragraph (a) of this
Section, the holders of Senior Indebtedness may, at any time and from time to
time, without the consent of or notice to the Trustee or the Holders of the
Securities, without incurring responsibility to the Holders of the Securities
and without impairing or releasing the subordination provided in this Article or
the obligations hereunder of the Holders of the Securities to the holders of
Senior Indebtedness, do any one or more of the following: (1) change the manner,
place or terms of payment or extend the time of payment of, or renew or alter,
Senior Indebtedness or any instrument evidencing the same or any agreement under
which Senior Indebtedness is or may be outstanding; (2) sell, exchange, release
or otherwise deal with any property pledged, mortgaged or otherwise securing
Senior Indebtedness; (3) release any Person liable in any manner for the
collection or payment of Senior Indebtedness; and (4) exercise or refrain from
exercising any rights against the Company and any other Person; provided,
however, that in no event shall any such actions limit the right of the Holders
of the Securities to take any action to accelerate the maturity of the
Securities pursuant to Article Five of this Indenture or to pursue any rights or
remedies hereunder or under applicable laws if the taking of such action does
not otherwise violate the terms of this Article.
Section 1409. Notice to Trustee.
(a) The Company shall give prompt written notice to the
Trustee of any fact known to the Company which would prohibit the making of any
payment to or by the Trustee in respect of the Securities. Notwithstanding the
provisions of this Article or any other provision of this Indenture, the Trustee
shall not be charged with knowledge of the existence of any facts which would
prohibit the making of any payment to or by the Trustee in respect of the
Securities, unless and until the Trustee shall have received written notice
thereof from the Company or a holder of Senior Indebtedness or from a Senior
Representative or any trustee, fiduciary or agent therefor; and, prior to the
receipt
- 170 -
of any such written notice, the Trustee shall be entitled in all respects to
assume that no such facts exist; provided, however, that if the Trustee shall
not have received the notice provided for in this Section by Noon, Eastern Time,
on the Business Day prior to the date upon which by the terms hereof any money
may become payable for any purpose (including, without limitation, the payment
of the principal of, premium, if any, or interest on any Security), then,
anything herein contained to the contrary notwithstanding but without limiting
the rights and remedies of the holders of Senior Indebtedness, a Senior
Representative or any trustee, fiduciary or agent thereof, the Trustee shall
have full power and authority to receive such money and to apply the same to the
purpose for which such money was received and shall not be affected by any
notice to the contrary which may be received by it after such date; nor shall
the Trustee be charged with knowledge of the curing of any such default or the
elimination of the act or condition preventing any such payment unless and until
the Trustee shall have received an Officers' Certificate to such effect.
(b) Subject to Section 601, the Trustee shall be entitled to
rely on the delivery to it of a written notice to the Trustee and the Company by
a Person representing himself to be a Senior Representative or a holder of
Senior Indebtedness (or a trustee, fiduciary or agent therefor) to establish
that such notice has been given by a Senior Representative or a holder of Senior
Indebtedness (or a trustee, fiduciary or agent therefor); provided, however,
that failure to give such notice to the Company shall not affect in any way the
ability of the Trustee to rely on such notice. In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any Person as a holder of Senior Indebtedness to participate in any
payment or distribution pursuant to this Article, the Trustee may request such
Person to furnish evidence to the reasonable satisfaction of the Trustee as to
the amount of Senior Indebtedness held by such Person, the extent to which such
Person is entitled to participate in such payment or distribution and any other
facts pertinent to the rights of such Person under this Article, and if such
evidence is not furnished, the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment.
Section 1410. Reliance on Judicial Orders or Certificates.
Upon any payment or distribution of assets of the Company
referred to in this Article, the Trustee and the Holders of the Securities shall
be entitled to rely upon any order or decree entered by any court of competent
jurisdiction in which such insolvency, bankruptcy, receivership, liquidation,
reorganization, dissolution, winding up or similar case or proceeding is
pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors, agent or other Person
making such payment or distribution, or a certificate of a Senior
Representative, delivered to the Trustee or to the Holders of Securities for the
purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of Senior
- 171 -
Indebtedness and other Indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article, provided that the foregoing shall
apply only if such court has been fully apprised of the provisions of this
Article.
Section 1411. Rights of Trustee as a Holder of Senior Indebtedness;
Preservation of Trustee's Rights.
The Trustee in its individual capacity shall be entitled to
all the rights set forth in this Article with respect to any Senior Indebtedness
which may at any time be held by it, to the same extent as any other holder of
Senior Indebtedness, and nothing in this Indenture shall deprive the Trustee of
any of its rights as such holder. Nothing in this Article shall apply to claims
of, or payments to, the Trustee under or pursuant to Section 607.
Section 1412. Article Applicable to Paying Agents.
In case at any time any Paying Agent other than the Trustee
shall have been appointed by the Company and be then acting under this
Indenture, the term "Trustee" as used in this Article shall in such case (unless
the context otherwise requires) be construed as extending to and including such
Paying Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this Article in addition to or in place of the
Trustee; provided, however, that Section 1411 shall not apply to the Company or
any Affiliate of the Company if it or such Affiliate acts as Paying Agent.
Section 1413. No Suspension of Remedies.
Nothing contained in this Article shall limit the right of the
Trustee or the Holders of Securities to take any action to accelerate the
maturity of the Securities pursuant to Article Five of this Indenture or to
pursue any rights or remedies hereunder or under applicable law, subject to the
rights, if any, under this Article of the holders, from time to time, of Senior
Indebtedness to receive the cash, property or securities receivable upon the
exercise of such rights or remedies.
Section 1414. Trustee's Relation to Senior Indebtedness.
With respect to the holders of Senior Indebtedness, the
Trustee undertakes to perform or to observe only such of its covenants and
obligations as are specifically set forth in this Article, and no implied
covenants or obligations with respect to the holders of Senior Indebtedness
shall be read into this Article against the Trustee. The Trustee shall not be
deemed to owe any fiduciary duty to the holders of Senior Indebtedness.
* * *
- 172 -
IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, all as of the day and year first above written.
UNITED AUTO GROUP, Inc.
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Executive Vice President -
Finance
Attest: /s/ Xxxxxx X. Xxxxxxx, Xx.
-------------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Executive Vice President,
General Counsel and Secretary
UAG NORTHEAST BODY SHOP, INC.
XXXXXXX UNITED AUTO GROUP NO. 2, INC.
UAG SOUTHEAST, INC.
UAG DULUTH, INC.
UNITED NISSAN, INC. (GA)
PEACHTREE NISSAN, INC.
UAG TEXAS, INC.
UAG TEXAS II, INC.
UAG EAST, INC.
PALM AUTO PLAZA, INC.
FLORIDA CHRYSLER PLYMOUTH, INC.
WEST PALM NISSAN, INC.
NORTHLAKE AUTO FINISH, INC.
JS IMPORTS, INC.
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Treasurer
Attest: /s/ Xxxxxx X. Xxxxxxx, Xx.
-------------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
WEST PALM AUTO MALL, INC.
AUTO MALL PAYROLL SERVICES, INC.
UAG CAROLINA, INC.
XXXX-XXXXXXX CHEVROLET, INC.
XXXXXXX CHEVROLET-OLDSMOBILE, INC.
XXXX XXXX CHEVROLET, INC.
UAG PARAMOUNT MOTORS, INC.
UAG KISSIMMEE MOTORS, INC.
UNITED AUTOCARE, INC.
UNITED AUTOCARE PRODUCTS, INC.
UNITED AUTO FOURTH FUNDING, INC.
UNITED AUTO FIFTH FUNDING, INC.
UAG FINANCE COMPANY, INC.
ATLANTIC AUTO FUNDING CORPORATION
ATLANTIC AUTO SECOND FUNDING
CORPORATION
ATLANTIC AUTO THIRD FUNDING
CORPORATION
UAG HOUSTON ACQUISITION, LTD.
UAG INTERNATIONAL HOLDINGS, INC.
UAG REALTY, LLC
UNITED AUTO FINANCE, INC.
UAG CONNECTICUT I, LLC
UAG ATLANTA IV MOTORS, INC.
UAG TULSA HOLDINGS, LLC
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Treasurer
Attest: /s/ Xxxxxx X. Xxxxxxx, Xx.
-------------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Secretary
UAG CHCC, INC.
LRP, LTD.
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Assistant Treasurer
Attest: /s/ Xxxxxx X. Xxxxxxx, Xx.
-------------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
UAG NORTHEAST, INC.
DIFEO PARTNERSHIP, INC.
UAG XXXXXX, INC.
SOMERSET MOTORS INC.
XXXXXXX AUTO SALES, INC.
XXXXXXX UNITED AUTO GROUP NO. 6, INC.
XXXXXXX BUICK-PONTIAC, INC.
XXXXXXX FORD NORTH, INC.
UNITED NISSAN, INC.(NV)
UNITED NISSAN, INC (TN)
UAG WEST, INC.
SA AUTOMOTIVE, LTD.
SL AUTOMOTIVE, LTD.
SPA AUTOMOTIVE, LTD.
SUN MOTORS, LTD.
SCOTTSDALE MANAGEMENT GROUP, LTD.
SAU AUTOMOTIVE, LTD.
SK MOTORS, LTD.
KMT/UAG, INC.
RELENTLESS PURSUIT ENTERPRISES, INC.
TRI-CITY LEASING, INC.
HT AUTOMOTIVE, LTD.
WESTBURY SUPERSTORE, LTD.
UNITEDAUTO DODGE OF SHREVEPORT, INC.
XXXXXXXXX XXXX DODGE, INC.
THE NEW GRACELAND DODGE, INC.
UAG GRACELAND II, INC.
UAG MEMPHIS II, INC.
UAG MEMPHIS IV, INC.
UAG MEMPHIS V, INC.
UAG-CARIBBEAN, INC.
XXX XXXXX CHEVROLET, INC.
YOUNG MANAGEMENT GROUP, INC.
UAG YOUNG II, INC.
UAG CLASSIC, INC.
CLASSIC AUTO GROUP, INC.
CLASSIC MANAGEMENT COMPANY, INC.
CLASSIC IMPORTS, INC.
CLASSIC MOTOR SALES, LLC
X. XXXXX CHEVROLET LLC
XXX XXXXX MOTORS LLC
UAG YOUNG AUTOMOTIVE GROUP LLC
YOUNG AUTOMOTOVE HOLDINGS LLC
EUROPA AUTO IMPORTS, INC.
UAG LAKE XXXXXX, LLC
UAG INDIANAPOLIS, LLC
MOTORCARS ACQUISITION, LLC
MOTORCARS ACQUISITION II, LLC
MOTORCARS ACQUISITION III, LLC
SCOTTSDALE FERRARI, LLC
UAG OLDSMOBILE OF INDIANA, LLC
XXXXXXX NORTH, LLC
XXXXXXX PONTIAC GMC, LLC
XXXXXXX SPRING BRANCH, LLC
PIONEER FORD WEST, LLC
UAG CERRITOS, LLC
UAG CONNECTICUT, LLC
UAG FAIRFIELD CA, LLC
UAG FAIRFIELD CM, LLC
UAG FAIRFIELD CP, LLC
UAG XXXXXXX SPRINGDALE, LLC
UAG MENTOR ACQUISITION, LLC
UAG MICHIGAN CADILLAC, LLC
UAG MICHIGAN PONTIAC-GMC, LLC
UAG MICHIGAN T1, LLC
UAG MICHIGAN TMV, LLC
UAG PHOENIX VC, LLC
UAG SPRING, LLC
UNITED RANCH AUTOMOTIVE, LLC
UAG CHEVROLET, INC.
UAG FAIRFIELD CV, LLC
XXXXX XXXXXX CHEVROLET-GEO, INC.
HBL, LLC
MOTORCARS ACQUISITION IV, LLC
UAG NANUET I, LLC
UAG NANUET II, LLC
NISSAN OF NORTH OLMSTED, LLC
XXXXXXX NISSAN, LLC
UAG FAYETTEVILLE I, LLC
UAG FAYETTEVILLE II, LLC
UAG FAYETTEVILLE III, LLC
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Assistant Treasurer
Attest: /s/ Xxxxxx X. Xxxxxxx, Xx.
-------------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
DIFEO HYUNDAI PARTNERSHIP
DIFEO NISSAN PARTNERSHIP
DIFEO CHRYSLER PLYMOUTH JEEP
EAGLE PARTNERSHIP
DIFEO LEASING PARTNERSHIP
DANBURY AUTO PARTNERSHIP
DIFEO TENAFLY PARTNERSHIP
OCT PARTNERSHIP
XXXXXX MOTORS PARTNERSHIP
COUNTY AUTO GROUP PARTNERSHIP
SOMERSET MOTORS PARTNERSHIP
By: DIFEO PARTNERSHIP, INC.
A general partner
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Treasurer
Attest: /s/ Xxxxxx X. Xxxxxxx, Xx.
-------------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
XXXXXXX AUTOMOTIVE, LTD.
By: UAG TEXAS, INC., a general
partner
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Treasurer
Attest: /s/ Xxxxxx X. Xxxxxxx, Xx.
-------------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Secretary
CLASSIC ENTERPRISES, LLC
CLASSIC NISSAN OF TURNERSVILLE, LLC
By: UAG CLASSIC, INC., Member
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Assistant Treasurer
Attest: /s/ Xxxxxx X. Xxxxxxx, Xx.
-------------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
XXXXXXX FORD, INC.
NATIONAL CITY FORD, INC.
CENTRAL FORD CENTER, INC.
PIONEER FORD SALES, INC.
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Assistant Treasurer
Attest: /s/ Xxxxxx X. Xxxxxxx, Xx.
-------------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
CLASSIC TURNERSVILLE
GMG MOTORS, INC.
KMPB, LLC
SCOTTSDALE JAGUAR, LTD.
UNITED AUTO LICENSING, LLC
CJNS, LLC
H.B.L. HOLDINGS, INC.
LANTZSCH-ANDREAS ENTERPRISES, INC.
LMNS, LLC
UAG VK, LLC
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Assistant Secretary
Attest: /s/ Xxxxxx X. Xxxxxxx, Xx.
-------------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Assistant Secretary
UAG TURNERSVILLE REALTY, LLC
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Treasurer
Attest: /s/ Xxxxxx X. Xxxxxxx, Xx.
-------------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
Title: Secretary
STATE OF Michigan )
) ss.:
COUNTY OF XXXXXX )
On the 18th day of March, 2002, before me personally came
Xxxxx X. Xxxxxxxx, ___________ , __________ ; to me known, who, being by me duly
sworn, did depose and say that he resides at ______,________; that he is the
Executive Vice President-Finance of United Auto Group, Inc., a corporation
described in and which executed the foregoing instrument; that he holds the
positions identified on Annex I hereto with respect to each of the guarantors
identified on Annex I hereto, each of which has executed the foregoing
instrument; and that he signed his name thereto pursuant to authority of the
Board of Directors of United Auto Group, Inc. and such guarantors that are
corporations, the Boards of Directors of the general partner of such guarantors
that are limited partnerships, and the members or managers of such guarantors
that are limited liability companies.
(NOTARIAL
SEAL)
/s/ Xxxxx X. Xxxxx
----------------------------------------
Notary Public
----------------------------------------
XXXXX X. XXXXX
Notary Public
State of New Jersey
My Commission Expires April 3, 2003
----------------------------------------
Annex I
GUARANTOR POSITION OF XXXXX X. XXXXXXXX
UAG Northeast Body Shop, Inc. Treasurer
Xxxxxxx United Auto Group No.2, Inc. Treasurer
UAG Southeast, Inc. Treasurer
UAG Duluth, Inc. Treasurer
United Nissan, Inc. (GA) Treasurer
Peachtree Nissan, Inc. Treasurer
UAG Texas, Inc. Treasurer
UAG Texas II, Inc. Treasurer
UAG East, Inc. Treasurer
Palm Auto Plaza, Inc. Treasurer
Florida Chrysler Plymouth, Inc. Treasurer
West Palm Nissan, Inc. Treasurer
Northlake Auto Finish, Inc. Treasurer
JS Imports, Inc. Treasurer
West Palm Auto Mall, Inc. Treasurer
Auto Mall Payroll Services, Inc. Treasurer
UAG Carolina, Inc. Treasurer
- 2 -
Xxxx-Xxxxxxx Chevrolet, Inc. Treasurer
Xxxxxxx Chevrolet-Oldsmobile, Inc. Treasurer
Xxxx Xxxx Chevrolet, Inc. Treasurer
UAG Paramount Motors, Inc. Treasurer
UAG Kissimmee Motors, Inc. Treasurer
United Autocare, Inc. Treasurer
United Autocare Products, Inc. Treasurer
United Auto Fourth Funding, Inc. Treasurer
United Auto Fifth Funding, Inc. Treasurer
UAG Finance Company, Inc. Treasurer
Atlantic Auto Funding Corporation Treasurer
Atlantic Auto Second Funding Treasurer
Corporation
Atlantic Auto Third Funding Corporation Treasurer
UAG Houston Acquisition, Ltd. Treasurer
UAG International Holdings, Inc. Treasurer
UAG Realty, LLC Treasurer
United Auto Finance, Inc. Treasurer
- 3 -
UAG Connecticut I, LLC Treasurer
UAG Atlanta IV Motors, Inc. Treasurer
UAG Tulsa Holdings, LLC Treasurer
UAG CHCC, Inc. Assistant Treasurer
LRP, Ltd. Assistant Treasurer
UAG Northeast, Inc. Assistant Secretary
DiFeo Partnership, Inc. Assistant Secretary
UAG Xxxxxx, Inc. Assistant Secretary
Somerset Motors Inc. Assistant Secretary
Xxxxxxx Auto Sales, Inc. Assistant Secretary
Xxxxxxx United Auto Group No. 6, Inc. Assistant Secretary
Xxxxxxx Buick-Pontiac, Inc. Assistant Secretary
Xxxxxxx Ford North, Inc. Assistant Secretary
United Nissan, Inc. (NV) Assistant Secretary
United Nissan, Inc. (TN), Assistant Secretary
UAG West, Inc. Assistant Secretary
SA Automotive, Ltd. Assistant Secretary
SL Automotive, Ltd. Assistant Secretary
SPA Automotive, Ltd. Assistant Secretary
Sun Motors, Ltd. Assistant Secretary
- 4 -
Scottsdale Management Group, Ltd. Assistant Secretary
Sua Automotive Ltd. Assistant Secretary
SK Motors, Ltd. Assistant Secretary
KMT/UAG, Inc. Assistant Secretary
Relentless Pursuit Enterprises, Inc. Assistant Secretary
Tri-City Leasing, Inc. Assistant Secretary
HT Automotive, Ltd. Assistant Secretary
Westbury Superstore, Ltd. Assistant Secretary
United Auto Dodge of Shreveport, Inc. Assistant Secretary
Xxxxxxxxx Xxxx Dodge, Inc. Assistant Secretary
The New Graceland Dodge, Inc. Assistant Secretary
UAG Graceland II, Inc. Assistant Secretary
UAG Memphis II, Inc. Assistant Secretary
UAG Memphis IV, Inc. Assistant Secretary
UAG Memphis V, Inc. Assistant Secretary
UAG-Caribbean, Inc. Assistant Secretary
Xxx Xxxxx Chevrolet, Inc. Assistant Secretary
Young Management Group, Inc. Assistant Secretary
UAG Young II, Inc. Assistant Secretary
- 5 -
UAG Classic, Inc. Assistant Secretary
Classic Auto Group, Inc. Assistant Secretary
Classic Management Company, Inc. Assistant Secretary
Classic Imports, Inc. Assistant Secretary
Classic Motor Sales, LLC Assistant Secretary
X. Xxxxx Chevrolet LLC Assistant Secretary
Xxx Xxxxx Motors LLC Assistant Secretary
UAG Young Automotive Group LLC Assistant Secretary
Young Automotive Holdings LLC Assistant Secretary
Europa Auto Imports, Inc. Assistant Secretary
UAG Lake Xxxxxx, LLC Assistant Secretary
UAG Indianapolis, LLC Assistant Secretary
Motorcars Acquisition, LLC Assistant Secretary
Motorcars Acquisition II, LLC Assistant Secretary
Motorcars Acquisition III, LLC Assistant Secretary
Scottsdale Ferrari, LLC Assistant Secretary
UAG Oldsmobile of Indiana, LLC Assistant Secretary
Xxxxxxx North, LLC Assistant Secretary
- 6 -
Xxxxxxx Pontiac GMC, LLC Assistant Secretary
Xxxxxxx Spring Branch, LLC Assistant Secretary
Pioneer Ford West, LLC Assistant Secretary
UAG Cerritos, LLC Assistant Secretary
UAG Connecticut LLC Assistant Secretary
UAG Fairfield CA, LLC Assistant Secretary
UAG Fairfield CM, LLC Assistant Secretary
UAG Fairfield CP, LLC Assistant Secretary
UAG Xxxxxxx Springdale, LLC Assistant Secretary
UAG Mentor Acquisition, LLC Assistant Secretary
UAG Michigan Cadillac, LLC Assistant Secretary
UAG Michigan Pontiac-GMC, LLC Assistant Secretary
UAG Michigan T1, LLC Assistant Secretary
UAG Michigan TMV, LLC Assistant Secretary
UAG Phoenix VC, LLC Assistant Secretary
UAG Spring, LLC Assistant Secretary
United Ranch Automotive, LLC Assistant Secretary
UAG Chevrolet, Inc. Assistant Secretary
- 7 -
UAG Fairfield CV, LLC Assistant Secretary
Xxxxx Xxxxxx Chevrolet-GEO, Inc. Assistant Secretary
HBL, LLC Assistant Secretary
Motorcars Acquisition IV, LLC Assistant Secretary
UAG Nanuet I, LLC Assistant Secretary
UAG Nanuet II, LLC Assistant Secretary
Nissan of North Olmsted, LLC Assistant Secretary
Xxxxxxx Nissan, LLC Assistant Secretary
UAG Fayetteville I, LLC Assistant Secretary
UAG Fayetteville II, LLC Assistant Secretary
UAG Fayetteville III, LLC Assistant Secretary
DiFeo Hyundai Partnership Assistant Secretary of DiFeo
Partnership, Inc., a general partner
DiFeo Nissan Partnership Assistant Secretary of DiFeo
Partnership, Inc., a general partner
DiFeo Chrysler Plymouth Jeep Eagle Assistant Secretary of DiFeo
Partnership Partnership, Inc., a general partner
DiFeo Leasing Partnership Assistant Secretary of DiFeo
Partnership, Inc., a general partner
Danbury Auto Partnership Assistant Secretary of DiFeo
Partnership, Inc., a general partner
- 8 -
DiFeo Tenafly Partnership Assistant Secretary of DiFeo
Partnership, Inc., a general partner
OCT Partnership Assistant Secretary of DiFeo
Partnership, Inc., a general partner
Xxxxxx Motors Partnership Assistant Secretary of DiFeo
Partnership, Inc., a general partner
County Auto Group Partnership Assistant Treasurer
Somerset Motors Partnership Assistant Secretary of DiFeo
Partnership, Inc., a general partner
Xxxxxxx Automotive, Ltd. Treasurer of UAG Texas, Inc., a
general partner
Classic Enterprises, LLC Assistant Treasurer of UAG Classic,
Inc., member
Classic Nissan of Turnersville, LLC Assistant Treasurer of UAG Classic,
Inc., member
Xxxxxxx Ford, Inc. Assistant Treasurer
National City Ford, Inc. Assistant Treasurer
Central Ford Center, Inc. Assistant Treasurer
Pioneer Ford Sales, Inc. Assistant Treasurer
Classic Turnersville, Inc. Assistant Secretary
GMG Motors, Inc. Assistant Secretary
- 9 -
KMPB, LLC Assistant Secretary
Scottsdale Jaguar, Ltd. Assistant Secretary
United Auto Licensing, LLC Assistant Secretary
CJNS, LLC Assistant Secretary
H.B.L. Holdings, Inc. Assistant Secretary
Lantzsch-Andreas Enterprises, Inc. Assistant Secretary
LMNS, LLC Assistant Secretary
UAG VK, LLC Assistant Secretary
UAG Turnersville Realty, LLC Treasurer
- 10 -
ANNEX A
INTERCOMPANY NOTE
____________ ___, ____
Evidences of all loans or advances ("Loans") made hereunder
shall be reflected on the grid attached hereto. FOR VALUE RECEIVED, _________, a
_________ corporation (the "Maker"), HEREBY PROMISES TO PAY ON DEMAND to the
order of __________ (the "Holder") the principal sum of the aggregate unpaid
principal amount of all Loans (plus accrued interest thereon) at any time and
from time to time made hereunder which has not been previously paid.
All capitalized terms used herein that are defined in, or by
reference in, the Indenture between United Auto Group, Inc., a Delaware
corporation (the "Company"), the Guarantors and Bank One Trust Company, N.A., as
trustee, dated as of March ____, 2002 (the "Indenture"), have the meanings
assigned to such terms therein, or by reference therein, unless otherwise
defined.
ARTICLE I
TERMS OF INTERCOMPANY NOTE
Section 1.01 Note Not Forgivable. Unless the Maker of the Loan
hereunder is the Company or any Guarantor, the Holder may not forgive any
amounts owing under this intercompany note.
Section 1.02 Interest: Prepayment. (a) The interest rate
("Interest Rate") on the Loans shall be a rate per annum reflected on the grid
attached hereto.
(b) The interest, if any, payable on each of the Loans shall
accrue from the date such Loan is made and, subject to Section 2.01, shall be
payable upon demand of the Holder.
(c) To the extent permitted by law, if the principal or
accrued interest, if any, of the Loans is not paid on the date demand is made,
interest on the unpaid principal and interest will accrue at a rate equal to the
Interest Rate, if any, plus 100 basis points per annum from maturity until the
principal and interest on such Loans are fully paid.
(d) Subject to Section 2.01, any amounts hereunder may be
repaid at any time by the Maker.
Section 1.02 Subordination. All Loans hereunder shall be
subordinated in right of payment to the payment and performance of the
obligations of the Company and
any Subsidiary (which Subsidiary is also an obligor under this Indenture, the
Securities, a Guarantee or other Senior Indebtedness or Pari Passu Indebtedness,
as the case may be, whether as a borrower or guarantor) under this Indenture,
the Securities, the Guarantees or any other Indebtedness ranking senior to or
pari passu with the Securities or the Guarantees, as applicable; provided, that
this provision shall not prohibit the repayment by any Subsidiary of any Loans
of which the Company is the Holder.
ARTICLE II
EVENTS OF DEFAULT
Section 2.01 Events of Default. If after the date of issuance
of this Loan (i) an Event of Default has occurred under this Indenture or (ii)
an "event of default" (as defined) has occurred under any other Indebtedness of
the Company or any Subsidiary, then (x) in the event the Maker is (A) a
Subsidiary which is not a Guarantor or (B) a Guarantor in the case where the
Holder is the Company, all amounts owing under the Loans hereunder shall be
immediately due and payable to the Holder, (y) in the event the Maker is the
Company, the amounts owing under the Loans hereunder shall not be due and
payable at any time and shall not be paid and (z) in the event the Maker is a
Guarantor and the Holder is not the Company or any Guarantor, the amounts owing
under the Loans hereunder shall not be due and payable at any time and shall not
be paid; provided, however, that if such Event of Default or event of default
has been waived, cured or rescinded, such amounts shall no longer be due and
payable in the case of clause (x), and such amounts may be paid in the case of
clauses (y) and (z). If the Holder is a Subsidiary, then the Holder hereby
agrees that if it receives any payments or distributions on any Loan from the
Company or a Guarantor which is not payable pursuant to clause (y) or (z) of the
prior sentence after any Event of Default described in clauses (i) or (ii) or
any event of default described in clause (iii) above has occurred, is continuing
and has not been waived, cured or rescinded, it will pay over and deliver
forthwith to the Company or such Guarantor, as the case may be, all such
payments and distributions.
ARTICLE III
MISCELLANEOUS
Section 3.01 Amendments, Etc. No amendment or waiver of any
provision of this intercompany note, or consent to depart herefrom is permitted
at any time for any reason, except with the consent of the Holders of not less
than a majority in aggregate principal amount of the Outstanding Securities.
Section 3.02 Assignment. No party to this Agreement may
assign, in whole or in part, any of its rights and obligations under this
intercompany note, except to its legal successor in interest.
- 2 -
Section 3.03 Third Party Beneficiaries. The holders of the
Securities or any other Indebtedness ranking pari passu with or senior to, the
Securities or any Guarantees shall be third party beneficiaries to this
intercompany note and upon an Event of Default shall have the right to enforce
this intercompany note against the Company or any of its Subsidiaries.
Section 3.04 Headings. Article and Section headings in this
intercompany note are included for convenience of reference only and shall not
constitute a part of this intercompany note for any other purpose.
Section 3.05 Entire Agreement. This intercompany note sets
forth the entire agreement of the parties with respect to its subject matter and
supersedes all previous understandings, written or oral, in respect thereof.
Section 3.06 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT
GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF).
Section 3.07 Waivers. The Maker hereby waives presentment,
demand for payment, notice of protest and all other demands and notices in
connection with the delivery, acceptance, performance or enforcement hereof.
By:
-----------------------------------
BORROWINGS, MATURITIES, AND PAYMENTS OF PRINCIPAL
Amount of Maturity of Amount
Borrowing/ Borrowing/ Principal Paid Unpaid Principal Notation
Date Principal Principal or Prepaid Balance Made by
---------- ------------ ------------- ---------------- ------------------ ----------
- 3 -
EXHIBIT A
REGULATION S CERTIFICATE
(to be executed by the transferor for transfers in accordance with Regulation S
pursuant to ss.307(a)(i) of the Indenture)
[TRUSTEE INFORMATION]
Re: 9 5/8% Senior Subordinated Notes due 2012 of United Auto
Group, Inc. (the "Securities")
Reference is made to the Indenture, dated as of March 18, 2002 (the
"Indenture"), among United Auto Group, Inc., a Delaware corporation (the
"Company"), the Guarantors and Bank One Trust Company, N.A., as Trustee. Terms
used herein and defined in the Indenture or in Regulation S or Rule 144 under
the U.S. Securities Act of 1933 (the "Securities Act") are used herein as so
defined.
This certificate relates to US$____________ principal amount of
Securities, which are evidenced by the following certificate(s) (the "Specified
Securities"):
CUSIP No(s). ___________________________
CERTIFICATE No(s). _____________________
The person in whose name this certificate is executed below (the
"Undersigned") hereby certifies that either (i) it is the sole beneficial owner
of the Specified Securities or (ii) it is acting on behalf of all the beneficial
owners of the Specified Securities and is duly authorized by them to do so. Such
beneficial owner or owners are referred to herein collectively as the "Owner."
The Specified Securities are represented by a Global Security and are held
through the Depositary or an Agent Member in the name of the Undersigned, as or
on behalf of the Owner.
The Owner has requested that the Specified Securities be transferred to
a person (the "Transferee") who will take delivery in the form of a Regulation S
Global Security. In connection with such transfer, the Owner hereby certifies
that, unless such transfer is being effected pursuant to an effective
registration statement under the Securities Act, it is being effected in
accordance with Rule 904 or Rule 144 under the Securities Act and with all
applicable securities laws of the states of the United States and other
jurisdictions. Accordingly, the Owner hereby further certifies as follows:
(1) Rule 904 Transfers. If the transfer is being
effected in accordance with Rule 904:
A-1
(A) the Owner is not a distributor of the
Securities or an Affiliate of any such distributor or
a person acting on behalf of any of the foregoing;
(B) the offer of the Specified Securities
was not made to a person in the United States;
(C) either:
(i) at the time the buy order was
originated, the Transferee was outside the
United States or the Owner and any person
acting on its behalf reasonably believed
that the Transferee was outside the United
States, or
(ii) the transaction is being executed
in, on or through the facilities of the
Eurobond market, as regulated by the
Association of International Bond Dealers,
or another designated offshore securities
market and neither the Owner nor any person
acting on its behalf knows that the
transaction has been prearranged with a
buyer in the United States;
(D) no directed selling efforts have been
made in the United States by or on behalf of the
Owner or any affiliate thereof;
(E) if the Owner is a dealer in securities
or has received a selling concession, fee or other
remuneration in respect of the Specified Securities,
and the transfer is to occur during the Restricted
Period, then the requirements of Rule 904(c)(1) have
been satisfied; and
(F) the transaction is not part of a plan or
scheme to evade the registration requirements of the
Securities Act.
(2) Rule 144 Transfers. If the transfer is being
effected pursuant to Rule 144:
(A) the transfer is occurring after a
holding period of at least one year (computed in
accordance with paragraph (d) of Rule 144) has
elapsed since the Specified Securities were last
acquired from the Company or from an affiliate of the
Company, whichever is later, and is being effected in
accordance with the applicable amount, manner of sale
and notice requirements of Rule 144; or
(B) the transfer is occurring after a
holding period of at least two years has elapsed
since the Specified Securities were last
A-2
acquired from the Company or from an affiliate of the
Company, whichever is later, and the Owner is not,
and during the preceding three months has not been,
an affiliate of the Company.
This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and the Initial Purchasers.
Dated: (Print the name of the Undersigned, as
such term is defined in the second
paragraph of this certificate.)
By:
-----------------------------------
Name:
Title:
(If the Undersigned is a corporation,
partnership or fiduciary, the title of
the person signing on behalf of the
Undersigned must be stated.)
A-3
EXHIBIT B
RULE 144A CERTIFICATE
(to be executed by the transferor in connection with transfers pursuant to Rule
144A pursuant toss.307(a)(ii) of the Indenture)
[TRUSTEE INFORMATION]
Re: 9 5/8% Senior Subordinated Notes due 2012 of United Auto
Group, Inc. (the "Securities")
Reference is made to the Indenture, dated as of March 18, 2002 (the
"Indenture"), among United Auto Group, Inc., a Delaware corporation (the
"Company"), the Guarantors and Bank One Trust Company, N.A., as Trustee. Terms
used herein and defined in the Indenture or in Regulation S or Rule 144 under
the U.S. Securities Act of 1933 (the "Securities Act") are used herein as so
defined.
This certificate relates to US$_____________ principal amount of
Securities, which are evidenced by the following certificate(s) (the "Specified
Securities"):
CUSIP No(s). ___________________________
ISIN No(s). If any. ____________________
CERTIFICATE No(s). _____________________
The person in whose name this certificate is executed below (the
"Undersigned") hereby certifies that either (i) it is the sole beneficial owner
of the Specified Securities or (ii) it is acting on behalf of all the beneficial
owners of the Specified Securities and is duly authorized by them to do so. Such
beneficial owner or owners are referred to herein collectively as the "Owner".
The Specified Securities are represented by a Global Security and are held
through the Depositary or an Agent Member in the name of the Undersigned, as or
on behalf of the Owner.
The Owner has requested that the Specified Securities be transferred to
a person (the "Transferee") who will take delivery in the form of a Restricted
Security. In connection with such transfer, the Owner hereby certifies that,
unless such transfer is being effected pursuant to an effective registration
statement under the Securities Act, it is being effected in accordance with Rule
144A or Rule 144 under the Securities Act and all applicable securities laws of
the states of the United States and other jurisdictions. Accordingly, the Owner
hereby further certifies as follows:
(1) Rule 144A Transfers. If the transfer is being
effected in accordance with Rule 144A:
B-1
(A) the Specified Securities are being
transferred to a person that the Owner and any person
acting on its behalf reasonably believe is a
"qualified institutional buyer" within the meaning of
Rule 144A, acquiring for its own account or for the
account of a qualified institutional buyer; and
(B) the Owner and any person acting on its
behalf have taken reasonable steps to ensure that the
Transferee is aware that the Owner may be relying on
Rule 144A in connection with the transfer; and
(2) Rule 144 Transfers. If the transfer is being
effected pursuant to Rule 144:
(A) the transfer is occurring after a
holding period of at least one year (computed in
accordance with paragraph (d) of Rule 144) has
elapsed since the Specified Securities were last
acquired from the Company or from an affiliate of the
Company, whichever is later, and is being effected in
accordance with the applicable amount, manner of sale
and notice requirements of Rule 144; or
(B) the transfer is occurring after a
holding period of at least two years has elapsed
since the Specified Securities were last acquired
from the Company or from an affiliate of the Company,
whichever is later, and the Owner is not, and during
the preceding three months has not been, an affiliate
of the Company.
This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and the Initial Purchasers.
Dated:
(Print the name of the Undersigned, as
such term is defined in the second
paragraph of this certificate.)
By:
-----------------------------------
Name:
Title:
(If the Undersigned is a corporation,
partnership or fiduciary, the title of
the person signing on behalf of the
Undersigned must be stated.)
B-2
EXHIBIT C
UNRESTRICTED SECURITIES CERTIFICATE
(For removal of Securities Act Legends pursuant to ss.307(b))
[TRUSTEE INFORMATION]
Re: 9 5/8% Senior Subordinated Notes due 2012 of United Auto
Group, Inc. (the "Securities")
Reference is made to the Indenture, dated as of March 18, 2002 (the
"Indenture"), among United Auto Group, Inc., a Delaware corporation (the
"Company"), the Guarantors and Bank One Trust Company, N.A., as Trustee. Terms
used herein and defined in the Indenture or in Regulation S or Rule 144 under
the U.S. Securities Act of 1933 (the "Securities Act") are used herein as so
defined.
This certificate relates to US$_____________ principal amount of
Securities, which are evidenced by the following certificate(s) (the "Specified
Securities"):
CUSIP No(s). ___________________________
CERTIFICATE No(s). _____________________
The person in whose name this certificate is executed below (the
"Undersigned") hereby certifies that either (i) it is the sole beneficial owner
of the Specified Securities or (ii) it is acting on behalf of all the beneficial
owners of the Specified Securities and is duly authorized by them to do so. Such
beneficial owner or owners are referred to herein collectively as the "Owner".
If the Specified Securities are represented by a Global Security, they are held
through the Depositary or an Agent Member in the name of the Undersigned, as or
on behalf of the Owner. If the Specified Securities are not represented by a
Global Security, they are registered in the name of the Undersigned, as or on
behalf of the Owner.
The Owner has requested that the Specified Securities be exchanged for
Securities bearing no Private Placement Legend pursuant to Section 307(b) of the
Indenture. In connection with such exchange, the Owner hereby certifies that the
exchange is occurring after a holding period of at least two years (computed in
accordance with paragraph (d) of Rule 144) has elapsed since the Specified
Securities were last acquired from the Company or from an affiliate of the
Company, whichever is later, and the Owner is not, and during the preceding
three months has not been, an affiliate of the Company. The Owner also
acknowledges that any future transfers of the Specified Securities must comply
with all applicable securities laws of the states of the United States and other
jurisdictions.
This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and the Initial Purchasers.
C-1
Dated:
(Print the name of the Undersigned, as
such term is defined in the second
paragraph of this certificate.)
By:
-----------------------------------
Name:
Title:
(If the Undersigned is a corporation,
partnership or fiduciary, the title of
the person signing on behalf of the
Undersigned must be stated.)
C-2
